As of April 2025, substantial amendments to savings account rules are introduced in the whole of India. These changes are meant to increase transparency, digital protection, and offer banking businesses to conduct according to changing financial behavior. The new regulations range on subjects such as deposit limits, interest rates revision, and their effects affect millions of account holders across the country.
Revised Cash Deposit Limits and Tax Compliance
All the annual cash deposits to the savings account have to be less than 10 lakh now according to the income tax department of India. Any transaction above it will be reported as Specified Financial Transactions (SFT). But deposits of more than 50000 are mandatory to have PAN to maintain clarity on the side of taxation.
Updated Minimum Balance Requirements
Banks have changed their minimal balance requirements depending on location of account holder. Now, the urban branches will need a larger monthly average balance as compared to semi-urban and rural branches. Those who fail to maintain the required balance can be called to punishment charges.
Savings Account Interest Rate Adjustments
Interest rates have also been differentiated or stratified according to the balance of the savings accounts. As an example, HDFC Bank charges 2.75 percent interest rates on deposits of up to 50 lakh and 3.25 percent of the amount exceeding 50 lakh. This transition promotes more savings, and it brings competitive returns.
ATM Withdrawal Policy Changes
The customers can now only three free ATM withdrawal is done per month at other banks ATMs. This limit is beyond which a fee of 20-25 rupees will be charged on each transaction. This move is to curtail congestion on ATM networks and encouragement of transacting on digital platforms.
Positive Pay System for Cheque Security
In order to discourage cheque frauds, the Positive Pay System ( PPS ) has been made mandatory to all cheques above 5000 rupees. The customers need to verify the information regarding the cheque number, date, payee, and the amount. Greater safety in transactions is achieved with this layer of verification.
Enhanced Digital Banking and Cybersecurity
Banks are introducing AI-enable chatbots, biometric identifications, and two-step logins to make digital banking more robust. Such improvements are meant to ensure that online payment is more secure and convenient. The customers are also advised to ensure that their mobile numbers are active in order to prevent problems on UPI.
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