New RBI Rules: 3 Types of Bank Accounts to Be Closed From 20 November 2025

Introduction

The Reserve Bank of India (RBI) has announced a major update that will affect millions of bank account holders across the country. Starting 20 November 2025, three specific types of bank accounts will be closed or deactivated if customers do not follow the new rules.
The move is aimed at improving security, reducing fraud, and keeping banks’ records transparent and updated.

Which Accounts Will Be Closed?

According to the new guidelines, banks must close or freeze the following types of accounts:

1. Accounts Without Updated KYC

Any bank account where KYC (Know Your Customer) has not been updated for years will be shut down.
This includes cases where documents like Aadhaar, PAN, or address proofs are outdated or missing.
Banks will give final reminders before taking action.

2. Inactive or Dormant Accounts

Accounts that have not shown any activity for a long time — usually more than 2 years — will be closed.
The RBI says many frauds happen through unused accounts, so clearing them will make the system safer.

3. Accounts With Mismatched or Fake Details

If an account has wrong information like mismatched PAN, incorrect signatures, fake addresses, or suspicious identity proofs, it will be closed immediately.
Banks will ask for verification, and failure to provide correct details will lead to account termination.

Why Is RBI Doing This?

RBI’s move is part of its broader plan to clean up the banking system. Several issues triggered this decision:

• A rise in fraud through inactive accounts
• Fake identities being used to open bank accounts
• Outdated KYC leading to security risks
• Increase in money laundering attempts

By tightening the rules, RBI wants to ensure that every bank account is linked to a verified identity and used for genuine transactions.

What Should Customers Do Now?

Account holders are advised to take a few simple steps before 20 November 2025:

✔ Update KYC Documents

Visit the bank branch or update KYC online through net banking or mobile apps.

✔ Reactivate Dormant Accounts

Make a small transaction — even ₹1 transfer — to keep the account active.

✔ Correct Personal Details

Ensure your PAN, Aadhaar, phone number, and address match across all bank records.

✔ Respond to Bank Messages

Banks will send SMS, email, and letters. Do not ignore them.

What Happens If You Don’t Update?

If customers fail to take action in time:

• Their accounts may be frozen
• Withdrawals and deposits will stop
• Accounts may be closed permanently
• Bank balances will be transferred to a special RBI account until claimed

Impact on Common People

This new rule will have a big impact on students, migrant workers, senior citizens, and people who maintain multiple small accounts.
However, RBI says the move is necessary to protect honest account holders.

Banks have already started informing customers, and many people are rushing to update their details to avoid losing access.