The Reserve Bank of India (RBI) has come up with a plan of new regulations to be applied to savings bank accounts starting from October 21, 2025. The purpose of these changes is to make banking more open, and user-friendly, and adapt digital technology efficiently. The revamp covers the minimum balance requirements, cash withdrawal limits from ATMs, service fees, and management of accounts by banks.
Minimum Balance: Banks In Full Control
With the new regulations in effect, the RBI has stated that it will not standardize the minimum balance for savings accounts. Rather, the banks will individually choose their average minimum balance (MAB) policy with respect to the location of the branch and the type of service offered.
Thereby, hot customers could experience various MABs, e.g., ₹10,000 in the smaller cities and even ₹50,000 at the metro branches. If the customers do not hold this balance, then banks can impose a penalty. Hence, it is important for account holders to keep themselves updated with their bank’s new balance policy to avoid extravagantly incurred charges.
ATM Withdrawal And Transaction Rules
Furthermore, the RBI has changed the limit on ATM transactions. The customers will continue to have a set number of free withdrawals and balance checks per month, but any exceeding usage will incur a small fee that would be capped.
Moreover, the RBI ordered the banks to make service and transaction fees visible on their official websites and apps. This means that customers won’t be taken unawares by the secret charges.
Digital Banking And Transparency Push
The RBI’s announcement of individual free UPI, NEFT, and IMPS transfers is a significant step in the shift to cashless transactions. This move not only supports digital adoption but also minimizes the physical presence of customers at bank branches.
It is a requirement for banks to notify their clients via SMS or email messages in advance about any alterations in service fees. This initiative elevates responsibility and hence, turns the banking system into a more trustworthy one for customers.
The Necessary Actions For Account Holders
Take a look at the minimum balance and penalty rules of your bank.
- Cut down on cash withdrawals and switch to digital payment modes for your own comfort.
- Keep track of your ATM transactions to make sure that you do not go beyond the free limit.
- Be attentive to formal notifications concerning changes in fees or updates in policies.
Also Read : Unified Pension Scheme 2025: How The Government Plans To Secure Your Retirement