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

  • By banning the sale of BS-III vehicles, SC has ruled in favour of public health

    Automobiles, commercial vehicles and two-wheeler manufacturers have no alternative but to comply with the Supreme Court directive of not selling BS-II

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: SRK’s ALPHABET SOUP

On Saturday, the Enforcement Directorate sent a show cause notice ...

Ananda Majumdar

Power of risk in politics

A counter na-rrative appears to be emerging in the ongoing ...

Zehra Naqvi

Success lies in learning to embrace failure

Among the thronging multitudes that offer you lessons on success, ...