Since April 1, 2025, a wave of new regulation has hit savings accounts in Indian banks and directly affected millions of accounts. The changes are meant to increase transparency, raise digital security and make banking practices compatible with changing financial practices. To stay updated with revised interest rates, more prudent minimum balance requirement, among others can help you to evade any penalties on your account and help you to maximize your account.
Revised Interest Rates on Savings Accounts
Deutsche bank, HDFC, SBI, among other major banks have changed the interest rates of the savings accounts. An example is that HDFC currently gives 2.75 per cent interest up to 50 lakh and 3.25 percent interest in excess of 50 lakh. This is a change compared to the previous flat rate of 3% that influenced the customer rate of earning money on idle funds.
Updated Minimum Balance Requirements
Banks have launched geographical minimum balance policies. The customers of metro and urban branches should have a monthly average balance of 10,000 rupees. Semi-urban branches will carry the amount of 5000 Indian rupees whereas rural branches will need the quarterly balance of 2500 Indian rupees or fixed deposit of 10000 Indian rupees. The noncompliance will lead to penalties.
Cash Deposit Limits and Tax Compliance
The savings accounts have also had the limit of the amount of cash that can be kept in the savings account yearly capped to 10 lakh rupees by the Reserve Bank of India and the Income Tax Department. Such deposits are to be reported and the PAN information is compulsory on any deposit above 50,000 rupees. These are in pursuit of tax evasion and facilitation of the digital transactions.
ATM Withdrawal Policy Changes
The customers are currently able to withdraw 3 free withdrawals per month on the ATM machines of other banks only. Other than this there is a transaction fee of 20-25Rs per transaction. This comes down to less than the previous five free withdrawals, and will be good to roll up the uptake of digital banking.
Positive Pay System for Cheque Security
To prevent the occurrence of fraud, the Positive Pay System (PPS) became compulsory with cheque payment of more than 5000. Before a cheque can be used, its number, date of issue, name of payee and amount have to be pre-verified by the customers. This verification by an extra step increases safety of the transactions.
Enhanced Digital Banking and Security
An increase in investing in AI-powered chatbots, biometric authentication, and two-factor verification flourishing into banks to enhance the digital banking system to ensure it is secure. These advancements seek to offer a streamlined and secure experience of the customers utilising their online platforms.
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