Several rules related to UPI, ATM withdrawals and banking regulations will witness modifications effective from April 1, 2025. Since these updates are bound to change the way you manage your finances, being aware of them saves you from any avoidable extra charges and helps you to fall in line with the new rules. Let’s take a look at some of the prominent changes.
1. UPI Transaction Charges
From April 1, a couple of UPI (Unified Payments Interface) transactions may become chargeable. And while peer-to-peer transactions mainly would continue to be free, merchant payments above a certain limit may be subject to a nominal charge. Banks and payment service providers have brought about these changes to meet operating costs and have a glitch-free experience for digital payments.
Tip: Stay tuned for any messages from your bank or payment app regarding applicable charges.
2. ATM Withdrawal Limit Changes
As for the ATM free withdrawal limit, there could be changes for its customers. While normally, banks operate on a certain number of free transactions in a month before charges are applicable, effective in April there can either be an alteration in numbers of free withdrawals or a marginal increment in withdrawal charges.
Tip: Try to minimize charges by doing bulk digital payments or withdrawals.
3. Minimum Balance Rules Alterations For Bank Accounts
Banks have decided to revise minimum balance requirements and other penalties relating therein. A few public and private sector banks are set to increase the minimum balance limit to be maintained to retain an account. Failing to maintain the requisite balance may attract higher penalty charges.
Tip: Go for a zero-balance account or check with your bank to know their policies on this concerning penalty.
4. Changes In Interest Rates On Savings Accounts And Deposits
Further changes in interest rate on savings and fixed deposits-dist have been issued to banks. While a few banks may elevate interest rates to lure deposits, others may do so under the influence of economic policies.
Tip: Comparison of interest rates between banks can help increase your wealth.
5. Loan Interest Rates: Changes
If you are having some loans or are about to get one, be conscious of the probable fluctuation of interest rates. Lenders normally dictate loan rates in tune with repo rates of the Reserve Bank of India.
Tip: In case the interest rates go unfavorable for you, consider refinancing options.
Conclusion
These banking changes form part of financial reforms to promote a transparent and efficient financial system. Keeping in touch with your bank notifications, budgeting tools, and careful transaction planning will allow you to keep the effects on your wallet at the minimal.
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