What is a Dormant Account or What is an Inoperative Account ?


  • Acording to RBI guidelines  - 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.   
  • Further it clarifed the issue -  "for the purpose of classifying an account as 'inoperative' both the type of  transactions i.e., debit as well as credit transactions induced at the instance of customers as well as third party should be considered. 
  • However, the service charges levied by the bank or interest credited by the bank should not be considered.  
  • However, when the interest on Fixed Deposit account is credited to the Savings Bank accounts as per the mandate of the customer, it is treated as a customer induced transaction.  
  • However, it may be mentioned that some banks had certain internal guidelines / periods before an account can be termed as dormant and / or inoperative.   
  • Bankers needs to check their internal circulars for this purpose, but the above period of two years is applicable as per RBI guidelines.  
  • Therefore, as per RBI guidelines, there is no difference between dormant accounts and inoperative accounts.