How do I close current account, if I don’t close what will happen?

Posted on Friday, January 6th, 2023 | By IndusInd Bank

Your business keeps on evolving, and so do your banking needs. If your bank is not able to fulfil your banking needs, then it is not the right banking partner for your business. IndusInd Bank account holders enjoy comprehensive banking facilities that cater to the present business requirements and hold up for their future expansion plans.

But not all banks can keep up with your dynamic banking requirements. Consequently, you may be looking to switch to another bank and wish to close your existing current account. Today, we will look at how to close your current account, and what happens if you keep it active without using it.

Why do people close their current account?

Before we proceed to the formalities of closing a current account, let’s take a look at 3 key reasons why a business owner may want to close his/her current account.

1. Poor customer service – A current account user interacts with the bank several times. The bank should be easily accessible to the current account holder for a stress-free experience at both ends. When banks fail to do so, the customer may feel frustrated. To make your banking journey smooth and hassle-free, IndusInd Bank offers superior customer service and is highly responsive to your requirements.

2. High/Hidden charges – Unlike IndusInd Bank, several banks charge a high interest rate on overdraft facility, hefty fee on non- maintenance of minimum balance, charges on fund transfers and many other hidden costs. To avoid this, a customer may want to close his/her current account and look at alternative solutions.

3. Inaccessible branches – Certain customers prefer a bank with a branch nearby for easy accessibility. If that nearby branch shuts down, the user may consider closing the current account. Further, lack of smooth and seamless internet and mobile banking interface may push the customer over the edge. To avoid such situations, open a current account digitally with IndusInd Bank and switch to the All-In-One Indus Merchant Solutions App.

How to close a current account?

The process of closing a current account varies from bank to bank. The standard procedure of doing the same is mentioned below in 3 steps:

Step 1: Submit a current account closure form to the bank

The current account closure form will seek basic details of your current account and why you want to close it. You will need the signatures of all the signatories of the business entity to which the current account is linked. You can collect and submit this form from the branch of your bank.

Step 2: Get KYC documents verified

You will need to show the Aadhar & PAN of the signatories/enterprise as a proof of identity while submitting the closure form.

Step 3: Submit cheque leaves and passbook

The bank will ask you to surrender all your unused cheque leaves and your passbook at the time of current account closing.

Once the bank verifies that everything is in correct order, you will get the remaining amount in your current account either in the form of cash, Demand Draft, or Account transfer. The mode of fund transfer varies from bank to bank.

What happens if you don’t use your current account, but don’t close it either?

As long as your dues are clear and your latest account details are updated, you may not have to worry about anything.

You may find yourself in a difficult situation if:

1. You do not cancel your monthly recurring payments.
2. You have an outstanding amount on your current account.
3. You have not maintained the required minimum balance for a long period.

If you are looking to start, grow or expand your business, open a current account with IndusInd Bank and enjoy premium doorstep banking services, ‘Video Branch’ facility for face-to-face banking, pre-approved loans with speedy disbursal and much more. With IndusInd Bank, your account number is one less thing to remember! You can pick an account number of your choice – be it your birth date or your luck number.  OPEN NOW in just a few clicks.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.