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Bank Customer Alert: India’s banking sector is set for a major change from May 1. These 5 important rules change from May 1. The Reserve Bank of India (RBI), along with several major public and private sector banks, has introduced new rules and changes that will significantly impact millions of account holders across the country.
From changes in ATM withdrawal limits to revised charges for UPI transactions, these modifications aim to streamline services, improve digital banking security, and promote greater transparency.
Table of Contents:
1. Banking System Changes: New ATM Withdrawal Charges and Free Limit Adjustments
2. Changes in UPI Transaction Limits and Charges
3. Bank Locker Agreement Mandate
4. Revised Timings for NEFT and RTGS Transfers
5. Monthly Average Balance (MAB) Rule Updates
How these banking changes will affect you:
In this article, we explain all five changes that will take effect on May 1, explaining how they will affect your savings, debit card use, online transactions, and banking schedules.
New ATM Withdrawal Fees and Free Limit Adjustments. Several banks are revising their ATM withdrawal policies from May 1. Earlier, customers were enjoying 5 free ATM withdrawals per month, but this limit is being restructured.
Key Changes:
Free ATM withdrawals reduced from 5 to 3 for non-home branch usage
After limit: Rs 21 per transaction chargeable.
Home branch ATM transactions remain unchanged for most banks
Premium account holders may receive up to 5 free transactions
Impact: Customers using ATMs frequently will have to be mindful of these changes to avoid additional fees.
2. Changes in UPI Transaction Limits and Charges
To regulate the growing volume of UPI transactions, some banks and third-party UPI providers are aligning with NPCI’s latest framework.
New Guidelines:
A new upper limit of Rs 1 lakh per day for standard users
UPI Lite introduced for small-value transactions under Rs 200
Charges on merchant transactions above Rs 2,000 (approx 1.1%)
No charges for peer-to-peer (P2P) transactions
3. Bank Locker Agreement Mandate
The RBI directive to ensure safety and transparency in the use of bank lockers is now binding on all customers. If you have not yet signed the revised locker agreement, May 1 is the deadline.
What You Need to Do:
Visit your bank and sign the new locker agreement
Carry valid identity proof and locker details
Non-compliance may lead to locker deactivation or penalties
Key Points:
Banks are liable only for damages due to negligence
Locker visits will now be digitally logged for security
Banks must inform customers of any locker changes in advance
Revised Timings for NEFT and RTGS Transfers
The RBI is implementing time adjustments to encourage round-the-clock digital transactions.
Updated Timings:
NEFT: 24×7 available including weekends and holidays
RTGS: Now available till 11:30 PM (earlier till 6:00 PM)
Increased backend efficiency for bulk transactions
Table: New Digital Banking Timings
NEFT – 8:00 AM to 7:00 PM – 24×7 all days
RTGS – 8:00 AM to 6:00 PM – 7:00 AM to 11:30 PM – All days except 2nd & 4th Saturdays
IMPS – 24×7 all days
UPI – 24×7 all days
5. Monthly Average Balance (MAB) Rule Updates: Several private banks are modifying the Monthly Average Balance requirements for savings accounts.
MAB for urban branches revised to Rs 5,000 (from Rs 3,000)
Rural and semi-urban branches continue with Rs 2,000
Penalties for non-maintenance will now start from Rs 100 per month
Digital-only accounts may be exempt from MAB requirements.
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