The RBI has issued guidelines for annually reviewing accounts and classifying them as inoperative accounts. Periodic reviews of the accounts will be done by banks and those banks that haven’t seen customer-induced transactions for over a year will be deemed as inoperative accounts.
Guidelines have also been issued for unclaimed deposits in order to reduce fraud & improvise grievance redressal which is applicable from Apr 1, 2024. The Reserve Bank of India has clearly mentioned that the banks cannot impose a penalty on account holders for not maintaining a minimum balance in the accounts that are considered to be inoperative. This move is a part of the efforts made to bring down the number of unclaimed bank deposits.
It also adds that the accounts that were created in order to receive scholarships or direct bank transfers cannot be considered in this category of inoperative accounts no matter they haven’t been used for over a period of two years.
Also Read: Take a look at the Latest RBI Regulations on Credit Report
What are the revised guidelines?
As per the revised guidelines, the banks need to inform the account holder and the deposit holders through letters, sms and emails on their registered numbers and email ids and inform them about the inactivity of their accounts in the previous year. Banks are also expected to reach out to account holders and nominees if the owners do not respond in time.
What are the direct benefits of the revised guidelines to students?lso Read: Take a look at the Latest RBI Regulations on Credit Report
The accounts that were created in order to receive scholarships or direct bank transfers cannot be considered in this category of inoperative accounts no matter they haven’t been used for over a period of two years.
Which accounts are considered to be inoperative?
The accounts that have seen no activity in over a year are considered to be inoperative. The customer induced transactions are considered for this purpose. Bank induced transactions such as charges, penalties, and interest payments are not considered.
Also Read: If you are looking for scholarships to study in the US, check Best International Scholarships to Study in the US
How can one operate inoperative accounts and what are the charges?
As per the RBI, account holders need to submit KYC in order to reactivate their inoperative accounts/ unclaimed deposits . The documents are needed to be sent to all branches including the non-home branches where they hold an account. There are no charges for the activation of inoperative accounts.
The revised circular of the RBI is applicable to all including Commercial and Cooperative Banks and it will come into effect from April 1, 2024.
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