if your If you have more than one bank account and you have not used any account for a long time, then this news is for you. New guidelines of the Reserve Bank of India (RBI) are coming into effect from today, under which 3 types of bank accounts will be closed. This includes dormant account, inactive account and zero balance account. The objective of this initiative of RBI is to increase security, reduce fraud and improve banking operations. Let us know what is dormant account, inactive account and zero balance and when an account falls into this category.
Dormant Account: Accounts in which there has been no transaction for 2 consecutive years or more are kept in the category of dormant accounts. These accounts can be used for hacking and fraudulent activities. In view of this, RBI has instructed banks to close the accounts included in this category.
Inactive Accounts: Inactive accounts are accounts in which there have been no transactions for the last 12 months or more. If an account holder has not made any transactions during this period, they will have to contact their bank branch and take necessary steps to reactivate their account. Failure to do so will result in the bank closing their account.
Zero Balance Account: Accounts which maintain zero balance for a long time are called zero balance accounts. RBI has also directed to close such accounts.
What to do to avoid account closure?
To avoid account closure, account holders are advised to reactivate their inactive accounts. If your account has been inactive for more than 12 months, make at least one transaction. If your account has been inactive for two years, visit your bank branch to reactivate it. Zero balance accounts ensure that your account does not remain at zero balance for long.
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