• Oct
  • 31
  • 2009

RBI circular on Inoperative savings and current account

Posted In RBI / FEMA | 2 Comments » Print Friendly and PDF

A couple of months back the RBI had issued detailed guidelines on inoperative or dormant bank accounts – savings as well as current account. It had stated that if there are no transactions in the account for a period over two years, it is to be treated as dormant. Further, for the purpose of classifying an account as inoperative, both the types of transactions i.e., debit as well as credit transactions induced at the instance of customers as well as third party should be considered.

RBI now states that there may be instances where the customer has given a mandate for crediting the interest on Fixed Deposit account to the Savings Bank account and there are no other operations in the Savings Bank account. Some doubts have arisen whether such an account is to be treated as inoperative account after two years.

In this connection, the Banker of the Banks has clarified that since the interest on Fixed Deposit account is credited to the Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction. As such, the account should be treated as operative account as long as the interest on Fixed Deposit account is credited to the Savings Bank account. The Savings Bank account can be treated as inoperative account only after two years from the date of the last credit entry of the interest on Fixed Deposit account.

RBI Circular

RBI/2009-10/ 202 DBOD.Leg. No.BC. 55 /09.07.005 /2009-10 Dated: October 30, 2009

Inoperative Accounts

Please refer to Paragraph 24.2 (iv) of our Master circular DBOD. No.Leg. BC. 9 / 09.07.006 / 2009-10  dated July 1,  2009 on ‘Customer Service’ in terms of which a savings as well as current account should be treated as inoperative / dormant if there are no transactions in the account for a period over two years. Further, in terms of Paragraph 24.2 (vi), for the purpose of classifying an account as inoperative, both the types of transactions i.e., debit as well as credit transactions induced at the instance of customers as well as third party should be considered.
2. There may be instances where the customer has given a mandate for crediting the interest on Fixed Deposit account to the Savings Bank account and there are no other operations in the Savings Bank account. Some doubts have arisen whether such an account is to be treated as inoperative account after two years.
3. In this connection, we clarify that since the interest on Fixed Deposit account is credited to the Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction. As such, the account should be treated as operative account as long as the interest on Fixed Deposit account is credited to the Savings Bank account. The Savings Bank account can be treated as inoperative account only after two years from the date of the last credit entry of the interest on Fixed Deposit account.
Yours faithfully,
(B. Mahapatra)
Chief General Manager


2 Responses to “RBI circular on Inoperative savings and current account”

  1. hermina says:

    my mother was having a account in bank of maharastra, tuticorin branch ac was opened in 1990 as my father expired his maturity amount was cr on that ac. she is having the pass book and it is showing the ac is having the cheque book but she is not having any cheque book now. the last entry shows about 10000 balance but before a month back they informed from the branch that you are having a ac and pls come and visit the branch. so we searched for the passbook and we got it and when we went to the branch they said only you are having only 3000 balance and they opened one new ac and closed that ac on that same day and gave a new pass book and gave only 3000 rs. she asked for the statement they are saying that they are having the ledger only and that was a old ac and so we will not be able to give the statement

    what should i do to get the statement from the date of last entry

    please advice me

    pls msg me

  2. girish says:

    i had an account with syndicate bank.
    i last operated it in mar 2009. then i deposited a cheque on 15 feb 2012 with doing anything or without having done any formalities anything.
    when i issued a cheque to my friend on 15 mar 2012. the cheque was first debited to my account on 15 mar 2012, then it was credited again and marked return and again debited  also debited cheque return charges all done on same day 15 mar 2012… the balance was available in my account since 15 feb 2012.
    plz advice me.
    my number is 8085660802

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