How to Close an ICICI Bank Account – Complete Process & Requirements

Low balances have caused a penalty as far as Ramesh's ICICI savings account is concerned, as it maintains a minimum balance of ₹10,000. His balance went down to ₹7,000 due to unanticipated payments, thereby creating a shortfall of ₹3,000.

According to ICICI, the charges would be 6% of the shortfall or ₹500, whichever is less. Therefore, Ramesh will have to pay a penalty of 6% on ₹3,000, which is ₹180. Hence, ICICI Bank penalises him ₹180.

Although closing an ICICI Bank account isn't difficult, there are many things to consider before and after. Any reason ranging from relocation to changing banks or just outright inactivity leads to the closure of an account. However, no matter the reason, it’s essential to follow the right steps to close the account properly and carefully.

Key Points to Consider Before Closing Your ICICI Bank Account

Before closing your ICICI Bank account, here are some essential steps to follow:

• Clear All Dues: Make sure you repay any loans and overdrafts and settle outstanding dues. This ensures there are no pending liabilities against the account.
  
  
• Standing Orders: Cancel or transfer standing orders to the new bank account to prevent missed payments on any regular transfers.
  
  
• Recurring Payments: Update your subscriptions or any recurring payments to your new account (for example, utilities or membership).
  
  

• Transactions: Clear or transfer any ongoing transactions, such as pending bank transfers and checks, for a smooth exit and closure.
  
  

• Banking Information: Inform all those people and organisations used to sending or receiving money from your bank account about the change in your banking particulars.
  
  
• Account Closure Form: The bank will provide you with a closure form that has to be filled out for the actual closing of the account.

• Documents: Submit any bank-related documents specified by the bank, such as a chequebook, passbook, and debit card.
  
  

• Fees: Check whether any charges are applicable for an account closure to avoid unnecessary surprises.

Documents Required to Close ICICI Bank Account

Here are all of the documents that you will need to close your ICICI Bank account:

• Account Closure Form: You may download it from the bank's website or get it at a branch.
  
  

• Identity Proof: This has to be a government-issued photo ID card like an Aadhar card or passport.
  
  
• Address Proof: Any document that contains your current address, showing utility bill, rental agreement, etc.
  
  
• Unused checks and debit: Unused checks and debit cards. Return the debit cards of ICICI Bank.

ICICI Bank Account Closing Charges

Here's the information about ICICI Bank account closing charges in a table format

Is it possible to close an ICICI Bank account online?

Currently, ICICI Bank does not offer the facility for online account closure. Most of the other banks in India follow this process of visiting the nearest branch to close an account. Documents have to be submitted, and the closure form has to be filled in at the bank.

How to Close an ICICI Bank Account Offline?

Here's how to close your ICICI Bank account offline

1. Go to the ICICI Bank branch where you have your account.
2. Ask for an account closure form.
3. Fill out the closure form with your details, including your name, account number, and registered mobile number.
4. Attach the required documents, like your PAN card, Aadhaar card, and chequebook, with the form.
5. Withdraw any remaining balance from your account so the balance is zero.
6. Return your passbook, debit card, and credit card to the bank and request an acknowledgement receipt.
7. Wait for confirmation from the bank that your account has been permanently closed.

How to Close an ICICI Account from Abroad?

Here's how to close your ICICI Bank account from abroad

1. Contact the ICICI Bank branch where you have your account.
2. Send a written request to close the account.
3. Provide required documents like a copy of your passport and proof of address.
4. Clear any pending transactions and pay off all dues.
5. Wait for confirmation from the bank that your account is closed.

How to Close an ICICI Account from Abroad

Here's how to close your ICICI Bank account from abroad

1. Download the ‘NRI Account Closure Request Form’ from ICICI Bank’s website.
2. To close your bank account, download the form. 
3. Take its printout, fill out the details carefully, and attach the required documents. 
4. Then, submit the form to the nearest ICICI Bank branch.

