3 Types of Bank Accounts To Be Closed From January 1: Is Yours on the List?

3 Types of Bank Accounts To Be Closed From January 1: Is Yours on the List?

From January 1, banks will start closing three types of inoperative accounts—dormant, inactive, and long‑unused zero‑balance accounts—to reduce fraud and clean up old records. If your account is regularly used for UPI, ATM, salary or EMIs, you are generally safe, but low‑usage accounts need urgent attention.​

1. Dormant accounts

• No customer‑initiated transaction for 24 months or more makes an account “dormant.”​
• These accounts are highly vulnerable to hacking, so banks have been told they can close them and move old, unclaimed balances as per RBI rules.​

2. Inactive accounts

• If there is no activity for around 12 months, banks tag the account as “inactive,” and it can now be taken up for closure if you do not respond or reactivate it.​
• A single transaction (UPI, ATM, deposit, or net banking transfer) plus updated KYC is usually enough to bring it back to active status.​

3. Zero‑balance accounts

• Salary or zero‑balance savings accounts that remain unused or at nil balance for a long time are also on the closure list to prevent misuse and enforce KYC norms.​
• If such an account is still receiving salary, subsidies, or regular credits, it will typically be treated as active and not targeted for closure.​

What you should do now

• Do at least one small transaction in any low‑use account before the deadline—UPI transfer, ATM withdrawal, online bill payment, or a simple deposit.​
• Visit the branch or use net/mobile banking to update your KYC and confirm whether any of your accounts are marked inactive or dormant.​

Quick FAQs

Q. Will my main salary or savings account be closed?
If you use it regularly for salary, UPI, ATM, card payments or EMIs, it is treated as active and is not in the risky category.​

Q. How do I check if my account is dormant or inactive?
You can log into net banking/mobile banking or contact your branch; the status is visible in the account details section or can be confirmed by bank staff.​

Q. Can a closed account be restored later?
Once fully closed, you may need to open a fresh account, so it is better to reactivate before the bank initiates closure.​

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