SBI: India’s largest public sector bank State Bank of India (SBI) has sent recommendations to the Reserve Bank of India (RBI), appealing for changes in the existing rules for declaring bank accounts as inactive.
SBI has proposed that instead of only financial transactions, non-financial activities like balance checks should also be considered sufficient to keep the accounts active.
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SBI is concerned about inactive accounts
SBI Chairman CS Shetty said that accounts opened for government assistance programs often have limited transactions. Such account holders initially deposit money and later withdraw only a few times. For this reason, these accounts are declared inactive.
He said that non-financial activities like balance checking are a sign that the account holder is aware and active about his account. Such accounts should not be deactivated on the basis of lack of financial activity alone.
RBI guidelines and SBI’s action
Recently, RBI had directed the banks to resolve the issue of inactive or frozen accounts on priority basis. SBI has also started a special campaign in this direction. However, the bank has not disclosed the exact number of inactive accounts.
What is a dormant account?
An inactive account is one in which there has been no transaction for a long time. As a rule, banks declare accounts that have not been used for a long time as inactive. Once an account is declared inactive, the account holder cannot deposit or withdraw money in it.
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