If you’re an SBI account holder, now is the time to pay attention. The State Bank of India (SBI)—India’s largest public sector bank—has implemented 5 major rule changes that affect everyday banking for millions of customers.
From revised service charges to account closure policies, these updates are part of efforts to comply with RBI guidelines and improve the bank’s operational efficiency. But if you’re not aware of these changes, you might face penalties, restricted access, or even account closures.
SBI Bank New Rules
| Change | Details |
|---|---|
| 1. Revised Service Charges | Fees updated for ATM withdrawals, SMS alerts, and other banking services. |
| 2. Dormant & Zero-Balance Account Closures | Inactive accounts may be closed as per new RBI rules effective from Jan 1, 2025. |
| 3. Mandatory KYC Compliance | KYC updates are essential; non-compliance may lead to restrictions. |
| 4. FD Scheme Changes | New term deposit options with better interest rates, especially for senior citizens. |
| 5. Stricter Loan Rules | Revised personal loan policies to tighten credit screening and reduce risk. |
SBI’s new rules in 2025 bring both challenges and opportunities. While increased compliance and fee adjustments may feel inconvenient at first, they are designed to streamline operations, reduce fraud, and offer better financial products.
As an account holder, staying informed and proactive is your best move. Update your KYC, review your service usage, and explore SBI’s improved FD offerings.
Revised Service Charges – What’s Changed?
Starting 2025, SBI has updated service charges for various customer-facing services. While most changes are small, they can add up if you’re not careful.
ATM Withdrawals
- SBI Regular Savings Account holders get 8 free ATM transactions (5 at SBI ATMs and 3 at other banks).
- Post free limit: ₹21 + GST per withdrawal.
SMS Alert Charges
- ₹15 + GST per quarter for SMS alerts (waived for customers with a quarterly average balance above ₹25,000).
Pro Tip: Avoid unnecessary ATM withdrawals and enable mobile banking for real-time updates instead of relying solely on SMS.
see also: Bank of Baroda Home Loan 2025
Dormant and Zero-Balance Account Closures
According to new RBI directives effective from January 1, 2025, banks are now actively identifying and closing inactive or zero-balance accounts.
What is a Dormant Account?
An account becomes dormant if there is no transaction for 24 months.
What You Should Do
- Deposit or withdraw even a small amount to activate your account.
- Link Aadhaar and PAN if not done.
- Avoid letting your savings account sit idle.
Warning: Once closed, recovery or reactivation can take weeks—and you may lose access to subsidies or automatic deposits.
KYC Compliance is Now Mandatory
SBI is cracking down on incomplete or outdated KYC.
What Documents Are Required?
- ID proof: Aadhaar, PAN, Voter ID, Passport, etc.
- Address proof: Utility bills, rent agreement, or Aadhaar.
You can update KYC:
- Online via YONO app or net banking
- Or by visiting your local branch
Tip: Keep your KYC updated every 2 years to avoid account freeze.
Changes to Fixed Deposit (FD) Schemes
SBI has refreshed its FD options to offer higher interest rates and flexibility. Here’s what’s new:
| Category | Old Rate | New Rate (2025) |
|---|---|---|
| General Public | 6.5% | 7.0% |
| Senior Citizens | 7.25% | 7.5% |
| SBI ‘Sarvottam’ FD | – | 7.9% for 2 years |
Senior citizens can now enjoy better returns, making FDs an even safer investment choice.
TDS Savings: More Savings on Interest Income from April 1 | Benefit from New Tax Deduction at Source Rule
Stricter Personal Loan Rules
If you’re planning to apply for a personal loan from SBI, prepare for tighter checks.
What’s Changing?
- Regular credit score monitoring
- More scrutiny if you have existing loans
- AI-based verification for faster but stricter approvals
Missed EMIs could now affect your ability to get loans in the future, even with SBI.
These steps aim to reduce loan defaults and protect borrowers from over-borrowing.
What Should SBI Account Holders Do Now?
If you’re an SBI customer, don’t panic—but do act fast.
Step-by-Step Guide:
- Log in to YONO or SBI Net Banking
- Check account activity, balance, and loan status.
- Update KYC Documents
- Either online or by visiting your nearest branch.
- Check FD Options
- Compare new schemes and reinvest if needed.
- Monitor Service Charges
- Limit ATM withdrawals or use SBI ATMs to avoid extra fees.
- Make a Small Transaction
- Keep your account active to avoid closure.
Why Are These Changes Happening?
These changes are largely driven by RBI regulatory mandates, cost-efficiency drives, and the push for digitization.
SBI, with over 45 crore customers and 22,000+ branches, must adapt to ensure smoother services and better compliance.
According to SBI’s official updates and industry analysts, these shifts are meant to:
- Minimize non-performing assets (NPAs)
- Reduce service abuse
- Encourage digital banking
see also: You Will Get Such Huge Returns on Depositing ₹1000, ₹2000, ₹5000 and ₹10,000
SBI Bank New Rules FAQs
Q. What happens if I don’t update my KYC?
Your account could be frozen. You won’t be able to withdraw money or make transactions until it’s updated.
Q. Is there a fee for reactivating a dormant account?
No official reactivation fee, but you’ll need to visit your home branch and provide ID proof.
Q. Can I prevent my account from being closed?
Yes. Just make a small transaction (₹1 deposit or withdrawal) and keep your KYC current.
Q. Are senior citizens affected by these rule changes?
Yes, especially regarding FDs and KYC. But the changes are mostly positive—higher FD interest rates are now available.
