That old salary account you stopped using does not stay quietly available forever. After two years of no activity a bank classifies it as inoperative and freezes transactions; after ten years the balance is moved to an RBI fund. The good news: none of the money is ever lost — you can always reclaim it. Here is how accounts go dormant, how to wake one up, and how to find money you forgot you had.
How an account goes dormant
- Inoperative / dormant: if there is no customer-initiated transaction for 24 months, the bank classifies the account as inoperative. Note that bank-initiated entries like interest credit do not count — it must be your activity (a deposit, withdrawal, or transfer).
- Unclaimed: if an account (or FD) stays untouched for 10 years, the balance is transferred to the RBI’s Depositor Education and Awareness (DEA) Fund.
An inoperative account is frozen for debits to protect you from fraud on an account you are not watching — which is exactly why a dormant account can come as an unpleasant surprise when you suddenly need it.
How to reactivate a dormant account
Reactivation is straightforward and free — the RBI bars banks from charging a penalty to reactivate an inoperative account:
- Visit the branch (or use net banking where the bank allows online reactivation).
- Submit a fresh KYC — updated ID and address proof, even if you were verified before.
- Make a small customer-initiated transaction (a deposit or withdrawal) to mark the account active again.
Once KYC is refreshed and a transaction goes through, the account is live. Banks are also required to allow reactivation without unnecessary friction.
What if the money already moved to the DEA Fund?
Even after the balance is transferred to the RBI DEA Fund at the 10-year mark, you retain the right to reclaim it at any time — through the bank, which then recovers it from the fund. As of March 2024 the DEA Fund held over ₹78,000 crore of unclaimed deposits, much of it simply forgotten by depositors and heirs.
Finding forgotten money: the UDGAM portal
The RBI launched UDGAM (Unclaimed Deposits — Gateway to Access inforMation) in 2023 at udgam.rbi.org.in. It lets you search for unclaimed deposits across multiple banks in one place:
- Register on the portal with your mobile number.
- Search by your name and the bank(s).
- If a match is found, approach that bank to claim — for your own account with KYC, or as a legal heir using the deceased-depositor claim process if the holder has died.
It is worth a five-minute search for old accounts of your own, and for accounts of deceased relatives whose money may be sitting unclaimed.
How to keep an account from going dormant
Make one customer-initiated transaction every couple of years — even a ₹100 transfer resets the clock. If you genuinely no longer need an old account, the cleaner move is to close it properly rather than let it drift into dormancy (and keep paying any minimum-balance charges). And register a nominee on every account so that if it is forgotten, your family can still trace and claim it.
Frequently Asked Questions
After how long does a bank account become dormant?
A bank account becomes inoperative or dormant after 24 months with no customer-initiated transaction. Bank-initiated entries such as interest credits do not count — only your own activity, like a deposit, withdrawal or transfer, keeps it active. After the account is inoperative, transactions are frozen until you reactivate it.
How do I reactivate a dormant bank account?
Visit the branch or use online reactivation where available, submit fresh KYC documents (updated ID and address proof), and make a small customer-initiated transaction to mark the account active. The RBI prohibits banks from charging a penalty to reactivate an inoperative account, so reactivation is free.
What happens to money in an account unused for 10 years?
If an account or FD stays untouched for 10 years, the balance is transferred to the RBI's Depositor Education and Awareness (DEA) Fund. The money is not lost — you or your legal heirs can reclaim it at any time through the bank, which recovers it from the fund. As of March 2024 the DEA Fund held over ₹78,000 crore of unclaimed deposits.
How can I find my unclaimed bank deposits?
Use the RBI's UDGAM portal at udgam.rbi.org.in, launched in 2023. Register with your mobile number and search by your name across banks. If a match is found, approach that bank to claim the money — with KYC for your own account, or via the deceased-depositor claim process as a legal heir if the original holder has died.
Is there a penalty for a dormant bank account?
The RBI does not allow banks to levy a penalty specifically for reactivating an inoperative account, and from 2024 banks cannot charge penalties for non-maintenance of minimum balance on inoperative accounts either. Reactivation itself is free; you only need to complete fresh KYC and make a transaction. If you no longer need the account, closing it properly is cleaner than letting it go dormant.
Sources: RBI guidelines on inoperative accounts and unclaimed deposits; RBI DEA Fund and UDGAM portal (udgam.rbi.org.in); RBI Annual Report 2024. Current as of 2026.