RBI’s New Rules: Three Types Of Bank Accounts To Be Closed From October 25, 2025 — Urgent Action Needed For Customers

The Reserve Bank of India (RBI) has introduced new directives that will result in the closure of three types of bank accounts starting October 25, 2025. These rules are part of RBI’s ongoing push for greater financial integrity and smoother banking services.

Which Accounts Are Impacted?

No-Frills Accounts:
Older “no-frills” accounts with minimal balance requirements will be closed. Customers must convert these into Basic Savings Bank Deposit Accounts (BSBDA) to continue operations.
Duplicate Savings Accounts:
If you have more than one regular savings account in the same bank, you’ll need to close the duplicates. RBI only permits customers to hold a single BSBDA in any bank. Any additional savings accounts must be closed within 30 days of opening a BSBDA.
Inoperative/Unclaimed Accounts:
Any account with no customer-initiated activity for over two years is classified as ‘inoperative.’ Banks are required to close such accounts unless reactivated by the customer. Unclaimed deposits and inactive accounts will be published on bank websites and can be claimed by the rightful owners.

What Should You Do?

Immediate Action: If your account falls into one of the above categories, visit your branch or use online banking to convert/update/close your account by the deadline.
Claiming Funds: For inoperative/unclaimed accounts, follow RBI or bank instructions to reactivate your account or claim your funds.
KYC Update: Ensure your account’s Know Your Customer (KYC) details are up-to-date.

Expert Tip

RBI has advised banks to notify affected customers via SMS, email, or letter before closure. No penal charges will be levied for reactivating accounts, and interest on savings will continue to be credited.

Conclusion
If you have a no-frills account, duplicate savings accounts, or haven’t used your account for over two years, act swiftly to avoid disruption and loss of funds as new rules come into effect from October 25, 2025.