The Reserve Bank of India (RBI) has implemented new guidelines since 1 January 2025 to increase security and transparency in the banking sector in India. The purpose of these guidelines is to provide better services to account holders, prevent fraud and eliminate misuse of passive accounts. If you are also a bank account holder, this information is very important for you. In this article, we will know in detail which accounts will be affected under these guidelines and what steps should the account holders take.
The purpose of RBI’s new guidelines
Following is the main objective of RBI’s new guidelines:
- Increased banking security: prevent misuse of passive accounts.
- Operational Efficiency: Reducing the charge of banks.
- Keeping customers’ information updates: KYC (Know Your Customer) ensure following the rules.
- Stopping fraud: reduce risk by closing inactive and zero balance accounts.
List of accounts affected
RBI has paid special attention to three types of accounts that can be closed under these guidelines:
1. Inactive Accounts
- Accounts in which no transactions have been done for the last 12 months.
- Account holders have been advised to make at least one transaction in their account so that it remains active.
2. Dormant Accounts
- Eats in which there have been no activity for the last 2 years.
- To reactivate these accounts, account holders have to go to the bank branch.
3. Zero Balance Accounts (Zero Balance Accounts)
- Long -run accounts maintaining zero balance accounts.
- The purpose of these accounts is to prevent fraud and encourage customers to use their accounts regularly.
RBI guidelines overview
A brief description of RBI’s new guidelines is presented in the table below:
| Parameter | Description |
| Applied date | 1 January 2025 |
| Affected accounts | Inactive, Damen, zero balance accounts |
| Re -activation process | KYC updates and transactions |
| Main objective | To increase security, prevent fraud, ensure KYC compliance |
| charge | No fee will be charged for re -activating the account |
| Interest | Interest on savings accounts will be deposited regularly, whether the account is inactive or not |
Essential steps for customers
If your account comes in the above categories, then take the following steps to protect it from closing:
- Do transactions: Do regular transactions to your account.
- Update KYC: Go to the bank branch or update your information through online medium.
- Maintain positive balance: Make sure your account is not on zero balance.
- Contact the bank: If your account is dormant, then go to the bank branch to reactivate it.
Other important changes
RBI has implemented new rules not only on bank accounts but also on other financial services. These include:
1. Fixed Deposit (FD) Rules
- New rules have been implemented on fixed deposits with NBFCs and HFCs.
- Permission for early withdrawal on small deposits (<₹ 10,000) will be given without interest.
2. nomination facility
- Enrollment in all savings and fixed deposit accounts has been made mandatory so that the money transfer process can be simplified.
3. Prevention of fraud
- Regular audit of passive accounts will be done and activities of re -activated accounts will be monitored for six months.
Customer awareness campaign
The following steps will be taken by banks to make customers aware:
- Providing clear instructions in websites and branches.
- To inform customers by SMS and email.
- Public awareness campaign.
conclusion
RBI’s new guidelines will not only increase the functionality of banks but will also provide safe financial services to customers. If your account falls in a passive or dormant category, take immediate steps to keep it active. This will not only ensure the safety of your money but will also protect you from any inconvenience in the future.
Disclaimer:
This article is written only for the purpose of providing information. Please contact your bank branch for more information and assistance. These guidelines released by RBI are real and apply to all bank account holders.
