Inoperative & unclaimed accounts: How will the RBI’s revised guidelines benefit customers?

Syllabus: GS-III

Subject: Indian Economy

Topic: Government Budgeting.

Context: The RBI has asked banks to undertake at least an annual review in respect of accounts, where there have been no customer-induced transactions for more than a year.


  • The RBI’s revised guidelines allow customers to reactivate inoperative accounts/unclaimed deposits by submitting fresh KYC documents at any bank branch.
  • An account is deemed inoperative if no customer-induced transactions occur for over two years.
  • The RBI instructs banks to conduct an annual review and communicate inactivity to account holders. Unclaimed deposits, inactive for ten years, are to be classified as such.
  • Banks should segregate zero balance accounts for government beneficiaries. Reactivation is facilitated through KYC updation, including a video-CIP option.
  • Banks cannot charge for reactivation, penalize for non-maintenance of minimum balances, and must continue interest payments on savings accounts.



Scroll to Top