What happens if money is transferred to a inactive account?

What happens if money is transferred to a inactive account?

Your money can be recovered. As per RBI guidelines, a savings or current account becomes ‘inoperative’ without transactions for two years. If inoperative for 10 years, the account’s balance and interest are transferred to the Depositors’ Education and Awareness Fund, which was launched by the RBI in 2014.

Can I send money to a deactivated account?

No. .you can not transfer funds to any inactive or dormant account. .the dormant account is to be made active by giving letter by the account holder duly signed by specimen signature with KYC document and after making active then only any transaction is possible.

Why do banks charge customers who have inactive accounts?

What frustrates many consumers, are fees where a financial institution isn’t providing a service beyond their day to day business. A prime example of that is the inactive account fee. This fee often is incurred when an account owner doesn’t interact with their account over a period of time.

What does inactive account mean?

Meaning of inactive account in English a bank account that has not been used for a long period of time: Beware of charges for inactive accounts or for closing an account.

How do I reactivate an inactive bank account?

Here are some steps to reactivate the dormant bank account:

1. Step 1: Visit the respective bank.
2. Step 2: Make an application to activate the dormant bank account.
3. Step 3: The account will be activated on the next business day.

How long does a bank keep an inactive account?

Dormant vs. When an account has no transactions for 12 months, it is considered inactive. If there is no activity for 24 months, it is deemed dormant. Remember, system-generated activities like interest credits don’t count. A “transaction” is an activity initiated by the account holder like cashing a check.