As the new financial year 2025-26 begins on April 1, several major banking rule changes are set to take effect, directly impacting customers. From increased ATM withdrawal charges to revised interest rates on savings and fixed deposits (FDs), these changes will influence how people manage their finances. Here’s a detailed breakdown of the key modifications:
1. ATM Withdrawals to Become More Expensive
From May 1, 2025, withdrawing cash from ATMs beyond the free limit will cost more. The Reserve Bank of India (RBI) has approved an increase in the ATM interchange fee, raising the charge from ₹21 to ₹23 per transaction after the free limit is exhausted.
Current Free ATM Withdrawal Limits:
- Metro Cities: 5 free transactions per month from the customer’s own bank, 3 free from other banks.
- Non-Metro Cities: 5 free transactions from own bank, 5 free from other banks.
- New Charges: ₹23 per additional withdrawal beyond the free limit.
2. Changes in Interest Rates on Savings and FD Accounts
Several banks have revised their interest rates on savings and FD accounts starting April 1, 2025. The new interest rates will be based on the deposit amount, meaning customers holding higher balances may receive better returns.
3. Stricter Minimum Balance Rules
Banks like SBI, Punjab National Bank, and Canara Bank are tightening their minimum balance requirements. Customers must maintain a minimum balance according to their account category and location:
- Urban Areas: ₹5,000 minimum balance
- Semi-Urban Areas: ₹3,000 minimum balance
- Rural Areas: ₹2,000 minimum balance
Failure to maintain the required balance will result in penalties, which will vary based on the bank and location.
4. Reduction in Credit Card Benefits
Credit card reward programs are also undergoing changes:
- SBI Simply Click Credit Card: Reward points on Swiggy reduced from 10x to 5x.
- Air India SBI Platinum Credit Card: Reward points per ₹100 spent reduced from 15 to 5.
- Air India SBI Signature Credit Card: Reward points reduced from 30 to 10.
- IDFC First Bank: Club Vistara Credit Card milestone benefits discontinued from March 31, 2025.
5. Changes in GST E-Invoicing Rules
The Goods and Services Tax Network (GSTN) has revised the e-invoicing regulations:
- Businesses with an annual turnover between ₹10 crore and ₹100 crore must upload e-invoices within 30 days of issuance.
- Previously, this rule applied only to businesses with a turnover of ₹100 crore or more.
- If an invoice is not uploaded within the stipulated time, it will be automatically rejected.
How These Changes Will Impact You
- Increased ATM withdrawal charges will require better cash management to avoid extra fees.
- Savings and FD account holders should check their bank’s new interest rates to maximize returns.
- Maintaining the required minimum balance is now crucial to avoid penalties.
- Credit card users should review their reward programs to optimize their spending.
- Businesses need to comply with updated GST e-invoicing regulations to prevent invoice rejection.
With these changes in effect, it’s essential for individuals and businesses to stay updated and plan their financial activities accordingly. Stay informed and manage your money wisely!
What do you think about these new banking rules? Share your thoughts in the comments!
