Starting January 1, 2025, the Reserve Bank of India (RBI) will implement new guidelines that will affect thousands of bank accounts across the country. The RBI aims to enhance the security, transparency, and efficiency of the banking system, and as part of this effort, it will close three types of accounts. Here’s what you need to know.
The RBI’s decision comes as part of a broader initiative to modernize the banking sector, reduce fraud, and promote digitalisation. By closing certain types of accounts, the central bank aims to address loopholes that allow for fraudulent activities like hacking and misuse of dormant accounts. This move will also encourage customers to maintain active and updated banking relationships.
Types of Accounts Facing Closure
- Dormant Accounts
Accounts that have been inactive for over 12 months are at risk of being closed. These accounts are often targeted by hackers, and the RBI wants to reduce the risks associated with dormant accounts. If your account is inactive, it is crucial to take action by reactivating it or risk having it closed permanently. - Zero Balance Accounts
Accounts with a zero balance for an extended period will also be closed. This step is designed to reduce the misuse of such accounts, encouraging customers to maintain an active relationship with their banks. It also supports stronger KYC (Know Your Customer) practices to ensure customer information is up to date. - Inactive Accounts
Accounts that have been dormant for more than two years will also face closure. If you haven’t used your account for a while, it’s essential to visit your bank or update your details online to ensure your account remains active and compliant with the RBI’s regulations.
If you have any accounts that fall into these categories, it’s time to take action. Ensure your KYC details are up to date and maintain regular activity in your account. Make sure your account balance meets the bank’s requirements to avoid it being flagged as inactive.
By acting now, you can avoid any disruption to your banking services and ensure compliance with the new RBI guidelines.
