From April 1, 2025, new bank rules will come into effect all over India and the use will be affected for the account holders. These updates will affect ATM withdrawals, minimum balance, credit card benefits and digital banking security. Customers must ensure that they are well informed to avoid incurring penalties or to take full advantage of the changes that have been made.
One of the major updates is concerning ATM withdrawal policies. Today, SBI, Punjab National Bank, and Canara Bank have announced that they are restricting the number of times a customer can withdraw money from ATMs of other banks for free. It means that you will be able to make only three free withdrawals from other banks’ ATMs and from the fourth withdrawal you will be charged between ₹20-25 per transaction.
The rules regarding the minimum balance are also being changed. It means that the balance that is required is going to vary with the type of account – either urban, semi-urban or rural. Customers who fail to meet the set limits will be charged penalties, so it is important that customers are aware of their balances.
To increase the security of the transactions, the Positive Pay System (PPS) is being introduced by the banks. This means that for checks drawn on the customer’s account for more than ₹5,000, the customer has to confirm the check details like the check number, date, payee name and amount. This measure is expected to help in the fight against fraud and to make the transactions more secure.
To enhance the digital banking, the banks are launching the chatbots with the help of artificial intelligence and enhancing the online banking. Two-factor authentication and biometric identification will also be available as additional security features for the digital transactions.
The interest rates on savings accounts and fixed deposits are also being changed. Some banks will now provide higher interest rates on the account balances, thus encouraging the customers to keep higher levels of funds in their accounts.
Meanwhile, large banks such as SBI and IDFC First Bank have made alterations to their co-branded Vistara credit cards. Current benefits of ticket vouchers, milestone rewards and renewal benefits will be unavailable. Axis Bank will bring similar alterations from April 18, affecting its Vistara credit card holders.
