In today’s digital era, banking services have become a vital part of everyday life—whether it’s receiving salaries, managing business payments, or accessing government schemes. Given their importance, both the government and banks routinely update rules and regulations to enhance service efficiency and security.
Starting April 1, 2025, and May 1, 2025, a number of new banking regulations are being rolled out across India. These updates will directly impact how you withdraw cash, maintain account balances, and use ATM services. If you’re a bank account holder or regularly use an ATM card, these changes are especially relevant.
Let’s break down these new rules, what they mean for you, and how you can manage your money smartly while avoiding unnecessary banking fees.
Major Banking Changes Effective from April & May 2025 – At a Glance
| Change | Details |
|---|---|
| Effective Date | April 1 & May 1, 2025 |
| ATM Transaction Charges | ₹23 per transaction after free limit |
| Free ATM Transactions | 5 at own bank, 3 at other banks (standard accounts) |
| Minimum Balance Requirements | Varies by bank and region |
| Dormant/Inactive Account Rule | Closure of accounts inactive for 12–24 months |
| Positive Pay System | Mandatory for cheques over ₹5,000 |
| Interest Rate Revisions | Linked to savings or FD balance |
| Credit Card Benefits Update | Adjustments to rewards and milestone perks |
| Enhanced Digital Banking | Two-factor authentication, biometric login |
| Penalty for Low Balance | ₹50 to ₹600, depending on account type and bank |
What’s New in Banking Rules 2025?
These fresh reforms aim to make banking more secure, digital-first, and transparent. However, the biggest impact will likely be felt in ATM usage and minimum balance requirements.
Key Changes:
- ATM Withdrawals Cost More: Once you exceed the free limit, every ATM transaction will now cost you ₹23.
- Reduced Free Transactions: Limits on free withdrawals are now stricter.
- Mandatory Minimum Balance: You must maintain a certain balance or pay a penalty.
- Push for Digital Services: Banks are encouraging users to shift to online platforms with enhanced security.
- Inactive Accounts Will Be Closed: If unused, your account could be shut down.
ATM Rules 2025: Charges & Free Limits
New Free Monthly ATM Limits:
| Account Type | Own Bank ATMs | Other Bank ATMs | Total Free Transactions |
|---|---|---|---|
| Regular Savings | 5 | 3 | 8 |
| Salary Account | 5 | 3 | 8 |
| Premium Account | Unlimited | 5 | Unlimited / 5 |
| Jan Dhan Yojana | 5 | 3 | 8 |
| Senior Citizens | 6 | 4 | 10 |
| Rural Areas | 10 | 5 | 15 |
Post-Limit Charges:
| Transaction Type | Charge | GST |
|---|---|---|
| Cash Withdrawal | ₹23 | Yes |
| Balance Inquiry | ₹9 | Yes |
| Mini Statement | ₹9 | Yes |
| PIN Change | ₹9 | Yes |
| Failed Transaction (e.g., insufficient funds) | ₹25 | Yes |
Minimum Balance Requirements
Every bank now requires savings accounts to maintain a minimum monthly balance, which varies based on account type and region (urban, semi-urban, rural).
- Penalties for low balance range from ₹50 to ₹600 per month
- Public sector banks like SBI, PNB, Canara Bank have already revised their rules
- Rural customers may have slightly more lenient balance requirements
Dormant and Inactive Accounts
Inactive accounts are being streamlined:
- No activity for 12 months? Your account is marked inactive
- No activity for 24 months? It becomes dormant and can be closed by the bank
- Zero balance and unused accounts will also be deactivated
Positive Pay System for Cheques
- Mandatory for cheques ₹5,000 or above
- You must confirm cheque details (number, date, amount, beneficiary) with your bank before issuance
- Aimed at preventing cheque fraud
Digital Banking & Security Enhancements
To push for a digital-first economy, banks are investing in:
- Two-factor authentication
- Biometric logins
- Enhanced mobile banking apps and AI-based chatbots
- Stronger fraud protection measures for online transactions
Changes to Savings and FD Interest Rates
Interest rates on savings accounts and fixed deposits will now depend on your account balance:
- Higher balances may attract higher interest rates
- Rates have already been adjusted by many banks
Credit Card Benefit Restructuring
Banks including SBI, Axis Bank, and IDFC First Bank have revised their credit card benefits:
- Reward points, ticket vouchers, renewal bonuses, and milestone perks are being reduced or removed
Why These Changes?
The updates aim to:
- Encourage digital transactions
- Reduce dependency on ATMs
- Offset rising operational costs of physical banking
- Promote financial inclusion and better fraud control
Tips to Avoid Extra Charges
- Track your free ATM transaction limit each month
- Use UPI and mobile wallets for small payments
- Maintain the required minimum balance
- Check your account activity regularly to avoid dormant status
- Stay updated via your bank’s official website or local branch
Conclusion
The new banking rules effective from April and May 2025 mark a significant shift toward smarter and more digital banking in India. While some services like ATM withdrawals are becoming more expensive, these reforms aim to simplify transactions and strengthen financial security. Being aware of these changes can help you save money and avoid penalties.
Disclaimer: This article is based on publicly available banking updates. For the most accurate and current information, always check with your specific bank’s official website or visit your nearest branch.
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