The Reserve Bank of India (RBI) has introduced new guidelines aimed at enhancing the security and efficiency of the banking system. Effective from January 26, 2025, three specific types of bank accounts will be subject to closure:
- Dormant Accounts: Accounts with no transactions for over two years.
- Inactive Accounts: Accounts without any activity for more than 12 months.
- Zero Balance Accounts: Accounts that have maintained a zero balance for an extended period.
Implications for Account Holders:
Regular Transactions: Ensure periodic transactions in your accounts to keep them active.
KYC Updates: Keep your Know Your Customer (KYC) information current to prevent account deactivation.
Maintain Minimum Balance: Adhere to your bank’s minimum balance requirements to avoid account closure.
Reactivating Closed Accounts:
If your account has been closed due to inactivity or zero balance, you can reactivate it by:
- Visiting your bank branch.
- Updating your KYC documents.
- Submitting a written application for reactivation.
- Depositing the required minimum balance.
- Conducting a transaction, such as a deposit or withdrawal.
These measures are designed to bolster the security of the banking system and reduce the risk of fraud associated with inactive accounts. Account holders are encouraged to stay proactive in managing their accounts to ensure uninterrupted banking services.