Bank Branch Closing? RBI Rules That Keep Your Account Active — SkimNews
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- RBI requires banks to give customers sufficient advance notice before closing, shifting, or merging a branch, and accounts transferred within the same bank continue as existing accounts rather than being treated as new openings
- KYC completed at one branch remains valid when an account is transferred within the same bank, so customers need not redo documentation purely because of the move
- Bank mergers are distinct from individual branch closures — in earlier RBI-approved amalgamations, branches of the acquired bank continued operating as branches of the acquiring bank from the merger's effective date
- Customers should verify the new branch address, IFSC code, cheque book, passbook, and standing instructions after a transfer, and monitor salary credits, pension payments, and EMIs for disruption
- Fraudsters may exploit closure or merger announcements to send fake messages requesting passwords, PINs, or OTPs — the article warns customers to verify any such request through the bank's official channels
- Locker customers get extra protection: banks must publish notice in two newspapers (including a local vernacular daily) and inform locker holders at least two months before closure, with the option to change or close the locker facility
Why it matters: A branch shutdown is an administrative reshuffle, not a loss of banking relationship — but customers who fail to update IFSC codes, standing instructions, or registered contact details risk failed EMIs, salary credits, or pension payments. Locker holders specifically must act within a two-month notice window before the old branch stops operating.
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