The Reserve Bank of India (RBI) has made several significant changes in the banking system, which will be applicable from 1 April 2025. These changes are very important for bank account holders and will promote security, transparency, and technological advancement in the banking system. There will be changes in many aspects such as ATM withdrawal fees, minimum balance requirements, positive pay systems, and priority sector loans under these rules.
The purpose of these rules is to make the banking system more secure and transparent, as well as help prevent fraud. In addition, emphasis is being laid on making banking services even more digital and convenient. These changes will help bank account holders to manage their accounts better and they will be able to use banking services more effectively.
Knowing and following these rules is very important for bank account holders, so that they can avoid any penalty and take maximum benefit of banking services.
Interpretation of new rules of RBI
Description of RBI’s new rules
The Reserve Bank of India (RBI) has made several significant changes in the banking system, which will be effective from 1 April 2025. The purpose of these rules is to make banking services safe, transparent, and technically advanced. Let us know in detail about these rules:
| Rule | Description |
| ATM withdrawal fee | Now customers will be allowed only three free transactions from other banks’ ATMs. After this, every additional transaction will be charged with a fee of ₹ 20 to ₹ 25. |
| Minimum balance requirements | Banks are modifying the minimum average balance requirements for their savings account. This requirement will depend on the account type and branch location (metro, urban, semi-urban, or rural). |
| Positive pay system (pps) | Positive pay systems will be mandatory for checks of more than ₹ 50,000. Customers will have to share the details of the check electronically with the bank. |
| Priority sector loan | The limit of housing loan has been increased under the new priority sector loan rules. Loan boundaries have been fixed based on the population of cities. |
| Credit card benefits | Many banks are changing the reward structure of their credit cards. For example, SBI is reducing the swiggy rewards from 10X to 5x on its simplyclick card. |
| Digital banking facilities | Banks are offering advanced online facilities and AI-powered chatbots to promote digital banking. |
Change in priority sector loan rules
Important changes have also been made in the Priority Sector Loans (PSL) rules. The purpose of these rules is to promote financial inclusion and improve debt flow in priority areas. Under new rules:
- Housing Loan: Housing loans have been fixed based on the population of cities. For example, loans up to ₹ 50 lakh in cities with more than 50 lakh population will be included in the priority sector.
- Renewable Energy Loans: Loans up to ₹ 35 crore for renewable energy related power generators and public utilities have been included in the priority sector. Loans up to ₹ 10 lakh are allowed for individual homes.
- Target for urban cooperative banks: The target of priority sector loan for urban cooperative banks has been increased to 60%.
Changes in credit card benefits
Changes are also being made in the reward structure of the credit card. For example, SBI is reducing the swiggy rewards from 10X to 5x on its simplyclick card. The IDFC First Bank is closing its Club Vistara Milestone Benefits. These changes will require customers to make more careful decisions when using their credit card.
Digital banking and security
Banks are offering new and advanced online facilities to promote digital banking. In addition, AI-powered chatbots are being used to help customers. In terms of security, facilities such as two-factor authentication and biometric authentication are also being strengthened to make digital transactions even more secure.
Rules of inactive and unused accounts
RBI has also made new rules for passive and unused accounts. If there is no customer-inspired transaction in an account for two years, it will be considered inactive. Banks will review such accounts annually and inform customers to re -activate their accounts.
conclusion
The new RBI rules will help make the banking system a more secure, transparent, and technically advanced. These rules will help bank account holders to improve their accounts better and they will be able to use banking services more effectively. It is very important to be aware of these changes and to follow them so that any penalty can be avoided and the maximum benefit of banking services can be avoided.
Rejuvenation
This article provides general information about the new rules declared by RBI. The interpretation of these rules and the effect area can depend on specific banks and their policies. Therefore, it would be appropriate to contact your bank for personal advice.
