How to close bank account: Here's what you need to know

These days banks offer higher interest rates, additional benefits and other features that make people open multiple bank accounts. You might end up owning multiple accounts as you switch jobs. Too many bank accounts can be difficult to manage as you might also need to maintain an average quarterly balance. The account holder may need to pay a hefty penalty for not maintaining the balance, impacting his/her credit score also. So, in this case, it is better to close the old account. Here's what you need to know before closing your bank account.

Detach your bank accounts from online platforms

In case you have attached your bank account with any of the payment platforms or service apps like Paytm Uber or Swiggy, or any investment portals like Groww, etc, you will need to first de-link it. Also, detach your bank accounts via all your UPI payment platforms as it is linked to your phone number and bank account. However, replace it with an alternate bank account number in order to avoid any lapse of EMIs or investments.

Submit the account closure form

In order to close your bank account officially, you can ask for a closure form for your bank. All banks offer an account closure form, which is available in a bank’s branch or website. Also, you can fill a separate form mentioning the bank account number to which the balance funds can be transferred.

Return bank documents

Sometimes, banks also ask their customers to return the unused checkbooks, debit and credit cards, passbook and any other documents issued by the bank on account opening. At the time of closing your bank account, you may need to surrender all these along with the account closure form.

Watch Zee Business Live TV below

Account closure charges

In some banks, there are account closure charges levied, while most banks levy an account closure fee if you close it within a year from opening. According to the Reserve Bank of India, banks are free to levy any closing charges as per their financial situation. So some banks may charge a closure fee depending on their bank's policies.

After following all these procedures, the bank will finally check any pending payment or cheque against your bank account. Clearing all this, your bank will account will be closed in a few working days.