The Reserve Bank of India (RBI) has issued new banking guidelines that may lead to the closure of certain bank accounts starting January 10, 2026. These rules are aimed at improving security, reducing misuse, and cleaning up long-inactive accounts across the banking system.
According to the updated norms, banks will review accounts that have shown little or no customer activity for a long period. If required actions are not taken in time, such accounts may be closed.
1. Inactive Bank Accounts
Accounts with no customer-initiated transactions for 12 months will be marked inactive. Transactions like withdrawals, deposits, UPI payments, or fund transfers are required to keep the account active. If the account remains inactive for an extended period, banks may proceed toward closure.
2. Dormant Bank Accounts
Dormant accounts are those with no activity for two years or more. Under the new RBI framework, banks can close these accounts if the account holder does not respond to alerts or complete the reactivation process.
3. Long-Unused Zero Balance Accounts
Certain zero balance savings accounts that have remained unused for a long time may also be closed. These accounts often create operational risk and are reviewed under the new rules if there is no transaction history or customer response.
What Account Holders Should Do
To avoid account closure:
- Make at least one transaction every year
- Ensure KYC details are updated
- Respond to bank messages regarding account status
Final Word
The RBI’s new rules are designed to protect customers and strengthen the banking system. Account holders who stay active and keep their details updated will not face any issues. Taking small steps now can help avoid account closure after January 10, 2026.