In today’s time, there are continuous changes in the banking sector. The new rules and updates issued by Reserve Bank of India (RBI) and other institutions affect every bank account holder. Whether it is new facilities related to UPI, change in bank loan rules, or new guidelines related to FD (Fixed Deposit), it is necessary to understand every update. In this article, we will give you detailed information about 5 big updates for all bank account holders.
Overview: Summary of all updates
| Update name | Key information |
| UPI Credit Line | Use of credit line is now possible from UPI |
| Bank loan risk weight | Change in loan rules for NBFCs |
| Dormant Account Closure | Start the process of closing inactive accounts |
| New fd rules | Premature with new rules on FD |
| UPI Transaction Id Rules | UPI Transaction ID will now only be alphanumeric |
1. UPI Credit Line: New Facility
RBI has recently taken a major step to make UPI (Unified Payments Interface) more useful. Now small finance banks have been allowed to provide pre-manctioned credit lines to customers.
- Customers can link the credit line directly to their UPI apps.
- This feature can be a cheaper option of traditional credit cards and personal loans.
- The interest rates and conditions set by banks will be applicable.
This feature will be especially beneficial for customers who feel the need for quick credit.
2. Changes in bank loan rules for NBFCs
RBI has reduced Risk Weight on bank loans by 25% on bank loans for NBFCS (Non-Banking Financial Companies). The purpose of this change is to provide cheap credit to NBFCs.
Its benefits:
- The NBFCs will lower the cost of taking loans from banks.
- High rating NBFCs will get more benefit.
- An additional credit of Rs 4 lakh crore may be available.
This step has been taken to increase the availability of debt in the retail sector and to speed up the economy.
3. Closure of inactive bank accounts
The RBI has announced that inactive, dormant and zero balance accounts will be discontinued from 1 January 2025.
Categories of affected accounts:
- Dormant Accounts: In which there was no transaction for 2 years or more.
- Inactive Accounts: In which there was no transaction in the last 12 months.
- Zero Balance Accounts: Whose balance is zero.
How to rescue?
- Do at least one transaction in the account.
- Go to the bank branch and activate the account.
The move aims to prevent fraud and strengthen KYC compliance.
4. New rules on FD (Fixed Deposit)
Under the new FD rules, NBFCs and HFCs (Housing Finance Companies) have simplified the premature withdrawal process.
Main changes:
- Premature will apply better interest rates on the premature withdrawal.
- Customers will get transparency in the FD withdrawal process.
- The communication system has also been improved so that customers can get information on time.
This change has brought relief to the customers who feel the need to withdraw their deposits quickly.
5. UPI Transaction ID Rules
From 1 February 2025, all UPI Transaction IDs will be alphanumeric only.
New rules:
- Special characters like @, # etc. will no longer be valid.
- The incorrect ID will be rejected by transaction systems.
Customers are advised to check the settings of their UPI apps and make sure their transaction IDs follow the new rules.
Other important information
March 2025 Bank Holidays
Banks will remain closed for 14 days in March. These include public holidays, regional holidays, and weekly holidays.
LPG cylinder prices cut
In February 2025, the price of commercial LPG cylinder has been reduced by ₹ 7. This change can be beneficial for businesses such as hotels and restaurants.
conclusion
All the updates mentioned above are important for every bank account holder. Whether you use UPI, invest FD or your account is passive, these changes will directly affect you.
Disclaimer: This article is written only for the purpose of providing information. Please contact your bank or financial advisor so that you can take correct advantage of these updates.
