Unused Zero-Balance, Jan Dhan Accounts to Be Closed by Banks from Feb 1

Starting February 1, 2026, banks in India will close three categories of long-unused accounts under new RBI rules. These include dormant zero-balance accounts, inactive Jan Dhan accounts, and unclaimed deposit accounts, all aimed at reducing fraud risks and streamlining the banking system.

Key Details of RBI’s Revised Directions

• Effective Date: February 1, 2026
• Scope: Applies to all banks across India
• Accounts Affected:
  • Zero-balance accounts with no activity for years
  • Inactive Jan Dhan accounts opened under financial inclusion schemes but unused
  • Unclaimed deposit accounts with balances untouched for 10+ years (funds transferred to RBI’s Depositor Education and Awareness Fund)

Why RBI Is Closing These Accounts

• Fraud Prevention: Dormant accounts are often exploited for money laundering or scams.
• System Efficiency: Clearing unused accounts reduces administrative burden and improves digital banking infrastructure.
• Customer Protection: Ensures unclaimed deposits are safeguarded under RBI’s DEA Fund.

What Account Holders Should Do

• Check Your Accounts: Log in to net banking or visit your branch to confirm activity.
• Reactivate Dormant Accounts: A simple transaction (deposit/withdrawal) can prevent closure.
• Update KYC: Ensure your account details are current to avoid being flagged as inactive.
• Claim Old Deposits: Approach your bank before funds are transferred to RBI’s DEA Fund.

Risks if You Ignore This

• Permanent Closure: Once closed, reopening may require a fresh application.
• Loss of Access: You may lose linked services (debit cards, auto-pay mandates, etc.).
• Funds Transfer: Unclaimed balances will move to RBI’s DEA Fund, requiring a formal claim process later.

Quick Comparison of Account Categories

Account Type	Criteria for Closure	Action Needed by Customer
Zero-balance accounts	No activity for years	Make a small deposit/transaction
Jan Dhan accounts	Unused since opening	Use account actively or close voluntarily
Unclaimed deposits	No operation for 10+ yrs	Claim funds before transfer to DEA Fund

Action Plan

• Step 1: Review all your accounts, especially older savings or Jan Dhan accounts.
• Step 2: Make at least one transaction before January 31, 2026 to keep them active.
• Step 3: If you suspect unclaimed deposits, contact your bank immediately to initiate the claim process.