Bank accounts unused for 6 months to be inoperative

The Bangladesh Bank yesterday said current, savings and special notice deposit (SND) accounts would become inoperative if clients don't carry out any transaction for six months in a row.

SND account is an interest-bearing deposit where advance notice is required for withdrawal of money. The interest rate on deposits at SND account is higher than savings ones.

Banks will treat their current and SND accounts as dormant six months after they become inoperative, according to a central bank notice.

The inoperative savings accounts will have to be considered as dormant after 18 months.

The central bank issued the notice as many banks are following different policies on inoperative and dormant accounts.

There are allegations that some banks have imposed charges on the dormant accounts, but they have not paid any interest on the deposits kept with the accounts.

The BB asked banks to transfer the interest or profits to the dormant accounts if there have been any deposits. Similarly, banks will be allowed to impose charges on the dormant accounts.

Clients will have to submit an application to the branch manager if they want to activate their dormant account.

If an account remains dormant for five years, clients will have to fill up a new KYC (know your customer) form to activate accounts.