Starting April 1, 2025, new banking regulations will come into effect in India, bringing key changes that will impact account holders. These updates include modifications to ATM withdrawal limits, minimum balance requirements, digital banking security, and credit card benefits. Here’s what customers need to know to avoid penalties and maximize their banking experience.
Key Banking Changes from April 1, 2025
1. Revised ATM Withdrawal Charges
Banks are reducing the number of free ATM withdrawals per month, especially for transactions at other banks’ ATMs. Customers will now be limited to three free withdrawals at other bank ATMs, with additional transactions incurring charges of ₹20 to ₹25 per withdrawal.
2. Changes in Minimum Balance Requirements
Banks such as SBI, Punjab National Bank, and Canara Bank are updating their minimum balance rules based on location. Customers in urban, semi-urban, and rural areas will have different minimum balance requirements. Failure to maintain the prescribed balance may result in penalty charges.
3. Introduction of the Positive Pay System (PPS)
To prevent fraud, banks are introducing the Positive Pay System (PPS) for high-value check transactions. Any check above ₹5,000 will require prior verification, where customers must confirm details like the check number, date, payee name, and amount before processing.
4. Enhanced Digital Banking Features
To promote secure digital transactions, banks are implementing AI-powered chatbots, two-factor authentication, and biometric verification. These improvements aim to make online banking more seamless and secure.
5. Changes in Savings Account and FD Interest Rates
Interest rates on savings accounts and fixed deposits will be revised. Some banks will offer better rates for higher balances, making it beneficial for customers to maintain larger deposits.
6. Credit Card Perks and Benefits Adjustments
Banks like SBI, IDFC First Bank, and Axis Bank are modifying their credit card reward structures. Co-branded credit cards, especially Vistara-related perks, will see changes, including the removal of ticket vouchers, milestone benefits, and renewal perks.
With these changes coming into effect from April 1, 2025, account holders are advised to review their banking policies, adjust their withdrawal habits, and plan their finances accordingly to avoid extra charges.
