A major decision was just taken by the reserve bank of india (RBI).
A long-standing dispute has been settled.
On january 1, 2025, this new regulation will take effect. The RBI has decided to shut down three different kinds of bank accounts beginning of the new year. Let's learn which accounts will be canceled, how bank clients will be impacted, and what the RBI's new requirements are.
The RBI claims that the goal of this new regulation is to increase the efficiency, security, and transparency of the financial sector. Additionally, it aims to motivate clients to update their KYC (Know Your Customer) data and switch to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking.
The RBI claims that closing these three account kinds will lower related risks in addition to fixing several problems with the banking system. The wellbeing of the consumer is still given first consideration, and banks will be able to provide their clients better services."
The new rule, effective january 1, 2025, will result in the closure of these three types of accounts:
Dormant Account: bank accounts with no transactions for an extended period, typically two years.
Inactive Account: Accounts that remain inactive, with no transactions, for one year.
Zero Balance Account: Accounts with no deposits or activity and a zero balance for a prolonged period.
Objectives of the New Rule:
Fraud Reduction: Closing inactive accounts will reduce the risk of fraud and misuse.
Enhanced banking Efficiency: Eliminating non-operational accounts will help banks improve their management.
Promotion of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital Banking: The new rule will encourage customers to update their KYC and use wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking services.
KYC Updates: It will make it easier to keep customer KYC details updated.
Steps to Keep Accounts Active:
Update KYC details.
Perform regular transactions.
Maintain a minimum balance in zero-balance accounts.
Use wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking services.
A long-standing dispute has been settled.
On january 1, 2025, this new regulation will take effect. The RBI has decided to shut down three different kinds of bank accounts beginning of the new year. Let's learn which accounts will be canceled, how bank clients will be impacted, and what the RBI's new requirements are.
The RBI claims that the goal of this new regulation is to increase the efficiency, security, and transparency of the financial sector. Additionally, it aims to motivate clients to update their KYC (Know Your Customer) data and switch to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking.
The RBI claims that closing these three account kinds will lower related risks in addition to fixing several problems with the banking system. The wellbeing of the consumer is still given first consideration, and banks will be able to provide their clients better services."
The new rule, effective january 1, 2025, will result in the closure of these three types of accounts:
Dormant Account: bank accounts with no transactions for an extended period, typically two years.
Inactive Account: Accounts that remain inactive, with no transactions, for one year.
Zero Balance Account: Accounts with no deposits or activity and a zero balance for a prolonged period.
Objectives of the New Rule:
Fraud Reduction: Closing inactive accounts will reduce the risk of fraud and misuse.
Enhanced banking Efficiency: Eliminating non-operational accounts will help banks improve their management.
Promotion of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital Banking: The new rule will encourage customers to update their KYC and use wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking services.
KYC Updates: It will make it easier to keep customer KYC details updated.
Steps to Keep Accounts Active:
Update KYC details.
Perform regular transactions.
Maintain a minimum balance in zero-balance accounts.
Use wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital banking services.
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