How To Close A Bank Account?

Arjun Mehta, a 37-year-old marketing executive from Pune, held a savings account with Bank of Baroda for over 10 years. In early 2025, after switching to a bank offering superior digital services and higher interest rates, he decided to close his Bank of Baroda account. He visited the local branch, filled out the account closure form, and received a confirmation SMS within 48 hours. His remaining balance of ₹12,450 was securely transferred to his HDFC Bank account without any complications.

If, like Arjun, you're considering closing a bank account, this guide will walk you through the entire process, including the reasons to do so, the types of accounts you can close, the step-by-step procedure, required documents, and common issues to be aware of.

Why Would You Want to Close a Bank Account?

There are several reasons individuals decide to close a bank account:

• Relocation: Moving to a different city or abroad often requires consolidating accounts.
  
  
• Better Banking Options: Many people switch banks for better interest rates, lower charges, or improved digital services.
  
  
• Multiple Accounts Management: Too many accounts can create confusion and difficulty in managing funds.
  
  
• Dormant Account Fees: Inactive accounts often attract non-maintenance penalties or dormancy charges.
  
  
• Job or Lifestyle Change: Closure of salary accounts after retirement or resignation is common.

Example (Numerical):
 

In 2024, Meenal Desai from Ahmedabad had four bank accounts across ICICI Bank, Axis Bank, SBI, and HDFC Bank. Out of these, two had remained unused for over a year. 

She was charged ₹1,200 in annual maintenance and SMS fees combined for those idle accounts. Realising the unnecessary expense, she decided to retain only her SBI account for daily use and closed the rest. This move not only saved her money but also simplified her financial management.

Types of Bank Accounts You Can Close:

Not every bank account follows the same closure procedure or timeline. Below is a table summarising the types of accounts you can close and what to expect:

Types of Bank Accounts and Closure Summary

Example:
 

Rahul Bhatia, an NRI residing in Dubai, decided to close his NRO account with Axis Bank in March 2025. Since it involved cross-border transactions, he was required to submit Form 15CA and 15CB, and proof of Indian tax compliance. 

Despite the extra paperwork, his account was successfully closed in 6 working days with a final transfer of ₹1.85 lakhs to his international bank account.

How to Close a Bank Account: Step-by-Step Process?

Here’s how you can close a bank account smoothly in India:

1. Withdraw or Transfer Your Balance: Ensure the account balance is either zero or transferred to another account.
   
   
2. Download the Account Closure Form: This is available online or at the bank’s branch.
   
   
   • Official forms:
     • SBI Account Closure Form
     • HDFC Account Closure Form
     • ICICI Bank Closure Form
     • Axis Bank Closure Info
       
       
3. Fill the Closure Form Accurately: Provide account number, IFSC code, reason for closure, and alternate bank details.
   
   
4. Submit Identity Proof: Carry PAN card and address proof (Aadhaar, Passport, Voter ID).
   
   
5. Surrender Chequebooks, Debit Cards & Passbooks.
   
   
6. Visit the Branch for In-Person Verification.
   
   
7. Receive Closure Confirmation: Usually via SMS or email within a few days.

Read More – How to Close SBI Bank Account
 

Example:
 

Ajay Malhotra, from Mumbai, closed his ICICI Bank current account in April 2025. He cleared his remaining balance of ₹23,920 through a NEFT transfer and surrendered his chequebook with 5 unused leaves. 

He received a confirmation email within 3 days and a service fee of ₹150 was deducted for the closure.

Required Documents for Account Closure

Ensure you carry the following documents:

• Duly filled account closure form (downloaded from the bank website or collected from the branch)
  
  
• Copy of PAN card
  
  
• Address proof (Aadhaar card, passport, voter ID, etc.)
  
  
• Cancelled cheque of your new bank account (if a balance transfer is requested)
  
  
• Bank-issued items for surrender (chequebook, ATM card, passbook)

Document Checklist for Major Banks

Example:
 

Sangeeta Rao from Hyderabad closed her HDFC Bank salary account in May 2025. She submitted her PAN copy, Aadhaar address proof, and a cancelled cheque from her new SBI account. She returned her debit card and passbook at the time of form submission and received an SMS confirmation of closure within 72 hours.

Account Closure Charges in Indian Banks:

Different banks apply different charges when closing an account, especially if it is being closed within 6–12 months of opening.

Closure Charges Across Banks:

Example:
 

Rohit Shekhar from Delhi opened a Kotak Mahindra 811 account in January 2025 but decided to close it by July. He was charged ₹600 for early closure, which was deducted from his remaining balance of ₹9,750. The final ₹9,150 was transferred to his new Yes Bank account.

How Long Does It Take to Close a Bank Account?

The duration depends on the bank type and account type:

• Savings Account: 1–5 working days
• Current Account: 3–7 working days
• Fixed Deposit: Immediate (if matured)
• NRI Accounts: Up to 7 working days

Most banks notify you via SMS or email when the account has been successfully closed.

Example:
 

Neha Verma from Chennai closed her SBI savings account in May 2025. She received a confirmation SMS on the fourth working day, and ₹14,320 was transferred to her Canara Bank account as instructed.

Things to Remember Before Closing Your Account:

Before taking final action, keep these points in mind:

• Check for any pending EMIs, ECS mandates, or auto-debits.
  
  
• Clear any negative balance or overdraft facility.
  
  
• Redeem or close any linked investments or FDs.
  
  
• Make a note of any loyalty rewards, debit card points, or offers that will be forfeited.
  
  
• Update your new account with employer, insurance, mutual funds, etc.

Example:
 

Vikrant Joshi from Bhopal forgot to stop an auto-debit linked to his Axis Bank account for his Netflix subscription. After account closure, his subscription failed and was temporarily suspended. He later linked it to his new IDFC FIRST Bank account.

Conclusion:

Ritu Jain, a 42-year-old teacher from Jaipur, closed her two dormant accounts with Yes Bank and Canara Bank in February 2025. These accounts had been inactive for 18 months and incurred a combined non-maintenance fee of ₹800 in 2024. She transferred the total remaining ₹7,650 to her primary account at SBI and now operates just one savings account. This has made budgeting and financial planning easier for her.

Closing a bank account is a straightforward process if you are prepared. Whether it’s for convenience, financial planning, or relocating, ensure you have all documents ready, clear any dues, and inform your bank well in advance. Always request a written confirmation and keep proof of closure for future reference.

Make the shift seamless and make your money work better for you.

FAQs:

Q1. Can I close my bank account online?
A: Some banks like HDFC and Kotak 811 allow online closure of accounts. However, most still require an in-person visit or a courier of physical documents.

Q2. Is there any penalty for closing a bank account early?
A: Yes, charges ranging from ₹500 to ₹1,000 may apply if closed within 6–12 months of opening.

Q3. Will I get a confirmation after account closure?
A: Yes, most banks confirm via SMS, email, or a closure letter.

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