RBI to Close Inactive and Dormant Bank Accounts from January 1, 2025: Full Details and Revival Steps
The Reserve Bank of India (RBI) has announced a major update that will come into effect from January 1, 2025. As part of its efforts to enhance banking security and reduce the risk of fraud, the RBI has directed banks to close specific types of accounts that remain unused or inactive for extended periods.
This new rule is aimed at improving the overall efficiency of banking operations and ensuring better compliance with regulatory guidelines.
Types of Bank Accounts That Will Be Closed
1. Dormant Accounts
Dormant accounts are those that have seen no activity for a continuous period of two years or more. These accounts are more vulnerable to misuse and fraudulent activities. Closing them is intended to protect account holders and ensure better security within the banking system.
2. Inactive Accounts
Accounts that have not recorded any transactions for the past 12 months or longer will be marked as inactive. These accounts can be reactivated, but if not used, they may be closed by the bank. The purpose of this step is to reduce operational burden on banks and prevent the misuse of idle accounts.
3. Zero Balance Accounts
Accounts that maintain a zero balance for a long period may also be subject to closure. The RBI aims to reduce financial risk, avoid misuse of these accounts, and promote better communication between customers and their banks. This also helps banks keep customer KYC (Know Your Customer) information updated.
How to Avoid Closure of Your Bank Account
To prevent your bank account from being closed under the new RBI guidelines, you should take the following steps:
Reactivate inactive accounts:
If your account has been inactive for over 12 months, make at least one transaction (such as a deposit, withdrawal, or UPI payment) to keep it active.
Engage with dormant accounts:
If your account has been dormant for two years or more, you must visit your bank branch and complete the required formalities to reactivate it.
Maintain a positive balance:
Avoid keeping your account at zero balance for extended periods. Even a small balance and periodic transactions can help keep your account in good standing.
Why RBI Is Implementing This Rule
The primary goals of this move are to:
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Strengthen banking security
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Minimize the risk of online fraud and unauthorized transactions
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Ensure accurate and updated customer records
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Improve the overall efficiency of banking operations
Final Reminder
If you have a bank account that you haven’t used in a while, now is the time to take action. A simple transaction or a visit to your bank branch can help you avoid account closure and retain access to essential banking services.
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