Bank Account: The Reserve Bank of India (RBI) has announced that certain bank accounts will be closed starting January 1, 2025. This decision is part of the central bank’s strategy to enhance security, minimize fraud, and streamline banking operations. Consequently, transactions of any kind will no longer be permitted from these accounts.
Some bank accounts going to close
Effective immediately, dormant accounts—those that have remained inactive for approximately two years or more—will be closed. Such accounts are particularly vulnerable to hacking and fraudulent activities. The RBI’s move to close these accounts is intended to safeguard customers and bolster the security of the banking system.
Another reason to shut
Accounts that have not experienced any transaction activity for the past 12 months or longer are classified as inactive. Account holders in this category are encouraged to reach out to their bank branch to take the necessary steps for reactivation. This initiative is designed to alleviate the burden on banks, enhance operational efficiency, and mitigate the risk of online fraud.
Additionally, accounts that have maintained a zero balance for an extended period may also be subject to closure. The RBI’s goal is to prevent the misuse of these accounts, lower financial risks, and encourage regular communication between customers and their banks. This initiative further aims to reinforce compliance with Know Your Customer (KYC) regulations, ensuring that customer information remains current and accurate.
If you possess a dormant account, you can reactivate it by visiting your local bank branch. Once activated, you will be able to conduct transactions from this account. For accounts that have been inactive for over 12 months, it is necessary to complete the KYC process and perform at least one transaction. Additionally, if your account has a zero balance, it is crucial to avoid maintaining that balance for an extended duration.
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