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Explained: How to close your inactive bank account

Are you are the one who holds more than two bank accounts and don’t use them frequently? If yes, then you need to close it or reactivate it soon to avoid any specific charges asked by your bank. According to the RBI’s norm, if a customer discontinues using his or her account for 12 consecutive months then banks will automatically make then inactive, and more than extra inactive 12 months will make it a dormant account. So, we are here to guide you as to how you can close your inactive bank account.

Sarabjeet Kaur Sarabjeet Kaur
New Delhi Updated on: September 13, 2019 14:16 IST
Representational Image

Representational Image

Are you are the one who holds more than two bank accounts and don’t use them frequently? If yes, then you need to close it or reactivate it soon to avoid any specific charges asked by your bank. According to the RBI’s norm, if a customer discontinues using his or her account for 12 consecutive months then banks will automatically make them inactive, and more than extra inactive 12 months will make it a dormant account.
 
So, we are here to guide you as to how you can close your inactive bank account: 
 
Mainly, banks get the details of your transactions through your debit card, credit card, ATM use and online payments. But, once the banks didn’t get the transaction notification of your accounts that means it is inactive or dormant. 
 

Process to close inactive bank account:

Considering the fact that different banks have their own rules and regulations, but route to close the account is mostly the same.
• Debit all the money from your inactive account 
• Visit the branch of your bank which you want to close
• Fill the account closure form 
• Submit the details of your another account in which you want to transfer the existing savings amount or interests
• Fill and submit the de-link account form to stop services from your trading account, recurring deposits, card payments and other monthly installment payments including loan EMIs
• Make sure to submit all your debit card, credit cards, cheque books, ATM card of your inactive account
• Some banks may ask you to pay nominal charge for account closure, but it varies from bank to bank
• You may have to submit fresh KYC documents as well
 
RBI Norms: 
 
RBI has advised banks to check due diligence before closing the inactive account without any restrictions.
• There are no specific guidelines fixed by the RBI to close inactive account
• You may have to pay some service charges to the bank
• According to the RBI, banks are allowed to charge only reasonable and nominal amount from the customers
• There is no penalty charge. The charge that customer has to pay is only for non-maintaining the account balance of active account
Remember, your account will be treated as active as long as dividend or fixed deposit income is credited into the account. So, always try to do at least one transaction (deposit or withdrawal) in a month or a year to keep your bank account active.

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