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The Reserve Bank of India (RBI) is set to bring some changes in the banking system starting from January 1, 2025. The changes are crucial as they may affect millions of customers. The banks are closing three accounts from the first day of next year. It is prudent for the customers to check if their account is safe and if not what steps can be taken to prevent account closure.
The RBI’s directions aim to enhance the transparency, safety, and efficiency of transactions. The federal bank is trying to minimise banking fraud. Here are three types of accounts that will be closed from January 1:
1. Inactive Accounts
Those accounts which show no transaction history in the last 12 months or more are called Inactive accounts. If any account holder has not made any transaction in their account for over 1 year, they must reach out to their respective bank branch and follow the process to make their account active. The action is being taken to reduce the unnecessary burden and increase the efficiency of the banks while also reducing the chance of online fraud.
2. Dormant Account
When an account passes a time frame of two years without any transactional activity, banks mark it as dormant. The RBI has directed to close such accounts as they are more prone to be hacked and subsequently used by cyber fraudsters to dupe innocents.
3. Zero Balance Accounts
Like Inactive and Dormant accounts, accounts that maintain zero balance in their account for a long time will also be closed from January 1. The step is also directed towards ensuring no malicious use of the accounts. The measure also aims to encourage customers to use their accounts frequently. If any account holder has maintained zero balance in their accounts, it is advised to them to visit their branch and do proper KYC to ensure the free working of the accounts.
