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Bank Refuses Account Closure and Keeps Deducting Charges
Direct answer: Give the bank a signed closure instruction through a channel that produces an acknowledgement. Clear genuine pending mandates or dues, ask for a final statement, and dispute each charge posted after your request. RBI rules separately protect you where minimum-balance charges were levied without the required warning, were disproportionate, made the balance negative, or were levied on an inoperative account. Escalate first inside the bank, then to RBI CMS after rejection or 30 days without a satisfactory reply.
Last reviewed: 13 August 2026.
Start by fixing the evidence gap
A verbal request at a branch is difficult to prove. Submit the bank's closure form or a signed letter mentioning the account number, destination for the remaining balance, surrendered instruments and linked products. Obtain a stamped copy, complaint number or delivery proof. Keep the account statement from the request date onward.
Before disputing delay, check for practical blockers: a pending debit balance, active NACH or UPI AutoPay mandate, locker or loan linkage, unpresented cheque, lien, demat linkage, or missing signature. Ask the bank to state any blocker in writing and point to its published account-closure procedure or schedule of charges.
Which charges have a clear RBI rule behind them?
RBI's minimum-balance directions require advance notice of the shortfall, at least one month to restore the balance, proportionate and reasonable charges, and protection against the account turning negative solely because of those charges. RBI's 2024 directions on inoperative accounts also bar penal charges for non-maintenance of minimum balance on an inoperative account and bar activation charges.
These rules do not automatically invalidate every service fee. Compare each debit with the account variant's published tariff and the date of your closure request. Frame the remedy precisely: reverse the identified debits, close the account, and issue a final statement and closure confirmation.
Escalation ladder
- Send the acknowledged request and disputed-debit table to the branch manager.
- If unresolved, use the bank's grievance officer and principal nodal officer channels.
- After the bank rejects the complaint, or 30 days pass without a satisfactory reply, lodge a cost-free complaint at RBI's Complaint Management System.
- Attach the closure request, acknowledgement, bank replies, tariff, statement and relief sought.
RBI CMS is for deficiency in service by an RBI-regulated entity. It is not a shortcut around the bank's first-level complaint.
Charge-reversal table to prepare
| Date | Debit description | Amount | Why disputed | Evidence |
|---|---|---|---|---|
| DD-MM-YYYY | Minimum-balance charge | Rs _ | No warning / negative balance / inoperative account | statement and messages | | DD-MM-YYYY | Card or SMS fee | Rs _ | posted after closure request | acknowledgement and tariff |
| DD-MM-YYYY | Other debit | Rs ___ | duplicate or not authorised | statement and complaint |
Where RTI can and cannot help
For a public-sector bank, RTI can seek the applicable policy, date your closure request entered the system, file movement and recorded reasons. It cannot itself order closure or refund. Use the bank grievance and RBI route for the remedy. Private banks are not directly covered by RTI.
Frequently asked questions
Must I pay a negative balance created only by minimum-balance charges?
Dispute it in writing and cite the RBI rule that such charges must not make the savings balance negative. Ask for a date-wise calculation before paying anything contested.
Can the bank insist on the home branch?
Processes vary by bank and account type. Ask for the published rule and an accepted remote or non-home-branch process. Preserve the written answer.
When can I approach RBI CMS?
After first complaining to the regulated entity, if it rejects the complaint or does not give a satisfactory response within 30 days.