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How to unfreeze or reactivate your savings account?

Most of us have many savings accounts. And as a result we may sometimes forget about the savings account.  On the other hand, your digital accounts may also be frozen due to various reasons. In this scenario, your savings bank account can either be deemed dormant or can be frozen.

Here, we explain how to reactivate your dormant bank account or unfreeze your bank account.

What is a dormant or inactive account?

Your savings account will be deemed as an inactive account, if there are no transactions in the account for a year. Interest credited from your savings or deduction of service charges by the bank does not constitute as transactions. If the current scenario exceeds two years, then the savings bank account becomes a dormant account.

The bank makes your savings account inactive for your security and to protect your savings account from fraudulent activities.  

It is easy to keep your savings account active by doing small transactions. Transacting through cheques, depositing cash or through cash, depositing or withdrawing cash through the ATM, transacting through internet banking etc. are some of the easy ways to keep your account to active.   

When you have an inactive or dormant savings account, you may not be able to perform many operations. Here are some of the operations that are barred if you have an inactive account:

  • Withdrawing cash or carrying other transactions through an ATM or bank branch
  • Transacting through netbanking
  • Changing address
  • Modifying signature
  • Adding or deleting a joint account

Other than having your account rendered inactive, your bank accounts can be frozen. While getting your bank account tagged as inactive is in your hands, the entire exercise of a frozen account lies at the hands of your bank.     

What are the differences between a dormant account and frozen bank account?

A frozen account means that there cannot be any transaction until the account is unfreezed. Standing debit instructions can’t take place when the account is frozen. Also, pending cheques will be stalled till further notice. Not just cheque, no other forms of credit is allowed.

However, in case of an inactive account, interest from your savings account is credited.  If you don’t keep the required minimum average balance, the bank will also debit the penalty towards non maintenance of the minimum average balance.

How to reactive an inactive or dormant savings account?

If you want to use your savings bank account, you can look at activing your account. If the bank account does not serve any purpose and if you have already multiple accounts, then you can close your account. Closing your bank account will also save you from paying penalties for non-maintenance of the minimum average balance and other charges.  

Activating your inactive account is an easy task. All you have to do is make a transaction and your inactive account will be activated.   

However, to activate your dormant account, you have to submit a written request for reactivation to your home bank branch.

One of the easy ways to make sure that your account remains active is by carrying out at least one transaction in a year.  Also, you can keep this account for your investments and set up systematic investment plans. In this respect, you can set up an auto debit request from your primary savings account to the lesser used savings account.

How to unfreeze your frozen savings account

Your bank account can be frozen for various reasons. If you have a digital account, and you haven’t completed your KYC process, then your account will be frozen after 12 months of opening the account.  The account can also be frozen if the PAN or form 60 is not updated.

If you have a digital savings account, you will receive notifications stating that your account will be frozen. In this case, you should complete the full KYC process at the earliest. If your account is already frozen, in that case too, you will have to complete the full KYC process. You can contact on the bank’s toll free number or drop them a mail to unfreeze your account. If you don’t want to continue with the account, then your deposited money will be refunded back to you.

Your digital savings account can also be frozen, if the balance in the account exceeds Rs. 1 lakh or the total amount of credit in a financial year exceeds Rs.2 lakh.  

If your account is frozen due to non-updation of PAN card, to unfreeze, you should furnish PAN card /Form 60 to the bank. You can visit the nearest bank branch and fill up a form through which you can update your personal details. Also, submit a self-attested copy of PAN or Form 60 to the bank. Also, it is better to carry the original PAN card. Original PAN should also be carried along at the time of submission

You can also carry the process through net banking. Click on the update PAN section. Input your PAN details and upload the PAN or form 60. Once uploaded, the process of unfreezing of your account will begin.

Activating your dormant account or unfreezing your account may sound like hard work. Hence, to avoid it, you can close your account, make regular transactions, complete the KYC process and update your savings account with your PAN card.

Related Articles:

Want to Close Your Old/Unused Bank Account? Read this first

Why you should complete the KYC process of your online savings account?

Opened a digital bank account? Know the difference between Full KYC and e-KYC



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