SBI Introduces Major Banking Rule Changes for 2025 to Boost Security and User Experience

New Delhi, August 6, 2025 — The State Bank of India (SBI), the country’s largest public sector bank, has rolled out a series of new banking rules for 2025 aimed at enhancing customer security, improving digital banking convenience, and curbing fraud. These updates affect everything from online transactions and ATM withdrawals to mobile banking and KYC compliance.

🔐 Enhanced Online Transaction Security

Starting this year, SBI has implemented AI-powered fraud detection across all digital platforms:

  • Every UPI, internet banking, and mobile banking transaction will be scanned by an AI system.
  • If a transaction appears suspicious, customers will receive instant alerts via SMS or app notifications.

This move aligns with broader efforts to secure digital payments, including new UPI regulations introduced by NPCI.

🏧 New ATM Withdrawal Protocol

To prevent unauthorized access:

  • Withdrawals of ₹10,000 or more from ATMs will now require a One-Time Password (OTP).
  • The OTP will be sent to the registered mobile number, adding an extra layer of protection.

📱 Upgraded SBI YONO App Features

SBI’s flagship mobile app, YONO, now includes:

  • Access to mutual fund and insurance details.
  • Ability to generate virtual debit cards.
  • Cardless cash withdrawal from ATMs using the app.

These upgrades aim to make banking more seamless and reduce dependency on physical cards.

🔁 Auto-Debit Confirmation System

For recurring payments like Netflix, Amazon Prime, or EMIs:

  • Customers will now receive a confirmation message before each debit.
  • Transactions above ₹5,000 will not be processed without explicit approval.

This change is part of a broader overhaul of autopay systems across UPI platforms.

🧾 Mandatory KYC Updates Every 2 Years

SBI has mandated that all customers must update their KYC every two years, regardless of previous compliance:

  • Notifications will be sent via SMS and email.
  • Failure to update KYC may result in temporary account suspension.

This aligns with RBI’s push for stricter KYC enforcement across banks.

✅ Summary

These new rules reflect SBI’s commitment to:

  • Strengthening digital security
  • Improving user experience
  • Ensuring regulatory compliance

If you’re an SBI customer, staying informed and proactive about these changes will help ensure smooth and secure banking in 2025.

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