Starting April 1, 2025, several new banking regulations will take effect, affecting millions of account holders across India. These changes will impact credit card benefits, savings account requirements, ATM withdrawal policies, and more. It is crucial for customers to stay informed about these updates to avoid penalties and maximize their banking benefits.
Major banks, including SBI and IDFC First Bank, are making significant changes to their co-branded Vistara credit cards. Key benefits such as ticket vouchers, renewal perks, and milestone rewards will be discontinued. Axis Bank will implement similar changes from April 18, affecting its Vistara credit cardholders.
SBI, Punjab National Bank, Canara Bank, and several other financial institutions are modifying their minimum balance rules. The minimum required balance will now vary based on whether an account is located in an urban, semi-urban, or rural area. Failure to maintain the prescribed balance may result in penalty charges.
Several banks are revising interest rates on savings accounts and fixed deposits. Interest on savings accounts will now be determined based on the account balance, meaning customers with higher balances may receive better rates. These adjustments aim to offer more competitive returns and encourage savings.
To enhance security in banking transactions, many banks are introducing the Positive Pay System (PPS). This system will require verification for check payments above ₹5,000. Customers will need to confirm details such as check number, date, payee name, and amount before processing the payment, helping reduce fraud and errors.
In an effort to promote digital banking, banks are rolling out advanced online banking features and AI-powered chatbots to assist customers. Enhanced security measures such as two-factor authentication and biometric verification will also be strengthened to safeguard digital transactions.
Several banks have revised their ATM withdrawal policies. The number of free ATM withdrawals per month is being reduced, particularly for transactions made at ATMs of other banks. Now, customers will be allowed only three free withdrawals per month from other bank ATMs. Exceeding this limit may result in additional charges ranging from ₹20 to ₹25 per transaction.
Credit card users will lose certain rewards and benefits, making it essential to reassess their credit card usage and look for alternative reward programs.
Savings account holders must be aware of the new minimum balance requirements to avoid penalties.
Customers should check revised interest rates on savings and fixed deposits to maximize returns.
Those who use checks frequently should familiarize themselves with the new Positive Pay System to ensure smooth transactions.
Digital banking users will experience more secure transactions and improved online banking support.
ATM users must be mindful of withdrawal limits to avoid additional fees.
These banking changes, set to take effect from April 1, 2025, are designed to enhance security, improve transparency, and streamline banking operations. Account holders should take proactive steps to understand these updates and adjust their banking habits accordingly to minimize any negative impact. Stay updated with your bank’s official notifications and ensure compliance with the new rules to enjoy hassle-free banking services.
