It was easy to start a closed bank account, RBI issued new rules, no penalty will be imposed

Many times we open more than one bank account and stop using some. If such an account is not used for more than two years, the bank declares it ‘inoporative’ or ‘dormant’. Earlier, to re -start such accounts, many times they had to go round the bank and many banks also imposed a fine on it.

But now the Reserve Bank of India (RBI) has made a big change in the rules, which has brought great relief to the common customers.

What are RBI’s new instructions?

RBI has instructed banks to make the process of re -starting inactive accounts and no penalty should be taken from customers.

1. Now there will be no penalty:
The biggest relief is that banks can no longer charge any penalty or fee to re -activate any passive account. This rule protects customers from unnecessary expenses.

2. Many easy ways to start:
Now you do not need to start the account only by going to the bank branch. If your KYC (No Your Customer) is complete, then you can also activate the account in these methods:

• By transaction from ATM

  
  

• Through Net Banking

• Using Mobile Banking App

Only by making a transaction will your account become active again.

When is KYC needed?

If your account has been closed for a long time and your KYC information is outdated, the bank may ask you to submit KYC documents (such as PAN card, Aadhaar card) again. This is an important step for safety. After KYC updates, you can easily use the account again.

This step is very helpful for crores of people whose accounts are lying without use. The purpose of this decision of RBI is to make banking more customer-friendly.