Many people have too many salary account due to their jobs or shifting to new cities. When there is no salary credit for a couple of months, a salary account will be treated as a regular savings account. And, you have to maintain the required average balance in that account. So it is advisable to close those accounts that are not used actively. Therefore, in this post, let’s discuss “How to close bank account in India?”
Table of Contents
Things to Keep in Mind Before Closing your Account
You need to keep the following things in mind before closing your account.
1. Note that you cannot re-open your account once it is closed.
2. You need to pay any pending dues with the bank before closing.
3. You must have all the required documents for closing it.
4. Make your account balance zero before closing it.
5. All the holders must be present in the closing of a joint account.
6. Better to close an account if you are unable to maintain it.
7. You also need to stop all automatic debits before closing it.
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How to close bank account?
Follow the step-by-step guide given below to close your account.
1. First of all, you need to visit your home branch. The bank branch where you have your account that needs to be closed.
2. Next, ask the bank executive for account closure. You will get an account closure form. Alternatively, you can also download it from the bank’s official website.
3. Now you need to fill in all the required details in this closure form. The details you need to fill in the closure form are:
- Your name
- Account number
- Your contact number
- Your signature
- Reason for closing the account
4. In the case of a joint account, all the holders are required to give their consent by signing this form.
5. Submit the duly filled form along with the required documents.
6. Some banks also ask you to fill a separate form mentioning the account number where your balance needs to be transferred.
7. Note some banks levy an account closure fee for the closure.
8. Once all done, get your acknowledgment from the bank stating about closure.
9. This is how to close your bank account.
Documents Required
You need to submit the following documents to the bank for account closure.
1. Passbook: You have to hand over your passbook to the bank at the time of closing your account.
2. Cheque Book: You need to return your cheque book along with all the remaining cheques in it to the bank.
3. Debit Card: You should also return your ATM/Debit card to the bank with your closure form.
4. Identity Proof: You also have to show your Identity proof and even address proof to the bank for verification purposes.
5. Outstanding payments: You also need to pay all the outstanding charges (if any).
6. Outstanding Balance: If you have any balance in it then, you have to choose the means of receiving it. The means could be such as by cash, cheque, or transfer to another account.
7. Closing Fees: Some banks will charge you a closing fee.
8. Destroy the documents: Some banks also ask you to destroy these documents by yourself.
Charges for Account Closing
Normally, banks would not charge any closure fees if you are closing it within 14 days of opening. But after a period of 14 days to up to 1 year, banks will charge fees for its closure. Generally, banks charge between Rs.500 to Rs.1000. After the completion of 1 year, the bank will not charge any fees for closing it. Banks charge these closure charges to recover the costs incurred in opening accounts.
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How to close a bank account online?
Banks do not provide an online account closing facility in India. Therefore, you cannot close your account online. So, you have to visit your home branch for closing your account. I hope now you got an answer to the question “How to close bank account online?”
Frequently Asked Questions
1. How to close a bank account online?
Note that you cannot close your account online. As banks do not provide an online account closing facility in India.
2. Is it necessary to close bank account?
If you have too many accounts and not marinating them actively. So it is advisable to close them as you are required to maintain an average quarterly balance.
3. Is there any charges for account closing?
Some banks levy account closure charges for the account closure.
4. Can we close bank account from any branch?
No, you need to visit your home branch to close an account. However, nowadays some banks allow you to submit the required to your nearest branch of that bank.
Final Thoughts
I hope now you know how to close a bank account. It is always advisable to close your account which is not active and even you don’t need it in the future. Because you are required to maintain an average quarterly balance. So if you have an unwanted account then you should close it as it serves nothing good to your financial life.
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