The Reserve Bank of India (RBI) will begin implementing a number of significant changes on January 1, 2025, which would impact thousands of bank accounts across. Is your bank account in danger of being inaccessible? Understanding these changes and acting before it’s too late are crucial. All the information you want on the upcoming RBI rules is provided here.
To improve the security, openness, and effectiveness of financial transactions, the RBI has decided to cancel several kinds of bank accounts. The apex bank hopes to reduce fraudulent activities, including bank account hacking, and encourage digitalization and modernization in the industry by simplifying the system. This new regulation aims to reduce risks, fix operational flaws in banks, and improve consumer services while safeguarding their interests.
These new rules will result in the closure of three types of bank accounts as of January 1, 2025. However, which accounts are not being monitored? Let’s examine it more closely.
1. Dormant Accounts
An account is regarded as dormant if there haven’t been any transactions for two years or more. Because hackers frequently target dormant accounts for unlawful activities, these accounts are prone to misuse. The RBI has made the decision to terminate these accounts to protect consumers and the banking system.
2. Inactive Accounts
Accounts that have not had any transactions for a specific period—usually 12 months or more—are considered inactive. As part of the RBI’s initiatives to improve account security and lower the possibility of fraudulent activity, these accounts will also be discontinued. You must either reactivate your account or face its termination if it fits into this category.
3. Zero Balance Accounts
Extended periods with a zero balance will also result in the termination of the account. The RBI wants to minimize financial risks, stop such accounts from being misused, and encourage clients to stay in touch with their institutions. Furthermore, this step aims to guarantee that all client data is current and correct while also reinforcing Know Your Client (KYC) standards.
Precautionary Measures for Customers
You must move quickly to revive your account if it has been inactive for more than two years. If you haven’t already, the first step is to finish the KYC (Know Your Customer) process. You might have to change your information online or go to your bank. Make sure your KYC information is updated regularly to prevent your account from being marked as inactive. This involves confirming your address and identification with the bank as needed.
A minimum amount is frequently required by banks to be kept in an account. you keep your account from being deemed inactive, make sure you follow the exact instructions provided by your bank and have the necessary amount. Additionally, although there are still offline banking choices, giving priority to digital banking channels not only makes things more convenient but also supports the RBI’s efforts to modernize the banking system.
