Consider the possibility of finding new fees or other limitations imposed on your savings account when viewing your 2025 bank statement. In an attempt to simplify and enhance safety protocols, major banking reforms are scheduled to be enforced this year. Stricter enforcement of the minimum balance policy, alongside upgrades to account security, are some of the changes that will enhance safety but may reconfigure your account management strategy. In this article, I summarise the most recent changes on the subject so that you feel prepared to adapt to the new regulations.
Increased Minimum Balance Requirements
Banking institutions such as SBI, Punjab National Bank, and Canara Bank will be increasing the minimum balance requirements starting 1st April 2025. Urban account holders will face the steepest increases, with semi-urban and rural residents facing more moderate and lowered increases, respectively. Penalties are imposed for not achieving the minimum balance for certain account types, with associated fees differing based on the account type. It is advisable to refer to your bank’s policy on the subject to avoid incurring unnecessary fees.
Enhanced Fraud Prevention With Positive Pay System
To prevent fraud, the Positive Pay System (PPS) is now obligatory for cheque payments exceeding ₹5,000. Verification of cheque number, date, payee name, and the sum is mandatory. While this measure reinforces transaction security, it makes you proactive for smooth payments while issuing cheques.
Savings Accounts And Interest Rate Junction
The savings account’s interest rates are now attached to the account balance. Enhanced balances could offer improved returns, incentivising account holders to maintain higher savings. While this is an attempt to make savings accounts competitive, rates offered by different banks need to be evaluated to increase returns.
Changes To ATM Withdrawal Restrictions
As of 1st April 2025, free ATM withdrawals are limited to three withdrawals per month at other bank’s ATMs. Withdrawal of cash beyond this number may attract charges, therefore, cash withdrawals should be timed wisely. This change encourages users to transition to cashless methods of payment which is in line with the banking industry’s focus on enhanced efficiency.
The Advancement Of Digital Banking
Aspects of digital banking are shaped by the deployment of AI-enabled chatbots and other sophisticated banking tools. Security measures of transactions will be enhanced with the implementation of two-factor authentication and biometric verification. The digital upgrades offer enhanced convenience for the user, however, one must be keen to track their bank’s digital tools to gain the full benefits.
Children’s Savings Accounts Regulations
The RBI has launched new policies pertaining to the savings accounts for children and adolescents. Children of any age can have their accounts opened by a guardian, and those aged 10 years and above can manage the accounts by themselves. Overdrafts are not permitted, and the financial institutions have to clearly define the strategies to be used for the accounts’ transitions when the children turn 18.
Proactive And Responsible Banking
To some degree, these changes demonstrate a continued shift toward security and digitisation in banking. To avoid incurring penalties, users need to revisit their banks’ policies and maintain requisite balances while availing digital services. For updates, users may refer to their banks’ websites and other trusted sites like www.rbi.org.in.
Also Read: LIC Smart Pension Plan 2025: A New Era Of Retirement Security Begins