Bank Rule: As the new financial year commences, significant transformations are set to occur within the banking sector. Changes will affect ATM withdrawal processes, introduce new UPI regulations, and potentially alter the interest rates on fixed deposits, all of which will directly influence your finances. It is essential to familiarize yourself with these seven major changes effective from April 1, 2025.
UPI ID
One notable change is that if your mobile number linked to your bank account remains inactive for an extended period, your UPI ID will be automatically deactivated. According to the new guidelines from the NPCI, UPI users must keep their registered mobile numbers active to ensure uninterrupted payment services. Additionally, the number of free withdrawals from ATMs of other banks has been reduced from five to three. After this limit, a fee of Rs 20-25 will be charged for each transaction, necessitating careful consideration before visiting an ATM.
Major banks, including SBI, PNB, and Canara Bank, have revised their minimum balance requirements, which will now vary based on whether the account is in an urban, semi-urban, or rural area. Failure to maintain the required balance will result in penalties. The implementation of the Positive Pay System (PPS) will require confirmation for cheque payments exceeding Rs 5000. Users will need to verify the cheque number, date, beneficiary’s name, and amount prior to payment, which aims to mitigate fraud incidents.
New tech
Furthermore, banks are set to enhance their online services and introduce AI-driven chatbots. Biometric verification and two-factor authentication will also be reinforced, making digital banking more secure and efficient than ever before. Banks will now determine the interest rates for savings accounts and fixed deposits (FDs) based on the amount deposited. This means that individuals with larger balances will be eligible for higher interest rates. Additionally, if you possess a Vistara credit card issued by SBI or IDFC First Bank, you will no longer receive perks such as complimentary ticket vouchers, renewal benefits, and milestone rewards. Axis Bank is set to implement similar changes starting April 18, 2025.