RBI 2025 Banking Rules : The Reserve Bank of India’s new banking rules, Big RBI Alert! New Rules which will come into effect on November 20, 2025, are introducing major changes 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 period of time, or that have a zero balance. Under the new rules, bank accounts that have not seen any transactions for several years will be closed or frozen. This move is intended to prevent fraud and misuse of 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 |
The RBI states that accounts that remain untransferred for a long period of time are at risk of fraud or misuse. Therefore, closing such accounts will ensure a safe banking environment.
The RBI’s new banking regulations will come into effect from November 20, 2025.
According to the Reserve Bank of India, these new regulations are in line with global banking standards and have been designed to 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).
- Nominations can be made both simultaneously and sequentially.
The new regulations will also apply to safe deposit lockers and safe custody articles.
the new system, customers will have to pay closer attention to their account status. If they want their account to remain active, they will need 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 Key Changes
Account Closure/Freeze: Banks will close or freeze certain accounts that have been inactive for a long period of time—specifically, dormant accounts, inactive accounts, and accounts with consistently zero balances.
Extended Nomination: Customers can now nominate up to four people 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 are 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 Necessary
Long-term inactive and zero-balance accounts increase the risk of fraud and misuse. By closing or freezing such accounts, the RBI aims to reduce risk and simplify operational oversight. Furthermore, 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 Preparedness: Banks should strengthen monitoring systems to detect inactivity thresholds and activate customer access or automatic remediation.
Customer Communication: Clear, proactive messaging is crucial—inform customers before closing or freezing accounts and explain reactivation steps.
KYC and Contact Maintenance: Maintaining up-to-date KYC and contact details is more important than ever to ensure communication of customer information.
Claim Settlement: Back-office processes should be updated to support simultaneous and back-to-back nomination settlements.
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 your family’s circumstances, consider adding up to four nominees, and choose between simultaneous or other 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 the bank can send you alerts
Strategic Advice for Advisors
Financial and legal advisors should advise clients to incorporate the extended nomination option into their estate plans, coordinate the selection of nominees across different instruments (accounts, fixed deposits, lockers), and document the intended allocations to avoid confusion. 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.
- Update zero-balance accounts that you no longer use when closing them.
- Keep your contact details and KYC updated to receive notifications.
- The RBI’s new rules are a major step toward making the banking system more transparent and secure. All account holders should regularly check their accounts and follow the new guidelines to avoid any problems.