IN-OPERATIVE BANK ACCOUNTS
In-operative bank accounts, also known as unclaimed bank deposits, refer to accounts that have been dormant or inactive for an extended period, usually due to a lack of transactions or account holder activity. If an account holder doesnot operate the bank account for a period of two years, account is treated as In-operative. In-operative bank accounts can include savings accounts, current accounts, fixed deposits, or any other type of deposit account offered by a bank. If an account remains In-operative for 10 years, the funds lying in such account are transferred to DEAF (Depositor Education and Awareness Fund) of RBI.
There are a number of accounts that fall under this rule,
some of which are as follows:
01.
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Savings Bank Deposit Accounts / Current deposit accounts
02.
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Time deposit or term deposit accounts
03.
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Cumulative or recurring deposit accounts
04.
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Outstanding wire transfers
05.
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DDs, cashier’s checks, money orders, other deposit accounts, etc.
Reasons why such accounts or deposits could be lying unclaimed.
01.
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The primary reason for deposits becoming unclaimed is the death of the depositor / account holder without leaving a nomination.
02.
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Multiple bank accounts being maintained leading to carelessness & chances of some accounts getting missed out from knowledge & from the records over many years
03.
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Transferable jobs because which records of old accounts are not kept properly
04.
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Account holders moving abroad
05.
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Loss of physical records & documents pertaining to fixed deposits etc.
How To Claim Unclaimed Money?
As per RBI regulations, every bank is required to display the details of unclaimed assets accounts & deposits on the bank’s website. After verifying the details on the website, you can visit the bank branch with a duly filled claim form, deposit slips, and KYC (Know Your Customer) documents to claim the money. However, in many cases, the account holder or the family might not have information & records of their unclaimed deposits or accounts. In that, they have no option but to visit every bank’s website to verify such details. An integrated portal for the same is still under process which will ease the process of tracing information of such unclaimed funds.
To claim the unclaimed deposits, account holders must visit the branch where their deposits are held and complete the necessary Annexure-B or Claim Form. It is important to provide all available information about the unclaimed deposit when submitting it.
In addition, account holders must provide a recent photograph, valid proof of identity, proof of address, passbook, proof of term deposit / special term deposit, and other documents as specified by the Bank. Once the submitted documents have been reviewed and found to be in order, the lender will initiate the necessary procedures to release the funds from the unclaimed deposit.
How Can LawFin Advisor Assist In The Reactivation Of In-Operative Bank Accounts?
LawFin Advisor assists in the reactivation of inoperative bank accounts by providing expert guidance and assistance throughout the reactivation process. Our team leverages its extensive experience and knowledge to navigate the intricate procedures involved in reactivating bank accounts. We work closely with banks to ensure a smooth and efficient reactivation process for our clients. Additionally, we provide personalized support and guidance to address any challenges or complications that may arise during the reactivation process. With LawFin Advisor's assistance, clients can confidently reactivate their inoperative bank accounts and regain access to their funds without hassle.
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