RBI New Rule 2025: Recently, the Reserve Bank of India (RBI) took one of its most crucial decisions, which will completely change the banking industry of the country-this rule comes into effect from January 1, 2025, and three types of bank accounts would become non-operative. This would be the most progressive step towards making the banking system safer, transparent, and efficient. We would discuss this newly imposed law and see how it would affect the common man in India in this article.
This is a significant shift into the digital version of the new modern banking in the sector. According to the RBI, such a step in removing the three types of accounts would not only eliminate many deficiencies in the banking system but also risks associated with them: that the interests of customers would now be well-encompassed in better banking services.
RBI New Rule Guidelines 2025
As per new RBI rules, the three types of accounts, which will be non-operational starting January 1, 2025, are:
1. Dormant Account- Accounts that do not have any transactions done over a long period. Any account that does not carry out any transaction in two years is, in general, termed as dormant.
2: Inactive Account: Such accounts are defined as accounts in which there has been no activity fixed period (most often taken to be 1 year).
3: Zero Balance Account- an account in which no money has been deposited for a long time and has zero balances.
Purpose of the New RBI Rules
According to the Reserve Bank of India, there are quite several purposes that necessitate such rules:
1. Financial Safety Increase: With the closing of inactive accounts, the risks would be reduced concerning fraudulence and its misuse.
2. Banking system efficiency improvement: Banks can then employ their resources effectively by closing unused accounts.
3. Encourage digital banking: This will practically help the customers switch to such use for internet banking services.
4. Enhanced compliance with KYC rules: The new rules will facilitate the updating of the KYC (Know Your Customer) details of customers on a regular basis.
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