Bank Account Rules Guidelines: The Indian banking sector has reached an extremely dynamic phase in history. The RBI and the bank authorities are trying to enhance customer services with innovations in rules and guidelines to ensure greater transparency in the working of the financial system. These changes redound to the strengthening of the banking system and the protection of customer interests.
Repo Rate Cut
An epoch-making step was taken on February 7, 2025, by RBI when it decided to cut the repo rate from 6.5 percent to 6.25 percent. This is the first such cut in the last five years. The repo rate is the rate at which RBI provides short-term loans to other banks.
Minimum Balance
Banks have revolutionized the rules on minimum balances. The minimum balance has been fixed at Rs 10,000 in urban centers and Rs 5,000 in rural centers. If this minimum amount is not maintained in the account, the bank is entitled to charge a penalty.
ATM Transactions
Major amendments have been made in defining rules for ATM transactions. In the cities of the metros, only 3 transactions will be free of charge, while in the cities of non-metros, 5 transactions will be free. From there on, service charges of Rs 25 will be imposed for every transaction.
Checkbook Rules
The rules have been modified in terms of checkbooks. The first issue of checkbook (20 leaves) is free, while charges will apply on subsequent checkbooks at the rate of Rs 50/checkbook. This was done for promoting the use of digital payments.
State Bank Of India
SBI also adopted several new rules on the customer side. The minimum balance has been raised from Rs 3,000 to Rs 5,000. The interest rate on savings accounts of senior citizens has been raised to 3.5 percent. The most immediate effect of a repo rate cut, say, by 0.25 percent on a home loan of Rs.80 lakh would be to reduce the monthly EMI by about Rs 1,281.
Economic Implications
These changes could have a significant impact on the boost of the Indian economy. Lower interest could lead to more investments and expenses, both of which will be an asset for economic development. These changes in the banking sector are a step toward enhanced customer experience and more transparency in the workings of the financial system. However, the customers themselves should be well-versed with the changes in order to keep their accounts in constant operation.
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