Account holders in Indore and across India are asking whether RBI 3 types of bank accounts may be closed under the Reserve Bank of India’s (RBI) new rules. Inactive, dormant and zero balance accounts could be closed after due notice if they stay unused. Updated: 10 October 2026.
According to RBI rules, accounts that lie unused for years can become a channel for cyber fraud, money laundering and identity theft. Banks have therefore been asked to either reactivate such accounts or close them as per the rules. Here is what it means for your account and how to keep your money safe.
RBI 3 Types of Bank Accounts May Be Closed 2026
| Detail | Information |
|---|---|
| Rule-making body | Reserve Bank of India (RBI) |
| Banks covered | Public and private sector banks |
| Inactive account | No customer-initiated transaction for 12 months in a row |
| Dormant account | No activity for 2 years or more |
| Zero balance account | No transactions and no link to government benefits; may be closed after notice |
| Money in a closed account | It does not vanish; the account holder or legal heir can claim it later with documents |
| How to keep an account active | At least one transaction a year and an updated KYC |
| Updated on | 10 October 2026 |
What Has Changed in the New RBI Rules: Which Accounts May Be Closed
Under the new rules, an account with no transaction for 12 months is called inactive, and one with no activity for 2 years is called dormant. Earlier, banks had to flag such accounts as inactive, but every bank handled it differently. Some sent reminders, while others let the accounts sit idle for years. The new rules aim to fix that gap.
| Account type | When it is counted | Effect |
|---|---|---|
| Inactive | No customer transaction for 12 months | Facilities such as ATM withdrawals and cheques may be restricted |
| Dormant | No activity for 2 years or more | Closer checks; the account may be closed if not reactivated |
| Zero balance | No transactions and no government benefit linked | May be closed after proper notice |
One point needs special attention: bank charges or interest credited do not count as activity. Only transactions you make yourself are counted, such as depositing, withdrawing, transferring money or paying through UPI.
Why an Account Can Become Inactive or Get Closed
Many people believe that yearly interest keeps an account active. Under the rules, that is not the case. These are the common situations that push an account towards inactive or dormant status.
- Only interest is credited and bank fees are deducted, with no transaction by the holder.
- An old salary account is abandoned after a job change.
- An account opened for a scholarship or another temporary benefit is never used again.
- A person keeps several accounts and stops using some of them completely.
- The holder forgets the branch or account number of an old account and never updates the KYC.
How to Keep Your Account Active or Reactivate It: Step by Step
Step 1: List all your accounts
Check passbooks, ATM cards and old SMS alerts, and note every bank account held in your name or your family’s names.
Step 2: Check the status of each account
Use mobile banking, net banking or a branch visit to see when the last transaction took place and which category the account falls in.
Step 3: Make at least one transaction
Deposit, withdraw or transfer some money. To avoid becoming inactive, make at least one transaction a year.
Step 4: Update your KYC
Visit your branch with identity and address proof, and update your mobile number too. This makes sure the bank’s messages reach the right number.
Step 5: Claim money from a closed account
If an account has already been closed, the holder or the legal heir can contact the bank, submit the required documents and ask for the money back.
Where Account Holders in Indore Can Go and What to Do
Many families in Indore and the wider Malwa region have old accounts opened during college, a first job or a small business. The simplest approach is to visit your bank branch and ask about each one. People who moved from other districts of Madhya Pradesh often still hold accounts at a branch in their home district, so do not forget those.
Senior citizens and people with limited digital skills need extra care. Younger family members can help by getting passbooks updated or switching on SMS alerts. If you do not have a passbook in Indore district, take an ID proof to your branch and ask for the account details.
You may be contacted by the bank through SMS, letters or public notices. Pay attention to such messages, but never click on unknown links and never share your OTP. If you are also looking at other ways to earn on your savings, read our guide to the new SBI FD scheme.
What Happens to Your Money If an Account Is Closed
Many people fear that their deposit will be lost once an account is closed. RBI rules make it clear that money in closed accounts does not disappear. Unclaimed amounts are moved to the Depositor Education and Awareness Fund run by RBI, and they can still be claimed later.
The account holder or the legal heir can approach the bank even years later and get the money back by showing the right documents. Experts say the process can be long and tiring, so it is better not to let an account reach that stage.
- Accounts linked to government benefits or used regularly are generally not affected.
- Zero balance accounts are to be given proper notice before any action.
- Senior citizens, rural customers and people with many accounts may be affected the most.
Frequently Asked Questions (FAQs)
Which types of bank accounts may RBI close?
Inactive accounts (no transaction for 12 months), dormant accounts (no activity for 2 years or more), and some unused zero balance accounts. Accounts linked to government benefits are generally left out.
What should I do if my account becomes inactive in Indore?
Visit your bank branch, submit your KYC documents and ask how to reactivate the account. After that, make a transaction so the account stays active.
What happens to my money if the account is closed?
The money in a closed account does not disappear. The account holder or legal heir can claim it later through the bank by showing documents, though the process may be long.
How can I stop my account from becoming inactive or dormant?
An account is treated as inactive after 12 months without a transaction, and as dormant after 2 years without any activity. To avoid both, make at least one transaction of your own every year, such as a deposit, withdrawal, transfer or UPI payment. Keep your KYC details updated as well. Interest and bank charges do not count as activity.
Who may face the most trouble from these rules?
Senior citizens, rural customers and people who opened several accounts for temporary needs may be affected more. Banks can send them information through SMS and letters.
Note: This information is based on details available as of 10 October 2026. Please check the official portal for final confirmation.
| Official link | Use |
|---|---|
| rbi.org.in | RBI rules and circulars |
| sbi.co.in | Official website of the bank for SBI account holders |