The Current Account closing process may seem like a daunting task, but it's simple. You may want to close a Current Account due to reasons like relocation, account inactivity, or the availability of better services offered by another bank. Closing a Current Account involves important tasks like paying off any money you owe, moving your funds to another account, and making sure all your financial records are up-to-date. It's crucial to pay close attention and understand the possible consequences of closing your account.
Common reasons people close their Current Accounts
- Poor customer service: If a bank provides unsatisfactory, inadequate, or inaccurate services and does not live up to your expectations, then you may choose to close your Current Account with them.
- High / hidden charges: There are various charges that a bank can levy on a Current Account. These include non-maintenance, bulk transactions, cheque collection and bouncing, NEFT/RTGS facilities and other miscellaneous charges. If another bank charges you less, you may switch your Current Account with them.
- Inaccessible branches: A Current Account needs frequent visits to a bank branch for various types of services like cash withdrawals or fund transfers. If you relocate away from your home branch, then it will certainly cause difficulty in operating your Current Account especially if the net or mobile banking facility is not smooth.
Axis Bank Current Account addresses these concerns very well by offering online account opening, and robust net and mobile banking facilities for a more convenient banking experience. You can get an account in 20 minutes using PAN card, Aadhaar card and Video KYC without any hassle!
How to close a Current Account?
If you're wondering how to close my Current Account, the process typically involves several steps that vary depending on the bank or financial institution.
Step 1: Submit a Current Account closure form to your bank
Fill out the Current Account closure form from your bank with details like your account number and the reason for the closure. It also requires the signatures of all the signatories in the account. Visit the nearest branch and submit the closure form in person.
Step 2: Get KYC documents verified
You have to show the KYC documents, like Aadhar and PAN, of all the account signatories while submitting the account closure request.
Step 3: Submit cheque leaves and passbook
You need to submit all the unused cheque leaves and your passbook to the bank at the time of closing the Current Account.
Once everything is checked and verified by the bank, you will get the balance amount, if any, in your Current Account in the form of cash, demand draft, or direct transfer to any other account of yours.
What are the documents required to close the Current Account?
The documents required to close a Current Account can differ based on the policies of your bank. However, some common documentation includes:
1. Account closure request form
It is the primary requirement for Current Account closing. You can get the form from the bank's website or any branch.
2. Account-related items
You have to surrender all the unused cheque leaves, Debit Card and passbook. The bank will destroy them physically and cancel your Current Account in their system.
3. Identification proof
Make sure you carry a valid ID document like PAN, Aadhaar, passport or driver's licence for your identification proof.
4. Address proof
Carry any valid address proof at the time of closing your Current Account. These can include any recent utility bill, GST certificate or rental agreement.
Also Read: 5 different types of Current Accounts you must know
Conclusion
A Current Account serves the banking requirements of your business. However, there are several reasons to close your Current Account, like business closure, change in nature of business, relocation, unsatisfactory services, etc. This decision demands careful consideration and adherence to banking regulations, along with necessary documentation for future reference.
FAQs
How do I write a letter to close my current account?
Start your letter with date, address it to the bank manager and write the subject. Mention your account number and the reason for closure in the body of the letter. Lastly, end the letter with your signature, name, correspondence address and contact number.
How do you get money from a closed bank account?
Upon submitting the account closure request with all requisite documents, the bank will proceed to close the account. Any remaining balance will be disbursed through cash, a demand draft, or transferred to another designated bank account of yours.
What happens if you don't use your Current Account but don't close it either?
Non-usage of your Current Account may result in accruing non-maintenance charges and additional fees. Furthermore, prolonged inactivity could render the account dormant, requiring you to resubmit all KYC documents to reactivate it.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or 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. Please consult your financial advisor before making any financial decision.
