How to Reactivate a Dormant Account in Jharkhand State Co Operative Bank Ltd?
ReActivate Dormant Account in Jharkhand State Co Operative Bank Ltd: 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.
What is a Dormant Account?
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.
Purpose of categorisation of an account as Dormant Account
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.
What transactions should be initiated by the customer to avoid the account being Dormant?
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:
- Withdrawal of cash from ATM
- Withdrawal of cash from bank branch
- Deposit of cash in the account
- Payment by cheque
- Transfer of funds online through net banking
- Transfer of funds through phone banking
- Deposit of cheque in the account
- Dividend credited to the account
- FD interest credited to the account
- Online Bill Payment
- SIP transactions
What transactions are not considered valid with regard to account being Dormant?
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.
Consequences of Dormant Account
Account holder may face many consequences on his/her account being dormant like:
- Cheque book will not be issued
- Address cannot be changed
- Cash withdrawal from an ATM or branch is not allowed
- Add or delete a joint holder in the account
- No transaction through internet banking or phone banking
- No renewal of ATM/ debit card
- You cannot issue a cheque
- Get a user ID and password
- Modification of signature
- Cannot request to issue a cheque book
What Jharkhand State Co Operative Bank Ltd will do in order to protect any account from being dormant?
Jharkhand State Co Operative Bank Ltd makes annual review of all savings bank account and current accounts and in case there is no transaction, Jharkhand State Co Operative Bank Ltd 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 Jharkhand State Co Operative Bank Ltd 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, Jharkhand State Co Operative Bank Ltd 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.
Difference between Dormant Account and Inactive Account
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.
How to Reactivate Dormant Account in Jharkhand State Co Operative Bank Ltd?
Jharkhand State Co Operative Bank Ltd provides a facility to reactivate a Dormant Account from any of the following ways:
- Submit a request for activation of your account through Internet banking
- You need to visit the website of Jharkhand State Co Operative Bank Ltd.
- Login to Internet Banking using User ID and password.
- Go to service request section
- Request for reactivating the account
- By Calling the Customer Care Number of Jharkhand State Co Operative Bank Ltd
You can dial Customer Care Number of Jharkhand State Co Operative Bank Ltd from your registered mobile number and request for reactivating your account
- By Contacting your home branch of Jharkhand State Co Operative Bank Ltd
- Approach home branch of Jharkhand State Co Operative Bank Ltd personally
- Submit a written request to the bank in person to change the status of the account from 'Dormant to Active'
- This request must be signed by all joint holders of the account, irrespective of operating mode, to reactivate an account.
- Compliance of latest KYC documentation must be done. All the account holders need to submit their passport size colour photographs, Copies of PAN card, Proof of Address and Proof of Identity. Don't forget to carry the originals for verification purpose.
- You also need to mention valid reason for not operating the account in the past
- Signatures of account holders may also be verified to activate the account.
- If bank feels then the account holders may be asked to surrender ATM card/ cheque books. In this case, the bank will issue new ATM card and cheque book. However, this may not be mandatory.
- Jharkhand State Co Operative Bank Ltd will exercise due diligence in verifying customer credentials before reactivating a dormant account.
- You will be asked to make a transaction either by cheque or through ATM.
- If all the formalities are complete, the account will get activated within 24 hours.
How to avoid having a dormant account?
- Close all those accounts that you don't require.
- Make at least a transaction once a year in your account like withdrawal of funds from your ATM.
- If a customer has 2 accounts he can mandate a single debit from one account for credit to his other account.
- Don't forget to notify your bank whenever there is any change in your personal information like address change, etc. so that you will receive any communication sent by your bank.
- You should submit a mandate for crediting dividend on shares to Savings Bank account or auto debit SIP transaction from your bank.
Points to Note about a 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.