What are the 6 Major Banking Rules that are Changing From April 2025? Check Details to Avoid Last Minute Hassle

Starting April 1, 2025, new banking regulations will be implemented across India, introducing significant changes that will impact account holders. These updates will affect credit card perks, savings account rules, ATM withdrawal policies, and more. It is crucial for customers to stay informed to avoid penalties and optimise their banking benefits.

What will be the changes in banking rules in April 2025?

From 1st April 2025, several banking rules are getting changes, like in ATM withdrawal, adjustment in minimum balance requirement, implementation of PPS, enhancing digital banking features, changes in saving accounts & FD, and revised credit card benefit. Check all new rules in detail given below:

1. Changes in ATM Withdrawal Charges

Several banks have revised their ATM withdrawal policies. Free ATM withdrawals per month will be reduced, particularly for transactions at other banks’ ATMs. Customers can now only make three free withdrawals from other bank ATMs each month.  Exceeding this limit will attract additional charges ranging from ₹20 to ₹25 per transaction

2. Adjustments in Minimum Balance Requirements

• Major banks like SBI, Punjab National Bank, and Canara Bank have updated their minimum balance rules. The required minimum balance will now vary based on the account's location:
  
• Urban Areas: Higher minimum balance requirement.
  
• Semi-Urban Areas: Moderate minimum balance requirement.
  
• Rural Areas: Lower minimum balance requirement.
  
• Failure to maintain the prescribed balance will lead to penalty charges

3. Implementation of the Positive Pay System (PPS)

• To enhance security in transactions, banks are introducing the Positive Pay System (PPS). This system applies to cheque payments above ₹5,000.
  
• Customers must verify details such as:
  
• Cheque number
  
• Date
  
• Payee name
  
• Amount
  
• This measure aims to reduce fraud and errors in cheque transactions

4. Enhanced Digital Banking Features

• Banks are improving digital banking by introducing:
  
• AI-powered chatbots for customer assistance.
• Advanced online banking features.
• Enhanced security measures, including two-factor authentication and biometric verification.
  
• These measures will strengthen the safety of digital transactions

5. Changes in Savings Account and Fixed Deposit (FD) Interest Rates

• Interest rates on savings accounts and fixed deposits are being adjusted by a number of banks.
• The interest on savings accounts will now depend on the account balance:
  
• Higher balances may receive better interest rates.
  
• These adjustments aim to offer competitive returns and encourage higher savings.
  

6. Revised Credit Card Benefits

• Major banks, including SBI and IDFC First Bank, are modifying their co-branded Vistara credit card benefits:
  
• Discontinuation of ticket vouchers.
• Removal of renewal perks.
• Milestone rewards will be phased out.
  

Changes similar to these will be put into effect by Axis Bank on April 18th, 2025, impacting those who hold their Vistara credit card.

Conclusion

With these banking rule changes set to take effect on April 1, 2025, it is crucial for customers to stay informed and adjust their financial habits accordingly. Understanding these updates will help individuals avoid unnecessary charges, enhance security in transactions, and make the most of their banking benefits.