Why did SBI make my account dormant? What is the procedure for activating my account?
Savings Bank and Current Account deposit accounts by nature are demand deposit accounts. When there are no transactions in the relative Current / Savings Bank account whether debit or credit induced by the customer or induced by a third party, for over a period of two years, other than the transactions by way of debit of applicable bank charges or credit of periodical interest by the Bank, the account is identified as Inoperative Account for the purpose of monitoring and close supervision.
An Inoperative Account becomes Active/ Operative only when a debit transaction induced by the customer or by a third party is done manually. Prior to this, Bank ensures whether the account is KYC compliant or Non-KYC compliant.
In case of KYC compliant accounts, Bank has to observe as to the customer’s authority for the first debit to an Inoperative Account. However, in case of a KYC Non- Compliant Inoperative Account, the account is activated only after obtaining fresh KYC documents.