However, in the long term, the changes planned for 2025 will mean that the banks will try their best to keep you happy as a customer; opening the account might lead to unexpected fees, and closing the account might reveal dormant accounts. The upheaval in banking systems, keeping in mind the changes that are meant to be implemented in 2025 concerning the functioning of savings accounts in India and abroad, is immense. Countries are trying to put into place the required banking architecture that will enhance the trust and safety of banking services. While these modifications seek to improve the overall safety and effectiveness of banking services, there will be additional banking safeguards that will need to be made. In this regard, these modifications will aid in refining the existing structure.
Stricter KYC And Account Activity Rules
Beginning from 1 January 2025, the Reserve Bank of India (RBI) will implement stringent controls on dormant, inactive, and zero-balance accounts. These measures will prevent potential fraud. Accounts which have no transaction activity for a certain period of time will face the risk of closure. The simplest way to avoid closure on these types of accounts is to perform basic routine deposits and withdrawals. Moreover, proactive account holders will need to submit Aadhaar or PAN for KYC to protect proactive documents.
Revised Tier Maintenance Policies
SBI’s Allied banks, PNB, and Canara Bank have introduced new region-specific minimum balance requirements which segregate rural and semi-urban branches. Urban account minimum balances are higher than those of semi-urban and rural accounts. Also, varying from one bank to another, the balance maintenance policy includes differing account and penalty structures. To avoid penalties, please check your bank’s website for balance maintenance requirements.
Enhanced Security With Positive Pay System
With the advent of 1 April 2025, for payments of cheques exceeding ₹5,000, Positive Pay Integration will be a necessity. Confirmation of the cheque number, date, and beneficiary details will be necessary. Though you will not lose money, you bear the burden of Payment Confirmation.
The policy changes will also permit the earned interest on the savings accounts to be connected directly to the balance on the account. For those willing to save, this is great news because greater account balances will help earn better interest. The rivalry that the other banks have amongst each other in advertising their services will benefit you the most.
The changes will be effective starting April 2025 when banks will start using sophisticated artificial intelligence through their websites and chatbots. For online transactions, 2FA and biometric scanning will be used. However, mobile numbers associated with dormant UPI IDs will be flagged and disabled. You will need to ensure that your number will not run into those issues.
Changes For Kids’ Savings Accounts
The RBI has issued changes regarding the policies for children’s savings accounts. Children aged 10 years and older are now able to use their accounts independently. Moreover, no overdraft facilities will be permitted, and banks must have comprehensive systems for handling and servicing the child’s account when he or she turns eighteen.
Key Banking Changes At A Glance
| Change | Details | Effective Date |
|---|---|---|
| Dormant Account Closure | Inactive or zero-balance accounts may be closed to prevent misuse. | January 1, 2025 |
| Minimum Balance Rules | Vary by location (urban, semi-urban, rural); penalties for non-compliance. | April 1, 2025 |
| Positive Pay System | Mandatory for cheques above ₹5,000 to enhance security. | April 1, 2025 |
| Interest Rate Adjustments | Rates tied to account balance; higher balances may earn better returns. | April 1, 2025 |
| Digital Banking Enhancements | AI chatbots, biometric verification, and UPI ID deactivation for inactive numbers. | April 1, 2025 |
| Kids’ Savings Accounts | Minors above 10 can operate accounts; no overdrafts allowed. | April 1, 2025 |
Informed Is Ideal In Avoiding Fines
Complete KYC, balance requirements, and cheque confirmation for Positive Pay System (PPS) to avoid penalties. Ensure your mobile number is active for UPI as well as Digital Banking.
Acting promptly and being well-informed will enable customers to avoid incurring any penalties and will give them the option to access their savings accounts come 2025.
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