Federal Bank change the rules 2025: Once one of India’s major private banks, Federal Bank has revised its service charges and fees considerably. From 1 June 2025, prices will be increased for various services, including ATM transactions, cash deposits, locker rentals, and account closures. Designed to streamline operations, these changes may impact your banking expenses.
Federal Bank Charges 2025
Here is a detailed report about the charges to help you allocate your money better.
1. Cash Transaction Charges
For savings account holders, Federal Bank allows five free cash transactions per month or a cash deposit/withdrawal limit of ₹5 lakh, whichever comes first. Beyond this limit:
- A fee of ₹4 per ₹1,000 (or part thereof) will apply.
- The minimum charge per transaction is ₹100.
This change emphasizes the bank’s shift toward digital transactions, urging customers to opt for online banking where possible.
2. Penalty for Not Maintaining Average Monthly Balance (AMB)
Maintaining a minimum balance is now more critical than ever. Here’s what you need to know:
- Club, Delight, NRI, and Resident Savings Scheme account holders must maintain an AMB of ₹5,000.
- General customers face penalties ranging from ₹75 (for up to 20% shortfall) to ₹375 (for 100% shortfall).
- Senior citizens enjoy slightly lower charges, between ₹60 and ₹300.
- Rural branch account holders benefit from reduced penalties:
- General customers: ₹60 – ₹300
- Senior citizens: ₹50 – ₹250
Pro tip: Set up balance alerts to avoid unnecessary penalties.
3. Revised ATM Transaction Fees
While Federal Bank ATMs remain free for unlimited transactions, using other banks’ ATMs beyond the free limit will cost you:
- ₹23 per financial transaction (cash withdrawal).
- ₹12 per non-financial transaction (balance inquiry).
- ₹25 per rejected transaction due to insufficient balance.
To save on fees, plan your cash withdrawals wisely and use your bank’s ATMs whenever possible.
4. Higher Inward Cheque Return Charges
Bounced cheques will now attract steeper penalties:
- ₹400 per instance for rural customers and senior citizens.
- ₹500 per instance for other customers.
Ensure your account has sufficient funds before issuing cheques to avoid these charges.
5. Increased Locker Rental Fees
Safe deposit locker costs vary based on branch location and size:
Rural & Semi-Urban Branches:
- Small locker: ₹2,000/year
- Medium locker: ₹3,300/year
- Large locker: ₹5,500/year
Urban & Metro Branches:
- Small locker: ₹2,950 – ₹5,000/year
- Medium locker: ₹3,950 – ₹6,800/year
- Large locker: ₹7,400 – ₹12,800/year
If you’re renting a locker, compare branch-wise rates to find the most cost-effective option.
6. Account Closure Charges
Closing your account prematurely will now cost more:
- ₹100 if closed within 6 months.
- ₹100 (rural/senior citizens) or ₹300 (others) if closed between 6-12 months.
- No charge if closed within 14 days of opening.
Before switching banks, clear all dues and transfer funds to avoid last-minute surprises.