These 3 types of Bank Accounts will be Closed from 20 December 2025. RBI has Issued New Rules.
Bank Rules Latest Update : The Reserve Bank of India (RBI) has announced new banking regulations that will come into effect from 20 December 2025. Under these rules, certain types of bank accounts will be either closed or subjected to stricter usage norms. The objective of these changes is to make the banking system more secure, transparent, and customer-friendly.
A key highlight of the new rules is that bank account holders will now be allowed to add more than one nominee. This change will make the transfer of funds to family members faster and simpler in the future.
These RBI regulations will mainly impact inactive, dormant, and zero-balance bank accounts. Accounts that have remained unused for several years will be closed or restricted under the new framework to prevent fraud and misuse.
Impact of the New RBI Bank Rules
With the new system in place, customers will need to be more attentive to their bank account activity. To keep an account active, periodic transactions will be mandatory.
Additionally, account holders can now nominate up to four nominees, allowing better financial planning and security for family members.
RBI New Bank Rules Effective from 20 December 2025
According to the Reserve Bank of India, these changes are aligned with global banking standards and aim to improve customer service. The major changes include:
- Three types of bank accounts may be closed: Dormant, Inactive, and Zero Balance accounts
- Up to four nominees allowed per account (earlier, only one nominee was permitted)
- Dual nomination system: Simultaneous and Successive nomination
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New rules for safe deposit lockers and secured articles
Three Types of Bank Accounts That May Be Closed
| Bank Account Type | Reason for Closure |
|---|---|
| Dormant Account | No transactions for 2 years |
| Inactive Account | No customer-initiated transactions for 12 months |
| Zero Balance Account | Open for a long period without meaningful transactions |
According to RBI, accounts that remain unused for long periods are more vulnerable to fraud and misuse. Closing or restricting such accounts will enhance overall banking security.
What Are the New RBI Nomination Rules?
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From 20 December 2025, bank account holders can add up to four nominees for:
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Savings and current accounts
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Fixed deposits
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Safe deposit lockers
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Secured valuables
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This change will simplify the claim settlement process for family members.
Types of Nomination Allowed:
- Simultaneous Nomination – All nominees receive a defined share at the same time
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Successive Nomination – If the first nominee is unavailable, rights pass to the next nominee
Benefits of the New Rules
- Greater transparency in banking transactions and nominations
- Faster and fair distribution of funds after the account holder’s death
- Improved security of old and inactive accounts
- Reduction in banking fraud
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Encourages customers to stay aware of account activity
Summary of RBI Bank Account Rules 2025
| Key Point | Details |
|---|---|
| Effective Date | 20 December 2025 |
| Affected Accounts | Dormant, Inactive, Zero Balance |
| Maximum Nominees | 4 |
| Nomination Types | Simultaneous & Successive |
| Objective | Customer safety, transparency, faster claim settlement |
| Customer Responsibility | Keep accounts active; update nominations |
| Bank Responsibility | Monitor accounts and provide timely alerts |
What Should Account Holders Do?
- Review your bank account activity before December 2025
- Activate inactive accounts with small transactions
- Contact your bank to add up to four nominees
- Close unused zero-balance accounts if not required
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Keep your KYC and contact details updated to receive important alerts
Conclusion
These new RBI rules represent a major step toward a safer and more transparent banking system. All account holders should regularly monitor their accounts and ensure compliance with the updated regulations to avoid inconvenience in the future.