Bank Rules: The Reserve Bank of India (RBI) is set to implement new regulations aimed at strengthening the banking sector’s safety and transparency. Starting January 1, 2026, stringent rules regarding certain types of bank accounts will come into effect, addressing concerns about cyber fraud and financial scams.
The main aim of these new rules is to reduce the instances of fraud and ensure that the banking system remains secure. As per the RBI’s guidance, focused monitoring will target accounts that have had no activity for an extended period.
If you maintain multiple bank accounts without regular transactions, this information is crucial for you. With the approaching implementation date, millions of customers may find their accounts affected, making it essential to take proactive measures.
The RBI has honed its guidelines for managing ‘Inoperative’ and ‘Dormant’ accounts in response to rising unclaimed deposit concerns and security risks. Officials believe that such inactive accounts can be exploited for illicit activities.
Let’s explore which three types of bank accounts are at risk of closure and how to prevent this from happening.
Bank Accounts That May Be Closed from January 1, 2026: RBI New Rules
The RBI’s new rules primarily focus on Inactive Accounts, Dormant Accounts, and long-inactive Zero Balance Accounts. Banks may initiate the freezing or permanent closure of these accounts due to a lack of customer activity.
This action aims to enhance efficiency and security within the banking sector.
Key Details at a Glance
| Rule Name | RBI Inoperative Account Guidelines 2025 |
| Issued By | Reserve Bank of India (RBI) |
| Effective Date | January 1, 2026 (expected full implementation) |
| Main Objective | Prevent cyber fraud and enhance banking security |
| Affected Accounts | Inactive, Dormant, and Inactive Zero Balance accounts |
| How to Reactivate | Visit the bank and update KYC |
| Applicability | Mandatory for all government and private banks |
| Official Website | rbi.org.in |
Inactive Bank Accounts
According to the RBI, if a customer fails to conduct any financial transactions for 12 consecutive months (1 year), the account will be classified as an Inactive Account.
In such circumstances, facilities like ATM withdrawals or cheque book utilization may be restricted.
The bank will notify customers if their account falls into this category. Post January 1, 2026, stricter measures could be enforced against such accounts to alleviate the burden of dormant accounts on bank databases.
Dormant Bank Accounts
An account is designated as Dormant if there has been no customer-initiated transaction (like depositing or withdrawing funds) for 2 years or more.
These accounts pose significant risks, as account holders may forget about them, rendering them susceptible to fraud. The RBI mandates banks to notify customers regarding dormant accounts. If you do not reactivate your dormant account before 2026, the bank may close it and transfer the remaining balance to the Depositor Education and Awareness Fund (DEA Fund).
Inactive Zero Balance Accounts
Many individuals have opened zero balance accounts under the Jan Dhan Yojana or as salary accounts. The RBI has observed that numerous accounts have remained dormant for years without activity.
In line with the new rules for 2025-26, banks may close zero balance accounts that have no transactions and no subsidies.
Main Objectives Behind These Rules (LSI: Banking Security Rules)
- Curbing fraud: Inactive accounts are often exploited for money laundering and cybercrime.
- Managing unclaimed deposits: Large sums of money remain unclaimed in the banking system.
- Reducing operational workload on banks: Managing inactive accounts consumes valuable time and resources.
- KYC compliance: Ensuring all active accounts are updated with KYC information.
- Customer awareness: Motivating customers to stay informed and actively use their bank accounts.
How to Prevent Your Bank Account from Being Closed
To maintain the activity level of your account for future use, consider the following steps:
- Conduct at least one transaction—this could be a deposit or withdrawal (even a small UPI transaction suffices).
- Visit your nearest bank branch and update your KYC documents (Aadhaar and PAN).
- If your account has become dormant, submit a written request for reactivation.
- Update your mobile number and email address with the bank to receive notifications.
Frequently Asked Questions
What types of bank accounts will be closed by RBI in 2026?
The RBI plans to close Inactive Accounts, Dormant Accounts, and Inactive Zero Balance Accounts starting January 1, 2026, due to a lack of activity.
What happens to dormant accounts that are not reactivated?
If not reactivated before 2026, dormant accounts may be closed, and any remaining balance transferred to the Depositor Education and Awareness Fund.
How can I prevent my bank account from being classified as inactive?
To prevent your account from becoming inactive, make at least one transaction within a 12-month period and regularly update your KYC information.
What is the difference between inactive and dormant accounts?
Inactive accounts have had no transactions for one year, while dormant accounts have remained untouched for two years or more.
Where can I find more information about these new RBI guidelines?
For further details, you can visit the official Reserve Bank of India website at rbi.org.in.
