The Reserve Bank of India (RBI) has announced new savings account rules effective from 01 October 2025, which will directly impact millions of account holders across the country. These changes cover a wide range of areas, including minimum balance requirements, ATM withdrawal charges, digital transaction fees, and service conditions. The move is aimed at promoting digital banking while ensuring fair charges for services.
Why the Changes Were Introduced
In recent years, banks have been under pressure to balance service costs with customer convenience. With more people relying on UPI, net banking, and mobile apps, the traditional revenue model from ATM and cheque usage has shifted. The RBI’s updated framework ensures that fees are reasonable, transparent, and customer-friendly, while still allowing banks to cover operational costs.
Major Rule Changes from 01 October 2025
From October, customers will notice changes in both account maintenance requirements and transaction charges. Here’s a quick breakdown:
Key Changes in Savings Account Rules
| Feature | Old Rule | New Rule (from 01 Oct 2025) |
|---|---|---|
| Minimum Balance | ₹1,000–₹10,000 (varied by bank & location) | Standardised at ₹5,000 for metro/urban accounts, ₹2,000 for semi-urban/rural |
| ATM Withdrawals | 5 free per month, ₹20 per extra | 3 free per month in metro, 5 in rural; ₹18 per extra withdrawal |
| UPI Transactions | Free across all banks | Still free, but cap of 30 daily transactions per customer |
| Cheque Book | First 10 leaves free | First 20 leaves free, extra at ₹3 per cheque |
| SMS Alerts | Often chargeable beyond first 3–5 | Mandatory free SMS/email alerts for all digital transactions |
| Account Closure | Charges up to ₹500 | Free closure within 14 days; ₹250 after that |
Impact on Customers
For urban customers, the minimum balance requirement is being standardised at ₹5,000, which may mean higher deposits for those with basic accounts. ATM usage will become slightly more restrictive in metro cities, encouraging more digital transactions. On the positive side, customers will now benefit from free real-time SMS and email alerts, helping improve security against fraud.
What Customers Should Do Before October
Account holders should review their current bank policies and adjust their usage accordingly. Those with balances below the new threshold should deposit additional funds to avoid penalties. Frequent ATM users in metro cities may want to switch to digital payments or higher-tier accounts that provide extra free withdrawals.
Conclusion
The RBI’s new savings account rules effective 01 October 2025 are designed to strike a balance between customer convenience and banking costs. While some changes, like higher minimum balance requirements, may feel burdensome, others such as free security alerts and cheaper ATM charges will benefit most customers. Staying informed and adjusting your banking habits is the best way to avoid penalties under the new system.