What is Dormant Account

Almost everyone has their account in any of the banks. most people have more than one account as well. In this scenario, people are not able to maintain all the bank accounts at the same time and hence either of the bank accounts changes its stage to dormant. In this post, we will understand what is a dormant account, how it becomes dormant, and many interesting things.

Let’s first understand the meaning of dormant account.

Dormant Account Means

If you have a saving or current account and you have not made any transactions for more than 1 year, your account stage will change to Inactive Account.

If you do not do any transactions for more than 2 years the stage of your account will change to a dormant account.

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Transactions you Should do to Keep Saving Bank Account Active

In order to save your account from getting inactive or dormant, you should do at least basic transactions. find below the list of transactions.

  • Cash withdrawal though ATM, Branch.
  • Funds transfer via Internet Banking, Mobile Banking, Phone Banking.
  • Cash Deposit
  • Credit interest/dividend to your Bank account will keep your account operational.

Consequences of having Inactive or Dormant Account

The account holder of an inactive account will not be able to use many facilities provided by the bank. you can find a list of affected services.

  • You won’t be able to request a debit card or cheque book.
  • No Cash withdrawal from ATMs
  • Can not change your address, email ID, contact number.
  • It is not possible to do any transactions through internet and phone banking as well.
  • Renewing of ATM/Debit Card is also not Possible.

How to Reactivate Dormant/Inactive Bank Account

Activating inactive account is different from bank to bank. In order to activate you need to write an application to the branch manager mentioning the reason for keeping it inactive for long term.

Also you have to be physically present at the bank with a valid address proof and Identity Proof.

To Activate dormant account an account holder needs to do transaction through cheque or ATM.

if an individual has any other bank account active he can transfer some amount to the other bank. you need to visit your bank branch in case the procedure has been updated.

Why does Bank Changes Saving Bank Account Status to Dormant

The Bank does this in order to provide security and fraudulent transaction to your account leftover for many years.

In fact bank group all the inactive accounts to a single cluster and keep those records separately.


We have learned what is a dormant account, how you can reactivate it, transactions you should do in order to avoid it. I hope this information will be helpful.

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