The Reserve Bank of India (RBI) has decided to make some important changes in the operation of bank accounts from January 1, 2025. These new rules are being brought with the aim of making the banking system more secure, transparent and efficient. The main focus of these rules is on dormant accounts, accounts with zero balance and accounts that have been unused for a long time.
RBI believes that these rules will help in preventing banking frauds and better protect the interests of customers. Also, it will be possible for banks to make better use of their resources. Let us know about these new rules in detail and understand what impact they can have on your bank account.
RBI’s new banking rules: At a glance
| Description | Information |
| effective date | 1 January 2025 |
| affected accounts | Inactive, Dormant and Zero Balance Accounts |
| inactive account period | more than 12 months |
| Dormant Account Period | more than 24 months |
| zero balance account | long term zero balance |
| execution | All Scheduled Commercial Banks |
| Objective | Improving banking security and efficiency |
| customer action | Activating or Deactivating Account |
Impact on dormant bank accounts
According to the new RBI rules, accounts with no transactions for 12 months or more will be considered inactive. The following will be affected on such accounts:
- Account will be automatically frozen
- Debit card and net banking facilities will be disabled
- check book will not be issued
- No transactions will be possible from the account
To reactivate dormant accounts, customers will have to update their KYC documents and fill a form by visiting the bank branch. With this the account can be operated normally again.
What will happen to dormant bank accounts?
Accounts with no transactions for 24 months or more will be considered dormant. The new RBI rule will have the following impact on such accounts:
- Account will be closed automatically
- The amount in the account will be transferred to a separate suspense account
- Customer will be informed about account closure
To reopen dormant accounts, customers will have to visit the bank branch and complete the entire KYC process again. The Bank may, at its discretion, decide to reopen such accounts.
New rules on zero balance accounts
Accounts having zero balance for a long time can also be closed under the new RBI rules. Its purpose is to prevent misuse of such accounts. The following actions can be taken on accounts with zero balance:
- You will be warned about account closure
- Time will be given to maintain minimum balance
- Account will be closed after the deadline
Customers are advised to maintain minimum balance in their accounts and conduct regular transactions.
How to avoid bank account closure?
The following measures can be taken to keep your bank account active after the implementation of the new RBI rules:
- Make at least one transaction every 3-4 months
- Maintain minimum balance in account
- Use net banking or mobile banking regularly
- Keep updating your KYC documents from time to time
- Pay attention to notices and messages sent by the bank
By taking these precautions, you can keep your bank account active and avoid the impact of the new rules.
New feature in RTGS and NEFT transfer
RBI has also introduced a new facility to verify the name of the beneficiary while transferring money through RTGS and NEFT. This facility will be available from 1 April 2025. Its main points are:
- Beneficiary name can be seen before transfer
- There will be less chances of money going to the wrong account
- This facility will be available just like UPI and IMPS.
- Will be available on internet and mobile banking
- There will be no additional charges for this facility
This new feature will make online banking more secure.
What to do if bank account is frozen?
If your bank account gets frozen due to inactivity, there is no need to panic. You can reactivate your account by taking the following steps:
- go to your bank branch
- Update your KYC documents
- Fill out the account activation form
- Deposit required fees (if any)
- make a small transaction
Your account will usually be reactivated within 1-2 business days after completing these steps.
Objective of new RBI rules
These new rules being brought by RBI serve several important purposes:
- Preventing Banking Fraud: Misuse of dormant accounts will be prevented
- Better utilization of resources: Banks will be able to use their resources efficiently
- KYC Compliance: KYC details of customers will be updated regularly
- Promotion of digital banking: Online transactions will be encouraged
- Security of the Banking System: The overall banking system will become more secure
Achieving these objectives will further strengthen the Indian banking sector.
Tips for Customers
In view of the new rules of RBI, the following suggestions can be given to bank customers:
- Review all your bank accounts regularly
- close unnecessary accounts
- Make at least quarterly transactions in every account
- Take advantage of digital banking facilities
- Always keep your KYC details updated
- Pay attention to bank messages and notices
- In case of any doubt, contact the bank immediately
By following these tips you can keep your bank accounts safe and active.
Disclaimer: Reality of new rules of RBI
It is important that we distinguish between the actual rules issued by RBI and the rumors spreading on social media. Currently, RBI has announced some rules to be implemented from January 1, 2025, which are aimed at making the banking system more secure and efficient.
However, some social media posts are claiming that RBI will close all inactive accounts or confiscate the amount held in them. This information is completely wrong. The objective of RBI is not to close accounts or confiscate money, but to improve the banking system.
Customers are advised to rely only on information received from the official website of RBI or from their bank. In case of any doubt, contact your bank directly.
