RBI to Close Inactive, Dormant, and Zero-Balance Accounts Starting January 2025

Starting January 1, 2025, the Reserve Bank of India (RBI) will introduce new rules that could lead to the closure of certain bank accounts. The aim is to improve security and efficiency in the banking system. Here’s what you need to know:

Types of accounts affected:

1. Dormant accounts: These accounts haven’t had any transactions for two years or more. They are more vulnerable to fraud and hacking, so the RBI is closing them to protect customers and the banking system.
2. Zero balance accounts: Accounts with no balance for a long time may also be closed. The RBI wants to reduce misuse of these accounts and promote better engagement between banks and customers, while also ensuring up-to-date customer information.
3. Inactive accounts: These accounts haven’t been used for 12 months or more. If you have an inactive account, you’ll need to contact your bank and take steps to reactivate it to avoid it being closed.

Tips for account holders:

To prevent your account from being closed, consider the following:

• Reactivate inactive accounts: If your account hasn’t been used for over a year, make at least one transaction to reactivate it.
• Engage with dormant accounts: If your account has been inactive for two years, visit your bank to reactivate it.
• Maintain a positive balance: Avoid keeping your account at a zero balance for too long.

These changes aim to enhance the safety of banking and reduce fraud.