Synopsis: Starting April 1, 2025, several banking rules have changed, impacting ATM withdrawals, savings account policies, credit card benefits, and UPI transactions. Customers should stay updated on these revisions to manage their finances effectively and avoid penalties.
Key Banking Changes Effective April 1, 2025
1. Changes in ATM Withdrawal Fees The Reserve Bank of India (RBI) has revised guidelines on ATM transaction charges. Customers will now have only three free withdrawals at ATMs of other banks per month. Beyond this limit, each transaction will attract a fee of Rs 20 to Rs 25. Banks have also updated their policies on maximum permissible charges per transaction.
2. Minimum Balance Requirement and Penalties Savings account holders must maintain a minimum balance as prescribed by their respective banks. Failing to do so will result in penalties, which vary depending on the bank and the type of account. The charges will differ based on branch location (metro, urban, semi-urban, or rural).
3. Implementation of Positive Pay System (PPS)To enhance security in cheque transactions, the RBI has enforced the Positive Pay System (PPS). Customers issuing cheques over Rs 50,000 must electronically provide their bank with details of the cheque. This information will be verified before processing the payment to prevent fraud.
4. Digital Banking Evolution with AI Integration Banks are integrating AI-powered chatbots and digital banking assistants to provide better customer service. Enhanced security measures, including two-factor authentication and biometric verification, are being introduced to protect digital transactions.
5. Revised Interest Rates on Savings and Fixed Deposits Leading banks, including SBI, HDFC Bank, IDBI Bank, Indian Bank, and Punjab & Sind Bank, have revised their interest rates on savings accounts and fixed deposits. Special fixed deposit tenures with attractive interest rates have been introduced to attract more investors.
6. Credit Card Rewards and Fee Revisions Several banks have altered their credit card policies, affecting rewards and charges. SBI has reduced SimplyCLICK Swiggy rewards to 5X and slashed Air India Signature points from 30 to 10. IDFC First has discontinued Club Vistara milestone benefits. Customers should review their card benefits and adjust spending accordingly.
7. UPI-Linked Mobile Number DeactivationBanks will remove mobile numbers linked to UPI accounts that have been inactive for a long time. If users have not used their UPI-linked mobile number for transactions, banks will delete it from their records, leading to the suspension of UPI services for that account.
Disclaimer: The information provided in this article is for informational purposes only. Customers are advised to check with their respective banks for precise details regarding the changes and their implications.
