New Banking Rules: Changes in ATM withdrawal fees & credit card rewards coming soon—5 things to know
New Banking Rules: Going forward, several new banking rules will come into effect across India, impacting account holders in multiple ways, including changes in credit card perks, revised FD rates, ATM withdrawal policies, and more. Here’s a detailed breakdown of what is changing.
As the year progresses, banks in India are implementing new rules that will affect account holders. These changes include revised ATM withdrawal charges, updated UPI regulations, enhancements in digital banking, modifications to fixed deposit interest rates, and changes to credit card benefits. Staying informed will help customers maximize their banking services.
Here’s a breakdown of key updates that you can't afford to miss out on:
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New banking rules
The new banking regulations are going to be applicable across India, which would bring radical changes for the account holders. The banks tend to keep changing their policies from time to time to develop healthy banking habits, align them to the economy, compulsorily mandate under regulatory frame conditions, increase the check for fraud detection, and also will take technological advancement into account.
Major changes in banking rules
These revisions will include withdrawal limits required with an ATM card, revised FD interest rates, changes in different credit card perks, and much more.
Better access to credit for urban co-op banks
Starting April 1, urban cooperative banks must allocate 60 per cent of their lending to priority sectors, and more women borrowers will be eligible for loans without previous restrictions.
Bigger home loan limits
Starting April 1, home loan borrowers can avail up to Rs 50 lakh in major cities, Rs 45 lakh in mid-sized cities, and Rs 35 lakh in smaller towns under priority sector lending.
Digital banking modernisation
Banks have initiated improving their digital banking functionalities with AI assistants meant for better financial purposing, enhanced digital advisory service, and a renewed mobile banking platform. Augmented security features such as two-factor authentication and biometric verification would be bolstered for safer transactions. AI-driven chatbots would also help real-time customer engagement with banking queries.
Revised Fixed Deposit (FD) interest rates
Several banks, including SBI, HDFC Bank, Indian Bank, IDBI Bank, and Punjab & Sind Bank, are revising their FD interest rates. Special FD tenures with higher returns have been introduced.
More support for renewable energy
Effective from April 1, banks can give loans up to Rs 35 crore for renewable energy projects and up to Rs 10 lakh for households installing solar panels or other green energy solutions.
Credit card rule changes
Credit card rewards and benefits are being revised:
- From April 1, SBI’s SimplyCLICK Swiggy rewards will drop to 5X, and Air India Signature points will be reduced from 30 to 10.
- IDFC First Bank will discontinue Club Vistara milestone benefits.
UPI transaction rule update
Starting April 1, users may lose access to banking services if they haven't updated their mobile numbers:
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Those who changed their mobile number but didn't update it with their bank.
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Users who deactivated their number without informing their bank.
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UPI users whose old numbers have been reassigned to someone else.
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Inactive numbers not used for calls, messages, or other services will also be removed.
ATM withdrawal charges
Additionally, effective from May 1, 2025, ATM transactions will become costlier for those exceeding their free limit:
- Cash withdrawals: Rs 19 per transaction (up from Rs 17)
- Non-financial transactions (like balance inquiries and mini statements): Rs 7 per transaction (up from Rs 6)
Customers of smaller banks, which depend on bigger banks for ATM services, are likely to feel the most impact.