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.

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.