RBI rules when your bank branch closes, shifts, or merges — SkimNews
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- RBI requires banks to inform customers in advance when a branch is being closed, shifted, or merged, and to make arrangements so banking services continue without disruption.
- Accounts transferred to another branch of the same bank continue as existing accounts, with KYC completed at the original branch remaining valid — customers are not ordinarily required to open a fresh account.
- Customers must verify the new branch's address, IFSC, cheque book and passbook requirements, and confirm standing instructions, salary credits, pension payments, EMIs and investment-linked transactions still flow correctly.
- A branch closure is distinct from a bank merger, where an RBI-approved amalgamation scheme dictates how the transferring bank's assets, liabilities and branches are taken over by the acquirer.
- Locker customers are specifically protected: banks must publish a public notice in two newspapers (one a local vernacular daily) and inform locker holders at least two months in advance, with the option to change or close the locker facility.
- Fraudsters may exploit branch closure or merger announcements to send fake messages soliciting passwords, PINs or OTPs — the article warns customers to verify any such request through official bank channels.
Why it matters: Indian bank customers with accounts, standing instructions, or safe deposit lockers at affected branches have concrete, RBI-mandated rights — including two months' advance notice for lockers, KYC continuity, and no forced re-account opening — that protect deposits and access even when branches shut. Verifying the new IFSC, passbook details and locker location before the old branch stops operating is the practical step that prevents EMI bounces and missed salary credits.
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