New Banking Rules in April 2025: What You Need to Know About Changes in Savings Accounts, ATM Fees, and More

KKN Gurugram Desk | As April 2025 approaches, several significant changes are set to take place in the banking sector. The Reserve Bank of India (RBI) and various public and private sector banks have announced modifications to their banking rules, which will impact a wide range of banking services such as savings accounts, ATM transactions, and credit card usage. These changes are designed to enhance transparency, simplify processes, and increase security.

From minimum balance requirements in savings accounts to new credit card policies and ATM withdrawal fees, here’s a detailed breakdown of the upcoming banking rules that will take effect on April 1, 2025.

Key Changes in Banking Services for April 2025

1. New Rules for Credit Cards: SBI and IDFC First Bank to Make Changes

One of the key updates involves credit cards, particularly those offered by SBI and IDFC First Bank. Both banks are revising their rules regarding the co-branded Vistara credit cards.

• SBI’s Club Vistara Credit Cards: The Club Vistara SBI Prime and Club Vistara SBI Credit Card will no longer offer ticket vouchers or the renewal benefits that were previously available. Furthermore, milestone benefits on some spending categories will also be discontinued.

• IDFC First Bank: Similar changes are being implemented for the IDFC First Bank Club Vistara Credit Card, where milestone benefits will no longer apply.

• Axis Bank Vistara Credit Card: Starting from April 18, 2025, Axis Bank will introduce new rules regarding its Vistara credit card offerings as well.

These changes to credit cards reflect the growing trend of offering more transparent and standardized benefits for cardholders.

2. Minimum Balance and Penalties in Savings Accounts

Several major banks, including SBI, Punjab National Bank (PNB), and Canara Bank, will introduce changes to the minimum balance requirements for savings accounts starting from April 1, 2025.

• Minimum Balance Based on Location: Banks will now require customers to maintain a minimum balance in their accounts based on whether they live in urban, semi-urban, or rural areas. Failing to do so could result in penalties.

• Penalty on Non-compliance: Customers who fail to meet these requirements may incur a fine, which could vary based on the bank and region. It’s important for account holders to check their specific bank’s rules to avoid any surprises.

Additionally, public sector banks have updated the interest rates on savings accounts and fixed deposits (FDs). Now, the interest rate on savings accounts will be determined based on the account balance. This change aims to make the system more adaptable to varying customer needs and account activity.

3. Positive Pay System for Cheque Transactions

Another significant update is the introduction of the Positive Pay System (PPS) for cheque transactions. This system is being rolled out by several banks to increase the security of cheque payments.

• Mandatory for Transactions Above ₹5,000: From April 2025, all cheque transactions exceeding ₹5,000 will require the customer to verify the information entered on the cheque. This verification ensures that the cheque details match the bank’s records, adding an extra layer of security to prevent fraud.

• Reduced Fraud Risk: This system aims to reduce cheque-related fraud and ensure that transactions are legitimate, offering better transparency and accountability.

4. Fee Changes on ATM Withdrawals

Starting in April 2025, several banks will revise their ATM withdrawal fees. This will affect both transactions at their own ATMs and those made at third-party ATMs.

• Free Transactions Limited: Many banks are reducing the number of free ATM withdrawals available to customers at third-party ATMs. Customers will now be allowed only three free withdrawals per month from other banks’ ATMs.

• Charges for Extra Withdrawals: After the free withdrawals, customers will incur a fee of ₹20 to ₹25 per transaction at third-party ATMs. This change aims to reduce the burden on bank networks and encourage customers to use their own ATMs.

• Changes in Fee Structure: Customers withdrawing cash more frequently from ATMs may now face increased costs depending on the frequency of their withdrawals and the ATM network they use.

5. Encouraging Digital Banking: New Online and Mobile Features

As part of efforts to enhance digital banking, many banks are working towards improving their online platforms and mobile banking apps. Customers can expect new features to be rolled out in April 2025, making online banking more accessible and efficient.

• AI Chatbots: Many banks are integrating AI-driven chatbots to assist customers with their queries. These AI chatbots will be available 24/7 to answer questions, provide account information, and offer banking support.

• Two-Factor Authentication (2FA): Banks are also strengthening their two-factor authentication (2FA) processes to further secure digital transactions. This will involve a combination of passwords and one-time passcodes (OTPs) sent to mobile devices or email to authenticate transactions.

The introduction of these features will significantly improve digital banking security and reduce the chances of online fraud.

6. Changes in Fixed Deposit Interest Rates

Several banks are also adjusting their interest rates for fixed deposits (FDs), as part of the broader changes. These adjustments could affect existing customers, as well as those planning to invest in FDs in the coming months.

• Interest Rate Variations: Depending on the bank and the type of FD, interest rates may increase or decrease. Customers will need to stay updated on these changes to maximize their returns.

• Short-term vs Long-term Deposits: Banks may offer different rates for short-term and long-term deposits, giving customers a choice based on their financial goals and time horizon.

7. Push for Increased Financial Inclusion

Along with the technical changes and policy updates, many banks are taking steps to improve financial inclusion. The government, along with the private and public sector banks, aims to reach out to unbanked populations, providing them with access to basic financial services.

• Micro-ATMs and Bank Branches: Banks are expected to increase their presence in rural and semi-urban areas, offering micro-ATMs and extending branch banking services to ensure that people in underserved regions have access to banking facilities.

• Financial Literacy Programs: Banks will continue to run financial literacy campaigns to educate the public on various banking products, services, and how to manage their finances effectively.

As April approaches, it’s important for bank customers to stay informed about the new banking rules and how they will impact their everyday transactions. From changes in minimum balance requirements and credit card benefits to new ATM withdrawal fees and digital banking features, these changes reflect the evolving nature of the financial sector.

• Action Steps for Customers: Account holders should review their bank’s specific changes and adjust their banking habits accordingly. Whether it’s ensuring a minimum balance, using online banking services more frequently, or understanding the new ATM fee structures, staying informed will help customers avoid unexpected charges and make the most of the updated services.

In conclusion, the new banking rules in April 2025 are part of the ongoing efforts to streamline banking services, enhance security, and promote digital transactions. These changes are expected to make banking more efficient, secure, and accessible for all customers, ensuring that the financial sector keeps pace with technological advancements and the growing needs of the economy.