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Inoperative Account Definition

This document from the Reserve Bank of India clarifies the classification of savings bank accounts as operative or inoperative. It states that if a savings account has a standing mandate to credit dividend payments on shares, those credits should be considered customer-induced transactions. As such, the account should be treated as operative as long as dividends continue to be credited, even if no other transactions occur for over two years. The account can be classified as inoperative only after two years of inactivity from the date of the last dividend credit, provided no other customer-induced transactions take place in that time.

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129 views1 page

Inoperative Account Definition

This document from the Reserve Bank of India clarifies the classification of savings bank accounts as operative or inoperative. It states that if a savings account has a standing mandate to credit dividend payments on shares, those credits should be considered customer-induced transactions. As such, the account should be treated as operative as long as dividends continue to be credited, even if no other transactions occur for over two years. The account can be classified as inoperative only after two years of inactivity from the date of the last dividend credit, provided no other customer-induced transactions take place in that time.

Uploaded by

mkumar.it
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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RBI/2014-15/227

UBD.BPD.Cir.No.14/12.05.001/2014-15 September 11, 2014

The Chief Executive Officer


All Primary (Urban) Co-operative Banks

Dear Sir / Madam

Inoperative Accounts

Please refer to Paragraph 2(iv) of our Circular UBD.BPD.(PCB).Cir.No.9/13.01.000/2008-


09 dated September 1, 2008 on Unclaimed Deposits / Inoperative Accounts in Banks 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 over a period of two years. Further,
in terms of Paragraph 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
dividend on shares to 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 dividend on shares is credited to 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 dividend 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 dividend, provided there is no other customer induced transaction.

Yours faithfully,

(A K Bera)
Principal Chief General Manager

शहर बक वभाग, कि य कायालय, गारमट हाऊस, पहली मं ज़ल, डॉ. एनी बेसट माग, वरली, मुंबई - 400018 भारत
फोन: 022 - 2493 9930 - 49; फै स: 022 - 2497 4030 / 2492 0231; ई-मेल: [email protected]
Urban Banks Department, Central Office, Garment House, 1st Floor, Dr. Annie Besant Road, Worli, Mumbai -
400018, India
Phone: 022 - 2493 9930 - 49; Fax: 022 - 2497 4030 / 2492 0231; E-mail: [email protected]
हं द आसान है , इसका ूयोग बढ़ाइए—
चेतावनी: भारतीय रज़व बक ारा ई-मेल, डाक, एसएमएस या फोन कॉल के ज रए कसी क भी य क जानकार जैसे बक के खाते का यौरा,
पासवड आ द नह ं मांगी जाती है । यह धन रखने या दे ने का ूःताव भी नह ं करता है । ऐसे ूःताव का कसी भी तर के से जवाब मत द जए।
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc.It never
keeps or offers funds to anyone. Please do not respond in any manner to such offers.

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