There are some important changes in the Indian banking sector with the onset of 2025. The Reserve Bank of India (RBI) has implemented some new rules that will affect account holders of SBI, PNB, Canara Bank and all other banks. These new rules aim to enhance banking security, prevent fraud and improve the efficiency of banking services.
In this article we will give detailed information about these new rules and also tell how account holders should deal with them. Whether you are a customer of SBI, PNB, Canara Bank or any other bank, these rules will apply to all of you. Let us know what big changes are happening in the banking sector in 2025 and what you should do.
Changes in banking rules: at a glance
A brief description of the new banking rules is given in the table below:
| Rule | Description |
| inactive account | Accounts with no transactions for more than 12 months will be considered inactive |
| dormant accounts | Accounts inactive for more than 2 years will be considered dormant |
| zero balance accounts | Accounts with zero balance for a long time will be closed |
| KYC update | All account holders must update their KYC documents |
| Fixed Deposit Rules | New rules applicable for FD with NBFC and HFC |
| UPI limit | UPI daily transaction limit increased |
New rules for inactive and dormant accounts
According to the new guidelines of RBI, if there is no transaction in an account for 12 months, it will be considered as dormant account. Similarly, accounts which remain inactive for 2 years will be considered as dormant accounts.
Rules for inactive accounts:
- Account will be deactivated if there is no transaction for 12 months
- Some banking services may be restricted on inactive accounts
- At least one transaction must be made to activate the account
Rules for Dormant Accounts:
- Account will become dormant if inactive for 2 years
- Most banking services on dormant accounts will be closed
- To activate the account, you will have to update KYC by visiting the bank branch.
The purpose of these rules is to reduce the number of long-term unused accounts and make the banking system more efficient. Account holders are advised to make regular transactions in their accounts to keep them active.
New rules for zero balance accounts
RBI has also made new rules for zero balance accounts. The objective of these rules is to prevent misuse of such accounts and ensure KYC compliance.
Key rules for zero balance accounts:
- Accounts with zero balance for a long period of time can be closed
- Account holders are advised to maintain minimum balance
- Banks may impose additional charges on zero balance accounts
Account holders must maintain certain minimum balance in their accounts so that their accounts remain active and avoid closure. If you maintain zero balance in your account for a long time, the bank may send you a notice and initiate the process of closing the account.
KYC update required
Know Your Customer (KYC) process is an important part of banking security. RBI has made regular KYC updates mandatory for all bank account holders.
Important points for KYC update:
- All account holders must update their KYC documents regularly
- Failure to update KYC may result in account ban
- KYC update can be done online or at the bank branch
Documents required for KYC update:
- Aadhar card
- PAN card
- passport size photo
- Address Proof (Electricity Bill, Aadhar Card etc.)
Account holders are advised to contact their bank and get information about the process of KYC update. Updating KYC on time can help you keep your account secure and active.
New rules for fixed deposits
RBI has implemented new rules for fixed deposits (FD) with non-banking financial companies (NBFCs) and housing finance companies (HFCs). These rules aim to enhance the security of FD holders and provide them greater flexibility.
New rules for fixed deposits:
- Premature withdrawal process simplified
- NBFCs and HFCs will have to be more transparent about FD terms
- Customers will have to be informed timely about changes in interest rates on FD.
These rules will give FD holders better control over their investments and will be able to manage their money more efficiently.
Change in UPI limit
Unified Payments Interface (UPI) is a popular medium of digital payments in India. RBI has changed the limit of daily transactions through UPI.
New rules of UPI limit:
- Daily UPI transaction limit increased to Rs 1 lakh
- A maximum transaction of up to Rs 20,000 can be done at a time
- Separate limits have been set for UPI Lite
These changes will give more flexibility to UPI users and they will be able to carry out large transactions easily.
Tips for account holders
With the new banking rules coming into effect, account holders should take some precautions:
- Make regular transactions: Make a transaction at least every 3 months to keep your account active.
- Update KYC: Keep updating your KYC documents from time to time.
- Maintain Minimum Balance: Always maintain some minimum amount in the account so that it does not have zero balance.
- Check bank statements: Check your bank statements regularly and report any unusual activity to the bank immediately.
- Practice safe banking: Do not share your banking details with anyone and beware of phishing.
conclusion
These new banking rules, which came into effect in 2025, are aimed at making the banking experience safer and simpler for account holders. Customers of SBI, PNB, Canara Bank and all other banks should follow these rules and keep their accounts active and updated. Check your account regularly, update KYC and contact your bank for any doubts. By taking these precautions, you can keep your money safe and avail uninterrupted banking services.
Disclaimer:
This article is provided for general information purposes only. Banking rules and policies may change from time to time. The information in this article was correct at the time of writing, but may currently differ. Readers are advised to contact their bank or financial advisor for the latest, accurate information before making any financial decisions. The author or publisher is not liable for any damages or consequences caused by the use of the information provided in this article.
