How to Close Bank Account or Dormant Bank Account
If you have been working in the private sector for many years, then obviously you will have accounts in many banks. Because with every job, it is more likely that another account will be opened. In this case, the bank account opened by the old company is no longer in use. This is called an inactive or dormant account.
If there is no transaction in an account, it is advised to close it, as banks charge penalty fees for not keeping the minimum monthly balance or average monthly balance. Moreover, if you stop transacting in your bank account, then after a time it gets converted into a doormat account.
If there is no transaction on behalf of the customer in a bank account for more than 12 consecutive months, then the bank puts it in the list of an interactive account, after which there is no transaction from that account again for the next 12 months. That account is closed.
Transactions made through debit card, net banking, phone banking, offline banking, third-party transfer, and interest from FD are considered valid.
If you opened an account in a bank and you cannot use it for 12 months, then your bank will stop facilities like withdrawing money from ATMs, issuing checks. So today we are giving you information related to the inoperative account and dormant account.
How to be inoperative
According to RBI guidelines, if a bank account is not having any transaction for one year, then it is kept in the category of ‘inoperative’ account. This is done so that they can be protected from any possible fraud. Even if the account is inoperative, if some money is deposited in your account, then interest will continue to be paid on it.
All services will be closed
When your account becomes ‘inoperative’. You cant apply for a debit card. One will not be able to get a new checkbook. You will not get the user ID and password of internet banking. After being inoperative, there is a problem for you to deal with many accounts related work.
The account will be dormant
When your account becomes inoperative, the bank informs you about it. But even after this information, if you have not done any transaction with that account, then after more than 24 months, it will become a ‘dormant’ account.
What happens with this
There is no transaction from any bank account for 24 months. Banks put it in the category of ‘dormant’. Once the account is a doormat, you will not be able to do many more transactions related to the bank.
The facilities which were not being provided during the account being ‘inoperative’ after the account has been done, will still not be available. With this, you will not be able to do many other things. After this, you will not be able to do any transaction from ATM. Your internet banking and phone banking facilities will also be removed.
In this way, your account has become ‘inoperative’, then you can activate it. Many banks give you this facility that if you make a transaction, the account will become active. However, many banks can also ask you to fill an activation form. Talking about the doormat, in order to activate it, you have to go to the bank and fill the activation form.
How to Close Bank Account
These 6 things are necessary for closing a bank account: –
1: First of all go to that bank branch to close the bank account.
2: Go to the bank and fill the account closure form.
3: Enter the information of another bank account, in which the remaining balance is to be transferred.
4: Fill the de-linking account form, if necessary.
5: Deposit the remaining checkbook and debit card with the bank.
6: Fill in the account closing fees, if any.
Before closing the bank account, it should be de-linked with credit card payment, trading account, recurring deposit, etc., do not forget anything. If the bank account is being closed within 14 days of opening, then no fee will be charged for closing the account.
Account closing fees are charged between 14 days and 1 year after the account opening date. Banks may or may not charge account closure fees after completion of 1 year. Each bank charges different fees for closing the account, for more information, you should visit the bank branch. The remaining money in the bank account is transferred to another account. If the remaining money is less than 20,000 then it can be given in cash.
Founder, Upgrading India