February 1, 2025, will be an important day as Finance Minister Nirmala Sitharaman presents the Union Budget.
On the same day, new banking rules will come into effect, implemented by the Reserve Bank of India (RBI).
These updates aim to improve digital banking services and enhance security against fraud.
Account holders in major banks like State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank will experience these changes.
Key Changes in ATM Withdrawal Charges
Starting February 1, 2025, ATM withdrawal rules will undergo significant changes:
Free Transactions Limit: Account holders can withdraw cash for free up to three times a month.
Increased Charges: After the free limit, a fee of Rs 25 per transaction will apply (up from Rs 20). For ATMs of other banks, the fee will be Rs 30.
Withdrawal Limit: The daily maximum withdrawal limit remains Rs 50,000.
Interest Rates and Minimum Balance Requirements
From February 1, several banks will revise their savings account interest rates and minimum balance requirements:
Interest Rates: Savings account interest rates at banks like SBI and PNB will increase from 3% to 3.5%. Senior citizens will enjoy an additional 0.5% interest.
Minimum Balance Updates
SBI: Minimum balance will increase from Rs 3,000 to Rs 5,000.
PNB: Minimum balance will rise from Rs 1,000 to Rs 3,500.
Canara Bank: Minimum balance will go up from Rs 1,000 to Rs 2,500.
Failure to maintain the required minimum balance may lead to fines.
Digital Banking Enhancements
In addition to these changes, Kotak Mahindra Bank will revise its ATM transaction fees for various services.
On the digital banking front, enhanced features will make transactions faster and safer. Users may also benefit from increased cashback on digital payments.
These changes reflect efforts to streamline banking processes and encourage a secure, digital-first approach.
