The Reserve Bank of India (RBI) has issued an important notice for bank account holders.
Starting January 1, banks may begin closing certain inactive accounts.
This move is aimed at cleaning up unused accounts, improving banking system hygiene, and strengthening financial records.
If you’re unsure whether your account is at risk, here’s what you need to know.
Which Accounts Are Affected?
Dormant Accounts
A dormant account is one that hasn’t seen any customer-initiated transactions—like deposits, withdrawals, or transfers—for two years or more.
Some banks even consider online inactivity.
When an account becomes dormant:
Transactions may be blocked temporarily
Interest (if any) may stop
The account could be flagged for closure if you don’t respond
Banks usually notify customers via SMS, email, or physical mail and ask them to reactivate the account by making a transaction or updating details.
Zero-Balance Accounts
Accounts that remain at zero balance for long periods and see no activity are also at risk. Examples include:
Savings accounts opened but rarely used
Zero-balance accounts left inactive for years
Banks may close such accounts to reduce administrative work and clean up records.
3. Inactive Accounts with Missing KYC
If your account is inactive and your Know Your Customer (KYC) documents are outdated or missing, it may be marked for closure.
Banks are required to maintain up-to-date KYC information for all customers.
Failure to comply can lead to account deactivation.
How to Keep Your Account Safe
To avoid your account being closed:
Make a simple transaction, such as a deposit or withdrawal
Update your KYC details with the bank
Respond promptly if the bank sends any alerts about inactivity
Acting before January 1 ensures your account remains active and accessible.
Conclusion
From January 1, banks will start closing certain dormant, zero-balance, and inactive accounts under the RBI’s directive.
Checking your account activity and updating documents in advance is essential to avoid unintended closures and protect your funds.
