Most people monitor their bank account when they need money. Far fewer periodically review all their banking relationships.
An old savings account. A forgotten fixed deposit. A locker that has not been opened for years. An outdated mobile number. An outdated address. A nominee who is no longer appropriate. An account that family members do not even know exists.
These may appear to be administrative details. They can become serious problems when there is fraud, death, succession, migration, dispute — or simply the passage of time.
1. Start with a complete list of your bank accounts
Do you actually know how many bank accounts you have? Make a list of savings accounts, current accounts, joint accounts, NRE/NRO accounts, salary accounts from previous employment, accounts opened in another city, accounts inherited from family, and old accounts you no longer actively use.
If an account is genuinely no longer required, consider closing it properly rather than simply abandoning it. An account you never look at is an account you cannot effectively monitor.
2. Don't ignore an account simply because it is inactive
Under RBI's framework, a savings or current account becomes inoperative when there are no customer-induced transactions for more than two years. RBI's current instructions also require banks to undertake measures relating to such accounts and facilitate their activation.
Importantly, an inoperative account does not mean the money has ceased to belong to the customer. RBI has specifically required banks to make facilities available for activation, including KYC updation at branches and, where available, through Video-Customer Identification Process (V-CIP).
If you have an old account: check it, update your KYC, review the transactions, and decide whether you still need it. Do not allow an old banking relationship to become invisible simply because you stopped using it.
3. Forgotten deposits can become "unclaimed"
This is particularly relevant for people who have moved cities, migrated overseas, or maintained several bank relationships. RBI provides that balances in deposit accounts that remain inoperative or unclaimed for 10 years or more are transferred by banks to the Depositor Education and Awareness (DEA) Fund. Importantly, the customer or legal heir can still claim the amount through the bank.
This creates a simple annual exercise: search for your own name — and, where relevant, the names of deceased family members — in the bank's unclaimed-deposit information. This is especially important for deceased parents, old family accounts, former employees, NRIs and returning Indians, and anyone who has changed cities or banks frequently.
4. Review every fixed deposit
Fixed deposits are often considered "safe" because they are not actively operated. That does not mean they should be ignored. Maintain a simple record for each FD — bank, branch, deposit number, principal, date of deposit, maturity date, maturity instruction, nominee, and interest rate — and review it at least once a year. Also check whether the maturity instructions still reflect what you actually want.
5. Your bank locker needs attention too
A locker is not a substitute for financial documentation. You should know which bank and branch holds the locker, the locker number, who the hirers are, whether nomination has been registered, whether a survivorship clause applies, and where the locker agreement is kept.
RBI's revised locker instructions have been in force from January 1, 2022, covering locker agreements, customer due diligence, operation of lockers and treatment of unoperated lockers. Most importantly: your family should know that the locker exists. They do not necessarily need to know what is inside it — but after your death, discovering that a locker exists only after months or years can create avoidable complications.
6. Nomination is not a box to tick and forget
One of the most neglected areas of banking is nomination. RBI emphasises the importance of nomination for bank accounts and lockers because it facilitates settlement of claims after the depositor's death. Review nominations after major life events — marriage, divorce, death of a nominee, birth of children, or changes in joint ownership.
Don't assume a nomination automatically settles every question of ultimate succession or ownership. Nomination is primarily a mechanism that facilitates settlement by the bank; broader succession rights can involve separate legal considerations. For significant estates, banking nominations should be considered alongside the Will and overall succession plan.
7. Check your registered mobile number, email and address
This sounds trivial. It isn't. An outdated mobile number can mean you don't receive an important transaction alert. An outdated address can create communication problems. And an outdated KYC record can create avoidable difficulties when you eventually need to operate or reactivate an account.
8. Review joint accounts and operating mandates
Check joint holders, operating instructions, authorised signatories, power of attorney, mandates, and old standing instructions. A mandate that made sense ten years ago may no longer be appropriate today. For businesses, this review should be part of the annual internal-control process.
9. Monitor transactions yourself
Banks have increasingly sophisticated systems — SMS and email alerts, OTP authentication, transaction monitoring, KYC controls, maker-checker mechanisms, internal and concurrent audit. These are important. But a control existing on paper and a control working effectively are two different things.
If there is an alleged forged signature, unauthorised facility, or substantial movement of funds, the question isn't only "why didn't the customer notice?" It's also "why didn't the bank's control environment detect it?" Customer vigilance should complement institutional controls — not substitute for them.
10. Prepare a "banking map" for your family
This may be the single most useful exercise. Create a confidential document listing bank, branch, account, FD, locker, loan, nominee and contact details for each relationship — and, where relevant, demat accounts, mutual funds, insurance policies, bonds and pension accounts.
But don't put passwords, PINs or OTP credentials in this document. The objective is not to give someone access to your money. The objective is to ensure your family knows where the financial assets are located — critically important after death.
The annual banking health check
Once every year, spend 30–60 minutes reviewing your banking relationships:
- How many bank accounts do I have, and which are no longer required?
- Are any accounts inactive or inoperative?
- Do I have forgotten FDs or deposits?
- Are my mobile number, email and address updated?
- Are all nominations current?
- Have I reviewed my locker arrangement, and does my family know it exists?
- Are there old accounts belonging to deceased family members, or unclaimed deposits?
- Are joint holders and operating mandates still appropriate?
- Have I reviewed unusual transactions during the year?
- Do my banking records align with my Will and succession plan?
The bigger lesson
Banking has become extremely convenient. That convenience has also encouraged financial complacency — the assumption that the bank will monitor it, the SMS will alert you, the nominee knows, and the old account doesn't matter. These assumptions can become expensive when something goes wrong.
A strong financial life is not merely about earning, saving and investing. It is also about knowing where your money is, who can access it, how it is protected, and what happens to it if you are no longer able to manage it yourself.
Practical note
The above is a general customer-awareness guide based on RBI's banking framework. Specific procedures can differ by bank, account type and individual circumstances. Customers should verify the applicable process with their bank before taking action.