- 9 March 2024
Closing Your Bank Account? Keep These 6 Important Steps to Avoid Delays
It’s not uncommon for individuals to accumulate multiple bank accounts, especially when changing jobs, leading to the need to manage and close redundant accounts.
Closing a bank account is a straightforward process, but neglecting certain aspects can lead to unnecessary delays and complications.
Here are six crucial considerations to keep in mind when closing your bank account:
Pending Transactions
Ensure there are no pending transactions linked to your account before closing it. This includes checks that have not yet cleared. Wait for these transactions to be completed to avoid complications.
Negative Account Balance
While the Reserve Bank of India prohibits negative account balances, some banks may not accept account closure requests if a minimum balance requirement has not been maintained.
If your account has gone into a negative balance due to non-compliance with minimum balance requirements, settle this amount before initiating the account closure process.
Account Closure Charges
Many banks impose closure charges when you request to close an account. These charges can vary, so be prepared to pay them.
Some banks may waive these charges after a certain period of account inactivity, so consider waiting if you wish to avoid these fees.
Monthly Payment Mandates
Disable any active monthly payment mandates associated with your account. This step is essential, as an open mandate can prevent the account from being closed.
Monthly mandates often include payments for insurance premiums, house EMIs, loan EMIs, and more.
Bank Locker Rental
If you have a bank locker linked to the account you intend to close, ensure that the locker is detached from the account before proceeding with the closure request.
This separation is crucial to prevent automatic deductions for locker rental.
Document Retrieval
Before closing your bank account, consider downloading statements or updating your passbook.
These records may be needed for future reference, so it’s wise to secure them before closing the account.
Once an account is closed, access to past account information may become limited.
By taking these considerations into account, you can ensure a smooth and hassle-free bank account closure process, preventing delays and complications down the road.
