Mumbai, Sept 2 (KNN) The Reserve Bank of India (RBI) has said that an account should be treated as an operative account as long as the dividend is credited to the Savings Bank account.

“Since dividend on shares is credited to Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction,” it said.

Savings Bank account can be treated as inoperative account only after two years from the date of the last credit entry of the dividend, provided there is no other customer induced transaction.

There may be instances where the customer has given a mandate for crediting dividend on shares to Savings Bank account and there are no other operations in the Savings Bank account, said RBI.

Some doubts have arisen whether such an account is to be treated as inoperative account after two years, it added. (KNN/SD)