The Reserve Bank of India (RBI) and Ministry of Finance have implemented new banking rules from 2025 that will directly impact your savings account, minimum balance requirements, transaction limits, and banking charges. These comprehensive changes are designed to benefit customers while ensuring better banking practices across all financial institutions.
These revolutionary banking reforms introduce significant cost reductions for penalty charges, enhanced interest benefits for basic accounts, and improved digital payment infrastructure. Moreover, the new regulations provide special advantages for senior citizens and women account holders.
New Minimum Balance Rules for Savings Accounts
Starting from 2025, all banks have been given the freedom to set minimum balance limits for their customers. However, the RBI has established a mandatory minimum standard between ₹500 to ₹1000.
If your account fails to maintain this balance for three consecutive months, banks can only charge a penalty fee between ₹50 to ₹200. Previously, this charge could go up to ₹600, which has now been significantly reduced.
This substantial reduction in penalty charges provides relief to millions of account holders who struggle to maintain minimum balances.
Interest on Zero Balance Accounts
Jan Dhan and Basic Savings Accounts (Zero Balance Accounts) will now earn interest. The RBI has directed banks to provide at least 3.5% annual interest on all zero balance accounts.
This rule became effective from January 1, 2025, ensuring that even basic account holders benefit from their deposits. Previously, zero balance accounts typically earned no interest, making this a significant improvement for lower-income customers.
New ATM Withdrawal Regulations
The updated ATM transaction policy offers enhanced benefits for customers across different city categories.
- 5 free transactions monthly in metro cities
- 7 free transactions monthly in non-metro cities
After exceeding these limits, banks can charge a maximum of ₹18 for cash withdrawals and ₹8 for balance inquiries. These charges were previously capped at ₹21, providing additional savings for frequent ATM users.
Zero Charges on Digital Payments and UPI Transactions
The RBI has clarified that no charges will be levied on UPI or digital payments. Whether you transfer money through Google Pay, PhonePe, or Paytm, no fees will apply.
This regulation applies to all banks and encourages the adoption of digital payment methods across the country. Furthermore, this policy supports India’s vision of becoming a cashless economy while reducing transaction costs for consumers.
Relief for Senior Citizens and Women Account Holders
From 2025, individuals above 60 years and women will receive additional interest rate benefits that recognize their special banking needs.
- Senior citizens receive up to 0.75% higher interest rates
- Women account holders get an additional 0.25% interest on savings accounts
These enhanced interest rates demonstrate the government’s commitment to supporting vulnerable populations through improved banking services.
Enhanced Auto-Debit Alert System
The RBI has implemented new security measures for auto-debit transactions. Banks must send SMS or email alerts 24 hours before any EMI or subscription deduction.
Customers can stop these transactions by replying “STOP” to the alert message, providing greater control over automatic payments. This feature prevents unauthorized deductions and improves financial transparency.
New Balance Check Methods
Customers can now check their bank balance without internet connectivity using the unified USSD code. Simply dial *99# from any mobile network.
This service works across all banks and mobile networks, allowing balance checks, mini statements, and fund transfers. Therefore, even customers without smartphones can access basic banking services conveniently.
Stricter Dormant Account Regulations
Accounts with no transactions for 12 months will be declared dormant. However, banks must now notify customers via SMS or email 90 days in advance, allowing them to reactivate their accounts.
This proactive approach helps customers maintain active banking relationships and avoid account complications. Additionally, the advance notice period provides sufficient time for customers to take necessary action.
Daily Interest Calculation Method
Savings account interest will now be calculated based on daily balance rather than monthly or quarterly averages. This change benefits small account holders by providing more accurate interest calculations.
The new method ensures fair interest distribution regardless of when deposits or withdrawals occur during the month. Consequently, customers earn interest on their actual daily balances.
Multi-Bank Balance Linking System
The RBI has launched “One Account View” feature in 2025. Customers can now view all their bank account balances through a single app or portal.
This service operates under the Account Aggregator Framework, providing consolidated financial information across multiple banking relationships. Moreover, this system enhances financial planning and money management capabilities.
Impact on Banking Customers
These regulatory changes significantly improve the banking experience for millions of customers. The reduced penalty charges and enhanced digital payment infrastructure support India’s push toward a cashless economy.
Moreover, the special provisions for senior citizens and women demonstrate the government’s commitment to inclusive banking practices. These reforms create a more equitable financial system for all demographics.
The new rules create a more transparent and customer-friendly banking environment. Banks must now provide clearer communication about charges, better interest rates for basic accounts, and improved digital services.
Conclusion
The 2025 banking regulations represent a customer-centric approach to financial services. While minimum balance requirements and ATM charges have been reduced, zero balance accounts and digital payments have received significant support through interest benefits and security features.
Whether your account is with a government or private bank, understanding these rules is essential to maximize your financial benefits. These changes ensure better protection for your money while encouraging digital adoption in India’s banking sector.
Frequently Asked Questions
What is the new minimum balance requirement for savings accounts in 2025?
Banks can set minimum balance limits between ₹500 to ₹1000 as per RBI guidelines. Penalty charges for non-maintenance have been reduced from ₹600 to a maximum of ₹200.
Do zero balance accounts earn interest under the new rules?
Yes, all zero balance accounts including Jan Dhan and Basic Savings Accounts now earn a minimum of 3.5% annual interest as mandated by the RBI from January 1, 2025.
How many free ATM transactions are allowed monthly?
Customers get 5 free ATM transactions in metro cities and 7 free transactions in non-metro cities. Additional transactions cost ₹18 for withdrawals and ₹8 for balance inquiries.
Are there any charges for UPI and digital payments?
No, the RBI has confirmed that no charges will be levied on UPI transactions or digital payments through any platform including Google Pay, PhonePe, or Paytm.
What special benefits do senior citizens get under new banking rules?
Senior citizens above 60 years receive up to 0.75% additional interest on their savings accounts, while women account holders get an extra 0.25% interest benefit.
