Inoperative Accounts

As per the RBI circular vide RBI/2023-24/105 DOR.SOG (LEG).REC/64/09.08.024/2023-24A dated 1^st January 2024  savings/ current account shall be treated as in-operative, if there are no ‘customer induced transactions’ in the account for a period of over two years.

The classification of an account as inoperative shall be for a particular account of the customer and not with reference to the customer. In case a customer is maintaining multiple accounts/deposits with a bank, all such accounts/deposits shall be assessed individually for the purpose of classifying them as inoperative account/ unclaimed deposit, as the case may be.

For the purpose of classifying an account as ‘inoperative’, only customer induced transactions and not bank induced transactions shall be considered

Bank induced transaction- Transactions in the account initiated by the bank as per its extant policy such as charges, fees, interest payments, penalties, taxes. (an illustrative list is given in Annex I).

Customer induced transaction- The transactions in account which are in the nature of:

• A financial transaction initiated by or done at the behest of the account holder by the bank/ third party (an illustrative list is given in Annex I) or;
• A non-financial transaction (An enquiry or request for any product/ service initiated by the account holder through any ATM or internet banking or mobile banking application of the bank or through Third Party Application Providers, which requires two-factor authentication (2FA) and leaves a trail for audit purposes or successful log-in to the internet banking/ mobile banking application. Illustratively, this includes transactions such as change in transaction limit, request for issue of cheque book/ credit card/ debit card, nomination facility, balance enquiry, etc.
• KYC updation done in face-to-face physical mode or through digital channels such as internet banking or mobile banking application of the bank.

IndusInd Bank reviews all Savings Bank & Current accounts and if there have been no transactions for more than one year, such account are categorized as “inactive”. Communication is sent to account holders to activate the account or requesting them to provide the reason for not operating the account. If the accounts are still not operated for more than 24 months or no revert received from the customer the account if further classified as In-Operative Account.

• No customer induced Debit transactions including Cash, Clearing, Transfer etc. will be allowed in the In-Operative Accounts i.e. Debit transactions at Branch, ATM, POS, Internet and Mobile Banking will be restricted.
• Inward clearing cheques will not be honoured at Clearing Hubs/Branches.
• Bank induced transactions such as Interest payment, reversal of charges, etc. will be allowed.

• Customer having In-Operative Account has to visit in person at any IBL branch with latest KYC documents in original.
• A request letter-In-Operative Account activation form should be given to the branch for activation of account along with self-attested copies of  proof of Identity and address (https://www.indusind.com/content/dam/indusind-corporate/account-operation/In-Operative-Account-Activation-Form.pdf)
• Branch will activate the account based on the KYC documents submitted by the customer.

IndusInd Bank Unclaimed Deposit Policy can be referred from the below link:

https://www.indusind.com/content/dam/regulatoryDisclosure/customer-policy/UnclaimedDepositPolicy.pdf

To prevent your account from becoming In-Operative, you can try these tips:

• Make at least one transaction in your account every two years.
• Create a standing instruction for recurring transfers from another account to your bank account.
• Connect your bank account to a mobile wallet or UPI app to make recurring payments.
• If you expect to be inactive for long, notify your bank and ask them to keep the account active.

It is essential to track and maintain your accounts to avoid inconvenience. Some accounts are easily forgotten, and they can result in extra charges, limited access, and even security problems. You can keep your accounts active by regularly checking them and doing things like making frequent transactions, setting up alerts, and knowing your bank's rules. Taking care of inactive accounts early allows you to maintain control over your funds and avoid difficulties. Keeping track of your accounts is essential for successful financial management.