SITE MAP     CONTACT US     DISCLAIMER  
   About Us     Useful Information     FAQs     Financial Education     Complaints   Other Links   Extra Curricular
Search
Period
From  
To  
Archives
   
Home >> Notification - Display
Note : To obtain an aligned printout please download the (59.00 kb ) version to your machine and then use respective software to print the story.
Date: 30/10/2009
Inoperative Accounts

RBI/2009-10/202
DBOD.Leg. No.BC. 55 /09.07.005 /2009-10

October 30, 2009

All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

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

 
  © Reserve Bank of India. All Rights Reserved.

Best viewed in 1024x768 resolution in IE 5 and above.