A bank account becomes inactive if it has not been used for any transaction, for more than 1 year. This transaction can be in any form of withdrawal or deposit of money. Some examples of transactions are cheque payments, internet banking, phone banking, use of ATM cards, fixed deposits, etc. For these transactions to be valid, they have to be initiated by the customer himself. The transactions will not be considered active transactions if they are initiated by the bank. Bank transactions may include automated transactions such as automatic penalty deductions, bank service charges or automatic interest payments. A transaction would also be considered valid if it is initiated by a third party.
Reasons for Account de-Activation
Before a bank account is deactivated, the bank sends a notice, at least 3 months prior, to inform the clients.
- An account will be in ‘Dormant status’ if it has been inactive for more than 24 months.
- If a person changes his/her address and does not inform the bank. In this case, the letters and notices sent to that person from the bank might be getting returned and the bank will place that account under the “pending” status. This step is purely for security and protective reasons.
- Another reason for an account deactivation is sometimes customers forget about their bank account and simply do not use it regularly.
Account Reactivation Procedure
If a person’s bank account has been deactivated, it is quite simple and straightforward to re-activate it. The bank runs some checks on the client account and client identification. There might be some restrictions, but they vary from bank to bank. Generally, the following steps are taken:
- Submit a letter for Reactivation: A letter or an application needs to be submitted to the bank authorities such as the bank manager, to reactivate an account.
- Submit the required documents such as the ‘Know Your Customer’ documents, which include
- Proof of Identity
- Proof of Address
- Old checkbook
- Make some deposit in the account: Any small amount of money deposit needs to be made, to activate the account.
Sample Bank Account Reactivation Letter
The Branch Manager,
ABC Bank, D-branch
Bank Account Number: 1111-2222-3333-4444
House 34, Chicago, Illinois
3rd March 2020
Dear Sir / Madam,
I am Michael Johns and I opened an account in your bank in 2019. My bank account number is 1111-2222-3333-4444.
You are requested to kindly reactivate my account 1111-2222-3333-4444. I have not been using this account for the past year and yesterday I tried to make a transaction, but unfortunately, I was not able to make it.
I have attached the required documents and my old checkbook along with this letter.
Let me know if you need any further support for the renewal of my ATM cards as well. I will highly appreciate it if you could give me a new User ID for accessing internet banking.
Looking forward to your kind assistant on this matter.
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