SBI has suggested that non-monetary transactions, such as balance enquiries, should be considered sufficient to keep the account active.
SBI has proposed balance inquiries to keep accounts active. (Representative image)
State Bank of India (SBI), the country’s largest public sector bank, has submitted recommendations to the Reserve Bank of India (RBI) calling for changes in existing rules on deactivation of bank accounts. is given In its proposal, SBI has suggested that non-financial transactions, such as balance enquiries, should be considered sufficient to keep the account active.
SBI Chairman CS Shetty explained that many account holders, especially those who open accounts for government assistance programmes, usually engage in limited transactions. Often, after the initial deposit, they withdraw funds only a few times, causing the accounts to be declared inactive. According to Shetty, such accounts should not automatically become inactive due to lack of financial activity.
He emphasized that non-financial actions, such as checking balances, indicate an account holder’s awareness of and engagement with their account. Therefore, such transactions should be considered in determining whether an account remains active.
The request follows recent RBI directives, which directed banks to promptly resolve the issue of dormant or “frozen” accounts, submitting their progress reports on a quarterly basis. be done Although the bank did not disclose the exact number of such accounts.
What is an inactive account?
A dormant account refers to an account that has been inactive for an extended period of time, with no transactions or deposits. Once an account is deactivated, the account holder is unable to withdraw or deposit funds. Generally, following regulatory guidelines, banks deactivate accounts that have been unused for a long time.