Three Types of Bank Accounts That Will Be Closed from January 10, 2026: New Rules Issued by RBI

RBI’s New 2026 Rules on Bank Account Closure: A Complete and Easy Guide

Starting from January 10, 2026, the Reserve Bank of India (RBI) will implement new guidelines aimed at cleaning up India’s banking system by addressing the issue of inactive and dormant bank accounts. These changes are not meant to scare customers but to protect their money, prevent fraud, and improve banking efficiency across the country.

Many people open bank accounts for salaries, scholarships, government schemes, or one-time purposes and later forget about them. Over time, these unused accounts become risky and difficult for banks to manage. That’s exactly what the RBI is trying to fix with these new rules.

Why RBI Introduced These New Rules

The RBI noticed that millions of bank accounts across India have little or no customer activity for years. Such accounts:

Increase the risk of fraud and unauthorized access

Create unnecessary administrative burden for banks

Make it harder to track genuine customers

Reduce transparency in the financial system

By introducing these rules, RBI aims to ensure that every active account truly belongs to an engaged customer, while also safeguarding funds left behind in unused accounts.

Types of Accounts That May Be Affected

🔹 1. Inactive Bank Accounts

An account becomes inactive if there has been no customer-initiated transaction for 12 consecutive months.

This means:

No deposits made by you

No withdrawals

No UPI, ATM, cheque, or online transfers

⚠️ Note: Automatic transactions like interest credit or bank charges do not count as activity.

🔹 2. Dormant Accounts

If an inactive account continues to show no customer activity for two full years, it becomes dormant. These accounts are the main focus of the new RBI rules and are the most likely to be closed if no action is taken.

Dormant accounts often:

Have outdated KYC details

Are not monitored by customers

Become easy targets for misuse

🔹 3. Zero Balance Accounts

Some zero-balance accounts, especially those opened under special schemes (students, temporary workers, or short-term benefits), may also be reviewed. If they are no longer serving their original purpose and remain unused, banks may close them after proper notice.

What Happens Before an Account Is Closed?

The RBI has made it clear that banks cannot suddenly close accounts. Before any closure:

Banks must send multiple notifications (SMS, email, letters)

Customers are given enough time to respond

Banks may offer options to reactivate the account

This ensures fairness and gives customers a chance to keep their accounts active.

What Happens to Your Money If an Account Is Closed?

There’s no need to panic — your money will never be lost.

If an account is closed:

The remaining balance is transferred to the Depositor Education and Awareness (DEA) Fund, managed by RBI

The account holder or legal heirs can claim the money anytime in the future

The process may involve identity verification and paperwork, but the funds remain safe

How to Keep Your Bank Account Active (Very Easy!)

To avoid any issues under the new rules, simply do the following:

✔ Make at least one transaction every year (deposit, withdrawal, UPI payment, or transfer)

✔ Keep your KYC details updated (phone number, address, ID documents)

✔ Respond promptly to bank messages or emails

✔ Reactivate old or forgotten accounts as soon as possible

Even a small transaction is enough to keep your account active.

Benefits of the New RBI Rules

These guidelines bring several long-term advantages:

Better protection against fraud

Cleaner and more efficient banking records

Stronger customer verification

Improved trust in the banking system

Easier management of genuine accounts

Ultimately, these changes are designed to protect customers, not punish them.

Final Thoughts

The RBI’s 2026 account-closure rules are a smart step toward building a safer and more transparent banking environment in India. As long as you stay informed, keep your account active, and maintain updated details, you won’t face any problems.

If you haven’t checked on your old bank accounts in a while, now is the perfect time to do so — a small action today can save you stress tomorrow.