Why Punjab National Bank Is Closing Zero-Balance Inactive Bank Accounts?
Punjab National Bank (PNB) has begun closing dormant accounts from today, April 16 after the April 15 deadline passed. Accounts with no transactions for three years and zero balance were targeted. The move aims to reduce fraud risks, improve compliance, and streamline operations. Affected customers may now need to complete fresh KYC to reopen accounts.
Punjab National Bank (PNB) has started closing certain inactive accounts from Friday, April 16, 2026, after the deadline for reactivation passed on April 15. The move affects accounts that remained dormant for years, particularly those with no balance or transactions, as part of the bank’s clean-up and compliance drive.
The bank had issued an advisory in March, urging customers to review and reactivate eligible accounts. Despite repeated notifications, accounts meeting specific criteria were scheduled for closure if no action was taken within the stipulated timeline. PNB Records Highest Quarterly Profit of Rs 5,100 Crore in Q3.
Why PNB Closed Zero-Balance Dormant Accounts
PNB’s decision is part of routine banking practices aimed at improving operational efficiency and reducing risks. Accounts that remain inactive for extended periods, especially those with zero balance, are considered vulnerable to misuse, including potential fraud or unauthorised activity.
By closing such accounts, the bank aims to maintain accurate records, comply with regulatory norms, and strengthen overall financial security within its system. Indian Stock Market Up: Sensex, Nifty Gain As Israel-Lebanon Ceasefire Eases Oil Prices, Small-Caps Lead.
Who Was Affected
The action primarily targeted accounts that met all of the following conditions:
- No transactions for the past three years
- Zero account balance
- Classified as inactive or dormant by the bank
Customers who did not update their account status or carry out any transaction before the April 15 deadline are now impacted by the closure process.
What Customers Could Have Done
To avoid account closure, PNB had advised customers to complete Know Your Customer (KYC) updates and initiate at least one transaction. Visiting a branch and verifying account details would have helped maintain active status. The bank also encouraged customers to act early to avoid last-minute delays, especially as the deadline approached.
What Happens After Account Closure
Customers whose accounts have been closed may need to follow additional procedures to regain access to banking services. This could include reopening the account or applying for a new one, along with fresh documentation and KYC verification. The process may vary depending on individual cases and bank policies.
PNB has advised customers to regularly monitor their account activity and ensure compliance with KYC requirements. Keeping accounts active through periodic transactions can help avoid similar issues in the future.
Customers unsure about their account status are encouraged to contact their nearest branch or use official banking channels for assistance.
(The above story first appeared on LatestLY on Apr 17, 2026 10:25 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).