Significant changes for account holders will result from the implementation of new banking legislation throughout India on April 1, 2025. Credit card benefits, savings account guidelines, ATM withdrawal procedures, and other things will change as a result of these revisions. To prevent fines and maximise your banking perks, customers should be aware beforehand.
Key Changes in Banking Rules from April 1
- Modifications to ATM Withdrawal Fees
Several banks have updated their regulations regarding ATM withdrawals. Monthly free ATM withdrawals are being cut, particularly for transactions at ATMs operated by other banks. Customers will now only be permitted to withdraw money from other bank ATMs three times a month for free; any more than that will incur fees of between ₹20 and ₹25 each transaction.
- Minimum Balance Requirements Modified
The minimum balance policies of SBI, Punjab National Bank, Canara Bank, and other financial institutions are being updated. Depending on whether an account is located in an urban, semi-urban, or rural location, the needed balance will now change. Penalties may be incurred for failing to maintain the recommended balance.
- Implementation Of The Positive Pay System (PPS)
A lot of banks are using the Positive Pay System (PPS) to improve transaction security. Check payments above 5,000 are subject to verification using this mechanism. To prevent fraud and mistakes, customers must verify information such as the cheque number, date, payee name, and amount before processing.
- Enhanced Digital Banking Features
Banks are introducing sophisticated online tools and AI-powered chatbots to help consumers in an effort to encourage digital banking. To further safeguard digital transactions, enhanced security procedures, including biometric verification and two-factor authentication, will be reinforced.
- Changes In Savings Account And FD Interest Rates
Interest rates on fixed deposits and savings accounts are being revised by a number of institutions. Interest rates on savings accounts will now be determined by the account amount, thus, larger balances might provide greater rates. These changes are intended to promote savings and provide competitive returns.
- Revised Credit Card Benefits
Large banks are making changes to their co-branded Vistara credit cards, such as SBI and IDFC First Bank. Milestone incentives, renewal benefits, and ticket coupons will no longer be offered. Similar adjustments will be made by Axis Bank to its Vistara credit cards beginning on April 18.
