RBI 2025 Banking Rules : Bank The Reserve Bank RBI new rules of India’s new banking rules, effective November 20, 2025, introduce significant changes designed to strengthen security, transparency, and customer convenience. For bankers, advisors, and account holders alike, this update requires a rethink of account maintenance, nominee planning, and operational controls. Below is a brief business overview of these changes and the associated expectations.
These new rules will primarily apply to accounts that have been inactive or dormant for a long time, or have a zero balance. Under the new rules, bank accounts that have not seen any transactions for several years will be closed or restricted. This move aims to prevent fraud and misuse in such accounts.
Three Types of Bank Accounts That Will Be Closed
| Account Type | Reason for Closure |
|---|---|
| Dormant Account | No transaction for 2 years |
| Inactive Account | No customer-initiated transaction for 12 months |
| Zero Balance Account | No transactions for a long period after account opening |
RBI states that accounts with no transactions for an extended period are vulnerable to fraud or misuse. Therefore, closing such accounts will ensure a safer banking environment.
The RBI’s new banking regulations will take effect on November 20, 2025.
According to the Reserve Bank of India, these new regulations are designed to align with global banking standards and improve customer service. Key changes include
- Three types of bank accounts will be closed: dormant, inactive, and zero-balance accounts.
- A maximum of four nominees can now be added to a single bank account (previously, only one nominee was allowed).
- Nomination will be available in both simultaneous and sequential formats.
- The new rules will also apply to safe deposit lockers and safe custody articles.
With the new system, customers will have to pay closer attention to the status of their accounts. If they want their account to remain active, it will be necessary to make small transactions from time to time. Additionally, account holders can now add up to four nominees, making it easier for families to plan for their future financial needs.
A Look at the Key Changes
Account Closure/Restriction: Banks will close or restrict certain accounts that have been inactive for a long time—specifically, dormant accounts, inactive accounts, and accounts with persistent zero balances.
Expanded Nomination: Customers can now nominate a maximum of four individuals per account, including fixed deposits, lockers, and safe custody items.
Two Nomination Formats: Nominations can be set as simultaneous (multiple nominees share income) or sequential (nominees become eligible one after another).
Applicable to Custody Services: The new rules also apply to safe deposit lockers and safe custody items.
Why These Changes Are Important
Long-term inactive and zero-balance accounts are becoming more vulnerable to fraud and abuse. By closing or restricting such accounts, the RBI aims to reduce risk and streamline operational oversight. Additionally, allowing multiple nominees modernizes succession planning and simplifies claim settlement upon the account holder’s death—reducing friction and expediting the distribution of funds to families.
Summary of RBI’s Bank Account Rules 2025
| Point | Details |
|---|---|
| Effective Date | 20 November 2025 |
| Affected Accounts | Dormant, Inactive, Zero Balance Accounts |
| Maximum Nominees Allowed | 4 |
| Nomination Types | Simultaneous & Successive |
| Objective | Customer safety, transparency, faster claim process |
| Customer Responsibility | Activate inactive accounts and update nomination |
| Bank Responsibility | Monitor accounts and send timely alerts |
Practical Implications for Banks
- Operational Readiness: Banks should strengthen monitoring systems to detect inactivity thresholds and activate customer access or automatic remediation.
- Customer Communication: Clear, proactive messaging is crucial—notify customers before closing or restricting accounts and explain the reactivation steps.
- KYC and Contact Maintenance: Maintaining up-to-date KYC and contact details has become more important than ever to ensure communication of customer information.
- Claim Settlement: Back-office processes should be updated to support simultaneous and sequential nomination settlement.
What Customers Should Do Now
- Review Account Activity: Check all accounts before November 20, 2025, and make small, genuine transactions to avoid automatic closure.
- Update nominations: Depending on family circumstances, consider adding up to four nominees, and choose between simultaneous or sequential nomination formats.
- Clean up unused accounts: Close all zero-balance or unnecessary accounts that you no longer use.
- Keep KYC up-to-date: Ensure contact details and KYC documents are up-to-date so that banks can send you alerts.
Strategic advice for advisors
Financial and legal advisors should advise clients to incorporate the extended nomination option into estate plans, coordinate the selection of nominees across various instruments (accounts, fixed deposits, lockers), and document the intended allocation to avoid ambiguity. Corporates and trustees should also update internal policies and client-related materials to reflect the new nomination method.
What should account holders do?
- Check account activity before November 2025.
- If the account is inactive, make small transactions to activate it.
- Contact the bank to add up to four nominees.
- When closing zero-balance accounts that you no longer use, keep them updated.
- Keep your contact details and KYC updated to receive notifications.
The RBI’s new rules are a major step towards making the banking system more transparent and secure. All account holders should regularly check their accounts and follow the new guidelines to avoid inconvenience.
