Bank A/Cs not inoperative if dividend cheque credited in 2 yrs

Tags: News
The Reserve Bank today said bank accounts will not become inoperative if a dividend cheque has been credited in it in the previous two years.

"Since dividend on shares is credited to Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction.

"As such, the account should be treated as operative account as long as the dividend is credited to the Savings Bank account," RBI said in a notification.

A bank account become inoperative or dormant if no credit or debit transaction has been conducted for a period of two years.

RBI further said that such, the account should be treated as operative account as long as the dividend is credited to the Savings Bank account.

This clarification has been issued in view of the doubts raised by some bankers whether an account in which only dividend has been credited can be treated as inoperative after two years.

EDITORIAL OF THE DAY

  • Government must wake up to the woes of electricity generators

    India is not staring at a power crisis yet, but an estimated 46,000 mw of power capacities are at risk today.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Nigavekar

Moocs will not replace traditional education

I am revisiting the topic of massive open online course ...

Zehra Naqvi

Minimalism: declutter your life

When you imagine an ideal place to live, you think ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture