SBI cracks down on dormant accounts to curb cyber frauds
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓State Bank of India plans to close inoperative savings accounts with zero balances to curb cyber frauds.
- ✓The bank said, "Inoperative accounts pose risks to both customers and banks as they can be misused." Customers must update KYC details within a month to keep their accounts active and avoid closure.
Story at a Glance
- Category
- MARKET
- Reported By
- Financial Express
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
State Bank of India plans to close inoperative savings accounts with zero balances to prevent cyber fraud and misuse as mule accounts, requiring KYC updates within a month's notice.
State Bank of India (SBI), the country's largest lender, plans to close inoperative savings accounts with zero balances to curb cyber frauds and prevent their misuse as mule accounts for routing illicit funds.
The move comes amid growing concerns over fraudsters using dormant bank accounts as mule accounts to receive, transfer and conceal money stolen through cybercrime.
SBI has informed customers that inoperative savings accounts carrying nil balances for more than a year will be closed after a month's notice if their Know Your Customer (KYC) details are not updated during the notice period. No further intimation will be issued before closure.
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Financial Express
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