From April 1, some new rules related to banks are going to be implemented, which can have a direct impact on your pocket. Therefore, you should be fully aware of what changes are happening from April 1. These changes will affect everything from withdrawing money from ATM and maintaining a minimum balance in the account to the interest rates of fixed deposits (FD).
So let’s understand these changes in detail so that you do not make any mistake intentionally or unintentionally which causes you financial loss. Be careful, these new rules can change your banking habits!
Change in minimum balance rule
A minimum balance amount is set by banks for accounts and customers who have less than this amount in their account are charged a penalty. Many banks including the State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank have implemented new minimum balance conditions, which will be effective from April 1.
Now customers will have to maintain different minimum balances in their accounts depending on urban, semi-urban, and rural areas. The bank will charge a penalty for not maintaining the prescribed balance. How much this penalty will be, will be decided based on the bank and the type of account. Therefore, before April 1, definitely know the new rules of your bank.
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The free withdrawal limit will be reduced
From April 1, the rules related to withdrawing money from ATMs are also changing. Now you will be able to withdraw money only three times from another bank’s ATM without any charge. After this, a fee of Rs 20 to 25 will have to be paid on each transaction.
Earlier, many banks used to provide 5 free transactions. Therefore, you will need to be more careful after the new rules come into force. Keep track of your free withdrawal limit so that you do not have to pay unnecessary charges.
Interest rates on savings accounts and FD will change
Some changes will also be effective regarding interest rates from April 1. According to a report by Moneycontrol, many banks have announced changes in the interest rates of savings accounts and fixed deposits (FD). Under this, interest rates will be fixed based on the amount deposited in the savings account.
It is believed that this will benefit those customers who have more money deposited in their accounts. However, interest rates on small deposits may also be low in some banks. Therefore, be sure to know the new interest rates of your bank.
Reduction in credit card facilities
If you use a credit card, then you may get fewer facilities from April. SBI and IDFC First Bank are cutting the facilities of Vistara Credit Card. Features like free ticket vouchers, renewal benefits, and milestone rewards will now be discontinued. Axis Bank will also implement similar changes on its Vistara credit card from April 18. If you are a credit cardholder of these banks, then understand the new rules carefully.
Positive Pay System will be implemented
Positive Pay System (PPS) is being implemented to prevent bank fraud. From next month, customers will have to verify the check number, date, beneficiary name, and amount for check payments of more than ₹ 5000. In addition, banks are launching new online services and AI-powered chatbots to make digital banking more secure and convenient. PPS can prove to be an important step in reducing cheque fraud.
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