ATM, UPI Transactions and More: Banking Rules Set to Change From April 1, 2025

As the new fiscal year begins on April 1, 2025, several banking and financial rule changes will become effective, directly impacting consumers. These changes cover ATM withdrawals, UPI transactions, savings accounts, credit cards, taxation, and investment accounts.

Changes in Banking and ATM Withdrawals

The Reserve Bank of India (RBI) has revised ATM withdrawal limits. Customers will now get only three free withdrawals per month from other banks' ATMs. After that, a fee of Rs 20 to Rs 25 per transaction will be charged.

Additionally, banks are updating their minimum balance requirements. Customers must maintain the specified balance to avoid penalties. The required amount will vary based on the bank and type of account, so it is advisable to check with your bank for details.

To combat cheque fraud, RBI has implemented the Positive Pay System (PPS). Under this system, customers issuing cheques above Rs 50,000 must electronically provide details to the bank for verification. If discrepancies are found, the bank may take action to prevent fraud.

Also Read | NPCI to Implement New UPI Rules from April 1, 2025, Here's What You Need to Know.

UPI and Digital Banking Changes

From April 1, if a mobile number linked to a UPI account remains inactive for an extended period, the bank will remove it from its records, and UPI services for that number will be discontinued. Customers must ensure their UPI-linked numbers are active to continue using digital payments.

To improve digital banking, AI-powered banking assistants and enhanced mobile services are being introduced. Banks are also strengthening security with two-factor authentication and biometric verification to safeguard transactions.

Credit Card and Rewards Programme Revisions

Credit card policies will also change. For instance, SBI will reduce Swiggy rewards on its SimplyClick credit card, and Air India Signature cardholders will see a drop in reward points from 30 to 10. IDFC First Bank will discontinue benefits linked to Club Vistara Milestone rewards. Customers should check how these changes impact their cards.

Taxation and Investment Account Updates

The assessment year 2025-26 begins on April 1, bringing updates to the tax regime. If taxpayers do not opt for the old tax system, they will automatically be moved to the new one. Those planning to claim deductions under Section 80C must ensure their investments align with the latest rules.

Individuals who have not linked their PAN with Aadhaar may face financial disruptions. Dividends and capital gains payouts may be delayed, and TDS deductions will be higher. Additionally, the absence of PAN-Aadhaar linking could impact credit availability in Form 26AS, leading to tax refund delays.

The Securities and Exchange Board of India (SEBI) has also tightened KYC norms for mutual funds and demat accounts. All investors must re-verify their KYC and nominee details to prevent account restrictions or freezes. Non-compliance may create issues in processing payouts and transactions. With these changes set to take effect, consumers should review their banking, taxation, and investment accounts to avoid disruptions and penalties.