Starting 1st April 2025, the Indian banking sector has implemented significant updates to the regulation of savings accounts. These changes are intended to streamline banking practices, enhance digital security, and promote equitable banking services for all customers, regardless of urban or rural residence. If you are a salaried employee, a student, or even a senior citizen, familiarising yourself with the new regulations will help you avoid penalties and utilise the full advantages of your accounts.
Changes to Set Minimum Balance Criteria
The banks have enhanced the account minimum balance requirements with respect to certain geographic categories. Urban customers will have to maintain a higher minimum balance as compared to semi-urban or rural customers. Non-compliance with these requirements will lead to penalties of ₹100 to ₹250 for a range of ₹100 to ₹250 monthly.
Changes to Cash Deposit Limit
The new changes to the Income Tax Act 2025 have enforced additional cash deposit limits for holders of a savings account.
- ₹2 lakh per day
- ₹10 lakh per year
Deposits exceeding these amounts will need a PAN verification. Non-compliance can lead to heightened scrutiny and penalties outlined in the Income Tax Act.
Positive Pay System (PPS) for Cheques
In an attempt to mitigate fraud, banks have adopted a Positive Pay System for cheque transactions exceeding ₹5,000. Customers are now required to confirm the cheque number, payee details, the cheque’s amount, and even the date prior to clearing the cheque. This method offers additional protection for large transactions.
Digital Banking Enhancements
With the integration of new AI-based applications, digital banking will further be enhanced with the introduction of biometric sign-ins and two-step login protocols for enhanced security. The goal of these changes is to simplify access to digital services while tightening security.
Interest Rate Adjustments
The rate of interest for savings accounts will now be categorised based on two levels. The higher tier will not only preserve the balance, but will also enhance earnings, while the lower tier will be penalised with lowered interest. Customers are encouraged to inquire with their banks regarding the new rate slabs.
Savings Account Rule Summary
| Feature | New Rule (2025) |
|---|---|
| Minimum Balance (Urban) | ₹2,000–₹5,000 |
| Minimum Balance (Rural) | ₹500–₹1,000 |
| Cash Deposit Limit (Daily) | ₹2 lakh |
| Cash Deposit Limit (Annual) | ₹10 lakh |
| PAN Requirement | Mandatory for high-value deposits |
| Cheque Security | Positive Pay System for ₹5,000+ cheques |
| Interest Rate | Tier-based, varies by balance |
| Penalty for Non-Maintenance | ₹100–₹250/month |
Also read: Cheque Bounce New Rule 2025: Stricter Penalties and Faster Justice