According to the guidelines of the Reserve Bank of India, your current or savings account is considered inoperative or 'not in operation' when there is no transaction in it for two years. Even after this, your money will not be lost, do not worry.
If your account remains inoperative for 10 years, then your money goes into the Depositories Education and Awareness Fund of RBI. This fund was started by the central bank in 2014.
However, before sending money to the Reserve Bank of India's Depositors Education and Awareness Fund, banks have to inform the account holder about it. Although many times banks do not reach the depositor. You can still get the money back in the fund.
You will have to contact your bank branch to get back the money deposited in RBI's Depositors Education and Awareness Fund (DEAF). After this, you will have to fill some forms and complete your KYC. After this, your bank will contact RBI to withdraw money from the fund.
You do not feel any loss on the money kept in RBI DEAF. On this amount, you also get the interest fixed by the central bank.
Even if your account has become inoperative or inactive, there is no need to fear. You can restart it by completing the KYC rules with your bank.
To prevent your account from being inactive, you should get some things counted in the habit. Bankbazaar.com CEO Adil Shetty says that you make regular transactions in your account. Do it at least once in six months. Apart from this, you do not even need to close the account to keep the minimum monthly amount in the account or to avoid other charges, for this you can convert the account into a simple savings account.
Apart from this, make a habit of constantly updating the details of the nominee in your bank account. If the nominee's name is not added to your account, then make sure that it is added as soon as possible. Based on input from businesstoday