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[SITUATION] · [ACTIVE] · [BUSINESS]
2 clusters · 2 sources · 27 days · First seen · Last updated
Global banking regulations on inactive accounts
Overview
Financial institutions and regulators are addressing the risks and consequences associated with inactive bank accounts. In Spain, the Banco de España has warned that leaving zero-balance accounts open can lead to accumulated maintenance fees and service charges, potentially resulting in debt and formal claims. Consumers are advised to formally cancel accounts to avoid these costs.
In India, the State Bank of India (SBI) and Punjab National Bank (PNB) are taking proactive measures to close inoperative zero-balance accounts to mitigate cyber fraud. SBI plans to close accounts inactive for over a year that lack updated Know Your Customer (KYC) details to prevent their use as ‘mule accounts’ for moving stolen funds. PNB is similarly targeting accounts with no customer-induced transactions since September 2023, requiring customers to resubmit KYC documentation to prevent closure.
Entities
Indian Cybercrime Coordination Centre · State Bank of India · Banco de España · Punjab National Bank
Timeline
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[BUSINESS] 2 sourcesIndian banks SBI and PNB to close inactive zero-balance accounts
State Bank of India and Punjab National Bank are closing inactive, zero-balance accounts to prevent cybercriminals from using them as mule accounts for fraud.
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[BUSINESS] 2 sourcesInactive bank accounts can lead to unexpected debt and fees
Inactive bank accounts can accumulate maintenance fees even with a zero balance, potentially leading to debt and formal claims if the account is not formally canceled.
Sources
newsbytesapp.com · saferworld.org.uk