Inoperative Accounts /

Unclaimed Deposits In Banks

Source - RBI

@CASUSHRUTCHITALE
CONCEPT
Inoperative account
– savings / current account where there is no customer
induced transaction for > 2 years

Unclaimed deposits
– credit balance in bank account not operated /
deposits not claimed for > 10 years

Customer induced transactions include ATM use,

internet banking transaction, NEFT / UPI use, cheque
clearing, KYC updation

Credit balance in deposit account

(inoperative / unclaimed) for > 10 years to be
transferred to Depositor Education and Awareness
Fund (DEAF)

These instructions are applicable from 1st April 2024

@CASUSHRUTCHITALE
HOW IT WILL WORK?
Banks to undertake review once a year – in case
there is no customer induced transaction in 1 year,
Banks to inform customer (through letter / email /
SMS) that account would become inoperative in
another 1 year

In case the customer fails to operate the account

within the next year, the banks shall classify the said
account as inoperative after expiry of another year

Accounts opened for credit of scholarship amounts

and direct benefit transfers under Government
schemes not to be considered inoperative even though
there is no customer induced transaction

Standing instructions for auto-debit and auto-renewal

instructions shall be treated as customer induced
transactions

@CASUSHRUTCHITALE
OTHER ASPECTS
The classification of inoperative / unclaimed shall be at
account level and not customer level

Amounts lying in inoperative accounts / unclaimed

deposits shall be subjected to concurrent audit

Banks shall provide facility of reactivation of

inoperative accounts at any branch

Banks shall not allow any debit transaction in an

inoperative account unless there is a customer induced
transaction once the account has been reactivated

Banks not permitted to levy penal charges for non-

maintenance of minimum balances in account
classified as inoperative account; no charges to be
levied for reactivation of inoperative account

@CASUSHRUTCHITALE