Module: General Practice
Q47: Before an account becomes "Unclaimed" (at 10 years), it is first classified as "Inoperative" or "Dormant." According to RBI guidelines, what is the specific period of non-operation (no customer-induced transaction) after which a Savings or Current account is classified as Inoperative?
✅ Correct Answer: B
Correct Answer: B. Over 2 years.
Concept: Inoperative Account Trigger.
The Rule: A Savings or Current Account constitutes "Inoperative" if there are no Customer-Induced Transactions in the account for a period of over two years.
Impact: Once classified as Inoperative, the bank must segregate the account in the system to prevent fraud.
Penalties for non-maintenance of minimum balances are not applicable to inoperative accounts.
Interest must still be credited.
Concept: Inoperative Account Trigger.
The Rule: A Savings or Current Account constitutes "Inoperative" if there are no Customer-Induced Transactions in the account for a period of over two years.
Impact: Once classified as Inoperative, the bank must segregate the account in the system to prevent fraud.
Penalties for non-maintenance of minimum balances are not applicable to inoperative accounts.
Interest must still be credited.