RBI Pushes Banks to Activate Frozen Accounts

3 Dec 2024 , 12:57 PM

The Reserve Bank of India (RBI) has instructed banks to act right away to decrease the quantity of frozen or inactive accounts and to streamline and simplify the activation process.

The RBI has recommended that banks launch special programs aimed at reactivating frozen or inactive accounts in order to accomplish this.

Banks have also been urged to help consumers update their Aadhaar accounts at branches that offer Aadhaar-related services. The goal of this program is to make it easier for account holders—especially those from disadvantaged groups—to reactivate their accounts.

According to the RBI, “Banks may also plan unique campaigns to help activate frozen or inactive accounts.” Additionally, banks may help consumers update their Aadhaar information by using branches that offer Aadhaar-related services.

In order to reduce consumer discomfort, it has also issued distinct directives to State Level Bankers’ Committees (SLBCs) to proactively monitor the situation in their respective regions.

The RBI emphasised the significance of this action by pointing out that many blocked or inactive accounts belong to members of economically disadvantaged groups.

In order to make the procedure easier for these clients, the central bank advised banks to handle these situations with empathy.

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