Can dormant account be charged for minimum balance?

Does a bank levy a charge for reactivation of dormant accounts? No. Banks are not supposed to charge for reactivation of dormant accounts.

What happens when a savings account goes dormant?

What Happens to Dormant Accounts? When an account officially becomes dormant, the bank doesn’t get to keep it. A final warning is usually issued one month before the account is turned over to the state. If no response is received, the funds are taken.

What is the duration of a savings account to be treated as a dormant account?

(iv) A savings as well as current account should be treated as inoperative / dormant if there are no transactions in the account for over a period of two years. The accounts which have not been operated upon over a period of two years should be segregated and maintained in separate ledgers.

Should I close dormant bank account?

Many persons do have multiple bank accounts at a time. If an individual is not transacting with a particular bank account then it is advisable to close it as banks levy penalty fees for the non-maintenance of minimum average monthly/quarterly balance and some banks even levy annual maintenance charges.

Can you close a dormant account?

RBI Norms: RBI has advised banks to check due diligence before closing the inactive account without any restrictions. Remember, your account will be treated as active as long as dividend or fixed deposit income is credited into the account.

What regulation covers dormant accounts?

Regulation DD covers interest-bearing as well as noninterest-bearing accounts.

What happens to dormant bank accounts in India?

If your account has been classified dormant by the bank, you need to visit the branch of the bank and make an application to activate the same. If a fixed deposit matures and proceeds are unpaid, the amount left unclaimed with the bank will attract the savings bank rate of interest, according to the central bank.