📌 Closing of a bank account
📌 Procedure of closing a bank account
📌Steps for closing a bank account
📌 Closure of bank accounts
📌 Reasons for closing a bank account
📌Why banks close account of customers.
There are numerous advantages of having a bank account . Most people, in fact, have multiple bank accounts. However, a person may choose to close their bank account for a variety of reasons, including a negative experience with the staff, relocation to another state or country, and so on.
However, if you have made the decision to close the account, you must have to go through
the following steps:
Closing of a bank account
1. Intention of a customer to close the account: A customer has the right to close his or her account at any moment for any of the reasons listed below:
1. If a customer does not agree to a bank’s terms and conditions, such as interest rate, bank charges etc .
2. If the customer is dissatisfied with the bank’s service in comparison to other banks.
3. when the customer has lost faith and confidence in the bank’s activities.
The consumer must submit a written application with precise information such as , amount, account number, and date to end the account, along with other details. The unused cheque leaves and passbook must be sent to the bank with the application. Generally, the bank will allow the account to be closed if the customer has no outstanding debts in the form of a loan, overdraft, or cash credit.
2. Intention of bank to close the account: The bank also has the option of terminating the customer’s account. For any of the following circumstances, the bank may close a customer’s account with a special notice:
1.In the event that the account is not profitable.
2. In the event that a customer isn’t a desirable one.
3.Death of customer: When a bank receives notice of a customer’s death, the bank should close the account immediately.
4. Insanity of customer: When a customer’s unsound mind is discovered, his account is immediately closed. The bank should request an authentic copy of the Order of Lunacy. If the sanity is permanent, they should close the customer’s account and give the balance to the duly chosen agent of the unsound mind customer as per the Lunacy Order.
5. Insolvency of customer: If the customer knows that a petition has been filed or that a customer has committed an act of insolvency, the customer must close the account activity. The bank shall shut the account as soon as it receives the notice of winding up in the event of a joint company.
6. On Receipt of Notice of Assignment: Under Section 130 of the Transfer of Property Act, a person has the right to transfer his assets/property to anyone. Bank balances are also considered a customer’s asset, and they can be transferred to third parties. When a bank gets a notice of assignment, it must cancel the assignor’s account and transfer the funds to the assignee’s account.