New Banking Rules Effective April 2025: To improve customer experience and simplify operations, banks usually modify their policies. Therefore, if you are associated with the State Bank of India (SBI), Punjab National Bank (PNB), or Bank of Baroda, this will matter to you dearly. These banks are setting into practice new policies that will be effective from 1st April 2025.
Do read this article most carefully to avoid any further inconvenience.
1. Major Changes in Minimum Balance Requirements
As of 1st April 2025, SBI, PNB, and Bank of Baroda will have revised policies in place concerning minimum balance requirements. Failure to maintain the minimum balance may attract penalties of ₹10 to ₹100.
| Bank Name | Urban Area | Semi-Urban Area | Rural Area |
|---|---|---|---|
| State Bank of India | ₹3,000 | ₹2,000 | ₹1,000 |
| Punjab National Bank | ₹3,500 | ₹2,500 | ₹1,500 |
| Bank of Baroda | ₹4,000 | ₹3,000 | ₹2,000 |
Note: Ensure your account maintains the specified balance to avoid penalties.
2. Key Updates in Cheque Payment System
The big changes in the cheque clearing process are:
- PPS (Positive Pay System) will be compulsorily applicable for all cheques of value more than ₹50,000.
- Cheque details should be pre-registered over internet banking or a mobile app.
- If cheque details are not updated in PPS, the bank would be able to reject the cheque.
- This will improve security and diminish the chances of fraud.
3. New Rule for An Inactive Bank Account
If your SBI, PNB, or Bank of Baroda has no transactions for the last 24 months, it will be declared inactive from 1st April 2025.
Consequences of an Inactive Account:
- No withdrawal or deposit.
- UPI, ATM, and Net Banking will become inaccessible.
- To reactivate, the bank will require more documentation.
How to Reactivate an Inactive Account?
- Perform a minimum transaction of ₹100.
- Visit the bank branch and update KYC details.
4. Mandatory Nomination in Bank Accounts
The Reserve Bank of India (RBI) has directed all banks to work towards getting nominee particulars attached to their customers’ accounts, failing which access to the concerned nominees shall be denied after April 1, 2025. All banks must ensure that customers add a nominee to their accounts by 31st March, 2025.
Benefits of Adding a Nominee:
- In case of the demise of account holders, the nominee can claim funds without hassles.
- It prevents funds from going to unauthorized persons.
- Smooth asset transfer to family members.
- If you haven’t updated your nominee yet, do so immediately at your bank’s branch.