Inactive Bank Accounts: What Happens to Your Money & How to Reactivate

• A bank account becomes 'inactive' after two years of no customer-initiated transactions (deposits, withdrawals, transfers, cheques).
• Inactive accounts face restrictions like blocked debit cards and internet banking, but your money remains safe and continues to earn interest.
• Banks mark accounts inactive due to fraud risk, compliance, and regulatory requirements, not just for accounting.
• Reactivating an inactive account is straightforward, usually requiring a branch visit and KYC verification.
• After 10 years of inactivity, funds are transferred to the 'Depositor Education and Awareness Fund' but can still be claimed with documentation.

Why It Matters: Prevent account inactivity by performing at least one transaction annually to avoid restrictions and complications.