Dormant Bank Account: How to Reactivate It in 2026

A bank account becomes inoperative (often called dormant) when you have made no transaction yourself for more than two years. To reactivate it, visit any branch of the bank, or use video KYC if the bank offers it, submit fresh KYC documents and make one transaction. As of October 2026, RBI rules say banks should not charge you for reactivation or levy minimum balance penalties on the inoperative account, and savings interest keeps accruing while the account is frozen.

The timeline: active, inoperative, unclaimed

RBI uses three stages. Knowing which one your account is in tells you what to do.

Only customer-initiated transactions keep an account alive. A UPI payment, ATM withdrawal, cash deposit, transfer you make, or cheque you issue counts. Interest credited by the bank, service charges it debits, or a dividend paid into the account by a company generally do not.

RBI's January 2024 revised instructions also say accounts opened for scholarships or direct benefit transfers should not be marked inoperative just because they were unused for two years, since money may arrive only occasionally.

Your rights while the account is inoperative

RBI has set clear protections for depositors:

• No minimum balance penalty. Since a 2014 RBI circular, banks may not charge penalties for not maintaining the minimum balance in an inoperative account. This was reiterated in later instructions.
• No activation charge. RBI's revised instructions say banks should not levy any charge for activating an inoperative account.
• Interest continues. Interest on a savings account is credited regularly whether the account is operative or not.
• Notice from the bank. Banks are expected to tell you by letter, email or SMS before an account is classified as inoperative, and to try to trace you or your nominee once it is.
• Any-branch activation. RBI's June 2025 amendment requires banks to offer KYC updation for activation of inoperative accounts at all branches, and asks them to try to offer it through video KYC (V-CIP).

If a bank tells you otherwise, ask for the charge or refusal in writing, then escalate (see the complaint path below).

How to reactivate a dormant account: step by step

1. Find the account details. Look for an old passbook, cheque book, statement or SMS. If you only know the bank, the branch can trace the account using your name, date of birth, PAN or mobile number.
2. Gather KYC documents. An officially valid document such as Aadhaar, passport, voter ID or driving licence, plus PAN (or Form 60) and a recent photograph. If your address has changed, carry proof of the new address.
3. Go to any branch or start video KYC. Fill in the bank's reactivation or KYC updation form. Some banks also allow it through net banking or the app if your mobile number is still registered.
4. Make a transaction. Deposit a small amount or withdraw some cash once the KYC is accepted. This resets the two-year clock.
5. Update contact details and nominee. Register your current mobile number and email so you get alerts. Since 1 November 2025, you can nominate up to four people for a deposit account.
6. Check the status. Ask for written or SMS confirmation that the account is active, and test a small UPI or ATM transaction a few days later.
7. Decide whether to keep it. If you no longer need the account, close it after reactivation and move the money where it will be used. Fewer accounts mean fewer KYC deadlines and less fraud risk.

If the account belongs to someone who has died

Legal heirs or nominees can claim the balance even if the account is inoperative or has been moved to the DEA Fund. The bank will ask for the death certificate, the claimant's KYC and, if there is no nominee, documents such as a legal heir certificate or succession certificate depending on the amount and bank policy. Our guide on bank accounts and investments after death covers the process.

Worked example: what an idle account is worth

Say Priya's last transaction in her salary account from a previous job was on 15 March 2023, and ₹50,000 has been sitting there since.

• 15 March 2025: two years pass without a customer-initiated transaction, so the account becomes inoperative.
• March 2033: if nothing changes, ten years of no operation will be complete and the balance becomes eligible for transfer to the DEA Fund.

Interest still accrues. At an illustrative 2.5% a year, credited quarterly, the balance after two years would be about:

₹50,000 × (1 + 0.025 ÷ 4)^8 = ₹50,000 × 1.0511 ≈ ₹52,555

That is roughly ₹2,555 of interest in two years. The same ₹50,000 in a one-year fixed deposit at an illustrative 6.5%, renewed, would earn more than twice as much. You can compare with the FD calculator. The point is not the interest gap alone: an inoperative account cannot be used in an emergency until you complete KYC, so leaving money in one has a real cost.

Money already moved to the DEA Fund

Unclaimed deposits are not confiscated. RBI's Depositor Education and Awareness Fund holds the money, and the original bank remains your point of contact.

1. Search UDGAM. RBI's UDGAM portal (udgam.rbi.org.in) lets you search unclaimed deposits across participating banks using the account holder's name and details such as PAN, date of birth or other identifiers.
2. Contact the bank shown in the result, with KYC documents and any account proof.
3. Bank pays you and then claims reimbursement from the DEA Fund. Interest, where payable, follows RBI's rules for unclaimed deposits.

RBI and the Department of Financial Services ran a "Your Money, Your Right" campaign from October to December 2025 with settlement camps across districts, and RBI ran an incentive scheme for banks to reactivate inoperative accounts and settle unclaimed deposits from 1 October 2025 to 30 September 2026. Even though both have ended as of October 2026, the right to claim does not expire.

Where to complain if the bank refuses

1. Bank's grievance channel. Write to the branch and the bank's grievance redressal or principal nodal officer, quoting RBI's instructions on inoperative accounts and asking for a reply in writing.
2. RBI Integrated Ombudsman. If there is no reply within 30 days, or the reply is unsatisfactory, file a complaint at cms.rbi.org.in. Attach your letter, the bank's reply and your KYC.

How to stop accounts going dormant again

• Make at least one small transaction (a ₹1 UPI transfer to yourself or a cash deposit) in every account at least once a year.
• Keep KYC current; see our guide to bank KYC update for the risk-based schedule.
• Close accounts you no longer need, such as old salary accounts. Our guide on how to choose a savings account can help you consolidate.
• Make sure every account has a nominee and that family members know which banks you use.
• Use one budget sheet for all accounts so you notice idle balances; see how to track monthly expenses.

Key takeaways

• As of October 2026, an account turns inoperative after more than two years without a customer-initiated transaction.
• RBI rules say no activation charges and no minimum balance penalties on inoperative accounts; savings interest keeps accruing.
• Reactivate at any branch, or by video KYC where offered, with fresh KYC and one transaction.
• After 10 years the money moves to RBI's DEA Fund but can still be claimed; search on UDGAM.
• Escalate refusals to the bank's grievance officer, then to the RBI Ombudsman at cms.rbi.org.in after 30 days.