RBI’s directive to banks to reduce inoperative accounts prompts an initiative to reactivate dormant bank accounts in SBI, HDFC Bank, and PNB.

The Reserve Bank of India (RBI) has conducted a review and found that many Indian banks have a large number of inoperative/unclaimed deposits, which are characterized by inactivity or a lack of periodic KYC (Know Your Customer) updates. The RBI advises banks to take urgent measures to reduce the number of inoperative accounts and improve the process of activating dormant accounts. To achieve this, banks are encouraged to enable seamless KYC updation through various channels and adopt an empathetic stance when dealing with customers seeking to reactivate their frozen accounts. The RBI particularly emphasizes the need to provide assistance to underprivileged members of society who may struggle to access their accounts due to inactivity. This review aims to improve bank-customer relationships and create a more customer-friendly approach to account management. According to the RBI guidelines, no charges can be imposed on customers to reactivate their inoperative accounts, and banks are required to process all requests within three working days.

Source: https://economictimes.indiatimes.com/wealth/save/how-to-activate-inoperative-bank-accounts-in-sbi-hdfc-bank-and-pnb-as-rbi-asks-banks-to-reduce-inoperative-accounts/articleshow/115929708.cms?from=mdr