Bank Account Update: Banks Will Close These 3 Types of Accounts from Jan 1st – Details Inside

If you have multiple bank accounts and haven’t used one for a long time, this news is for you. Starting today, the Reserve Bank of India (RBI) has implemented new guidelines under which three types of bank accounts will be closed. These include dormant accounts, inactive accounts, and zero-balance accounts. This RBI initiative aims to enhance security, minimize fraud, and improve banking operations. Let’s understand what dormant accounts, inactive accounts, and zero-balance accounts are, and when an account falls into these categories.

Dormant Accounts

Accounts with no transactions for two years or more are classified as dormant. Such accounts are vulnerable to hacking and fraudulent activities. To address this, the RBI has instructed banks to close accounts in this category.

#PersonalFinance | The Reserve Bank of India (@RBI) is set to pull the plug on these types of bank accounts starting today, January 1.

Here’s all you need to know | @anshul91_m | #RBI #BankAccount #banks #BankAccount https://t.co/JnDvzE5tKH

— CNBC-TV18 (@CNBCTV18News) January 1, 2025

Inactive Accounts

Accounts with no transactions for 12 months or more are considered inactive. Account holders must contact their bank branch and follow the necessary steps to reactivate such accounts. Failure to do so will result in the closure of the account by the bank.

#BankAccount: 1 जनवरी 2025 से बंद हो जाएंगे 3 टाइप के बैंक अकाउंट, क्या आपका भी अकाउंट है ऐसाhttps://t.co/guJxk4W366#RBI #Bank #account #close #savingaccount pic.twitter.com/pka6WbwEFL

— Moneycontrol Hindi (@MoneycontrolH) December 31, 2024

Zero-Balance Accounts

Accounts that remain at zero balance for an extended period are termed zero-balance accounts. The RBI has directed banks to close such accounts.

How to Prevent Account Closure?

• For Inactive Accounts: If your account has been inactive for over 12 months, make at least one transaction to keep it active.
• For Dormant Accounts: If your account has been inactive for two years, visit your bank branch to reactivate it.
• For Zero-Balance Accounts: Ensure your account does not remain at zero balance for too long by maintaining a positive balance.

Disclaimer:

The information provided is for general purposes only. For specific details, please contact your bank directly. The author and publisher are not responsible for any decisions made based on this information.