Several changes made to bank services in India in 2025 focus on savings accounts with an intent to increase transparency and digital savings access while promoting financial discipline. These updates allow greater individual access while avoiding unnecessary fines.
Minimum Balance Requirements Revised
Access and inclusion in rural financial systems has always been tight. With new updates set in place for March 2025, banks have eased rigid criteria for rural and semi-urban branches to align with their customer segments. Account holders aligned with urban accounts are advised to stay in touch with their banks to avoid fines.
Free Transactions Limit Updated
The fee structure set for branch and ATM transactions has been altered, with most banks unlocking 3 to 5 transactions per month. These limits are account dependent, being set to premium, regular, and salaried accounts.
Enhanced KYC Compliance
In efforts to prevent fraud and verify accounts, banks have strengthened Know Your Customer (KYC) policies as of 2025. Periodic KYC compliance updates are now a necessity and customers who do not comply run the risk of account suspension. Customers have the option of updating their KYC details online as long as they present valid documents at their branch.
Dormant Account Policy Changes
Accounts that have not been accessed in the past 24 months will now be marked as dormant. Customers will be notified prior to accounts being marked as dormant. Accounts that have been marked as dormant will have to go through identity verification that may require minimal documents to be reactivated. These changes help ensure that customers keep their accounts under regular observation.
Interest Credit Frequency Improved
Many banks have shifted to monthly interest credit on savings accounts to improve transparency and provide better returns. This enables account users to monitor their account earnings and benefits of compounding more frequently which is better than quarterly. Nonetheless, interest rates continue to be subject to bank policies and account type.
Digital Service Charges Standardised
Banks have set uniform fees for specific digital services like sending cheque books, fund transfers, and SMS alerts. While some basic services will continue to be offered for free, some advanced services might be offered at a low cost. Customers are advised to keep track of their banks’ digital service charges to avoid unwelcome surprises.
Final Thoughts
The upcoming changes to savings accounts in 2025 help make banking more secure, clear, as well as convenient for the user. Keeping tabs on the changes allows for better account management and maximises savings. Always confirm with the bank for the exact terms relating to the account type.
Also read: Banking & UPI Rules 2025: What Every User Must Know This August