I can help you with: Can you close a bank account with a negative balance? You cannot close a savings bank account with a negative balance. You must first bring it to zero or positive. As per RBI regulations, banks should not let your account balance go negative simply due to penalties for not maintaining the minimum balance. However, if penalties or debit charges do push the balance below zero, the account becomes overdrawn and must be regularised before closure.
Can I Close a Bank Account with a Negative Balance?
No automatic closure allowed. Banks generally do not permit account closure until the negative balance is cleared. You need to deposit sufficient funds to neutralise the account.
Accumulating charges. If the account goes into the red, banks may charge bounce or overdraft fees, usually between Rs. 250 and Rs. 500 per instance depending on the bank. These charges accumulate until the balance is settled.
Banks may write off or freeze. If the negative balance remains unresolved for long, Banks, especially private ones, can freeze the account, write off the debt, or close the account per their internal policies.
Need to settle before closing. According to standard banking practice, you must clear all dues before applying for account closure. You may be asked to fill out a closure form, surrender your cheque book and debit card, and obtain a closure confirmation, as highlighted in general guidelines.
An account cannot be closed with a negative balance in India. You are legally required to first deposit enough funds to clear the overdraft and any pending charges. Only after doing so can you initiate a smooth account closure process.
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Can You Close Bank Account With Negative Balance?
yogesh
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2025-06-17T15:12:04+00:00 2025-06-17T15:12:06+00:00Comment
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