The Reserve Bank of India (RBI) is introducing new rules starting January 1, 2025, which could impact crores of bank accounts across the country.
To avoid losing access to your bank account facilities, it’s important to understand these changes and act promptly. Otherwise, the new year may bring unexpected issues.
Objective of RBI
The RBI has implemented these new rules to make banking transactions safer, more transparent, and efficient.
The aim is to prevent fraud, encourage digitalization, and strengthen the banking system.
This decision comes in response to the risks and cyber crimes associated with inactive accounts.
Which Accounts will be closed?
As per RBI’s new guidelines, three types of bank accounts will be closed.
Dormant Account
Dormant accounts are those with no transactions for two years or more. These accounts are vulnerable to cybercrime.
By closing them, the RBI aims to protect both customers and the banking system.
Inactive Account
Accounts inactive for 12 months or more will also be closed. This decision aims to secure these accounts and prevent fraud. If your account is inactive, you must take action to reactivate it.
Zero Balance Account
Accounts with a zero balance for an extended period will also be closed. This measure aims to prevent misuse, reduce financial risk, and encourage customers to maintain an active relationship with the bank.
Ways to Prevent Your Account from Being Closed:
Update KYC: If your account is inactive, complete the KYC process right away by visiting the bank branch or updating it online.
Maintain Minimum Balance: Ensure your account has the required minimum balance.
Keep Transactions Active: Regularly make transactions to keep your account active.
Adopt Digital Banking: Using digital banking services is convenient and aligns with RBI’s digitalization efforts. Regularly check your bank account status and take necessary actions.
RBI’s new guidelines aim to make the banking system more secure and modern, with customer vigilance playing a key role in this, helping you avoid issues in the new year.
