RBI Guidelines: Be aware that the RBI has released a significant change regarding closed or inactive accounts

RBI Guidelines: Be aware that the RBI has released a significant change regarding closed or inactive accounts

RBI Guidelines: Be aware that the RBI has released a significant change regarding closed or inactive accounts

In order to either reactivate the account or satisfy the claim, RBI has instructed banks to locate the owners of accounts with inactive balances and unclaimed deposits, as well as their nominees or legal heirs.

New instructions pertaining to closed or inactive accounts and unclaimed deposits in Indian banks have been released by the Reserve Bank of India (RBI). There is good news if you too have an account of that kind that was created but isn't being utilized at the moment. In order to either reactivate the account or satisfy the claim, RBI has instructed banks to locate the owners of accounts with inactive balances and unclaimed deposits, as well as their nominees or legal heirs. Additionally, the bank has said that since there is a chance of fraud in these accounts, they should be monitored on a regular basis. The new regulations will take effect on April 1, 2024.

How will clients gain from this?

Tell us how the new regulation on closed or non-operating bank accounts, announced by the Reserve Bank, will help our clients.

RBI rules state that banks must always continue to pay interest on savings accounts that are not currently in use.

Bank accounts that are not in use will not be subject to the minimum balance penalty.

Government plan accounts will not be deemed inactive even in the event of a zero balance.

RBI instructed banks.

Sending emails and SMS should be used to locate the owners of dormant accounts.

KYC should be simple, and after the dormant account's KYC is completed, the account should be reactivated.

The consumer shouldn't be charged by the bank to reopen the account.

After receiving the application, the bank has three days to activate the accounts.

Customers should be informed that their accounts will be closed if they fail to complete the transaction.

Inactive accounts that have been reactivated should be watched for six months.

Bank websites will provide a mechanism for looking for unclaimed deposits.

Money from dormant savings accounts won't be accessible to banks.

It will be necessary to protect information regarding dormant accounts and unclaimed deposits.

As you may know, there is a regulation in place at any bank that states that if an account has not been used for ten years or more, or if there has been an unclaimed deposit in the account for ten years or more, then this money The bank should transfer it to the Depositor Education and Awareness Fund, which is controlled by RBI.