New rules are implemented from time to time to make the banking system safe and transparent in the country. This time the Reserve Bank of India (RBI) has taken a big decision, which is going to affect bank accounts of millions. According to the new RBI order, several bank accounts may be discontinued from 1 May 2025. If you also have a bank account, then this news is very important for you.
This step of RBI has been taken to prevent banking fraud, increase customers’ security and strengthen the banking system. Especially accounts that have not been used for a long time or which do not have balance have been decided to close. This will reduce the number of useless accounts in the banking system and will also curb cyber crimes.
Under the new rules, if someone’s account is a doramcent, inactive or zero balance, it can be closed. In such a situation, it is important that all bank customers check the status of their accounts and activate them when needed. Let us know in detail what is this new order of RBI, who will have an impact and how you can save your account from closing.
RBI new guidelines: millions of bank accounts will be closed from May 1
| Name of the scheme | Description |
| Order issuing organization | Reserve Bank of India (RBI) |
| Order of order implementation | 1 May 2025 |
| Which accounts are affected | Damen, inactive, zero balance accounts |
| Main objective | Banking security, transparency, fraud stop |
| Advice for customers | Keep the account active, update KYC |
| Rescue measures | Do transactions, keep minimal balance |
| Potential impact | Millions of bank accounts can be closed |
The main objective of RBI’s new order
The RBI has taken this decision so that the banking system can be made more safe, transparent and effective. Cyber fraud and fraud cases have increased through bank accounts in the last few years, especially in accounts that have not been used for a long time. In such a situation, it has become necessary to discontinue these accounts so that only active and correct accounts remain in the banking system.
Which bank accounts will be closed?
According to RBI’s new order, three types of bank accounts will be discontinued:
- Dormant account
- Inactive Account
- Zero Balance Account
Now know in detail about these three accounts.
What is a dormant account?
The DoMent account is a bank account in which no transaction has been done for the last two years or more. In such accounts, neither money nor withdrawn is withdrawn. These accounts become easy targets for cyber criminals, as they would not have been used for a long time. According to the new RBI rule, all such dormant accounts will be discontinued from 1 May 2025.
What is an inactive account?
Inactive account is one in which no transaction has been done for the last 12 months or more. If there is no transaction in your account for a year, it falls in the category of inactive. The RBI has also ordered the closure of such accounts. This will reduce the number of unnecessary accounts in the banking system and will also reduce the risk of fraud.
What is a zero balance account?
Zero balance accounts are the accounts that have no balance for a long time, that is, there is no money in the account. Such accounts are not being used and they can also be misused. RBI has decided to discontinue such accounts so that only those accounts in the banking system are active, which are being used properly.
RBI New Rule 2025: Why was this decision taken?
- Banning banking fraud: Damen and inactive accounts are easy targets for cyber criminals. Closing them will reduce fraud cases.
- Making the system transparent: The banking system will be more transparent and clean with the removal of waste accounts.
- Promotion of digitization: Digital banking will be promoted through active accounts.
- Customers’ safety: Frauds and frauds through closed accounts will protect customers.
- Operational efficiency: Management of accounts will be easier for banks and unnecessary burden will be reduced.
How to save the account from closing? (How to save your bank account from closure)
If you do not want your bank account to be closed, then adopt the easy solution given below:
- Do regular transactions: deposit or withdraw money from time to time in your account.
- Keep KYC updates: Go to the bank or update your KYC documents online.
- Maintain minimum balance: Keep at least the necessary balance in your account.
- Contact the bank: If your account has become a dormant or inactive, then immediately go to the bank branch and get it activated.
- Use internet banking or mobile banking: This will also keep your account active.
- See SMS/Email Alerts: Do not ignore SMS or email alerts coming from the bank, they contain necessary information.
Who will affect the new RBI rules?
- People who have no used accounts for many years.
- Whose account has been lying inactive or dormant for the last one or two years.
- Whose accounts do not have a long balance.
- Small traders, students, elderly and people who have many accounts, should pay special attention.
Benefits and disadvantages of shutting down bank accounts
| Advantage | Loss |
| Decreased banking fraud | Those whose required account is closed, they have trouble |
| System transparent and safe | KYC and documentation |
| Promoting digitization | Lack of awareness in rural areas |
| Operational burden of banks reduced | The process of reopening the account is long |
Process of activating bank account
- Go to the bank branch and prove your identity.
- Submit KYC documents (Aadhaar, PAN, Photo etc.).
- Do a small transaction (eg ₹ 1 deposit or withdrawal).
- Request to activate the account from the bank officer.
- KYC can also be updated from mobile or internet banking.
Frequently asked questions (FAQs)
Q1: Can my account be closed?
If there has been no transaction in your account for the last 12 months or 2 years or there is no balance, yes, your account may be closed.
Q2: What will happen after the account is closed?
If your account is closed, then you have to go to the bank and get KYC and documentation done again. Only then will the account be active again.
Q3: Can an account with online KYC also activate?
Yes, many banks offer online KYC. You can also update KYC through mobile or internet banking.
Q4: Will this rule apply to all banks?
Yes, after the order of RBI, all government and private banks will have to implement this rule.
Q5: How much balance is necessary to keep in zero balance account?
It is necessary to have at least one transaction or minimum balance, so that the account remains active.
Important Tips
- Check the situation of all your bank accounts from time to time.
- If you have an old or uncauts without using, get them activated or closed them.
- Must read messages and emails coming from the bank.
- In case of any kind of problem, immediately contact the bank branch or customer care.
conclusion
The new order of the RBI will increase the security of banking systems and customers, but people whose accounts are inactive for a long time may have trouble. In such a situation, all bank customers check the status of their accounts in time and take necessary action. This will keep your account safe and you will be able to take advantage of all banking facilities.
Disclaimer:
This information is based on new rules declared by RBI, which will be applicable from 1 May 2025. This order is completely real and it is necessary for all banks to implement it. If you also have a doramment, inactive or zero balance account, contact the bank immediately and keep your account activated. Do not pay attention to any rumor or wrong information, always trust the official information of the bank.
