RBI To Close These Bank Accounts From 2025: All You Need To Know

Starting January 1, 2025, the Reserve Bank of India (RBI) will implement significant changes that could impact lakhs of bank accounts across the country. These new guidelines are designed to enhance the safety, transparency, and efficiency of banking transactions, while also reducing the risk of fraudulent activities. The RBI aims to streamline the banking system, curb account hacking, and promote digitalisation and modernisation within the sector. Customers are urged to understand these changes and take necessary actions to avoid losing access to their accounts.

Key Account Closures Under RBI’s New Guidelines

The RBI will close three specific types of bank accounts under these new regulations:

Dormant Accounts

Accounts that have had no transactions for two or more consecutive years will be deemed dormant. Such accounts are considered vulnerable to misuse by hackers, making them targets for fraudulent activities. To safeguard customers and the overall banking system, these accounts will be closed.

Inactive Accounts

Accounts that show no transaction activity for 12 months or more will also face closure. This move is part of the RBI’s efforts to improve account security and reduce fraudulent behaviour. Customers with inactive accounts are encouraged to reactivate them to avoid closure.

Zero Balance Accounts

Accounts that maintain a zero balance for an extended period will also be closed. This decision is intended to minimise financial risks and encourage customers to maintain active relationships with their banks. The RBI also aims to strengthen Know Your Customer (KYC) norms through this measure, ensuring that customer information remains current and accurate.

What Can Customers Do?

If you have a dormant account, it is important to take immediate action. Reactivating your account requires completing the KYC process, which may involve visiting your bank or updating your details online. Regularly updating your KYC details, including verifying your identity and address, can prevent your account from being flagged as inactive.

Additionally, ensure that you meet your bank's minimum balance requirements to avoid having your account classified as inactive. While offline banking options remain available, prioritising digital banking channels will not only offer greater convenience but also align with the RBI’s push for a more modern banking system.

As the deadline approaches, customers are advised to check their account status and act accordingly to ensure they remain unaffected by the upcoming changes.

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