Bank Rules : The Reserve Bank of India (RBI) has announced new regulations that will come into effect from October 29, 2025, under which three types of bank accounts will be closed. These new rules aim to make the banking system more secure, transparent, and fraud-free. According to the updated guidelines, certain accounts will either be closed or their operational limits will be restricted. Hence, customers must stay alert about the status of their bank accounts. Let’s understand which three types of bank accounts are affected, why they are being closed, and how these changes will benefit customers.
RBI’s New Guidelines : Three Types of Accounts to Be Closed
In its latest circular, the RBI has specified three categories of accounts that will be closed or restricted. These mainly include:
- Dormant Accounts – Accounts in which no transaction has occurred for the past 2 years.
- Inactive Accounts – Accounts in which no customer-initiated transaction has occurred for 1 year.
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Zero Balance Accounts – Accounts that have no balance and no transactions for a long time.
The purpose behind closing or restricting these accounts is to eliminate fake or high-risk accounts from the banking system, thereby reducing the chances of financial fraud. It will also help in improving operational efficiency for banks.
Important Points for Customers
- If your bank account is dormant or inactive, you must reactivate it as soon as possible.
- Zero balance accounts with no transactions for a long period will be closed permanently.
- To reactivate your account, you can either perform a small transaction at your bank branch or use digital banking channels.
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These steps are part of RBI’s broader move to enhance customer security and prevent fraudulent activities.
Summary Table of RBI’s New Rules
| Type of Bank Account | Description | Reason for Closure | Reactivation Process | Customer Notification | Effective Date |
|---|---|---|---|---|---|
| Dormant Account | No transaction for 2 years | Prevent fraud, enhance security, simplify operations | Perform any transaction (branch/digital) | SMS, email, or postal notice | October 29, 2025 |
| Inactive Account | No customer-initiated transaction for 1 year | Same as above | Same as above | Same as above | October 26, 2025 |
| Zero Balance Account | No transactions and no balance for a long time | Same as above | Not applicable (account will be closed) | Same as above | October 26, 2025 |
Benefits of RBI’s New Rules
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Enhanced Banking Security:
Dormant or inactive accounts are often used for fraudulent activities. The new rules will significantly reduce such risks. -
Increased Customer Awareness:
Banks will now send timely alerts to customers, ensuring that accounts remain active and secure.
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Better Bank Operations:
With fewer dormant accounts, banks can focus on active customers, improving efficiency and service quality. -
Promotion of Digital Banking:
Customers will be encouraged to use digital banking platforms for regular transactions, promoting transparency and convenience.
Essential Steps for Account Holders
- Regularly monitor your bank account and make at least one transaction periodically to avoid dormancy.
- Read all communications (SMS, emails, or letters) from your bank carefully and take necessary action promptly.
- Check your account status through bank apps, net banking, or by visiting your branch.
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If your account gets closed, you may request reopening, but the process can take some time.
Why RBI Took This Step
The RBI’s decision aims to strengthen financial security and curb fraudulent practices within the banking system. By identifying and closing inactive or risky accounts, the RBI ensures a more transparent and stable financial environment. This move will also make customers more responsible in maintaining their bank accounts properly.
According to the RBI, account holders should regularly review their account activity and respond to bank notifications to prevent unintentional account closures.
In Summary
- From October 25, 2025, RBI will close or restrict dormant, inactive, and zero balance accounts.
- Customers can avoid closure by keeping their accounts active through regular transactions.
- The move will enhance security, reduce fraud, and improve banking efficiency.
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Customers are advised to stay alert, check their accounts frequently, and follow bank notifications to avoid inconvenience.
