Banking Rules To Change From April 1: Higher ATM Fees, UPI Updates And More

On April 1, 2025, new nationwide banking regulatory changes will bring substantial alterations to how Indian account holders operate. Banks regularly modify their guidelines because they want to promote responsible financial actions, comply with economic development and regulations, and prevent fraudulent activity. This legislative change affects ATM withdrawal limits, savings account management, and credit card bonus offers, among other changes.

Account security along with new banking options and smooth service requires customers to stay updated about these policy changes. The Reserve Bank of India through its guidelines specifies the maximum rates for ATM transactions while setting free transaction restrictions. The regulatory changes have prompted financial institutions to cut down the number of free ATM withdrawals at machines belonging to other banks. After the third free withdrawal per month, customers will face ATM charges of Rs 20 to Rs 25 per transaction.

All savings account holders need to keep a minimum average balance in their accounts otherwise they will face penalties that depend on the amount below the requirement. Financial institutions are changing their savings account requirements by levying enhanced penalties on customers who fail to meet the balance criteria. The exact amount of balance needed depends on various criteria including account structure together with a banking institution and location classification as metropolitan, urban, semi-urban, or rural.

The RBI took positive steps to fight banking fraud through the Positive Pay System. Some banking companies use PPS technology to protect financial transactions from threats. PPS mandates that customers to provide specific details electronically when they write cheques over Rs 50,000 to their recipients. The banks will validate these transaction data before accepting payment from the presenter. The CTS system highlights system differences between presenters and drawee banks in each case and our office takes necessary steps to fix these errors.

Banks create advanced website options and AI chatbots to support customers with their banking needs. The banks will strengthen digital security protection methods by expanding two-factor authentication and adding biometric verification. Major banks including SBI, IDBI Bank, HDFC Bank, Indian Bank, and Punjab & Sind Bank added unique FD terms with good rates.

SBI will reduce the Swiggy SimplyCLICK reward program to 5X value and decrease Air India Signature points from 30 to 10. IDFC First Bank has decided to stop offering its Club Vistara reward program benefits. The banks will delete inactive UPI-linked mobile numbers starting April 1 from their account records. Banks will permanently remove your phone number from UPI services when you stop using its associated UPI application.