NRI Services at ICICI Bank

• Email ID: Write an email to nri@icicibank.com.
• Registered Email ID: Send the email from the email ID registered with the bank.
• Provide Details: Include your ICICI Bank account number, customer ID, and PAN in the email so they can refer to it easily.

How to Close an ICICI Account After Death?

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 1. In case of joint account

Here's how to close an ICICI joint account when the joint account holder dies.

1. Visit the ICICI Branch: Go to the branch where the account is held.
2. Submit a Written Application: Inform the bank that the other account holder is dead.
3. Provide the Death Certificate: Submit a copy of the deceased person's death certificate, which is essential for processing.

Once the bank has processed the request, they will remove the deceased's name from the account. The bank will allow the remaining holder to utilise or close the account as and when required.

Key Things to Remember

• Action taken by the surviving holder: Action must be taken only by the account holder who survives to close the account.
• Documents required: A copy of the death certificate is compulsory.
• Visit the required branch: The branch visit is compulsory to initiate closure.
• A Joint Account does not require a nominee: In these accounts, the surviving holder automatically becomes the absolute owner after the other holder's death in the absence of a nominee.

2. In case of a non-joint account

To close the ICICI Bank account after the death of the sole account holder (non-joint), legal heirs have to visit the nearest ICICI branch along with the required documents. Here are the following steps:

Key Steps

• Notify Bank: Go to the branch with the original death certificate to inform the bank of the account holder's death.
• Documents Submission: Death certificate, completed claim form, and KYC documents for legatees.
• Nominee Verification: If there is a nominee, the bank will verify their details and process the closure.
• Legal Representation: Legal heirs must provide documents like a succession certificate or probate to prove their right to the account if there's no nominee.
• Close Account: The final step is closing the account and distributing the assets to rightful heirs after verifying documents.

Additional Details

• Branch Visit: You have to visit the ICICI Bank branch to close the account; closing it cannot be done online.
• KYC Verification: All the legal heirs must substantiate themselves through their KYC documents.
• Timely Action: Notify the bank immediately after the death to sidestep complications with the account.

3. In case the nominee is present

An ICICI Bank account may get closed when the nominee is present; follow the subsequent steps:

Key Steps

1. Go to the Bank: The nominee is required to go to an ICICI Bank branch.

2. Provide the Required Documents: Bring the following documents

• Death certificate copy.
• The nominee's KYC document (like ID and Address Proof).
• A cover letter stating the account holder's death is needed so that the bank is informed.
• Transaction of Documents: Hand the documents at the bank branch and inform them of the account holder's demise.

3. Verification: The bank will now verify the nominee's information and close the account.

Important Points

• The nominee must visit the bank.
• Make sure to take all required documents for smooth processing.

4. In case the nominee is not present:

To close an ICICI Bank account in the absence of a nominee, the following procedures are to be followed by legal heirs:

Key Steps

1. Visit the Bank: The legal heirs must visit the nearest ICICI Bank branch. 

2. Provide Required Documents: Carry the following:

• Death Certificate. 
• A succession certificate (if possible) or an affidavit proving legal ownership of the account is required.
• KYC documents (such as ID and address proof) of the legal heirs. 

3. Submission of an Application: The legal heirs now have to submit their application to the bank that will explain the relationship with the deceased and request closure of the account.

Key Points to Remember

• No Nominee: If no nominee exists, then legal heirs must establish their rights to the account balance with proper documentation.
• Will: If the person died leaving a will behind, then the executor named in the will can take the will and the death certificate to claim the account. 

By this process, rightful heirs can claim and close the balance in the account.

4. In case of no Legal Heir

Procedure for closing an ICICI Bank account due to the death of the account holder without any known legal heirs or claimants:

Important Steps

• To contact the Bank: Visit the nearest ICICI Bank branch and explain that there are no known heirs or claimants for the account holder. 

• Provide Death Certificate: Submit a duly attested copy of the deceased person's death certificate from a notary or gazetted officer. 
  
  
• Bank's Process: The bank will follow its process for unclaimed accounts, which may also involve finding possible beneficiaries. If no one is found, the funds may get transferred to the Depositor Education and Awareness Fund (DEAF) after a certain period. 

