Getting a call or letter from the bank informing you about your bank account becomes inoperative? It’s a common thing you know! But if you do not have any idea about an account being inoperative. Read on, this page will let you understand it. Find out what it is and how should you tackle it promptly.
Of course, there’s no need to worry. It’s perfectly fine if you don’t have a clue about a dormant account. Maybe, it never occurred to you before. But, here are the reasons for your account becoming inoperative.
What is Inoperative Account?
An inoperative account is an inactive account in which the operation of the account is ceased.
When you are not using your bank account for a couple of years. The account become dormant and goes to inactive mode. Most of us do not know about this until it happens. That means knowing by experience.
078 inoperative account SBI means your SBI bank account is inoperative. This error code normally shows when operating your bank account either on ATM or for online transaction. To make it right, you have to submit identification documents to the bank and transact funds over the counter.
If you have a bank account with SBI, you must have seen sometime the error code 078 when using an SBI ATM card. This error code 078 is because your account is inoperative. Until you make the account active mode, you won’t be able to use any form of transaction in your bank account.
So, what are the things that you need to do and go forward with fixing the inoperative account? There is not much to do but you need to follow certain guidelines of the bank, such as proving yourself that you are the account holder by providing specific documents as per KYC norms.
When Does an Account Become Inoperative/Dormant?
If you do not use your account for 2 years continuously, then your account will be considered under the inoperative accounts list. Inoperative accounts and dormant accounts are just the same. To avoid this, you are supposed to use your account every now and then. If you are not a regular user, you should at least transact a few transactions every month. Once a month is also perfectly fine.
Most banks count transactions that are done over the counter as good. That would carry forward and assume that the account is active and alive. Those transactions done online are not good enough when it comes to dormant accounts.
Why does it Happen?
There is a reason behind it. The logic is to safeguard people’s money. Bank also has a system and procedure to deal with those inoperative accounts. It is a tool to know precisely about the account user’s status.
There may be several reasons behind the account being inoperative. Such as, if the account holder is dead and no one in the family knows about the bank account, the account owner has gone abroad or it may be because of health issues etc.,
Whatever the reason may be, marking the account as inoperative acts as a tool to know the whereabouts of the account holder by the bank. And it helps in mitigating certain inherent risks involved in it. Banks have policy guidelines to tackle the dormant account issue to safeguard their client’s interests.
SBI Inoperative Account Activation
There is a simple process to reactivate your bank account. As per bank rules, when your bank account is inoperative to need to visit the bank where your account is maintained.
When you go for activation of inoperative accounts, you have to produce your identification details which have the proper address. The bank official will verify your credential and make amends in their system.
This may include an updation of your KYC details in your bank account. When it’s done, all you have to do is to transact a minimal amount. Even a ₹100 cash withdrawal or deposit over the counter might serve the purpose.
As per KYC guidelines, you have got to submit your latest address proof if you have reallocated recently, and your ID card which can be Aadhaar card/ Voter card/ Driver’s license/ Passport or PAN card has to produce. For more details about KYC guidelines please visit the RBI website.
You may also get a call from your bank or receive a letter informing you about your account being inoperative and requesting you to visit the branch.
Can you transact if your account is inoperative?
Yes, of course, that’s your account and you have every right to do it. Bank has to verify the authenticity of the account owner and that’s their job. With the required formality you can make your account become operative once again. But if you do not visit your bank personally, your bank may be unable to reactivate it.
It is actually a very delicate area and the bank meticulously follows the guidelines given by the regulatory authority such as the Reserve Bank of India. So visit yourself along with the verifiable IDs and PAN card to completely make your account operative.
Is it better to use only one account?
This is a completely personal choice as per his needs. But generally, a person requires only one account not many. You can get all the facilities in an account its not like you are getting more facilities by having many accounts.
It will lower your chances of getting the account inoperative. It will also make it easier for fund management and you can easily keep a track of your bank account.
A firm has to obtain a no-objection certificate from the current banker if they want to open a new firm account in a different bank.
Recently Reserve Bank has given a new rule to all the banks in India, giving how banks should deal with the business’s current accounts. It goes like this- For current account holders with credit facilities, the firm has to have a single account only with that bank where the firm enjoys credit. They can’t have multiple current accounts in different banks.
Do online transactions reactivate the inoperative account?
No, the online transaction will never be able to reactivate your inoperative account. In fact, you may be able to login to your Internet banking but you would not be able to do any transactions. The transaction has to be put through by your bank only after the completion of your KYC formalities. This means, either way, you have to visit your bank once.
Will my ATM card works if the account is inoperative?
Yes, an ATM card will be fine but transactions may be blocked. You would not be able to cash out your balance. Every time you request for cash withdrawal, the system will prompt you with the error code of an inoperative account.
What if I want to close it?
Definitely, you can close your inoperative account. The reason has to be genuine why your account is inoperative for so many years and suddenly you want to close it. Your bank will process it for verification, validate it and they close your account.