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What is the difference between inactive accounts and dormant account?

Open uri20170510 32134 ughyv5?1494421703 gunesh asked almost 3 years ago

Hi I am Gunesh. I am preparing for CA exam. I want to know, What is the difference between inactive accounts and dormant account?

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

System generated transactions, such as interest credit, are not considered valid. However, if you get dividend on shares or the proceeds of your fixed deposit (FD) in your savings account, then it will be considered as a customer induced transaction. Hence, the account will be treated as operative as long as the dividend or FD proceeds is credited to bank account. It will be treated as inoperative only after two years from the date of the last credit entry of dividend or FD, provided there is no other customer induced transaction.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant. As per Reserve Bank of India (RBI) guidelines, an account becomes dormant if a customer does not initiate transactions such as withdrawal of cash at a branch or automated teller machine (ATM), payment by cheque, transfer of funds through Internet banking, phone banking or ATMs.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that What is the difference between inactive accounts and dormant account? Let me informed that If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant. As per Reserve Bank of India (RBI) guidelines, an account becomes dormant if a customer does not initiate transactions such as withdrawal of cash at a branch or automated teller machine (ATM), payment by cheque, transfer of funds through Internet banking, phone banking or ATMs. System generated transactions, such as interest credit, are not considered valid. However, if you get dividend on shares or the proceeds of your fixed deposit (FD) in your savings account, then it will be considered as a customer induced transaction. Hence, the account will be treated as operative as long as the dividend or FD proceeds is credited to bank account. It will be treated as inoperative only after two years from the date of the last credit entry of dividend or FD, provided there is no other customer induced transaction. Once your account is tagged as inactive, you won’t be able to request for a debit card or cheque book, use Internet banking or get user identity (ID) and password. And when it becomes a dormant account, besides the restrictions applicable on an inactive account, you won’t be allowed to change your address, contact number, email address, and do transactions through ATMs, Internet and phone banking. In simple words.... If there are no transactions from last 6 months in a particular bank account it is called inactive account and the same continues for one year it called as dormant account. Hope answer was helpful to you Regards, Arjun Pratap Singh

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