From September 1, 2025, the Reserve Bank of India (RBI) is implementing important changes to savings account rules that every account holder should know. These modifications impact minimum balance requirements and ATM withdrawal charges, aiming to bring more transparency and fairness in banking services.
Minimum Balance Rules: What’s New?
The RBI has affirmed that it does not enforce a uniform minimum balance across banks. Instead, individual banks decide their own minimum balance norms for savings accounts.
Some public sector banks, such as SBI, Canara Bank, and Punjab National Bank, have waived penalties for not maintaining minimum balances.
However, many private banks may still levy charges if the average monthly balance (AMB) is not maintained. Account holders are advised to check their bank’s specific minimum balance criteria to avoid unexpected fees.
Mandatory Transparency from Banks
In line with these changes, banks must now clearly inform customers at the time of account opening about minimum balance requirements and any penalties applicable.
Additionally, any future changes to these rules must be communicated proactively to all account holders, ensuring full transparency and preventing surprises.
Revised ATM Charges
Effective May 1, 2025, the RBI increased the maximum permissible ATM withdrawal fee from ₹21 to ₹23 per transaction after exhausting the free monthly transactions.
Customers continue to enjoy 5 free ATM withdrawals at their own bank’s ATMs every month. For other bank ATMs, the free withdrawals allowed are 3 per month in metro cities and 5 per month in non-metro cities.
These charges apply to both financial transactions, like withdrawals, and non-financial ones, such as balance inquiries.
What This Means for You
To avoid additional banking fees, it is crucial for customers to stay aware of their bank’s minimum balance rules and maintain the required average monthly balance. Additionally, plan ATM usage carefully to make the most of free transactions and avoid incurring additional withdrawal charges.
Being informed about these changes will help account holders manage their savings accounts better and avoid unnecessary costs.
From 1 September RBI Changes Savings Account Rules: Minimum Balance to ATM Charges
