diff --git a/src/libs/actions/BankAccounts.js b/src/libs/actions/BankAccounts.js
index d56db2ae1c65..2ed82a6e60f1 100644
--- a/src/libs/actions/BankAccounts.js
+++ b/src/libs/actions/BankAccounts.js
@@ -1,5 +1,6 @@
 import _ from 'underscore';
 import Onyx from 'react-native-onyx';
+import lodashGet from 'lodash/get';
 import CONST from '../../CONST';
 import * as DeprecatedAPI from '../deprecatedAPI';
 import * as Plaid from './Plaid';
@@ -8,6 +9,7 @@ import ONYXKEYS from '../../ONYXKEYS';
 import * as PaymentMethods from './PaymentMethods';
 import Growl from '../Growl';
 import * as Localize from '../Localize';
+import * as store from './ReimbursementAccount/store';
 
 export {
     setupWithdrawalAccount,
@@ -103,6 +105,14 @@ function addPersonalBankAccount(account, password, plaidLinkToken) {
  * @param {Number} bankAccountID
  */
 function deleteBankAccount(bankAccountID) {
+    const reimbursementBankAccountId = lodashGet(store.getReimbursementAccountInSetup(), 'bankAccountID');
+
+    // If the account is same, then delete function is called in `resetFreePlanBankAccount`, hence early returned
+    if (reimbursementBankAccountId === bankAccountID) {
+        ReimbursementAccount.resetFreePlanBankAccount();
+        return;
+    }
+
     DeprecatedAPI.DeleteBankAccount({
         bankAccountID,
     }).then((response) => {
diff --git a/src/libs/actions/PaymentMethods.js b/src/libs/actions/PaymentMethods.js
index af54f858a40a..987095e63a72 100644
--- a/src/libs/actions/PaymentMethods.js
+++ b/src/libs/actions/PaymentMethods.js
@@ -11,6 +11,7 @@ import Navigation from '../Navigation/Navigation';
 import * as CardUtils from '../CardUtils';
 import ROUTES from '../../ROUTES';
 import NameValuePair from './NameValuePair';
+import * as store from './ReimbursementAccount/store';
 
 /**
  * Deletes a debit card
@@ -59,6 +60,19 @@ function continueSetup() {
     kycWallRef.current.continue();
 }
 
+/**
+ * Clears local reimbursement account if it doesn't exist in bankAccounts
+ * @param {Object[]} bankAccounts
+ */
+function cleanLocalReimbursementData(bankAccounts) {
+    const bankAccountID = lodashGet(store.getReimbursementAccountInSetup(), 'bankAccountID');
+
+    // We check if the bank account list doesn't have the reimbursementAccount
+    if (!_.find(bankAccounts, bankAccount => bankAccount.bankAccountID === bankAccountID)) {
+        Onyx.merge(ONYXKEYS.REIMBURSEMENT_ACCOUNT, {achData: null, shouldShowResetModal: false});
+    }
+}
+
 /**
  * Calls the API to get the user's bankAccountList, cardList, wallet, and payPalMe
  *
@@ -77,6 +91,7 @@ function getPaymentMethods() {
             // Convert bank accounts/cards from an array of objects, to a map with the bankAccountID as the key
             const bankAccounts = _.object(_.map(lodashGet(response, 'bankAccountList', []), bankAccount => [bankAccount.bankAccountID, bankAccount]));
             const debitCards = _.object(_.map(lodashGet(response, 'fundList', []), fund => [fund.fundID, fund]));
+            cleanLocalReimbursementData(bankAccounts);
             Onyx.multiSet({
                 [ONYXKEYS.IS_LOADING_PAYMENT_METHODS]: false,
                 [ONYXKEYS.USER_WALLET]: lodashGet(response, 'userWallet', {}),
@@ -273,4 +288,5 @@ export {
     saveWalletTransferAccountTypeAndID,
     saveWalletTransferMethodType,
     dismissWalletConfirmModal,
+    cleanLocalReimbursementData,
 };