Is there any difference between the terms inactive and dormant accounts?

the difference between INACTIVE AND DORMANT ACCOUNT If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months

Both dorman and inactive accounts can be understood as silimar from point of view of a common man. In technical terms , the dorman accunts which are not operated for short period and inactive means for a longer period

I do not think it is a question a little fuzzy reformulate your question

Dorman accounts are closed bank  accounts for an entity whereas inactive accounts are the ones in which there are no transcations during the fiscal year

 

It's really up to each financial institution to define those terms for themselves, while making sure that they follow each state's escheat laws.

In general, 

Inactive account - classified when you don't do any transactions for more that 12 month. 

 

Dormant account- classified when you don't do any transactions for 24 month. 

If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account.

And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant. 

INACTIVE AND DORMANT ACCOUNT If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant. As per Reserve Bank of India (RBI) guidelines, an account becomes dormant if a customer does not initiate transactions such as withdrawal of cash at a branch or automated teller machine (ATM), payment by cheque, transfer of funds through Internet banking, phone banking or ATMs. System generated transactions, such as interest credit, are not considered valid. However, if you get dividend on shares or the proceeds of your fixed deposit (FD) in your savings account, then it will be considered as a customer induced transaction. Hence, the account will be treated as operative as long as the dividend or FD proceeds is credited to bank account. It will be treated as inoperative only after two years from the date of the last credit entry of dividend or FD, provided there is no other customer induced transaction. Once your account is tagged as inactive, you won’t be able to request for a debit card or cheque book, use Internet banking or get user identity (ID) and password. And when it becomes a dormant account, besides the restrictions applicable on an inactive account, you won’t be allowed to change your address, contact number, email address, and do transactions through ATMs, Internet and phone banking.

In banking parlance, in case of saving account, an account is dormant if it is not operated for a period of 1 year and will become inoperative if it is not operated for 2 years (inclusive of 1 dormant year). In case of current account, it is 6 month + 6 months

Inactive account means an account had not been in use for along time and not going to be used in the future.Dormantaccounts are those which are presently not in use but it islikely that it may be used in the near future