Did not operate your bank account for 10 years? RBI revises rules on inoperative bank accounts. Check latest rules
The latest rules suggest that the bank will make available the facility of updation of KYC for activation of inoperative accounts and unclaimed accounts at all branches including non-home branches.
The Reserve Bank of India (RBI) has updated its rules with regards to inoperative accounts/ unclaimed deposits in banks. The latest instructions which will be called Inoperative accounts/ unclaimed deposits in banks - Revised instructions (Amendment) 2025 will come into force with immediate effect.
What happens to inoperative accounts?
As of now, the credit balance in any deposit account maintained with banks, which have not been operated for ten years or more, or any amount remaining unclaimed for ten years or more are meant to be transferred by banks to DEA fund maintained by the Reserve Bank of India (RBI).
What is DEA fund?
The DEA fund is meant to be used for promotion of depositors' interests and for such other purposes which may be necessary for the promotion of depositors' interest as may be specified by the RBI on a regular basis.
What do the latest guidelines say?
The latest guidelines released on June 12 list out three points. First is that the bank will make available the facility of updation of KYC for activation of inoperative accounts and unclaimed accounts at all branches including non-home branches.
Second is that the updation of KYC will also include video identification i.e., video customer identification process. Third is that the bank may even use the facilities of authorised business correspondent for activation of inoperative accounts.
“A bank shall make available the facility of updation of KYC for activation of inoperative accounts and unclaimed deposits at all branches (including non-home branches). Further, a bank shall endeavour to provide the facility of updation of KYC in such accounts and deposits through Video-Customer Identification Process (V-CIP),” reads RBI circular.
“The V-CIP related instructions under Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, the services of an authorised Business Correspondent of the bank may be utilised for activation of inoperative accounts as prescribed in paragraph 38(a) (iia) of the above Master Direction,” it reads further.
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