February 1, 2025, is going to be a special day as Finance Minister Nirmala Sitharaman will present the Union Budget. Alongside this, some new banking rules will come into effect.
These changes, implemented by the Reserve Bank of India, aim to improve digital banking and enhance security against fraud.
Account holders in major banks like State Bank of India, Punjab National Bank, and Canara Bank will experience these adjustments.
Changes in ATM Withdrawal Charges
Starting February 1, 2025, there will be a change in ATM withdrawal charges. Account holders can withdraw cash from their ATM for free up to three times a month. After that, a fee of Rs 25 will be charged per transaction (an increase from the previous fee of Rs 20).
If you use an ATM from a different bank, a fee of Rs 30 will be applied. The maximum withdrawal limit remains Rs 50,000 per day.
Changes in Interest Rates and Minimum Balance
From February 1, several banks, including State Bank of India and Punjab National Bank, will raise interest rates on savings accounts from 3% to 3.5%. Senior citizens will get an additional benefit of 0.5% on these rates.
In addition, the required minimum balance for savings accounts will increase in several banks. For State Bank of India, the minimum balance will go up from Rs 3,000 to Rs 5,000.
Punjab National Bank will raise the minimum from Rs 1,000 to Rs 3,500, and Canara Bank will increase it from Rs 1,000 to Rs 2,500. Failing to maintain the minimum balance may result in fines.
ATM Transaction Rules and Digital Banking Improvements
Kotak Mahindra Bank will introduce changes to its ATM transaction rules, including new fees for various banking services.
Meanwhile, digital banking services will be expanded, offering new features for safer and faster transactions. Users may also receive more cashback for digital payments.
These banking rule changes aim to streamline processes and encourage a more secure, digital banking experience.