Deactivating Bank Accounts : State Bank of India (SBI), India’s largest public sector bank, has filed suggestions to the Reserve Bank of India (RBI) requesting revisions to the current criteria for declaring bank accounts inactive. SBI has proposed that non-financial activities such as balance checks should be deemed sufficient to keep the accounts active, in addition to financial transactions.
SBI’s biggest concern is how to Deactivating Bank Accounts
According to SBI Chairman CS Shetty, accounts created for government assistance programs often have little transactions. Such account customers make an initial deposit and then only withdraw a few times. As a result, these accounts are considered inactive.
He stated that non-financial work, such as balance checks, indicates that the account user is aware of and actively involved with his account. Accounts should not be cancelled only for lack of economic activity.
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RBI guidelines and the SBI’s move
The RBI recently directed banks to prioritise the resolution of dormant or frozen accounts. SBI has also launched a specialised campaign in this direction. However, the bank has not published the precise number of dormant accounts.
What is the definition of an inactive account?
A dormant account is one that hasn’t had any transactions in a while. According to the guidelines, banks consider inactive accounts that have not been used in a long time. Once the account is deactivated, the holder is unable to deposit or withdraw funds from it.
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