• Legal Implications: If the account had a heavy balance, the bank might take recourse to legal authorities for further action. 

Important Considerations

• Nominee: The nominee will claim the amounts if a nominee was mentioned against the account. 
  
  
• Joint Account: If the account in question was a joint account, the survivor under the account can close the account by providing the necessary documents. 
  
  
• Time Limit: Be conscious of the unclaimed funds transfer time limit to DEAF. 

This process thus ensures that no heirs or claims exist and that funds will be regulated in the same manner as if he were living and with the bank's policymaking.

Common Reasons People Decide to Close Their Bank Accounts

Account closure with ICICI Bank may be due to such reasons as

• Not needed anymore: You may close it if you don’t need the account anymore.
• Switching banks: You may close your ICICI account while switching to another bank.
• Consolidation of accounts: You should close some accounts to avoid confusion if you have multiple ones. 
• For inactivity: The account might be classified as inactive or dormant for not having any activity.
• Too many charges: The bank may close the account due to accumulated bounced cheques or overdraft fees.
• Suspicious activity: Suspicious activity on an account could lead to some accounts being shut down for safety.

Minimum Balance Penalty

ICICI Bank applies a penalty of 6 per cent of the shortfall amount or ₹500, whichever is lower if the account does not maintain the required minimum balance.

For Example

Imagine you have an ICICI Savings Account with a minimum balance requirement of ₹10,000. However, for some reason, you fall short of maintaining this minimum balance for a month. The bank charges a penalty for this shortfall.

Scenario 1: Shortfall of ₹2,500

• Minimum Balance Requirement: ₹10,000
• Your Current Balance: ₹7,500
• Shortfall: ₹10,000 - ₹7,500 = ₹2,500

Now, according to ICICI Bank’s policy:

• The penalty is 6% of the shortfall amount, or ₹500, whichever is lower.

Penalty Calculation:

• 6% of ₹2,500 = ₹150
• ₹500 (maximum penalty) is higher than ₹150, so the penalty for the shortfall would be ₹150.

So, in this case, ICICI Bank will charge you ₹150 as a penalty for not maintaining the required minimum balance.

Scenario 2: Shortfall of ₹10,000

Let’s say your account balance is only ₹5,000 this time, so the shortfall is higher.

• Minimum Balance Requirement: ₹10,000
• Your Current Balance: ₹5,000
• Shortfall: ₹10,000 - ₹5,000 = ₹5,000

Now, applying the penalty rule:

• 6% of ₹5,000 = ₹300
• ₹500 (maximum penalty) is higher than ₹300, so the penalty for this shortfall will be ₹300.

Thus, in this scenario, the penalty will be ₹300.

Features of ICICI Bank Account

Here’s a table summarizing the features of the ICICI Bank account

Conclusion

Closing an ICICI Bank account is a simple process, but there are a few essential steps to ensure everything goes smoothly. If you are closing the account because it is dormant, shifting banks, or just no longer need it. Clear outstanding dues, update your payments, and send in documents like your ID proof and account details. 

If you're abroad or dealing with a deceased account holder, there are also procedures for those situations. Remember, penalties for low balances can also be charged, so be vigilant. With the proper procedures, closing your ICICI account is possible without inconvenience.

FAQs Related to How to Close an ICICI Bank Account?

Q1: How long do banks hold records of closed accounts?

Banks usually hold records of closed accounts for 7 to 10 years. In the case of checks, the holding period usually is 5 years. The specific period differs from the bank policies and the needs of the regulators.

Q2: Do banks automatically close inactive accounts?

Yes, banks can automatically close inactive accounts, most often because of extended inactivity or minimal use. It can be done without notice. Reviewing your account agreement for particular account closure and inactivity terms is a good practice.

Q3: Can I open a closed bank account?

It varies based on who closed the account (you or the bank), why it was closed, and bank policy. If you'd like the account reopened, call your bank directly to find out the procedures and if it can be done.

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