Dormant account is the term used in the banking with respect to those accounts in which the customer has not done transactions like withdrawals and deposits of funds for long time. The period after which the account becomes dormant is 24 months, however it may be different for different banks as every financial institution has its own policies.
A customer cannot perform important functions like ATM withdrawal, issue of cheques etc.., however the account holder continue getting interest credited to his or her account and also fixed charges of banks keep getting debited. The main reason behind such instance is when the customer deals with many banks and he or she just forgets about the account resulting in it becoming a dormant. In order to activate a dormant account an individual will have to submit an application to the bank describing the reason for the absence for such a long period of time, and also needs to provide a photo identity proof, once the officials verify the signature the account becomes operational again, some banks may also charge reactivation charges which vary from bank to bank.