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The below content is purely for informational purposes and is not intended to constitute advisory of any kind. Please note, these are in-depth articles which are best viewed on large screen devices like laptops, desktops and tablets. The position reflected in this article has been updated as of January 15, 2024.

As a Non-Resident Indian (NRI), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI), you may be using your Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts to send and receive remittances, make investments, or manage other financial needs in India. However, if you have not used your NRE/NRO account in a while, it may become inactive or dormant. This can prevent you from transacting through your account. In this article, we will explain when banks deem NRE/NRO accounts as inactive or dormant and the process to activate them.

 

When does your account become inactive or dormant?

Banks are required to conduct an annual review of accounts that have no transactional activity. Accordingly, your NRE/NRO savings or current account is classified as:

  • Inactive: If no customer-initiated transactions are carried out for a period of one year.
  • Dormant: If no transactions are carried out for two consecutive years.

 

How does an inactive or dormant account affect you?

If your bank account is deemed inactive, you will not be able to do the following:

  • Transactions through ATMs, internet and mobile banking
  • Change of address (including phone number, mobile number and email address)
  • Issuance of chequebooks
  • Renewal of cards
  • All other account servicing and financial requests

Once your NRE/NRO account becomes dormant, in addition to the above, no transactions will be allowed.

 

How to activate an inactive or dormant NRE/NRO account?

If your account has become inactive, you can re-activate it by making a credit or debit transaction.

Did you know?

Even if your account becomes inactive or dormant, you will continue to receive periodic interest and service charges may be levied, if applicable. However, these do not qualify as transactions for activating your inactive or dormant account.

How to activate a dormant account?

To reactivate your dormant account online, you will need to submit an activation request to the bank via email or your bank’s digital channels, such as internet banking and mobile apps. Alternatively, you can also visit your bank’s nearest branch.

The activation request must be supported with the requisite documentation:

  • Dormant account activation form (signed by all account holders);
  • Know Your Customer (KYC) updation form (signed by all account holders), in case KYC has lapsed;
  • Valid passport;
  • Valid driving license, Voter’s ID and Aadhaar card;
  • NRI status proof: Valid visa/residence permit;
  • As Persons of Indian Origin (PIOs)/Overseas Citizens of India (OCIs), you must submit a copy of your PIO/OCI card. Alternatively, you must submit a duly signed self-declaration along with the documents to prove your connection to India;
  • Permanent Account Number (PAN) card or, in the absence of a PAN card, Form 60 (if applicable);
  • Tax identification number of your resident country;
  • Foreign Account Tax Compliance Act (FATCA) declaration as applicable for the United States or Common Reporting Standard (CRS) for the United Kingdom (UK), Canada, or any of the 100+ countries that have adopted CRS.

The requirements may vary depending on your bank's policy. It is recommended that you check with your bank directly to confirm the documents that are required for re-activation.

Please note, once you submit the documents, your bank will activate your account.

Conclusion

Your NRE/NRO accounts may become inactive/dormant if you do not carry out any transaction for a period of one year/two years, respectively. To avoid this, you should carry out at least one credit/debit transaction in your account every year.

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Disclaimer:

The contents of this article/infographic are meant solely for informational purposes. The contents are generic in nature and are not intended to serve as a substitute for specific advice on any matter whatsoever. The information is subject to updation, completion and verification and the applicable norms may keep changing materially from time to time. This information is also not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to applicable laws or would subject ICICI Bank Limited/its affiliates to any licensing or registration requirements. ICICI Bank Limited/its affiliates and their representatives shall not be liable for any direct or indirect losses or liability incurred arising in connection with any decision taken by any person on the basis of this content. Please conduct your own due diligence and consult your financial advisor before making any decision. Terms and conditions of ICICI Bank and third parties apply. ICICI Bank is not responsible for third party services. Nothing contained herein shall constitute or be deemed to constitute an advice, invitation or solicitation to avail any products/ services of third parties.