How to Close Inactive or Unused Demat Account in India – Avoid AMC Charges

How to Close an Inactive or Unused Demat Account – Save on AMC Charges

If you have a Demat account that you no longer use, it’s best to close it. Keeping unused Demat accounts open not only leads to unnecessary Annual Maintenance Charges (AMC) but can also create complications during tax filing or future KYC checks.

In this blog, we’ll walk you through why and how to close your inactive or unused Demat account—along with tips to avoid hidden costs.

Why Should You Close an Inactive Demat Account?

• Avoid AMC Charges: Most brokers charge ₹300–₹750 annually, even if the account is unused

• Simplify Portfolio Management: Multiple accounts = confusion

• Prevent KYC Mismatches: Duplicate PAN entries across inactive accounts

• Reduce Risk of Unauthorized Activity: Dormant accounts are vulnerable to misuse

Key Things to Do Before Closure

✔ Ensure zero holdings in the Demat account

✔ Clear all pending dues or charges

✔ Download transaction and holding statements

✔ Transfer existing shares to your active Demat account (if any)

Step-by-Step Process to Close Your Demat Account

Step 1: Request Account Closure Form

Download it from your broker’s website or visit the branch.

Step 2: Fill in the Closure Details

• Client ID and DP ID

• Reason for closure

• Personal details and signature (all holders, if joint)

Step 3: Attach Supporting Documents

• PAN (self-attested)

• Canceled cheque (for bank verification)

• Latest holding statement (if requested)

Step 4: Submit Physically

As per SEBI norms, closure requests must be submitted offline or through courier. Digital closure is still not universally supported.

Step 5: Closure Confirmation

Broker will process the request in 5–10 working days and confirm via email/SMS.

Special Case: BSDA (Basic Services Demat Account)

If you have low holdings (under ₹2 lakh), you may request conversion to BSDA instead of closure. This lowers your AMC to ₹0–₹100/year.

How One Solution Helps

At One Solution, we make account switching and closure simple:

• Free assistance for account closure documentation

• Share transfer support to your new Demat account

• Guidance on AMC refunds and BSDA conversion

• Transparent, low-cost investing platform

• Option to open a new Demat account with ₹0 setup charges

Final Thoughts

An inactive Demat account does more harm than good. If you’re not using it, close it properly to avoid charges and clean up your financial portfolio.

Close what you don’t use. Invest with what works. Switch to One Solution today.