The Reserve Bank of India (RBI) recently conducted a review, which found that the number of inoperative accounts/unclaimed deposits in numerous banks were on the higher side vis-à-vis their total deposits and in absolute terms.
According to an RBI notification as of December 2, 2024, “The reasons were attributed to either inactivity for a long time or pending/periodic updation of KYC in such accounts. Reportedly, there were instances of customers facing inconvenience when they approached the bank branches for activation of inoperative accounts, including inadvertent errors in customer details such as mismatch in name, etc. It was also observed that a few banks have a large pendency of accounts that are due for update/periodic updation of KYC, resulting in such accounts getting frozen for further transactions as per the bank’s internal policies.”
The RBI has advised banks to take necessary steps urgently to reduce the number of inoperative/frozen accounts and make the process of activation of such accounts smoother and hassle-free, including by enabling seamless updation of KYC through mobile/internet banking, non-home branches, video customer identification process, etc.
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For Direct Benefit Transfer account
RBI has asked banks to help the process of account activation by adopting an empathic stance in these situations, as these accounts primarily concern members of the underprivileged segments of society. Additionally, banks may plan special initiatives to help activate frozen or inactive accounts.
For Aadhaar updation
Banks can help customers update their Aadhaar details through branches that offer Aadhaar-related services.
If you have an inoperative account in HDFC Bank, IDFC FIRST Bank, SBI, or PNB, here are a few steps you can take to activate your accounts in these banks.
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How to activate HDFC Bank inoperative account
According to HDFC Bank, customers can follow these steps to activate their dormant accounts.
Step 1: Visit the bank branch and submit a written application with your signature.
Step 2: Submit self-attested proof of identity and address.
Step 3: Initiate any transaction, and your account will be activated once again.
How to activate dormant account of IDFC FIRST Bank
According to IDFC FIRST Bank, here is the process to activate a dormant account with IDFC FIRST Bank:
You must submit a written application to the bank. For joint accounts, signatures of all accountholders will be needed, irrespective of a single or joint operating mode.
You will have to submit your KYC (Know Your Customer) documents. These will include address proof, PAN Card, and identity documents.
You have to do at least one financial transaction.
According to RBI guidelines, no charges can be levied by the bank to activate inoperative accounts.
How to activate SBI inoperative account
Step 1: A customer with an inoperative account can visit any SBI branch with the latest KYC documents.
Step 2: A request should be given to the branch for activation of the account.
Step 3: Branch will activate the account based on the KYC documents submitted by the customer.
Step 4: Customer will be informed through SMS / e-mails on activation of the account.
All requests received by the branches for activation of accounts will be processed within three working days from the receipt of the complete application.
How to activate PNB inoperative account
According to the PNB website, “Customers visit the base branch of the bank where the account is maintained with a request letter for activation of an inoperative account and submit fresh KYC documents. The customer deposits a minimum Rs 100/- in their account at the time of activation of inoperative accounts. The customer shall submit an Aadhaar number to the branch of and the same shall be validated from UIDAI using biometric e-KYC. Upon update of KYC details of the customer to deposit minimum Rs 100/- in their account at the time of activation of inoperative accounts.”
