Bank Account Charge: Not using your bank account? But be careful of these charges

Bank Account | Some people open three or four bank accounts. They use only one or two of them. They leave the rest as is. Even if you leave the accounts as they are or don’t use the account, you have to pay charges to the bank.

Do you remember how many bank accounts you have? Are there any accounts that you are not using? Such unused accounts are called dormant accounts. According to Reserve Bank of India (RBI) rules, if you do not make any transaction for two years, that account becomes “dormant”. This means that you cannot use that account. You cannot make deposits or withdrawals in it. You cannot use the ATM card. In some cases, the account is completely frozen. If there is money in that account, it goes to the Depositor Education and Awareness Fund (DEA Fund) of the Reserve Bank.

Usually, we all open a bank account at some point. In some cases, we keep opening new accounts again and again under the pressure of a salesperson or for the best offers. But if all those accounts are not used, they become inactive. Hence, it is better to close the accounts that are not needed.

Now let’s find out how you can close your bank account online. First, log in to your bank’s official internet banking or mobile banking. There, look for the ‘Service Request’ or ‘Account Services’ section. Then fill in the form given for account closure, explaining why you want to close it.

Upload the required documents (ID proof, request letter). Transfer the money in your account to another account. Then confirm the request via OTP or email. After the request is successful, you will receive a confirmation message from the bank. Don’t forget to download the report and statements as closed.

Some banks require you to hand over your cheque books and debit cards to the bank. Sometimes you have to go to the branch and sign for them. If you have any payments linked to your account like EMIs and auto debits, you should remove them. Switch to a new account. Payments may bounce and you may have to pay fees. If the payments do not reach the bank, your credit score will also be affected.

Most banks do not charge any fees for closing accounts that have been open for more than 12 months. However, there may be some charges if you close them between 14 days and 1 year. For example, State Bank of India (SBI) charges around Rs 500 for closing them after 15 days but within 1 year. HDFC, ICICI and Canara Bank also charge reasonable charges.

At the time of account closing, it should first be checked whether you have opened the account and completed one year. In case of not doing so, you may have to pay a fee of Rs 200 to Rs 1000 in advance. If there is no minimum balance in your account, the bank will have to pay a penalty of Rs 150 to Rs 600. If you have debit cards, you will have to pay annual fees. There will also be cheque book charges.

Read More: Aadhaar card update: Showing husband’s or father’s name is no longer necessary! Learn the full truth

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