The big changes in savings accounts and regulations came into effect across the country since April 2025, directly affecting the account holders in India. These alterations were made for enhancing rules with more financial transparency, easier user experience, and better compliance, all conducted by the Reserve Bank of India (RBI) and various banks.
1. Changes in Interest Rates-Another One?
In April 2025, a slew of other banks have revised their savings account interest rates:
- Axis Bank: Interest rates on savings accounts have been slashed for smaller amounts: for amounts less than ₹50 lakh, from 3% to 2.75%; for deposits between ₹50 lakh and ₹2,000 crore, from 3.50% to 3.25%.
- State Bank of India (SBI): It has uniformly introduced 2.70% interest per annum on its savings accounts. Furthermore, it has eliminated the minimum balance for most accounts, especially to the benefits of students and low-income groups.
- ICICI Bank: Has also modified interest rates for its savings accounts from 16 April 2025.
Account holders must check with their respective banks for the revised rates.
2. New RBI Directions on Savings Account Balances
The directive issued governs an upper limit in savings accounts on the amounts of money that may be maintained to prevent cash from being accumulated unaccounted for, thereby enhancing financial transparency. This may put account holders in question for these amount holdings that exceed stipulations for penalties.
3. Updated Rules for Minor Savings Accounts
According to new RBI guidelines, a minor above the age of 10 will be able to operate his/her savings account with a limit set by the bank. Banks may provide internet banking and debit cards to minors on risk parameters. On attaining adulthood, the account would have to be updated to ensure all compliance.
4. Modifications to Service Charges and Fees
The service charges were changed by many banks:
- Kotak Mahindra Bank: For cash deposits between ₹10,000 and ₹25,000 per month, Kotak811 accounts will have a charge of ₹5 per ₹1,000 (minimum ₹50). Failure to maintain standing instructions will now be charged at ₹100 instead of ₹200.
- SBI: From May 1, 2025, ATM transaction declines will not be charged to Basic Savings Bank Deposit (BSBD) accounts or Kisan Credit Cards (KCC).
These alterations must be understood by customers as they would definitely influence their daily banking.
5. Revised ATM Transaction Fees Hike Upwards
Since May 1, 2025, the ATM transaction fee is, therefore, increased from ₹21 to ₹23 per transaction beyond the free limit imposed by the RBI. Customers are allowed five transactions free per month on their bank’s ATMs, with a limited number on other banks’ ATMs. Since GST also applies to the increased charges, getting money will become just a bit costlier.
All this suggests the importance of updating the savings account-related rules put in place by the RBIs in compliance with the act.
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