RBI asks banks to bring down inoperative accounts, report their numbers quarterly

MUMBAI: The RBI on Monday asked banks to "urgently" reduce the number of inoperative or frozen accounts by taking necessary steps and also report their numbers quarterly.

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Expressing concern over the rising sums of money lying in such accounts, the RBI said its supervisory inspections have revealed a slew of problems due to which accounts are becoming inoperative or get frozen.

The Department of Supervision, RBI, recently conducted an analysis, which revealed that the number of inoperative accounts/unclaimed deposits in several banks was on the higher side vis-a-vis their total deposits as well as in absolute terms, it said.

"The banks are...advised to take necessary steps urgently to bring down the number of inoperative/frozen accounts and make the process of activation of such accounts smoother and hassle free," a notification to chiefs of all the banks said.