How to close a current account: Consequences of not closing explained
A current account is a type of bank account that allows you to carry out multiple transactions such as deposits, withdrawals, and payments. If you have a current account that you no longer need or wish to use, it’s important to close it properly to avoid any potential consequences.
Consequences of not closing a current account
Here are a few consequences of not closing a current account:
- Failure to cancel monthly recurring payments: If you do not close your current account and still have monthly recurring payments set up, your account will continue to be debited, and you will accumulate charges and penalties for non-payment.
- Outstanding amount: If you have an outstanding balance on your current account, the bank may continue to charge you interest and late fees until the amount is paid off. This can cause a major dent in your finances and negatively impact your credit score.
- Minimum balance requirements: If you have not maintained the minimum balance required for your current account for an extended period, the bank may impose additional charges or even close your account without your permission. This can harm your credit score and create difficulties in opening a new account in the future.
How to close a current account?
To close your current account, follow these simple steps:
Step 1: Submit a current account closure form to the bank
The first step in closing your current account is to fill out a current account closure form available at your bank’s branch or on their website. You will need to provide your current account number, account holder name, and signature on the form. You can also mention the reason for closing your account on the form.
Step 2: Get KYC documents verified
After submitting the account closure form, the bank will verify your current account KYC documents, which include your Aadhaar card, PAN card, passport, and driving license. Make sure you carry the original copies of these documents when you visit the bank.
Step 3: Submit cheque leaves and passbook
Once your KYC documents are verified, you will need to surrender your unused cheque leaves and passbook. The bank will then process your account closure request, transfer any remaining balance to your linked savings account, or issue a demand draft in your name.
Step 4: Withdraw the remaining amount
It’s important to withdraw any remaining balance in your current account before closing it. You can transfer the balance amount to your linked savings account or withdraw it in cash.
To wrap up
Closing a current account properly is crucial to avoid any future complications. By following this step-by-step guide mentioned above, you can ensure a hassle-free closure of your current account. Remember to settle any pending dues, terminate recurring payments, and return cheque leaves and passbook to the bank. By taking these necessary steps, you can effectively close your current account and maintain a healthy financial record.