Starting January 1, 2026, the Reserve Bank of India (RBI) will enforce new rules mandating the closure of dormant, inactive, and zero-balance accounts. The move aims to enhance banking security, reduce risks of misuse, and streamline operations. Customers are advised to update or activate accounts to avoid disruptions.
The Reserve Bank of India (RBI) has announced revised guidelines that will come into effect from January 1, 2026, requiring banks to close specific categories of accounts. The decision is part of RBI’s broader effort to strengthen security, reduce fraud risks, and improve efficiency in the banking system.
According to the notification, accounts that remain unused or vulnerable to misuse will be classified for closure. Customers are urged to review their accounts and ensure compliance to avoid inconvenience.
Key Highlights And Major Takeaways
• Dormant accounts: No customer-induced transactions for over two years will be closed
• Inactive accounts: Accounts without activity for 12 months or more will be shut down
• Zero-balance accounts: Accounts consistently showing no balance will be discontinued
• RBI aims to reduce risks of fraud and misuse of idle accounts
• Customers advised to update KYC and maintain minimum activity to keep accounts active
• Move expected to streamline banking operations and enhance security
Conclusion
The RBI’s new rules mark a significant step toward modernizing India’s banking ecosystem. By closing dormant, inactive, and zero-balance accounts, the regulator seeks to protect customers and ensure a more secure and efficient financial system.
Sources: Business Standard , News18 , CNBC TV18