Get FREE CONSULTATION with our team of experts! Click here to start!
Office - 216, Bank Street Building,

Bank Street Road,Burjuman,Dubai,UAE

+971 52 352 5763

Mon-Sat 9am-6pm

24 X 7 online support

Everything About Inactive/ Dormant Bank Accounts in UAE

Everything About Inactive/ Dormant Bank Accounts in UAE | Dhanguard

A bank account becomes inactive after a period of inactivity, which includes zero deposits and withdrawals as well as all forms of banking transactions. The UAE Central Bank is in charge of this type of bank account.

The Central Bank has issued new guidelines for managing dormant bank accounts and their contents. We'll go over everything that occurs to a bank account when it goes dormant in this piece. You can also use our simple method to revive and claim the contents of your dormant bank account.

Thus in today’s blog, Dhanguard will extensively discuss the Inactive Accounts or more commonly known as the Dormant Accounts. So without any further ado, let’s learn! 

A Bank Account becomes Dormant when-

  1. For at least six years, savings or current accounts are inactive. Bank acts are not included in the nature of transactions.

  2. For 5 years and 12 months, respectively, renewable and non-renewable deposit accounts are inactive.

  3. After the maturity date, investment accounts are inactive for 12 months.

What are the Steps to Categorize a Dormant Bank Account?

Before declaring a bank account dormant in the UAE, banks must take the following steps:

Getting in Touch with the Account Owner

Within two months following the account lapse, the respective banks contact the account holder. If the bank does not receive a response, the account is classified as dormant, and a report is sent to the UAE Central Bank. If the account person has other bank accounts with the same bank and their current address is current in those accounts, the dormancy status is maintained on hold.

Contents Transition

As soon as an account is classified as dormant, the UAE Central Bank is notified, and the transfer of contents process begins.

Creation of Signature Cards

For the newly classified dormant account, the bank creates a signature card. To prevent illegal access to the contents of the inactive bank account, this signature card is kept distinct from all other signature cards.

Keeping the Documents Safe

The bank also ensures that all account-related documents are kept secure and confidential. This reduces the chances of fraud and hence prevents account misuse.

Read More: Cheque Book Request from Bank in UAE

How does Elements of Dormant Account Operate?

Let's take a look at how the Elements of an inactive/ dormant bank account function.

Security Deposit Boxes

Even if the bank account in question has been inactive for a long time, banks in the UAE hold the safe deposit box charges unpaid for more than two years. The contents of the safe deposit account are handled as follows.

  • Transmit to the UAE Central Bank

If the bank is unable to contact the account holder after three months, the contents of the safe deposit box will be unavailable without authorization.

  • Request for Appointment

The bank must make a court appointment to open the safe deposit box in the presence of one of the legal authorities. The bank must provide the UAE Central Bank with a full list of the contents of the safe deposit box. If the court orders that any of the contents be sold, the proceeds must be deposited in the Central Bank's Unclaimed Balances Account. Before sending the funds to the Central Bank, the bank might deduct the expenses incurred.

  • Generate Reports

The bank must create a report for all transfers and other bank account contents, and then enter the information into the inactive account ledger. They must share a copy of the document with the Central Bank's Banking Supervision and Banking Operations Department.


The bank will continue to accrue interest on the maintained balance in an inactive account in the same way that it does for active bank accounts.


The bank account holders have the right to claim and recover funds that have been left in the dormant account. The bank must settle the claims within one month and offer a valid cause for any delays.

How to Restart a Dormant Bank Account in the UAE?

To regain access to your bank account, simply complete the procedures specified in the retrieval process. 

  1. Simply submit the bank with all appropriate documents, and once they've been verified, the bank will transfer the complete ledger value to the reactivated account.

  2. Reactivation fees are not charged by UAE banks. When you reactivate your bank account, the bank checks to determine if your records are up to date.

  3. If the account holder does not contact the bank for seven years or more, the bank transfers the account value to the UAE Central Bank's Unclaimed Balances Account - Dormant Accounts division. Until the account holder or beneficiary lodges a claim, the UAE Central Bank has rights to the bank account and its contents.


If the account holder is unresponsive for two months after the expiration date, the account will be changed to a dormant account. Preventing your bank account from becoming dormant is the most effective technique to deal with this problem. Even if you don't use it on a regular basis, all you have to do is complete the required number of transactions. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our Experts by visiting our Branch Office.


Latest Questions

Question & Answers related to Business Account

Answer Icon Dhanguard

There are a number of reasons why a bank will call you or demand your physical appearance in their branches to fulfill some of the formalities. And .. Read More

Answer Icon Dhanguard

When a firm wishes to open a bank account, it must first pass a board resolution, which is known as a board resolution for bank account opening. Th .. Read More

Answer Icon Dhanguard

A correspondent bank is a financial institution that acts on behalf of another bank or financial institution, normally in another country, to provi .. Read More

Answer Icon Dhanguard

To ensure that copies submitted are accurate, exact, complete, and unaltered, true copies (or certified copies) of original documents are frequentl .. Read More

Frequently Asked Questions

Yes, a foreign entity can open business account in the UAE. The registration of any organisation in the UAE is generally an easier and cost-effective way.

The requirement for opening any bank account in the UAE vary from one bank to another. Although, the existence of a major director or shareholder is generally required.

A limited company should have a dedicated bank account because they have a separate legal entity.

The benefits of having business account includes tracking of the expenses, easy calculation of the tax liabilities as well as management of cash flow.

Yes you can open a business account in various major currencies of the world other than the UAE dirhams.

Every bank has a unique internal procedure and timetable for opening accounts. For an LLC or a Free Zone company, obtaining a bank account in the UAE normally takes 2 to 4 weeks.

Get Instant Advice
Where To Find Us