Many people open a bank account and then stop using it after some time. This can happen when you change jobs, move to another city, or open a new account in another bank. But what if you don’t use your bank account for 2 years?
According to banking rules in India, if there are no transactions in your account for a long period, the bank may mark it as inactive or dormant. This can affect your ability to withdraw money, use ATM cards, or make online payments. In this article, we explain what really happens when you don’t use your bank account for 2 years, the risks involved, and how you can reactivate it easily.
What Is an Inactive or Dormant Bank Account?
A bank account is considered:
- Inactive Account: No customer-initiated transaction for 12 months
- Dormant Account: No customer-initiated transaction for 24 months
Customer-initiated transactions mean:
✔ ATM withdrawal
✔ UPI or online transfer
✔ Cash deposit or withdrawal
✔ Cheque deposit
Interest credit by the bank does not count as activity.
What Happens If You Don’t Use Your Bank Account for 2 Years?
1. Account Becomes Dormant
After 24 months of no activity, the bank marks your account as dormant. This means:
- ATM card may stop working
- Online banking may be restricted
- UPI and debit transactions may be blocked
You may still see balance, but you cannot freely use the money.
2. Debit Freeze May Be Applied
Most banks apply debit freeze on dormant accounts to prevent misuse and fraud.
This means:
❌ No cash withdrawal
❌ No UPI or IMPS transfer
❌ No debit card usage
Credit (receiving money) may still be allowed in some cases.
3. Higher Risk of Fraud and Misuse
Dormant accounts are more vulnerable to fraud. That is why banks restrict them. Hackers and scammers target inactive accounts because users are less likely to notice suspicious activity.
4. Difficulty in Accessing Your Own Money
Even though the money is still yours, you may not be able to:
- Withdraw cash
- Transfer money
- Use debit card
You must first reactivate the account before using it.
5. Possible Account Closure (In Long Term)
If an account remains dormant for many years and has very low balance, some banks may:
- Ask you to reactivate
- Or recommend closure
However, banks cannot take your money without informing you.
What Does RBI Say About Dormant Accounts?
According to RBI guidelines:
- Banks must mark accounts dormant after 24 months of inactivity
- Banks must apply extra security checks
- Reactivation should be done only after proper customer verification
- Banks must inform customers about inactivity
The main purpose is to protect customers from fraud and misuse.
How to Reactivate a Dormant Bank Account
Reactivation is usually simple and safe.
Step 1: Check Account Status
Login to your bank app or net banking and check if account is inactive or dormant.
You can also call customer care to confirm.
Step 2: Update KYC
Most dormant accounts require fresh KYC:
✔ Aadhaar
✔ PAN
✔ Address proof
✔ Mobile number verification
Some banks allow online KYC or video KYC.
Step 3: Submit Reactivation Request
You can:
- Use bank mobile app
- Raise service request online
- Or visit branch (if required)
Write request:
“I want to reactivate my dormant bank account.”
Step 4: Make One Transaction
After reactivation, you may need to:
✔ Deposit small amount
✔ Withdraw cash
✔ Transfer money
This makes your account active again.
Can You Reactivate Online?
Yes, many banks allow online reactivation if:
✔ Dormant due to inactivity
✔ No legal or fraud issue
✔ KYC documents are valid
But you must visit branch if:
❌ Account is frozen by court
❌ Cybercrime or fraud case
❌ PAN or Aadhaar mismatch
What Happens to the Money in Dormant Account?
Your money:
✔ Remains safe
✔ Does not expire
✔ Still earns interest (in savings account)
✔ Cannot be taken by bank
Banks are legally bound to protect your balance.
How to Avoid Your Bank Account Becoming Dormant
You can prevent dormancy by doing just one transaction every few months, such as:
✔ Withdraw small cash
✔ Send ₹10 via UPI
✔ Deposit some money
✔ Use debit card once
Also:
✔ Keep KYC updated
✔ Keep mobile number active
✔ Monitor SMS alerts
Common Myths About Dormant Accounts
Myth 1: Bank takes your money after 2 years
❌ False. Money always belongs to you.
Myth 2: Dormant account means closed account
❌ False. It is only inactive, not closed.
Myth 3: You cannot recover dormant account
❌ False. You can reactivate it easily.
Frequently Asked Questions (FAQ)
Q1. Will my account be closed automatically after 2 years?
No, it will become dormant, not closed.
Q2. Can I withdraw money from a dormant account?
No, you must reactivate it first.
Q3. Does dormant account affect CIBIL score?
No, savings account inactivity does not affect credit score.
Q4. Is there any charge for dormant account?
Most banks do not charge for dormancy, but minimum balance rules may apply.
Q5. Can salary account become dormant?
Yes, if no transactions happen for 24 months.
Conclusion
If you don’t use your bank account for 2 years, it becomes dormant and debit services may be blocked. This is done for your safety and to prevent fraud. Your money remains safe, but you must reactivate the account before using it again.
To avoid such problems, always make at least one transaction every few months and keep your KYC updated. A little attention can save you from big trouble later.
