The Indian banking sector has entered 2025 with several significant changes, as the Reserve Bank of India (RBI) has implemented new rules that will impact account holders across all major banks, including SBI, PNB, Canara Bank, and more. These new regulations are designed to enhance banking security, reduce fraud, and improve the overall efficiency of banking services.
In this article, we’ll provide you with detailed insights into these new banking rules, how they’ll affect you, and what you need to do to stay compliant. Whether you’re an account holder with SBI, PNB, Canara Bank, or another institution, these changes are set to affect you.
Overview of the New Banking Rules in 2025
Here’s a quick glance at some of the major changes to banking rules in 2025:
| Rule | Details |
|---|---|
| Inactive Accounts | Accounts with no transactions for over 12 months will be marked inactive. |
| Dormant Accounts | Accounts with no transactions for 2 years will be considered dormant. |
| Zero Balance Accounts | Accounts with zero balance for extended periods may be closed. |
| KYC Update | Mandatory for all account holders to update their KYC documents regularly. |
| Fixed Deposit Rules | New regulations for fixed deposits with NBFCs and HFCs. |
| UPI Transaction Limit | Daily UPI transaction limits have been increased. |
New Guidelines for Inactive and Dormant Accounts
In accordance with the new RBI regulations, accounts that show no transactions for 12 months will be classified as inactive, while those left without activity for 2 years will become dormant accounts.
Inactive Account Guidelines:
- If no transactions are recorded for 12 months, the account will be marked inactive.
- Some banking services may be restricted for inactive accounts.
- To reactivate the account, at least one transaction must be made.
Dormant Account Guidelines:
- Accounts inactive for 2 years will be considered dormant.
- A majority of banking services will be suspended on dormant accounts.
- To reactivate, account holders must visit the branch and update their KYC.
These measures are designed to enhance the efficiency of banking services and reduce the number of unused accounts.
New Rules for Zero Balance Accounts
The RBI has also imposed new rules regarding zero balance accounts, aiming to prevent misuse and ensure KYC compliance.
Key Points for Zero Balance Accounts:
- Accounts with zero balance for an extended period may be closed.
- Account holders are encouraged to maintain a minimum balance to avoid closure.
- Banks may impose additional charges on accounts with a zero balance for too long.
Maintaining a balance in your account is essential to keep it active and avoid unnecessary fees or closure.
The Need for Regular KYC Updates
To bolster security and prevent fraud, the RBI now requires all account holders to update their KYC (Know Your Customer) documents regularly.
Important KYC Update Points:
- Failing to update your KYC may result in your account being frozen or restricted.
- KYC updates can be done online or by visiting the bank branch.
- Required documents for KYC include Aadhaar, PAN card, passport-sized photograph, and address proof.
Stay proactive with KYC updates to ensure your account remains secure and active.
New Regulations for Fixed Deposits
RBI has introduced new rules to enhance the transparency and flexibility for Fixed Deposits (FDs) with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).
New FD Rules:
- Premature withdrawal procedures have been simplified.
- NBFCs and HFCs must offer more transparency about FD terms and conditions.
- Customers must be informed about any changes in interest rates on their FDs.
These changes provide FD holders with greater control over their investments.
Increased UPI Transaction Limits
UPI (Unified Payments Interface) is a widely used digital payment method in India. The RBI has increased the transaction limits to provide users with more flexibility.
New UPI Transaction Limits:
- The daily UPI transaction limit has been raised to Rs 1 lakh.
- The maximum amount per transaction is Rs 20,000.
- Separate transaction limits have been set for UPI Lite, offering even more options for users.
These changes will make large transactions easier and more accessible.
Key Changes for SBI, PNB, and Canara Bank Customers
SBI (State Bank of India) has introduced new interest rates for savings accounts:
- Accounts with balances under Rs 10 crore will earn 2.70% annual interest.
- Accounts with balances of Rs 10 crore and above will earn 3.00% annual interest.
PNB (Punjab National Bank) has revised its Fixed Deposit interest rates:
- General citizens will earn between 3.50% to 7.25% interest.
- Senior citizens will earn between 4% to 7.75% interest on FDs.
Canara Bank has updated interest rates for its loans:
- Overnight MCLR is set at 8.35%.
- One-year MCLR stands at 9.10%.
Essential Tips for Account Holders
To stay compliant with the new banking rules, account holders should follow these tips:
- Make Regular Transactions: Ensure that you make a transaction every few months to keep your account active.
- Update Your KYC: Keep your KYC documents updated regularly to avoid account restrictions.
- Maintain a Minimum Balance: Always maintain a minimum balance to prevent your account from being marked as zero balance.
- Check Your Bank Statement: Review your bank statements frequently to spot any unusual activity early on.
- Practice Safe Banking: Never share your banking details with anyone, and be wary of phishing scams.
Conclusion
With these new banking regulations coming into effect, account holders must stay proactive to ensure their accounts remain compliant and active. By following these updated rules and tips, you can enhance your banking experience while staying secure. Always check with your bank for the latest updates and information regarding these changes.
Disclaimer: This article is for informational purposes only. For up-to-date details on the changes, please contact your bank or visit its official website.