There are going to be major changes in the banking sector in India. Many new rules will be applicable from 1 April 2025 that will affect your bank account and financial transactions. The purpose of these rules is to make the banking system more secure, transparent and efficient.
One of these new rules is an important rule that belongs to inactive and zero balance accounts. The question is arising in the minds of many people, whether the entire money will be seized after making a really mistake? In this article, we will know in detail about this new rule and understand what effect it will have on you.
Details of new bank account rules
The Reserve Bank of India (RBI) has decided to make some significant changes in the operation of bank accounts since 1 April 2025. The main focus of these rules has been on inactive accounts, zero balance accounts and long unused accounts. Let’s know in detail about these new rules:
| Description | Acquaintance |
| Date of implementation | 1 April 2025 |
| Affected accounts | Inactive, dominees and zero balance accounts |
| Direct account period | More than 12 months |
| Dorament account period | Over 24 months |
| Minimum balance | Bank and account type |
| KYC update | Compulsory every 2 years |
| Re -activation process | KYC updates and transactions |
| charge | No fee for re -activation of account |
New rules on passive accounts
According to the new RBI rules, accounts will be considered inactive if there is no transaction for 12 months or more. These accounts will have the following effects:
- Account will automatically freeze
- Debit card and net banking facility will be closed
- Check book will not be released
- No transaction in the account will be possible
Customers have to take the following steps to reactivate passive accounts:
- Update your KYC documents
- Filling a form by going to bank branch
- At least one transaction in account
It is important to note that no fee will be charged for re -activating the account.
New rules on zero balance accounts
Long -term zero balance accounts can also be discontinued under the new rules of RBI. Its purpose is to prevent misuse of such accounts. The following action can be taken on accounts with zero balance:
- The account will be warned to close
- Time will be given to maintain minimum balance
- The account will be closed after the deadline
Customers are advised to maintain minimum balance in their accounts and keep doing regular transactions.
Will the entire money be seized really?
It is a misconception that the entire money will be confiscated if made under the new rules. The reality is that:
- The money present in the inactive or zero balance accounts will not be seized
- In the event of an account closure, the bank will inform the customer and give the option to return the money
- If the customer does not withdraw the money, that amount will be transferred to the Depositor Education and Awareness Fund
- Customer can claim this money later
How to avoid closing bank account?
The following measures can be taken to keep your bank account active after the new RBI rules are implemented:
- Do at least one transaction every 3-4 months
- Maintain minimum balance in account
- Regular use of net banking or mobile banking
- Keep updating your KYC documents from time to time
- Focus on notices and messages sent by the bank
By taking these precautions, you can keep your bank account active and avoid the impact of new rules.
Other important banking rules that will be applicable from 1 April 2025
With the beginning of the new financial year, many other banking rules are also going to change. These changes will affect your daily banking activities. Let’s take a look at these major changes:
UPI transaction changes
The National Payments Corporation of India (NPCI) has issued new rules for UPI transactions:
- UPI accounts related to inactive mobile numbers will be closed for a long time
- Customers have to link new and active mobile number from their bank account
- This change has been made to increase the security of UPI transactions
New fee on ATM withdrawal
RBI has also changed the rules to withdraw money from ATM:
- The number of free transactions will be 5 (from the ATM of your bank) and 3 (from the second bank’s ATM)
- After this, a fee of Rs 23 per transaction will be charged (earlier it was Rs 21)
- This new rule will be applicable from 1 May 2025
Changes in credit card rules
Some banks have made changes in their credit card rules:
- SBI has reduced reward points on some popular credit cards
- Some banks have increased the annual fee of credit cards
- New rules will be applicable on Rupay Credit Card for London Access
Digital transactions limit
RBI has also changed the range of digital transactions:
- Maximum digital transaction limit has been fixed at Rs 10 lakh per day
- This border has been implemented for security reasons
- Large transactions will require additional authentication
Minimum balance rule
Various banks have made changes in their minimum balance rules:
- Minimum balance in rural areas has been fixed at Rs 2,000
- Minimum balance in urban areas will have to be kept at Rs 5,000
- Some banks have removed the requirement of minimum balance for basic savings account
Disclaimer:
Information about the new bank account rules given in this article has been presented only for the purpose of increasing awareness and understanding. The matter of “seizing the entire money” is a misconception. The reality is that the money of inactive or zero balance accounts is not confiscated, but the customer is given the option to withdraw it. Please get accurate information by contacting your bank and ensure all the rules.
