BANKING AFFAIRS

Detailed explanation-1: -(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.

Detailed explanation-2: -Your savings/current account will be considered dormant if you do not make any transactions through it for more than 24 months.

Detailed explanation-3: -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.

Detailed explanation-4: -INACTIVE AND DORMANT ACCOUNT 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.

Detailed explanation-5: -It becomes inoperative after 24 months of inactivity As per RBI guidelines, any savings account without any transactional activity in 24 months becomes inoperative.