A major update from the Reserve Bank of India (RBI) is creating a stir among bank customers. Starting November 11, 2025, banks across the country will begin closing three types of accounts that fail to meet the new compliance and activity guidelines. The RBI has issued fresh rules to prevent misuse, ensure customer data security, and maintain clean financial records across all banks in India.
What’s Changing Under the New RBI Rules?
The RBI’s new banking framework focuses on reducing risks from dormant or inactive accounts. These are often left unattended for years and are prone to fraudulent activities or misuse. As part of the 2025 reforms, RBI has directed all banks to review, verify, and deactivate accounts that fall under specific high-risk categories. If your account matches any of the three listed types, it could be at risk of closure.
1. Dormant Accounts – No Activity for 2 Years
Accounts that have seen no customer-initiated transactions for more than two consecutive years will now be marked as dormant. This means deposits, withdrawals, fund transfers, or online transactions haven’t taken place for a long time.
The RBI has instructed banks to notify customers before freezing or closing such accounts. If the account remains inactive even after the notice, it will be closed automatically from November 11, 2025. To avoid this, account holders should perform a small transaction — even a ₹1 transfer — to reset their activity status.
2. Inactive Accounts – No Transactions for 12 Months
If you haven’t used your account for a full year, it becomes inactive under RBI’s new classification. Such accounts are often linked to forgotten savings or secondary accounts. Inactive accounts will soon receive a mandatory KYC verification notice, and if the customer fails to respond within the specified period, the account may be closed.
RBI’s motive is to prevent unauthorized use and ensure that every active bank account belongs to a verified individual with updated identification.
3. Zero Balance Accounts – No Minimum Balance or Transactions
The RBI has also authorized banks to close zero-balance accounts that have remained unused or unverified for a long duration. Many such accounts were opened under promotional schemes or government drives and later abandoned. To curb misuse and reduce the load of inactive accounts, banks have been given the green light to deactivate or close them from November 11, 2025, onwards.
Customers must maintain at least a nominal balance or complete the necessary KYC update to keep these accounts active.
Why Is RBI Implementing This Rule?
The new Bank Rules 2025 aim to promote financial hygiene, reduce fraud risks, and enhance cybersecurity in the banking system. Dormant and unverified accounts are frequently exploited for illegal transactions and money laundering.
By cleaning up inactive and zero-balance accounts, the RBI seeks to make the banking ecosystem more transparent, secure, and efficient. Banks will also benefit from streamlined operations and lower compliance costs.
How to Check if Your Account Is Safe
If you’re unsure whether your account is active, you can quickly confirm by checking your last transaction date on your passbook, mobile app, or internet banking portal. You should also ensure that your Aadhaar number, PAN, and mobile number are correctly linked to your account.
Perform a simple transaction, such as transferring ₹10 or updating your email address, to mark your account active. For joint or secondary accounts, log in and verify balances to prevent accidental closure.
Steps to Avoid Account Closure
- Make at least one transaction before November 11, 2025.
- Update KYC details with your bank if prompted.
- Maintain a positive balance, even if minimal.
- Check SMS or email alerts from your bank regarding account verification.
- Contact customer support if your account is tagged as dormant or inactive.
Banks Expected to Follow the New Rules
Leading public and private sector banks — including SBI, HDFC Bank, ICICI Bank, PNB, and Bank of Baroda — are all required to implement the new RBI guidelines. Rural and cooperative banks will follow similar procedures with state-level verification teams ensuring compliance.
Conclusion: The RBI’s new account closure rules from November 11, 2025, are meant to protect consumers and the financial system from misuse of idle accounts. If your account has been inactive or maintains a zero balance, it’s time to act. Make a quick transaction, verify your KYC, and stay compliant. Don’t let your hard-earned money slip into closure or unclaimed deposit status — stay alert and keep your account active.
Disclaimer: This article is for informational purposes only and is based on publicly available sources and financial reports. Readers should verify specific timelines and procedures directly with their banks or on the official RBI website before taking any action.
