Major banking rule changes with effect from April 2025

March 27, 2025 Finance Talk Valli Sarvani

Starting April 1, 2025, Indian banking regulations will undergo significant updates, impacting account holders nationwide.

These changes will affect ATM withdrawals, savings accounts, credit card perks, and online banking security.

Customers should be aware of these modifications to avoid penalties and optimize their financial benefits.

Banks are revising ATM withdrawal policies, particularly for transactions at other banks’ ATMs.

The number of free withdrawals is being reduced, with only three free transactions per month allowed at non-home bank ATMs.

Any additional withdrawals beyond this limit will now attract charges between ₹20 and ₹25 per transaction.

Leading banks such as SBI, Punjab National Bank, and Canara Bank are updating minimum balance rules based on the account location.

The required balance will now differ for urban, semi-urban, and rural accounts. Failing to maintain the prescribed balance could result in penalty charges.

To strengthen security, banks are introducing the Positive Pay System (PPS) for high-value check transactions.

Customers issuing checks above ₹5,000 must confirm details like the check number, date, payee name, and amount before processing. This step aims to prevent fraud and reduce errors.

With a greater focus on digital banking, banks are rolling out AI-powered chatbots and enhanced online services.

Security measures, including biometric authentication and two-factor verification, are also being strengthened to safeguard digital transactions.

Several banks are adjusting interest rates for savings accounts and fixed deposits.

Higher account balances may now earn better interest rates, encouraging more savings. These changes aim to offer competitive returns to customers.

Credit cardholders will experience modifications in benefits, particularly for co-branded Vistara cards.

SBI and IDFC First Bank will discontinue ticket vouchers, renewal perks, and milestone rewards. Axis Bank will follow suit from April 18, 2025, with similar changes to its Vistara credit card benefits.

With these updates taking effect, account holders must stay informed and adjust their banking habits accordingly.

Monitoring transactions, maintaining required balances, and exploring revised benefits will help maximize financial advantages while avoiding unnecessary charges.

Image Credit: Fredericknoronha, CC BY-SA 4.0, via Wikimedia Commons