The Reserve Bank of India has introduced new savings accounts guidelines that go into play by April, 2025. Such developments are intended to increase digitalisation, make things more convenient to customers, and improve the level of fair banking. The KYC norms, changes in fees and interest rates to either basic savings account or regular savings account would be of help in avoiding any unnecessary fees and maximising the balance in the account.
Simplified KYC and Account Opening
By 2025, account opening should be allowed to experience video-KYC and Aadhaar-based OTP verifications at an accelerated pace by banks. BSBDA, are now zero-balance-eligible with no wallet-type limits. Customers with incomplete KYC can update their records securely over the internet through a dedicated banking app or portal and this eliminates the need to meet the banks in person to make minor corrections.
Free Transactions and Digital Banking
The new regulations boost the number of allowable withdrawals made using an ATM per month to eight at any bank ATM, compared with five. Online transactions through UPI, IMPS, NEFT and RTGS are free up to 20 transactions per quarter. The free-transaction limit should be prominently displayed in passbook and websites so that people know that they are free transactions and there is no surprise fees.
Revised Minimum Balance and Penalties
The banks have regularized the minimum balances requirements in terms of branch categories Metropolitan branches put 5000 a month, urban banks 3000 and rural ones 1000. The offending of the minimum is not a penalised issue; instead, penalty has been limited to a maximum of 50 rupees per quarter. Customers who continuously have an average balance of over 75 percent of the requirement would enjoy a penalty waiver.
Enhanced Interest Structure
The interest earned by the savings account is now tiered in order to reward larger balances. Deposits of up to INR 50,000 will yield 3.5 percent per annum, INR 50,001 to INR 1 lac will earn 4 percent and a deposit above INR 1 lac will earn 4.5 percent. Calculation interest will be made on a daily basis and credited every month, resulting in better accurate earning and willingness of their customers to keep spare money in their accounts.
Fee Adjustments and Transparency
Cheque-book issue and demand draft fines have been adjusted. Banks are obliged to provide one free of charge cheque book of 25 leaves every quarter and thereafter it can only be issued up to 1 Re/leaf. The amount charged as SMS alerts is limited to 20 per month after which a user will be charged five free alerts. No EFT and RTGS charges apply to online online initiated transactions.
Pricing Table
| Service | Old Charge | New Charge |
|---|---|---|
| ATM Withdrawal Beyond Free Limit | ₹20 per transaction | ₹15 per transaction |
| Cheque Book Issuance (per leaf) | ₹2.50 per leaf | ₹1.00 per leaf |
| SMS Alerts After Free Limit | ₹30 per month | ₹20 per month |
| Below Minimum Balance Penalty (Quarter) | ₹100 per quarter | ₹50 per quarter |
| NEFT/RTGS (Online Initiation) | ₹5–₹25 per transaction | Nil |
Also read: Mahindra XUV 3XO 2025: Feature-Packed Compact SUV at an Unbeatable Price