ReActivate Dormant Account in Vijaya Bank: Generally, it is seen that the persons who maintain more than one account, they operate one account more than the rest of the account for several reasons be it an easy to operate with or the habit or the convenience. That is the cause why their rest of the accounts become non operative in a long run.
Whenever there is no transaction in any account for more than a period of 24 months or 2 years, that account is categorised by the bank as a dormant account. Any savings or current account can become dormant due to prolonged non operation.
"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" as per RBI guidelines.
The main purpose of categorisation of an account as Dormant Account is to ascertain safety & security of account and also to avoid the risk of fraud in any account, record keeping and periodic review of accounts. The categorisation is there only to bring to the notice of dealing bank staff, the increased risk in the account.
As per Reserve Bank of India (RBI) guidelines, in order to avoid an account become dormant, at least any one of the following transactions should be initiated by the customer within every 24 months:
All system generated transactions like credit of interest on your savings account by bank, penalty levied by bank, service charges initiated by bank, etc. are not considered as transactions initiated by you and hence can't avoid an account being dormant.
Vijaya Bank provides a facility to reactivate a Dormant Account from any of the following ways:
A savings account becomes dormant when there are no transactions carried out in the account for over a period of 2 years. It becomes dormant, if you have not operated your account for over 24 months.
If your account has become dormant then you need to contact your bank's home branch for re-activating your account & KYC updation so that you can enjoy all the banking service without any difficulty.
Following papers should be provided by the account holder to the bank for reactivating dormant account.
Account holder may face many consequences on his/her account being dormant like:
Vijaya Bank makes annual review of all savings bank account and current accounts and in case there is no transaction, Vijaya Bank is required to inform the account holder to activate the account by making some transaction. If the account is not activated in the second year too then Vijaya Bank is again required to inform the customer three months in advance of the account being classified as dormant.
In case the whereabouts of the customers are not traceable, Vijaya Bank shall consider contacting the persons who had introduced the account holder or employer of the account holder.
It is mandatory for the banks to credit the interest on savings bank accounts on regular basis whether the account is operative or not.
Whenever there is no transaction in any account for over 12 months, it becomes Inactive Account but when there is transaction in any account for over 24 months, it is called Dormant Account.
Even if your account becomes dormant, the interest earned on your savings account will periodically be credited to your account.
RBI has asked banks not to levy any penal charges for non-maintenance of minimum balances in any dormant or inoperative account.
Banks are very cautious, if they receive a sudden request for withdrawal from a dormant account.
At the time of filing your income tax returns (ITR), you need to mention the details of all your savings and current accounts, even if they are dormant and inactive accounts.
Banks cannot charge any fees to reactivate a dormant bank account. In case your bank levies any such charge, you are free to report the same to the banking ombudsman.
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