Major Changes in Banking Rules from April 1, 2025: What Account Holders Need to Know

Starting April 1, 2025, several new banking regulations will come into effect across India, bringing significant changes for account holders. These updates are being introduced to encourage responsible banking behavior, ensure regulatory compliance, enhance fraud prevention, and make use of technological advancements.

ATM Withdrawal Limit and Charges Revised

In line with RBI guidelines, many banks have updated their ATM withdrawal policies. Customers will now be allowed only three free transactions per month at ATMs operated by other banks. Beyond this limit, each additional transaction will incur charges ranging from ₹20 to ₹25.

Also Read: ATM Withdrawals to Get Costlier from May 1 as RBI Approves Fee Hike

New Rules for Minimum Balance in Savings Accounts

Banks are revising their minimum average balance requirements. Customers must now maintain a specific balance in their savings accounts, failing which penalties will apply. The required minimum balance will vary depending on account type and branch location (metro, urban, semi-urban, or rural).

Positive Pay System (PPS) Made Mandatory for High-Value Cheques

To curb cheque-related fraud, the RBI has introduced the Positive Pay System (PPS). Customers issuing cheques above ₹50,000 will now have to share key cheque details electronically with the bank. These details will be verified before the cheque is cleared. Any discrepancies flagged by the Cheque Truncation System (CTS) may lead to redressal action.

Major Changes in Credit Card Benefits

Several banks are also making changes to their credit card reward structures. For example:

• SBI will reduce SimplyCLICK Swiggy rewards from 10X to 5X points, and Air India Signature points from 30 to 10.
• IDFC First Bank will discontinue Club Vistara milestone benefits.

UPI Services Linked to Inactive Numbers to be Suspended

From April 1, banks will deactivate UPI accounts linked to mobile numbers that have not been in use for an extended period. If a linked number is inactive, it will be removed from bank records, and associated UPI services will be suspended.

Focus on Digital Banking and Enhanced Security

Banks are increasingly adopting AI-powered banking assistants and introducing new digital features to improve customer experience. Services like two-factor authentication and biometric verification will be strengthened to ensure secure digital transactions.

Special FD Schemes and Interest Rate Revisions

Banks including SBI, HDFC Bank, IDBI Bank, Indian Bank, and Punjab & Sind Bank are launching special Fixed Deposit (FD) schemes with attractive interest rates, as part of broader changes in deposit-related offerings.

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Customers are advised to stay updated with notifications from their respective banks to ensure compliance and avoid service disruptions. The new rules are expected to improve transparency, enhance security, and deliver a more streamlined banking experience.