If your bank account is closed, then it is very important to know why this happened and how you can activate it again. The Reserve Bank of India (RBI) has recently implemented some new rules which aims to make the banking system even more secure and transparent. Under these rules, KYC (Know Your Customer) is not updated, dormant accounts and unverified accounts can be closed.
The main objective of these rules is to reduce fraud and increase security in the banking system. If your account also falls in any of these categories, then you have to take necessary steps as soon as possible. In this article, we will tell you what the new rules of RBI are, and how can you save your account from closing.
Information about RBI’s new rule
Under the new RBI rules, three types of bank accounts can be closed: Non-Kyc, Dormant, and Unverified Accounts. This rule has come into force from 1 January 2025, but in some reports its date 7 February 2025 has also been reported. Let’s get information about this rule through a wide table:
| Description | Information |
| Date of implementation of rules | 1 January 2025 (7 February 2025 in some reports) |
| Issuing Institution | Reserve Bank of India (RBI) |
| Targeted accounts | Non-Kyc, Dormant, Unverified Accounts |
| Main objective | Transparency and safety |
| Affected customer | All bank customers |
| Required document | KYC document (Aadhaar, PAN, Passport etc.) |
| Solution process | KYC updates and account activating |
Which accounts will apply to this rule?
Under the new RBI rule, accounts on which this rule will apply are:
- Non-KYC accounts: accounts where KYC (Know Your Customer) is not updated can be closed. If KYC is not updated, the bank can consider such accounts to be fake.
- Dormant accounts: accounts that have not had any transactions for the last two years are considered inactive. If the customer does not request to activate the account, it could be closed.
- Unverified accounts: The accounts given in which the information given is incomplete or wrong is considered unmatched. If the verification process is not completed, the bank can close such accounts.
What to do to save the bank account closure?
If your account is in danger of closing, then you should immediately take some important steps:
- Update KYC: To update KYC, you can go to the nearest bank branch and submit Aadhaar, PAN, Passport or other legitimate identity card. Apart from this, KYC can also be updated through the bank’s website or mobile app.
- Activate the account: If your account is inactive, immediately deposit some amount or withdraw in it, so that the account remains active.
- Update the information: If your account is uncomfortable, then go to the bank and get your information updated and if needed, request the bank to start the account in a written manner.
Documents required to update KYC
To update KYC you will need the following document:
- Aadhar card
- PAN card
- Passport
- Any other recognized identity card
How to update KYC sitting at home
Now you can update your bank account KYC even at home. For this you follow the following steps:
- Log in on your bank’s online portal.
- Click on the KYC tab.
- Follow the instructions given on the screen, enter your name, address and date of birth.
- Scan and upload the Aadhaar card and PAN card.
- Click on submit, then you will get a service request number.
- The bank will keep updating you with SMS and email.
Process of activating inactive accounts
RBI has made the process of activating passive accounts easier. Now you can activate your account by depositing only KYC details. This process can also be completed in any branch of the bank or through video customer identification process (V-CIP). Banks cannot charge any fee to activate any account.
RBI rules for passive accounts
According to RBI rules, after reactivating the passive accounts will be monitored for at least 6 months. This monitoring will be so strict that even the customer and the bank staff will not know it. Its aim is not to use passive accounts for fraud.
Decision to close zero balance accounts
RBI has also decided to close zero balance accounts. Accounts that have no balance for a long time can be closed. Its purpose is to prevent misuse of these accounts and reduce financial risks. Also, this initiative also works to strengthen your customer’s compliance with (KYC) regulations, ensuring that the customer’s information is updated and accurate.
What to do for zero balance accounts?
If your account is on zero balance, then you should deposit some amount in it or withdraw, so that the account remains active. This will save your account from closing.
What will the customers benefit from the new RBI rule?
Customers will have many benefits from the new RBI rule:
- Increase in security: Banking system will be more secure, which will reduce fraud.
- Transparency: Transparency in banking transactions will increase.
- Control of cyber crimes: The use of passive accounts will be less for cyber offenses.
- Promotion of digitization: Digitalization will be further promoted in the banking system.
conclusion
The main objective of the new RBI rules is to make the banking system safe and transparent. These rules will have many advantages to customers, but they have to take immediate steps to protect their accounts from closing. If your account also falls in any of these categories, then you should update KYC as soon as possible and keep your account active.
Disclaimer: This article is for general information. RBI rules may change, so you should contact your bank before taking any decision related to your bank account. This information is real, but the rules of RBI continue to change from time to time, so it would always be appropriate to get information from official sources.
