New banking rules will take effect in India from April 1, 2025. These changes will impact ATM withdrawals, minimum balance requirements, cheque payments, digital banking, savings accounts, fixed deposit interest rates, and credit card services. It is important to understand these rules to avoid extra charges and penalties.
1. ATM Withdrawal Rules Changed
Under the new rules, customers can withdraw money from other banks’ ATMs for free only three times a month. After that, a fee of Rs 20 to Rs 25 will apply to each additional transaction. Previously, many banks allowed up to five free withdrawals. This change reduces the number of free ATM withdrawals available to customers.
2. New Minimum Balance Rules
Major banks like the State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank are introducing new minimum balance requirements. Customers must maintain different minimum balances based on whether they live in urban, semi-urban, or rural areas. Failure to maintain the required balance may result in a penalty, which will vary depending on the bank and account type.
3. Positive Pay System (PPS) for Cheque Payments
To prevent fraud, the Positive Pay System (PPS) will be implemented. If you issue a cheque for more than Rs 5,000, you will need to verify details such as the cheque number, date, beneficiary name, and amount. This additional step helps ensure payments are accurate and secure.
4. Improvements in Digital Banking Services
Banks are enhancing their digital services to make banking safer and more convenient. They are introducing new online services and AI-powered chatbots. Additionally, banks are strengthening security measures with two-factor authentication and biometric verification for safer digital transactions.
5. Changes to Savings and Fixed Deposit Interest Rates
Many banks are revising interest rates on savings accounts and fixed deposits (FDs). The interest rate will now depend on the amount of money in your account. Customers with larger deposits may earn higher interest.
6. Credit Card Benefit Changes
Some banks are reducing the benefits provided by their credit cards. For instance, SBI and IDFC First Bank are removing perks such as free ticket vouchers, renewal benefits, and milestone rewards for their Vistara credit cards. Similarly, Axis Bank is making changes to its Vistara credit card benefits starting April 18, 2025.
These new banking rules are likely to impact how you manage your finances. Staying informed about these changes can help you avoid penalties and make better use of banking services. Keep these updates in mind starting April 1, 2025!