Indian banks SBI and PNB to close inactive zero-balance accounts

State Bank of India (SBI) and Punjab National Bank (PNB) have announced plans to close inoperative savings accounts that maintain zero balances to mitigate cyber fraud risks.

SBI intends to close accounts that have been inactive for more than a year and lack updated Know Your Customer (KYC) details. This measure aims to prevent dormant accounts from being used as ‘mule accounts’ by cybercriminals to move stolen funds. Customers can avoid closure by updating their information through digital channels like YONO or by visiting an SBI branch within a one-month notice period.

Similarly, PNB will shut down zero-balance accounts that have seen no customer-induced transactions since September 30, 2023. To prevent closure, affected customers must resubmit KYC documents, such as government-approved identity and address proofs, to their respective branches before November 10.