From February 1, 2025, major banking changes will come into effect across India. These new rules will impact customers of State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, and other banks. The changes aim to improve banking security, efficiency, and customer convenience.
This article provides a detailed breakdown of these new banking rules, their impact on customers, and what precautions account holders should take to avoid any inconvenience.
New Banking Rules Effective from February 1, 2025
The Reserve Bank of India (RBI) has introduced several changes to banking regulations, which will apply to all banks. These updates focus on strengthening the banking system, ensuring transparency, and protecting customer interests. Here’s a summary of the key changes:
| Minimum Balance Requirement | Higher minimum balance required for savings accounts |
| ATM Withdrawal Charges | Reduced free withdrawals, increased transaction fees |
| Interest Rate Adjustments | Changes in interest rates for savings and FD accounts |
| Digital Banking Expansion | New features in online and mobile banking |
| Positive Pay System | Mandatory for cheques above ₹50,000 |
| Banking Hours Change | Banks to operate 5 days a week with new timings |
| Strict KYC Norms | KYC updates mandatory every 2 years |
1. Increase in Minimum Balance Requirement
Customers with savings accounts will now need to maintain a higher minimum balance to avoid penalties.
- SBI: Minimum balance increased from ₹3,000 to ₹5,000
- PNB: Minimum balance increased from ₹2,000 to ₹3,500
- Canara Bank: Minimum balance increased from ₹1,000 to ₹2,500
Tip: Ensure you maintain the required balance in your savings account to avoid penalty charges.
2. Changes in ATM Withdrawal Fees
The number of free ATM withdrawals per month has been reduced, and fees have increased for extra transactions.
- Free ATM Transactions: Now only 3 free withdrawals per month (previously 5)
- Additional Transaction Fee: Increased from ₹20 to ₹25 per transaction
- Non-home Bank ATM Withdrawals: Charged ₹30 per transaction
- Daily Withdrawal Limit: Capped at ₹50,000 per day
Tip: Use digital payment methods like UPI, internet banking, or debit cards to minimize ATM withdrawal fees.
3. Interest Rate Adjustments on Savings & Fixed Deposits
Banks have revised interest rates on savings accounts and fixed deposits (FDs):
- Savings Account Interest Rate: Increased from 3% to 3.5%
- 1-Year FD Interest Rate: Increased from 5.5% to 6%
- Senior Citizens FD: Additional 0.5% interest benefit
Tip: Consider long-term FDs to take advantage of higher interest rates.
4. Expansion of Digital Banking Services
Banks are introducing new AI-powered and security-enhanced digital banking features, including:
- 24/7 AI Chatbots for customer support
- Biometric login for online banking security
- UPI transfer limit increased to ₹5 lakh per day
- Instant FD and RD creation via mobile apps
- Virtual debit card issuance for secure online transactions
Tip: Activate and use mobile banking to enjoy faster and safer transactions.
5. Mandatory Positive Pay System for Cheques Above ₹50,000
The Positive Pay System (PPS) will now be mandatory for all cheques exceeding ₹50,000 to prevent fraud.
- Customers must pre-verify cheque details with the bank
- The bank will cross-check details before processing the cheque
- If details don’t match, the cheque may be rejected
Tip: Always verify cheque details before submitting them to the bank.
6. Change in Bank Working Hours & Days
From February 1, 2025, banks will operate 5 days a week (Monday to Friday) with revised timings:
- Bank Timings: 9:45 AM to 5:30 PM
- Lunch Break: 1:30 PM to 2:00 PM
Tip: Plan your bank visits accordingly and use digital banking for 24/7 access to services.
7. Stricter KYC Rules – Mandatory Update Every 2 Years
Banks have tightened Know Your Customer (KYC) regulations to prevent financial fraud.
- KYC update required every 2 years
- Biometric verification now mandatory
- Accounts with incomplete KYC may be frozen
- High-value transactions may require additional documents
Tip: Keep your KYC documents updated to avoid banking disruptions.
What Customers Should Do Now?
- Check & Maintain Minimum Balance to avoid penalty charges.
- Limit ATM Withdrawals and use digital transactions instead.
- Take advantage of new interest rates on savings and FD accounts.
- Update KYC regularly to prevent account freezing.
- Use Online & Mobile Banking for faster, secure transactions.
- Be aware of bank timing changes and plan visits accordingly.
Final Thoughts
These new banking rules effective from February 1, 2025, aim to enhance security, transparency, and efficiency in India’s banking system. While some changes, like higher ATM fees and KYC updates, may seem restrictive, they ultimately ensure better banking experiences and financial safety for customers.
Stay updated with these new rules, adopt digital banking, and plan your transactions smartly to avoid unnecessary charges and inconveniences!
Disclaimer:
This article is for informational purposes only and is based on publicly available data. Customers should verify details with their respective banks before making financial decisions. The author or platform is not responsible for any changes or discrepancies in banking rules.
