Private banks’ inoperative Jan Dhan accounts rise led by HDFC Bank, Kotak Mahindra Bank

“Having said this, two concerns stand out. First, an account that sits idle delivers inclusion on paper only, so banks need to link onboarding to a first use case such as DBT credits, UPI or micro-insurance. This will ensure not just inclusion but also usage. Second, dormant zero-balance accounts are as attractive to fraudsters as mule accounts. Reactivation should be treated as a high-risk event, with fresh KYC and monitoring of early transactions, not just a routine unfreeze, else banks end up with a new problem in their hands while addressing inclusion,” added Iyer.