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RBI Guidelines on "Inoperative Accounts": Minimum Balance Penalties Prohibited.

Banking & Finance | Dated: 27 Dec 2025

The Reserve Bank of India (RBI) has issued revised guidelines for the classification and activation of "Inoperative Accounts" and "Unclaimed Deposits". The central bank has prohibited banks from levying penal charges for non-maintenance of minimum balances in any account that is classified as inoperative or dormant.

🎯 Key Highlights:

  • An account is classified as inoperative if there are no customer-induced transactions for over two years.
  • Banks must undertake a special drive to trace the account holders or their nominees for unclaimed deposits.
  • No charges should be levied for the activation of inoperative accounts.

💡 Other Important Facts:

  • Guideline: Inoperative Accounts/Unclaimed Deposits.
  • Key Rule: No Penal Charges.
  • Definition: No transaction for 2 years.

📚 Test Your Knowledge:

As per RBI's new guidelines, banks are prohibited from levying penal charges on which type of accounts?

Correct Answer: Inoperative Accounts

🚀 Quick Recap:

About RBI

  • Governor – Shaktikanta Das
  • HQ – Mumbai