Major Banking Changes From April 1: Revised ATM Charges, UPI Inactivity, Enhanced Security

Indian banks are set to introduce significant changes starting April 1, 2025, impacting ATM withdrawals, credit card perks, savings account rules, and digital banking security. These changes aim to enhance banking security, streamline transactions, and encourage digital adoption.

1. ATM Withdrawal Policy Revisions

Starting April 1, the number of free ATM withdrawals will be reduced, particularly for transactions at other banks' ATMs. Customers will be limited to three free withdrawals per month from non-home bank ATMs.

• Financial transactions beyond the free limit will now incur an additional charge of Rs 2 per transaction.
• Non-financial transactions, such as balance inquiries and mini statements, will be charged an extra Rs 1.
• As a result, ATM withdrawal costs will range from Rs 20 to Rs 25 per transaction, depending on the bank.

2. Revised Minimum Balance Requirements

Several major banks, including SBI, Punjab National Bank, and Canara Bank, have updated their minimum balance policies. The required balance will now vary based on whether the account is in an urban, semi-urban, or rural area.
Failure to maintain the prescribed balance will result in penalty charges, which may differ based on location and bank policies.

3. Implementation of the Positive Pay System (PPS)

To combat banking fraud, the RBI has mandated the adoption of the Positive Pay System (PPS) by several banks. This system enhances security for check transactions by requiring verification for check payments above Rs 5,000.

• Customers must confirm details such as the check number, date, payee name, and amount before processing.
• Any discrepancies identified by the Cheque Truncation System (CTS) will trigger redressal actions between the presenting and drawee banks.
• This initiative aims to prevent fraudulent transactions and reduce errors in check payments.

4. Enhanced Digital Banking Features

To promote digital banking, banks are rolling out advanced online features, including AI-powered chatbots and improved mobile banking services.

Security measures such as two-factor authentication (2FA) and biometric verification will be strengthened to protect digital transactions.

5. Changes in Savings Account and Fixed Deposit (FD) Interest Rates

Interest rates on savings accounts will now depend on account balances, meaning higher balances may yield better returns.

• Leading banks such as SBI, IDBI Bank, HDFC Bank, Indian Bank, and Punjab & Sind Bank have introduced special FD tenures with attractive interest rates.
• Customers should check with their respective banks to compare new interest rate structures.

6. Changes In Credit Card Benefits

Several banks, including SBI and IDFC First Bank, will be modifying their co-branded Vistara credit card benefits from April 1.

• Perks such as complimentary ticket vouchers, renewal bonuses, and milestone rewards will be discontinued.
• Axis Bank will implement similar changes for its Vistara credit cardholders starting April 18.

7. UPI Transaction Policy Update

Starting April 1, banks will begin removing mobile numbers linked to inactive UPI accounts from their records.

• If a UPI-linked number has been inactive for an extended period, the account holder may need to relink their mobile number for future transactions.
• Customers are advised to update their UPI-linked phone numbers and ensure activity to avoid disruptions in digital payments.

These banking changes will impact millions of customers across India. Staying informed about these updates will help account holders avoid extra charges, enhance transaction security, and maximize their financial benefits.