Source: News on Air
Context:
The Reserve Bank of India (RBI) has launched a one-year incentive scheme (October 2025 – September 2026) to encourage banks to reactivate inoperative accounts and repay unclaimed deposits to rightful claimants.
What is an Inoperative Account?
- A bank savings/current account that has had no customer-initiated transactions for 2 years (as per RBI guidelines).
- Balance remains but account is inactive until reactivated by the customer.
Key Highlights:
- Incentives for Banks:
- Banks will receive 5%–7.5% of amounts (up to ₹25,000) for:
- Reactivating inoperative accounts.
- Settling unclaimed deposits with legitimate owners.
- Payouts are linked to:
- Account age – older inoperative accounts may attract higher incentives.
- Deposit size – larger unclaimed amounts may receive proportionate rewards.
- Banks will receive 5%–7.5% of amounts (up to ₹25,000) for:
- Objective:
- Reduce the stock of dormant/inoperative accounts in the banking system.
- Ensure depositors receive their rightful funds, improving customer trust in banks.
