Bank Accounts Inactive for 10 Years? RBI’s Latest Guidelines You Should Know

In a bid to help customers regain access to their long-dormant bank accounts, the Reserve Bank of India (RBI) has issued a revised set of guidelines aimed at simplifying the reactivation process of inoperative accounts and unclaimed deposits. Effective immediately, these updated instructions—titled “Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025”—introduce several customer-friendly measures to streamline Know Your Customer (KYC) updates and account activation.

What Qualifies as an Inoperative Account?

An inoperative account refers to any deposit account (like savings or fixed deposit) that hasn’t been accessed—either by withdrawal or deposit—for a period of 10 years or more. Similarly, any deposit that has remained unclaimed for 10 years falls under this category.

Under existing rules, banks are required to transfer the balances in such accounts to the Depositor Education and Awareness (DEA) Fund, which is maintained by the RBI. This fund is intended to protect and promote the interests of depositors across India.

What’s New in RBI’s 2025 Guidelines?

With the aim of improving accessibility and customer convenience, the RBI’s June 12, 2025 circular introduces three major enhancements to the KYC process for inoperative accounts:

1. KYC Updation Now Allowed at Any Branch

Customers can now update their KYC documents at any branch of their bank—not just the home branch where the account was originally opened. This change eliminates the hassle of returning to a specific branch, particularly beneficial for people who’ve relocated or are unable to travel easily.

2. Video-Based KYC Verification (V-CIP)

Banks have also been encouraged to provide the option of Video Customer Identification Process (V-CIP), a remote KYC method that allows users to verify their identity via a secure video call. This method is especially helpful for:

Senior citizens

Non-Resident Indians (NRIs)

People living in rural or remote areas

The V-CIP process must be conducted in strict compliance with the RBI’s Master Direction – KYC, 2016, which has been periodically updated.

3. Assistance Through Business Correspondents (BCs)

In areas where branch access is limited, banks can deploy their authorised Business Correspondents (BCs) to assist customers in updating KYC details and reactivating dormant accounts. BCs are trained representatives who operate in underbanked or underserved regions, providing basic banking services.

How to Reactivate Your Inoperative Bank Account?

According to RBI’s KYC FAQs, customers can choose any of the following options:

Visit any branch of their bank to update KYC and request reactivation.

Opt for V-CIP if the bank offers the video-based facility.

Seek help from a Business Correspondent if visiting a branch is not feasible.

These multi-channel options are designed to make the process more inclusive, user-friendly, and efficient.