Three bank accounts closed from January 1! Know who will be affected and why
The Reserve Bank of India (RBI) has decided to close some bank accounts from January 1, 2025. This step has been taken to increase the security of the banking system, reduce fraud and improve the overall efficiency of banking operations. This new rule will affect three types of bank accounts – dormant accounts, inactive accounts and zero balance accounts.
This move can affect millions of bank account holders. Therefore, it is very important to know whether your account is safe or not, and if not, what steps can be taken to avoid account closure. This decision of RBI has been taken to ensure the safety of both customers and the banking system.
RBI’s new rules: Three types of bank accounts will be closed
Under this new rule of RBI, three types of bank accounts will be closed from January 1, 2025. Let us know about these accounts in detail:
| Account Type | Description |
| Dormant Accounts | No transactions for 2 years or more |
| Inactive Accounts | No transactions in the last 12 months or more |
| Zero Balance Accounts | Zero balance in the account for a long time |
| Reason for closing the account | Increasing security, reducing fraud |
| Effective Date | January 1, 2025 |
| those affected | Millions of bank account holders |
| Objective of RBI | Improving the security and efficiency of the banking system |
Dormant Accounts
Dormant accounts are those accounts in which there has been no transaction for two consecutive years or more. According to RBI, such accounts become easy targets for hackers and fraudsters. Therefore, for the safety of customers and the banking system, it has been decided to close these accounts.
If your account falls under the dormant category, you should immediately contact your bank and take the necessary steps to reactivate the account. For this, you will have to go to your bank branch and get your KYC updated and do some transactions in the account.
Inactive Accounts
Inactive accounts are those accounts in which there has been no transaction for the last 12 months or more. RBI believes that such accounts also increase the risk of fraud. Therefore, it has been decided to close these accounts as well.
If your account falls into the inactive category, you should contact your bank as soon as possible and take the necessary steps to reactivate the account. For this, you have to make at least one transaction in the account.
Zero Balance Accounts
Zero balance accounts are those accounts which have no balance for a long time. RBI believes that such accounts can be misused and they can increase financial risk. Therefore, it has been decided to close these accounts as well.
If your account falls in the zero balance category, then you should contact your bank as soon as possible and deposit some amount in the account. Along with this, you should get your KYC updated.
What to do to avoid account closure?
If your account falls into any of the three categories above, you should take action immediately. Here are some important tips:
- Contact the bank: Visit the nearest branch of your bank or call the customer care number of the bank.
- Update KYC: Get your account’s KYC updated. For this, you will have to submit your identity and address proof.
- Make a transaction: Make at least one transaction in your account. It can be either debit or credit.
- Maintain minimum balance: Always maintain a minimum balance in your account.
- Check your account regularly: Check your account regularly and make transactions at least once every three months.
Impact of this new rule of RBI
This new rule of RBI will affect the banking system in many ways:
- Increased security: The move is expected to reduce banking frauds.
- Operational efficiency: Banks will have to spend less time and resources managing inactive accounts.
- KYC compliance: This will make it easier for banks to comply with KYC regulations.
- Customer Awareness: This move will encourage customers to be more vigilant about their accounts.
Important tips for bank account holders
If you don’t want your bank account to be closed, follow these tips:
- Regular transactions: Make regular transactions in your account, even if it is a small amount.
- Use Online Banking: Keep your account active by using Online Banking or Mobile Banking.
- Standing Instructions: Set standing instructions for regular payments from your account.
- Set up alerts: Avail SMS or email alert service from your bank.
- Multiple accounts: If you have multiple bank accounts, consider consolidating them.
Purpose of the new RBI rule
This new rule by RBI serves multiple purposes:
- Preventing fraud: Dormant accounts are often used for fraud. RBI wants to reduce this risk by closing these accounts.
- Efficiency of the banking system: Managing inactive accounts consumes a lot of banks’ resources. By closing these accounts, banks will be able to use their resources better.
- KYC compliance: This move will make it easier for banks to keep their customer information up-to-date.
- Customer Awareness: This rule will encourage customers to be more vigilant about their bank accounts.
Disadvantages of closing a bank account
If your bank account gets closed, you may face several problems:
- Disruption in financial transactions: You will not be able to make your regular payments.
- Impact on credit score: Account closure can have a negative impact on your credit score.
- Difficulty in opening a new account: A closed account may cause problems in opening a new bank account.
- Interruption in government benefits: If you avail the benefits of government schemes, closing the account may hamper them.
Disclaimer
This information is based on the information available till January 2, 2025. Although RBI has announced this rule, there may be some changes in its implementation. Therefore it is advisable that you contact your bank to confirm the status of your account and take the necessary steps. This rule is genuine and has been implemented by RBI to increase the safety and efficiency of the banking system.
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