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Ramalingam Kalirajan offers some easy steps to reactivate your accounts with banks like SBI, HDFC Bank, IDFC First Bank and PNB just so that you can start availing all the benefits linked to your account.
The Reserve Bank of India (RBI) recently reviewed the status of inoperative accounts and unclaimed deposits across various banks, uncovering a significant number of such accounts both in absolute terms and relative to total deposits. Why is this happening?
An inoperative account is a bank account that has had no activity for a certain period, typically over 12 months. This includes no transactions, deposits, or withdrawals.
As per an RBI notification dated December 2, 2024, the primary reasons include prolonged inactivity or delays in periodic KYC updates.
Instances have been reported where customers faced difficulties reactivating their accounts, often due to inadvertent errors like name mismatches.
Moreover, some banks were found to have a backlog of accounts requiring KYC updates, leading to these accounts being frozen for transactions under the banks' internal policies.
What is the RBI's solution? The central bank has urged banks to urgently reduce the number of inoperative or frozen accounts.
They have also recommended simplifying the activation process by enabling seamless KYC updates via mobile or Internet banking, non-home branches, or even through video customer identification processes.
Simplifying Account Activation for Direct Benefit Transfer Accounts
The RBI has urged banks to adopt a more empathetic approach when assisting with the activation of these accounts, as they often belong to underprivileged members of society.
Shouldn't banks take extra steps to support these individuals?
The RBI suggests that banks consider launching special initiatives to simplify the process of reactivating frozen or inactive accounts, ensuring that those who rely on DBT benefits are not left behind.
Your account may be frozen due to prolonged inactivity or if your KYC (Know Your Customer) details are outdated. Banks may freeze accounts as part of their internal policies to comply with regulatory requirements.
For Aadhaar Updates
Did you know banks like HDFC Bank, IDFC FIRST Bank, SBI, and PNB offer Aadhaar-related services at select branches? If your account is inactive, why wait? Here's how you can reactivate your account with ease in these banks.
How to Reactivate Your Inoperative SBI Account
Wondering how to bring your SBI account back to life? It's simple:
Step 1: Visit any SBI branch with your latest KYC documents. Ready to go?
Step 2: Submit a request to the branch to activate your account.
Step 3: The branch will process the activation based on your KYC documents.
Step 4: You'll receive an SMS or email confirming your account activation, how convenient is that?
And the best part? All requests will be processed within three working days once the complete application is received.
How to Reactivate Your Inoperative Account in HDFC Bank
Wondering how to bring your dormant HDFC Bank account back to life? It's simple!
Step 1: Why not visit your nearest HDFC Bank branch and submit a written application with your signature?
Step 2: Don't forget to carry self-attested proof of identity and address -- easy, right?
Step 3: Just make a transaction and your account will be up and running again in no time!
Isn't that straightforward?
How to Reactivate a Dormant Account in IDFC FIRST Bank
Looking to reactivate your dormant IDFC FIRST Bank account? Here's the process:
First, submit a written application to the bank. If it's a joint account, don't forget, signatures from all account holders are required, regardless of the operating mode.
Next, provide your KYC (Know Your Customer) documents, including address proof, PAN card, and identity documents.
Finally, make at least one financial transaction to get your account active again.
And the best part? As per RBI guidelines, no charges can be applied for inoperative accounts, doesn't that make it easy?
How to Reactivate Your Inoperative PNB Account
Wondering how to reactivate your PNB account? Here's what you need to do:
Start by visiting the base branch where your account is maintained and submit a request letter for activation. Don't forget to bring your fresh KYC documents, Ready to update them?
You'll also need to deposit a minimum of Rs 100 into your account to activate it. Plus, providing your Aadhaar number is a must. It will be validated via biometric e-KYC through UIDAI, easy, right?
Once your KYC is updated, and the deposit is made, your account will be reactivated.
Final Takeaway
Reactivating your inoperative account is simple. You need to visit the respective bank branch, submit a request along with updated KYC documents (such as ID and address proof), and make a transaction to activate your account.
With the introduction of seamless KYC updates and the removal of charges on dormant accounts, it's now easier than ever to breathe life back into your account. Don't let your dormant account hinder your access to benefits, act now and stay updated!
Ramalingam K, an MBA in Finance, is a Certified Financial Planner. He is the Director and Chief Financial Planner at holisticinvestment, a leading financial planning and wealth management company
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this article to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.