Dormant Bank Account

Opening a bank account is a fairly simple process in today’s time. Due to various reasons, you might have stopped using one or more accounts 

that you opened in the past. 

Have you ever wondered what happens to such accounts? Or are you searching for ‘dormant meaning in bank account’? Read ahead to know everything about inactive or dormant bank accounts.

What is an Inactive or Dormant Bank Account?

When you leave a bank account unused for more than 12 months, it is considered an inactive account. And when you leave a bank account unused for more than 24 months, it is considered a dormant account

According to the Reserve Bank of India’s guidelines, an unused account refers to one where you do not make any transactions such as depositing or withdrawing cash, transferring funds, making payments via cheques, etc.

So, if you want to know what is bank account dormant meaning, any inactive account left unused for a prolonged period of time can become dormant.

What Happens to a Dormant Bank Account?

Now that you know ‘dormant meaning in bank account’, are you curious as to why banks classify accounts so? 

Banks classify accounts as inactive or dormant to reduce fraud risks. This segregation helps banks keep a check on any kind of misuse with your account.

Here is what happens after your bank account is classified as inactive or dormant - 

How to Reactivate a Dormant Bank Account?

The bank will contact you atleast 3 months prior to flagging yout account as dormant. Reactivating an inactive account is much easier and requires you to make some transactions from the bank account. On doing so, the inactive account will be reactivated.

In case the account has already been flagged as dormant, you will have to follow a procedure to reactivate it. It is mentioned below - 


There is no harm in having too many bank accounts as long as you keep a track of all of them, and make regular transactions from each account. 

According to the Income Tax rules, you are required to give details of all accounts held by you, no matter what their status. Thus, you must keep a track of all your bank accounts, active, inactive, or dormant. 

It is always a good idea to reactivate a bank account while it is inactive and not wait till it is considered dormant. In case it does become dormant, you can still reactivate your account by getting in touch with your bank branch or the customer support.

Inactive or Dormant Bank Account - Related FAQs

If an account stays unused for more than 12 months, it is considered inactive. In case, it remains unused for over 24 months, it is considered dormant.

Dormant account fee or a dormancy fee is often charged by banks if you haven’t made any transaction from that bank account for a certain period of time. This fee or penalty can vary depending on the bank, the type of account, and the period the account has remained dormant for.

If you do not use your bank account for 6 months, your account still stays active and you don’t have to complete any formalities. But consider carrying out a transaction from that bank account at the earliest, as if it stays unused for another 6 months, the bank will consider it inactive.

You cannot carry out any transaction from a dormant account. You can however do so after you reactivate the account.

No, a dormant account is not closed automatically. If you leave an account dormant for a period of 3 to 5 years, the bank considers it as abandoned. But still, the bank needs to get in touch with you before closing the account.

Was this information useful?

300 characters allowed (alphanumeric and special characters such as comma, full stop, @, ", &)

Thank you. Your feedback is important to us.

Apply for personal loan


An OTP will be sent for verification