RBI CIRCULAR ON INOPERATIVE SAVINGS AND CURRENT A/Cs

OCT 31, 2009 RBI

Inoperative Accounts

Please refer to Paragraph 24.2 (iv) of our Master circular

DBOD. No.Leg. BC. 9 / 09.07.006 / 2009-10 dated July 1, 2009

on
‘Customer Service’ in terms of which a
savings as well

as current account should be treated
as inoperative / dormant

if there are no transactions in the
account for a period over two years.

Further, in terms of Paragraph 24.2 (vi),
for the purpose of classifying

an account as inoperative, both the types of transactions

i.e., debit as well as credit transactions
induced at the instance

of customers as well as third party
should be considered.

2. There may be instances where the
customer has given a

mandate for crediting the interest
on Fixed Deposit account

to the Savings Bank account
and there are no other operations

in the Savings Bank account.
Some doubts have arisen whether

such an account is to be treated as
inoperative account after two years.

3. In this connection, we clarify that
since the interest on

Fixed Deposit account is credited
to the Savings Bank

accounts as per the mandate
of the customer, the same

should be treated as a customer
induced transaction.

As such, the account should be
treated as operative

account as long as the interest on
Fixed Deposit account is credited to the
Savings Bank account.

The Savings Bank account
can be treated as inoperative

account only after two years
from the date of the last credit

entry of the interest on Fixed Deposit account.

Yours faithfully,

(B. Mahapatra)

Chief General Manager

Circular Details:-

RBI/2009-10/ 202 DBOD.Leg. No.BC. 55 /09.07.005 /2009-10 Dated: October 30, 2009