Closing an Indian bank account from abroad: everything you need to know

Closing your Indian bank account after you leave India and move to the US makes sense to keep your money safe, make sure you don’t run into unexpected fees, and prevent your account details being used fraudulently.

Exactly how you can close your Indian bank account depends on the specific account you hold - some banks make it tricky to close your account without a branch visit, so weighing up your options before you leave the country is ideal. This guide covers all you need to know.

Can you close an Indian bank account from the US?

The ideal way to close your Indian bank account is in a branch before you leave the country. This is a method which pretty much all banks will approve, on all accounts.

You’ll just need to make sure your account is prepared for closure, by moving out any balance, paying off any fees, and delinking the account from any other products you hold with the bank.

If you’ve already left India of course, this can be a bit more of a difficult prospect. Different banks have their own processes for account closures, and while some will let you email in a request to close your account, others may insist on a physical letter.

Some banks may not have a specific process to close your account if you can’t visit a branch in person, so you’ll need to negotiate with your local branch to understand your options.

To give a few examples, SBI® has both an account closure form¹ and a closure letter template² available online, which may be appropriate for you, depending on the account type you hold.

You can then mail the form or letter to the bank. HDFC® has an account closure form³ you can download, while IOB offers a template⁴ to help you request account closure.

Once you’ve found the right process for your specific bank and account you can ask how best to get the request submitted. Some banks allow you to email your request if you have a registered email address with them.

You may still need to mail in any checks you have, or your cut up account payment cards. Talking to your bank in good time will help you to navigate the process smoothly.

Can you close an Indian bank account online?

You may find your bank does not have a formal process for deleting your account digitally. However, if you have a registered email address - to access online banking for example - the bank might be able to accept an emailed account closure request instead of a physical mailed copy.

Ask your own bank if an email application is possible, as this could save time and money where available.

Closing your Indian bank account from abroad: step by step

The exact process you’ll need to take can depend a lot on the bank you’re with and the specific type of account you have. Fees may also apply which can depend on the account type and how long it's been open. You’ll need to do your own research to make sure you understand the process in your specific situation - but here's an overview of the steps which are usually required:

Check your own bank’s account closure policies

Each bank will have their own policies for account closure. The norm is to visit a branch in person, so if this isn’t an option because you’re already back in the US, you may need to do a little negotiation.

Read through the process on your bank’s website or in their app, and if there isn’t an obvious option which is feasible for your situation, give the bank a call to discuss.

Your bank might be able to accept a mailed in closure request for example, particularly if you can also include a certified copy of your ID or some other information to support your application. Talk through your options to come to an agreement which works for both your bank and you.

Ensure your account is suitable for closure

Even once you’ve agreed on a way forward, your bank can not close your account until you’ve prepared it for closure.

This means you leave your account with a zero balance, with no fees or overdraft outstanding. You’ll also need to de-link your account from your loan or credit card if you have one and don’t intend to close it at the same time.

Remember that fees might apply for transferring money out of your account, so you’ll need to consider these when planning, to make sure you don’t end up with an overdraft on the account.

Complete the bank account closure form or write a closure request letter

Different banks have their own requirements, but you’ll normally find that you have to complete either a form or a letter template to ask for your account to be closed. Many banks offer their own templates which you can simply populate, which makes it easier to ensure you’ve given in all the information needed to close your account.

If your bank doesn’t have a template letter or a closure request form you can use, call them and ask for a list of the information they need to close your account. This should avoid unnecessary hassle in future. Your bank might also ask you to send in any unused checks or other materials associated with your account, which can all be done at the same time as you request the account closure.

Send in your closure request by mail or email

Check if your bank will allow you to email in your request for account closure. This might be possible if you’re signed up for online banking, because this will mean that the bank has a verified email address for you. If you don’t use the online banking system you may not be able to email in your closure request, to prevent fraud. In this case you’ll probably need to mail in your request, with your verified signature and some form of ID to show that it’s really you asking for the account closure.

Await confirmation from your bank

Your bank will check if the account can be closed and start to process your request. Depending on the bank and how long you’ve had an account, a fee might apply for account closure. Once the bank has approved your request you’ll be notified and your account will be deleted.

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How much does it cost to close an Indian bank account?

Fees might apply if you close your account in the first year. Banks usually give a cooling off period of a couple of weeks, so closure fees are waived - but then costs apply if you request your account closure before one year is up.

To give an example, HDFC waives any closure fees if you close your account within 14 days. Then if you close from day 15 to the end of the first year, you pay 500 INR. Fees are again waived as long as your account is open for at least 1 year⁵.

Similarly, SBI does not charge a fee if you close your account within 2 weeks or after 1 year. However the fees for closing before the first year is out can vary from 300 INR to 600 INR depending on the specific account you hold⁶.

How long does closing an Indian bank account take?

Check with your own bank to understand how long it takes to close your account with them. As your bank will need to check and process your request, it’s likely to take a week or so once your request has been received - and maybe longer if there are other issues to resolve or if your bank needs more paperwork from you.

Tips and challenges for closing your Indian bank account

Different Indian banks have their own account closure protocols. Visiting a branch is almost always the standard way to close an Indian bank account - but if you’ve already moved away from India this is not practical. This means you’ll need to contact your bank to check what to do. You might be able to mail in your request, or complete a form which you can submit by email, for example.

Closing your Indian bank account from abroad should be possible, but you might well need to mail in your request and any account collateral you have. There may also be a fee to pay. Check with your own bank to understand their process, and to help you work out the most efficient and hassle free option for your specific situation.

Sources:

1. SBI - account closure form
2. SBI - account closure letter template
3. HDFC - account closure form
4. IOB - account closure letter template
5. HDFC account fees
6. SBI account fees