If you have a savings account in SBI, HDFC, PNB, or any other major Indian bank, there’s a new rule coming into effect from April 1, 2025, that you need to know about. These changes are part of a series of updates by the Reserve Bank of India (RBI) and aim to enhance security, digital infrastructure, and customer protection.
Whether you’re a salaried professional, senior citizen, student, or small business owner, these new banking rules can directly or indirectly impact your money. But don’t worry—we’ll break it all down in a simple, friendly, and practical way.
New Rule for All Banks Including SBI, HDFC, PNB
| Feature/Change | Details |
|---|---|
| Effective Date | April 1, 2025 |
| Banks Affected | All Indian banks including SBI, HDFC, PNB, ICICI, Axis Bank, etc. |
| FD Changes | Mandatory nomination, flexible partial withdrawal, advance maturity alerts |
| UPI Rule | Inactive mobile numbers linked to UPI will be delinked automatically |
| Cheque Security | Positive Pay System mandatory for cheques above ₹50,000 |
| ATM Charges | Charges applicable beyond free limits; approx. ₹20-₹25/txn |
| New PSL Guidelines | Expanded weaker sections, higher housing & renewable energy loan limits |
The new banking rules from April 1, 2025 are here to make your banking experience safer and smarter. Whether it’s updating UPI details, managing your FDs, or issuing secure cheques, these updates empower customers with better control over their money. While some of the changes may need a few tweaks to your regular habits, they offer long-term benefits for all account holders.
What’s New in Bank Rules from April 1, 2025?
1. Fixed Deposit (FD) Investors Get More Flexibility
If you’ve invested in FDs, here’s some good news:
- Partial Withdrawal Without Penalty: In cases like medical emergencies or education expenses, banks can now allow partial FD withdrawals without breaking the full deposit or losing all interest.
- Advance Alerts Before FD Maturity: Banks must send reminders at least 14 days before your FD matures. This helps you plan reinvestments or withdrawals better.
- Mandatory Nomination: All new and existing FDs must have a nominee to ensure smooth fund transfer in unfortunate situations.
Why it matters: Many people forget to claim matured FDs or don’t add a nominee. These rules solve that.
2. UPI Linked to Inactive Numbers Will Be Suspended
If you’ve changed your mobile number but didn’t update it with the bank, UPI services linked to your old number will be deactivated.
- This is being done to avoid fraud and ensure secure transactions.
- Banks will remove UPI access to numbers that have been inactive for a long period.
Tip: Make sure your current mobile number is linked with your savings account and UPI app.
3. Positive Pay System Now Mandatory for High-Value Cheques
To prevent frauds, the Positive Pay System (PPS) is now mandatory for cheques over ₹50,000.
- You’ll need to pre-confirm cheque details like date, amount, and beneficiary with the bank before the cheque is cleared.
- If not done, the cheque may get rejected.
This applies across all major banks and helps detect any tampering with cheque details.
4. ATM Withdrawals: Know Your Free Limits & Charges
- You can do 3-5 free ATM transactions per month at other bank ATMs depending on your city.
- After that, charges between ₹20-₹25 per transaction apply.
- Some banks may also revise ATM usage policies based on account type.
Pro Tip: Use your own bank’s ATM or switch to digital payments when possible.
5. RBI Updates Priority Sector Lending (PSL) Guidelines
These rules affect loan eligibility and terms, especially for housing and small businesses:
- Urban Cooperative Banks (UCBs): Required to allocate 60% of adjusted net bank credit to priority sectors.
- Housing Loan Limit Increased: Higher loan limits for affordable housing.
- Weaker Sections Expanded: More categories are now eligible for concessional loans.
These changes help banks lend more effectively to underserved groups and sectors.
see also: Get Guaranteed Returns from Post Office TD Scheme
How Will These Rules Affect You?
| User Type | Impact |
|---|---|
| Salaried Employees | More secure cheque payments, better FD options |
| Senior Citizens | Easier fund nominations, advance FD maturity alerts |
| Students | More transparency in banking, safer UPI use |
| Small Business Owners | Improved loan access through revised PSL rules |
In short, these rules are designed to make banking safer, more efficient, and more customer-friendly.
What Should You Do Now?
1. Update Your Contact Details
Make sure your mobile number, email ID, and nominee information are updated in all your bank accounts.
2. Check Your Fixed Deposits
Review maturity dates and add a nominee if missing. Talk to your branch for partial withdrawal options.
3. Learn About Positive Pay System
If you issue large cheques, check how to submit details via your bank’s mobile app or net banking.
4. Use ATM Transactions Wisely
Plan withdrawals to stay within the free limit. Consider digital options like UPI, NEFT, IMPS.
see also: SBI’s Highest Interest Paying FD Scheme 2025
FAQs About the New Bank Rules
Q1. Are these rules only for SBI, HDFC, and PNB?
No. These rules apply to all Indian banks, including ICICI, Axis Bank, Kotak, and cooperative banks.
Q2. What happens if I don’t update my mobile number?
Your UPI services may stop. It also puts your account at risk of fraud.
Q3. Do I have to pay to add a nominee to my FD?
No. Adding a nominee is free and can be done via net banking or branch visit.
Q4. Can I still use cheques without the Positive Pay System?
Yes, but for cheques above ₹50,000, failure to use PPS may result in the cheque being declined.
Q5. How can I check my ATM transaction limits?
Log in to your bank’s mobile app or check the bank’s website for details based on your account type.
