RBI/2009-10/202
DBOD.Leg. No.BC. 55 /09.07.005 /2009-10
October 30, 2009
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir,
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.
- 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.
- 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