January 2025: 3 new rules implemented in all banks including SBI, PNB. – StudyToperC

Since January 2025, many important rules have been changed by the Reserve Bank of India (RBI). These new rules will affect the account holders of all banks including SBI, PNB, HDFC Bank. The RBI aims to make the banking system a more secure, transparent and customer-focused. While these rules, on the one hand, customers will get better services, on the other hand, banks will have to make some changes in their processes.

In this article we will learn in detail about the three major rules implemented by RBI. These rules are related to fixed deposits (FD), passive accounts and enrollment process. At the same time, we will also understand what effect these rules will affect the bank account holders and what precautions they should take.

RBI’s new rules: at a glance

New rules for fixed deposits (FD)

RBI has issued new guidelines for fixed deposits (FD) in non-banking financial companies (NBFCs) and Housing Finance Companies (HFCs). These rules have come into force from January 1, 2025.

Major changes:

1. Preliminary withdrawal of small FDS: FDS up to ₹ 10,000 can be withdrawn within three months without interest.
2. Withdrawal in case of serious illness: The entire FD amount can be withdrawn for serious illness, but no interest will be received on withdrawal within three months.
3. Other public deposits: individual deposits can withdraw 50% of the original amount of up to ₹ 5 lakh within three months, but without interest.
4. Maturity Information: NBFCs will now have to report FD maturity 14 days before, while the first period was 2 months.

The purpose of these rules is to provide more flexibility to depositors and protect their interests.

New rules for passive accounts

The RBI has issued new guidelines for classification of passive accounts and unique deposits. These guidelines will be effective from April 1, 2025.

key points:

1. New definition of passive account: The account will be considered as ‘passive’ if there is no customer-inspired transaction for more than two years.
2. Annual Review: Banks will have to review passive accounts for more than a year.
3. Customer Information: Banks will inform customers by informing letters, emails or SMS if their account is at risk of being inactive.
4. Government and scholarship accounts: These accounts will be classified separately in the bank’s system.
5. Fraud prevention: Banks will audit passive accounts regularly and keep an eye on re -activated accounts for at least six months.
6. Interest and Fee: No punitive fee will be imposed on passive accounts and no fee will be charged to activate the account.

The purpose of these rules is to increase the safety of customers and bring transparency in the banking system.

Change in nomination process

RBI has made the enrollment process mandatory in bank accounts and fixed deposits. This rule has come into force from 17 January 2025.

key points:

1. Compulsory enrollment: Enrollment in fixed deposit accounts, savings accounts and security lockers of all current and new customers is mandatory.
2. Enrollment status in passbook: Banks will have to labeled “enrollment” on passbooks/receipts.
3. Name of the nominated person: With the consent of the customer, the name of the nominated person can also be recorded on the passbook/receipt.
4. Awareness Campaign: Banks will have to propagate extensively about the benefits of enrollment facility.
5. Simple procedure: Banks will have to make the enrollment process simple and customer-friendly.

The rule is designed to protect the family members of the dead depositors from unnecessary difficulty and accelerate the disposal of claims.

New rules of KYC update

RBI has further tightened the Know Your Customer (KYC) rules. Banks will now have to update customers KYC regularly.

key points:

1. Regular updates: Banks will have to update KYC of low -risk customers every 2 years.
2. High -risk accounts: KYC is mandatory to update every year for high -risk accounts.
3. Digital KYC: Banks will have to promote the digital KYC process.
4. Time limit: Customers must update KYC within the stipulated time limit, otherwise the account may be restricted.
5. Awareness: Banks must educate customers about the importance of KYC updates.

For example, Punjab National Bank (PNB) has asked its customers to update KYC before January 23, 2025, otherwise account operations may be banned.

New rules of credit card lounge access

Banks have changed the rules of airport lounge access for credit card holders. Now the lounge access will be available only after completing the minimum expenditure criteria.

key points:

1. Minimum expenditure: card holders will have to spend a fixed amount for lounge access.
2. Tier-based system: Loung access will be given in different tier based on expenses.
3. Rupay Card: National Payments Corporation of India (NPCI) has issued new guidelines for Rupay Credit Card.
4. Applicable date: These rules are effective from January 1, 2025.
5. Bank-specific rules: Different banks may have their own specific rules.

The purpose of these rules is to ensure proper use of lounge facilities and to benefit the real high-value customers.

Rejuvenation: This article is only for informative purposes and should not be taken as legal or financial advice. The information given in the article is of general nature and may not apply to your specific circumstances. Please consult your bank or financial advisor before taking any financial decision. Writers or publishers do not take any responsibility for the accuracy, perfection or utility of the information given in this article. Rules and regulations can change from time to time, so contact official sources for the latest information.