A new alert has made many bank customers worried. It says that from October 5, some banks may charge a ₹10,000 fine for dormant accounts. This has created confusion among account holders across the country. But before you panic, it’s important to understand what a dormant account means, whether this fine is real, and what you can do to avoid it.
In today’s time, when rules are getting stricter and everything is monitored digitally, banks want customers to keep their accounts active and updated.
Understanding Dormant Accounts
A bank account becomes dormant when you don’t use it for two years. This means you haven’t made any deposits, withdrawals, or fund transfers during that time. It mostly happens with savings or current accounts.
Bank activities like adding interest or charging fees do not count as customer activity. When there is no action from your side, the bank marks the account as “dormant” or “inoperative.” This helps prevent misuse or fraud, but it also limits your access to some banking services.
The Truth About the ₹10,000 Fine Alert
The message about the ₹10,000 fine has spread quickly online. Many people believe it’s an official rule. But as of now, there is no official notice from the Reserve Bank of India (RBI) confirming such a fine.
Experts say it could be a misunderstanding or an internal notice by some banks to encourage account reactivation. Some think it’s just a reminder to keep accounts active before October 5. Until an official update comes from the RBI or your bank, treat it as a warning, not a confirmed policy.
Why Banks Care About Dormant Accounts
Banks have millions of accounts, and many are left unused for years. Dormant accounts can attract fraud or identity theft. To prevent misuse, banks try to identify and close inactive accounts.
Inactive accounts also increase banks’ workload and affect their financial records. If an account remains inactive for too long, the money might go to a government-managed unclaimed deposit fund. So, keeping your account active helps both you and the bank.
Risks of Keeping Accounts Dormant
A dormant account can cause many problems. You may not be able to withdraw money, use ATMs, or do online transactions. Some accounts may stop receiving payments until reactivated.
If you need to use the account suddenly, it can take time to reactivate it. You will have to provide ID proof and updated KYC documents. This process can take days, making it hard to access your money quickly.
What Customers Should Do Now
If you have not used your account for a long time, check it now. You can log in to internet banking, use your mobile app, or visit your branch. If your account is inactive, do a small transaction like depositing or withdrawing money. Even updating your passbook can help.
If your account is already dormant, you will need to give your ID and address proof to reactivate it. You might also have to fill out a form at your bank. Usually, there are no charges for this.
Will the ₹10,000 Fine Really Be Charged?
There is no confirmed RBI rule about a ₹10,000 fine on dormant accounts. The RBI has clearly said that banks should not charge unfair fees on dormant accounts.
However, banks can make their own internal rules. If a bank plans to charge such a fee, they must inform customers clearly. So, while it’s not a confirmed national rule, some banks might introduce it in their own policies.
It’s a good idea to check your bank’s website or ask directly at your branch about any new changes or deadlines.
How to Avoid Penalties in the Future
It’s very easy to keep your account active. Just make small transactions every few months. You can link your account to UPI or use it for paying bills or online purchases.
If you have an account you don’t need anymore, close it officially. Don’t leave it unused. Closing it properly ensures you won’t get charged later.
Why October 5 Is Important
The date October 5 is believed to be a reminder from some banks. It could be the end of a review period or the start of new rules. Even if no fine happens, treat this as a final warning to check your accounts.
Sometimes, banks set deadlines before doing audits or security checks. By reactivating your account before October 5, you can avoid stress later and continue using your account smoothly.
Conclusion
The alert about the ₹10,000 fine for dormant accounts has made many people nervous. But there is no official confirmation yet. Still, this is a good reminder to check your bank accounts and keep them active. A dormant account can create many problems like blocked access and delays.
Doing a small transaction today can save you a lot of trouble later. Whether October 5 turns out to be a real deadline or not, it’s the right time to take care of your bank accounts and avoid confusion in the future.
Disclaimer:This article is for general information only. Bank rules and penalties can differ. Always confirm details with your bank or the RBI before making any decision. The information here may change based on new updates or bank policies.