7 Major Banking Policy Changes Effective April 1, 2025

The banking sector is set to witness significant policy revisions starting April 1, 2025. These changes will impact customers in various ways, from ATM withdrawal limits to credit card benefits and digital security measures. Staying updated on these modifications is essential to optimize banking experiences and avoid potential penalties.

1. Updates on Savings and FD Interest Rates

Several banks have revised interest rates on savings accounts and fixed deposits (FDs). HDFC Bank has discontinued its Special FD scheme, and from April 1, 2025, will offer a maximum FD interest rate of 7.25% for tenures between 10 and 21 months. Yes Bank has also adjusted its rates, offering up to 7.98% for FDs with tenures ranging from 12 to 24 months, effective from April 1, 2024.

2. Changes in Credit Card Benefits

Credit card rewards are being restructured across several banks. SBI will reduce SimplyCLICK Swiggy rewards to 5X and decrease Air India Signature card reward points from 30 to 10. Additionally, IDFC First Bank will discontinue milestone benefits for its Club Vistara program. These adjustments will affect customers who rely on credit card perks for travel, dining, and other transactions.

3. Revised ATM Withdrawal Charges

In compliance with RBI guidelines, banks are updating ATM withdrawal policies. Customers will now be allowed only three free withdrawals per month at ATMs of other banks. Beyond this limit, each transaction will incur a charge of Rs 20 to Rs 25. The move aims to standardize fees and promote digital transactions.

4. Enhanced Digital Banking Security

With the increasing adoption of digital banking, banks are enhancing security measures. AI-powered chatbots will be deployed for customer assistance, while two-factor authentication and biometric verification systems will be strengthened. These measures are intended to improve user experience and safeguard against cyber threats.

5. Minimum Balance Requirements and Penalties

Many banks are revising minimum balance requirements for savings accounts. Customers must maintain a specified average balance, failing which penalties will be imposed. The required balance amount will vary based on the bank, account type, and branch location (metro, urban, semi-urban, or rural).

6. UPI Account Deactivation for Inactive Numbers

From April 1, 2025, banks will deactivate UPI services linked to mobile numbers that have been inactive for an extended period. If a number has not been used for transactions, the associated UPI services will be suspended. This measure aims to enhance security and streamline database management.

7. Implementation of the Positive Pay System (PPS)

To strengthen security and prevent fraud, banks are implementing the Positive Pay System (PPS) as per RBI guidelines. Customers issuing cheques above Rs 50,000 must electronically share cheque details with their bank before processing. This system ensures authenticity and prevents discrepancies in cheque clearance.

These banking changes are designed to enhance security, streamline banking operations, and improve customer experiences. Staying informed will help customers navigate these modifications efficiently and make the most of the new banking policies.