The Reserve Bank of India (RBI) and the Ministry of Finance have issued certain rules pertaining to savings accounts till 2025 that are expected to alter the experience of banking for the common man. However, if you are a frequent or infrequent depositor, this new banking will impact the amount of deposit you can make, your rate of interest and transaction types. These new rules are being formulated to provide more security, transparency and returns to the customers. Let us now check in detail, what all new rules will be implemented for savings account holders in 2025.
Change in Minimum Balance
The rule of minimum balance in bank savings accounts is still applicable at many banks, but from 2025 it may be relaxed a bit. The RBI has been mulling lowering the minimum balance requirements to to help customers in small towns and rural areas. But for premium accounts, that rule can be the opposite.
Possible Adjustments in Interest Rates
The rates of returns of the savings account are itself low, but these can be further altered by RBI in 2025. If RBI hikes interest rates considering inflation and economic condition then there can be slightly higher returns for the customers. But that will be subject to banks’ policies.
New Instructions on Digital and Physical Transactions
RBI New Online Transaction Rules for Savings Account The following new rules are made by RBI to make more security in the digital barking that is made online transaction for the saving account. Banks will now have to deploy more robust OTPs, biometric authentication and measures to combat fraud to customers. The cash limit can also be changed for deposit and withdrawal.
Changes in Tax Rules
There may also be changes in the rules of TDS (Tax Deducted at Source) on deposits in savings account. On interest incomeIf a customer’s interest income in that financial year exceeds a threshold, the bank can cut TDS. Accordingly, customers depositing more sum must consider their tax liabilities.
Strict Action on Inactive Accounts
RBI has issued a new rule for savings account holders, which have been inactive for a long time. After 2-3 years of inactivity, the bank can consider your account as a “dormant account” and apply extra charges on it. Customers are therefore asked to continue to use their account to make the occasional transaction.
Tips for Customers
- Continue to monitor the terms and costs of your savings account periodically.
- If you have multiple savings accounts, try to keep them straightforward and manageable.
- Monitor any changes to interest rates and also consider other places to invest for a higher return.