It's a common practice among working-class people to hold many bank accounts for their salaries depending on job changes. This happens because most private companies credit employees’ salaries in a specific bank account as an employer. But if there is no salary credited for a few months in the zero balance salary accounts, you may see these accounts being converted into regular savings accounts.
If you are one of those salaried people, then your regular savings account must have a minimum average balance at all times as per banking policies. That’s why you must maintain the account balance, pay a charge to the bank, or close the bank account.
The four steps you should follow before closing your bank account are described here:
Step 1: Firstly, you need to delink all the debits associated with your account. If you are trading in securities, paying instalments, or having recurring deposits, you have to stop their links with your bank. Credit cards issued by the bank with your regular savings account have to be closed. Banks will provide a delinking form to you for mentioning these details at the time of closure proceedings. They will take around ten business days to process the delinking so you can continue with closing your bank account.
Step 2: You will have to go to your bank branch to submit your account closure form along with the delinking form. You will also be required to hand in any unused cheque books and debit cards. You can submit the account closure form or letter to the branch manager along with your bank details and the reason for closing your regular savings account. Every bank account-holder must sign this form or letter if it’s a joint account. You can transfer all your funds using demand draft or National Electronic Fund Transfer (NEFT). Any amount less than 20,000 INR is payable in cash during bank account closure.
Step 3: Updating your current employer with the new bank account details is necessary for receiving your salary credits once you have closed your old regular savings account. In case you are a government pension holder closing your bank account, you have to update your employer about your new bank account. For possible future references, you can keep the last bank account statement having the date of closure of your bank account.
Step 4: A bank generally won’t charge you anything if you decide to close your bank account before 14 days or after one year of opening it. But if you close your regular savings account after 14 days or before the completion of one year, then you will have to pay a charge to your bank. This is because the bank has to recover the cost of opening and closing your bank account and of issuing debit cards and cheque books.
Although the process appears simple, it may take a few days. That’s why it is best to act expediently and close your bank account with all the necessary information kept handy.