Big changes are coming to your personal finances starting April 1, 2025. From ATM withdrawal charges to Fixed Deposit (FD) interest rate updates, several new rules will directly impact how you use your bank account, invest your savings, and even swipe your credit card.
Whether you’re a salaried employee, small business owner, student, or senior citizen, these changes are set to affect day-to-day banking and long-term financial planning. Understanding what’s changing and how to adapt can save you money and help you make smarter financial choices.
Banking and Finance Changes
| Topic | Details |
|---|---|
| ATM Withdrawal Rules | Free transactions limited to 3 per month; extra withdrawals may cost up to Rs 25 |
| FD Interest Rate Update | SBI, HDFC Bank, Indian Bank, and others revising interest rates on special tenures |
| Minimum Balance Requirement | New slab-based rules based on rural, semi-urban, and urban location |
| Positive Pay System (PPS) | Mandatory for cheque payments above Rs 5,000 to reduce fraud |
| Credit Card Benefits Change | SBI, IDFC First, Axis Bank revising or ending Vistara credit card perks |
| UPI Account Deactivation | Inactive mobile-linked UPI IDs to be unlinked automatically |
With April 1, 2025 just around the corner, it’s important to stay ahead of these financial rule changes. From updating how you withdraw money to rethinking your FD strategy or switching credit cards, every small decision can have a long-term financial impact.
ATM Withdrawal Charges: What’s New?
Starting April 1, most banks will allow only three free ATM withdrawals per month from non-home bank ATMs. After that, you could be charged Rs 20 to Rs 25 per transaction, depending on your bank’s policy.
Why is this change happening?
Banks are updating withdrawal rules to reduce operational costs and push for digital payments. It’s also part of a broader effort to streamline banking services and minimize misuse.
Tip: Use your bank’s mobile app to withdraw cash using cardless options or shift to UPI-based payments wherever possible.
see also: Know the Money-Making Formula of 40x20x50
FD Interest Rates Get a Makeover
Major Indian banks are revising their FD rates to stay competitive amid shifting RBI repo rates and inflation expectations. Special tenures like 300 days, 444 days, or 666 days are offering attractive interest rates ranging between 7.10% to 7.50%, especially for senior citizens.
Example – SBI Special FD Scheme
- Tenure: 400 days
- Interest Rate: 7.10% for general public; 7.60% for senior citizens
Tip: Lock in your FD before April 1 if you want to secure the older, potentially higher rate.
Minimum Balance Rules Change – Location Matters
From April 1, banks like SBI, PNB, and Canara Bank are updating minimum balance requirements based on account location:
| Location Type | New Minimum Balance |
|---|---|
| Rural | Rs 1,000 |
| Semi-Urban | Rs 2,000 |
| Urban | Rs 3,000 |
Failing to maintain the balance may attract penalties between Rs 10 to Rs 75 per month.
Tip: Set an auto-transfer from your savings or salary account to maintain balance without hassle.
Positive Pay System (PPS) Now Mandatory
If you’re issuing a cheque above Rs 5,000, you must now use the Positive Pay System (PPS). This means reconfirming details like:
- Cheque number
- Date
- Payee name
- Amount
This new rule by the Reserve Bank of India is aimed at reducing cheque fraud.
How to Use PPS
You can submit cheque details via your bank’s net banking, mobile banking, or by visiting a branch. Banks like SBI have dedicated guides for Positive Pay System.
Tip: Use NEFT or UPI for larger transfers to avoid PPS compliance hassles.
Credit Card Benefit Restructuring – Goodbye Free Tickets?
SBI Card and IDFC First are revising co-branded Vistara Credit Card perks:
- No more complimentary ticket vouchers
- No milestone rewards after a certain date
Axis Bank will also update its Vistara card benefits starting April 18, 2025.
Tip: Evaluate whether your annual fee is still worth it after the benefit changes. Consider switching to a cashback or rewards card if needed.
UPI Inactive Accounts to Be Unlinked
If your mobile number linked to UPI has been inactive for a long time, it will be automatically delinked by banks.
How to Stay Active
- Make a small UPI transaction once a month
- Log in to your UPI app (like PhonePe or GPay) regularly
This move aims to prevent fraud and data misuse.
Tip: If you’ve changed your number recently, ensure it’s updated with your bank and UPI apps.
see also: Special FD: Time Limit for Special FD of These Banks Is Ending Soon, Better Rates Are Available
Rules Related to Your Money Will Change from April 1 FAQs
Q1: Will the new ATM charges affect all bank accounts?
Yes, most public and private sector banks will adopt these revised ATM withdrawal limits and fees.
Q2: Can I avoid FD interest rate reduction?
If your bank is lowering rates from April 1, you can still lock in older rates by investing before the deadline.
Q3: What if I forget to use PPS for a cheque above Rs 5,000?
Your bank may reject the cheque or hold the transaction. Always submit cheque details beforehand.
Q4: Are all credit cards affected by benefit changes?
No, only co-branded Vistara credit cards are impacted as of now. Check with your provider.
Q5: How do I check if my UPI account is active?
Just make a small transaction or log in to your UPI app. If you can transact, your account is active.
