What: Set accounts to "Dormant" state if no transactions (Deposit, Withdrawal or Transfer) has been performed for x says AFTER the maturity date of the account.
Additional note: currently, deposit products that have a maturity period (fixed deposits and savings plans) can have a dormancy period defined at product level, but it is not applied - i.e. the accounts are never set to "Dormant" state, regardless of the number of days specified in the product. The dormancy criteria should be applied after the maturity date in the case of these fixed term products, sine before maturity no transactions are expected, by definition (e.g. a fixed term deposit will, in theory, remain untouched until it matures)
Why: By definition, a Fixed Deposit account should be withdrawn after maturity. If it is not, then there might a problem with the account or the customer. By setting these accounts to Dormant if not withdrawn or transferred after maturity, we help organizations identify them, report them separately and contact the client (or implement some other specific workflow they might have - such as, for example, automatically roll-over the deposit for another term or transfer it to the client's current account via API)
In general, organizations need to track differently the deposit accounts that don't have any activity on them, after a period of time, including those that have a maturity (Fixed Deposits and Savings Plan). In some countries, central banks or other regulators require MFIs to report separately their dormant accounts and to implement specific workflows (locking accounts, reporting when they are reactivated etc.)