New Bank & UPI Rules from April 1: Key Changes You Should Know

A new set of UPI and banking rules will come into effect from April 1, 2025. The National Payments Corporation of India (NPCI) introduced new guidelines to improve the security and effectiveness of UPI transactions. 

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The banking sector will also undergo several changes effective April 1, 2025. These changes will affect credit card holders, ATM withdrawals, savings account guidelines, and more.

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Check out our detailed guide on all the new changes to UPI and banking rules to avoid any penalties and boost your benefits.

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What are the new UPI rules in 2025?

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De-Linking of Inactive Mobile Numbers

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The NPCI has directed the Banks, Payment System Operators (PSOs) and third-party UPI apps like Google Pay, PhonePe, Paytm, etc. to use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) to update their database and remove inactive or reassigned numbers for security reasons. 

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This update shall be conducted regularly on a weekly basis to ensure safety and prevent fraud. 

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The Department of Telecommunications (DoT) automatically deactivates and reassigns any mobile number that has been inactive for more than 90 days to a new user.

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According to the latest regulations, any UPI IDs linked with an inactive number will be automatically cancelled.

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Key Notes for UPI Users

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• To continue using their UPI apps seamlessly, users need to make sure their mobile numbers linked to their UPI accounts are active. 

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• If any user has changed their mobile number, they shall update the same on their UPI apps to continue using their payment apps uninterrupted. 

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• Only accept payment requests from trusted sources to avoid becoming a victim of fraud or scams. 

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What are the new banking rules?

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ATM Withdrawals

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The Reserve Bank of India (RBI) has authorised the increment of ATM withdrawal fees for withdrawals from ATMs operated by other banks. 

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Additionally, a maximum of only three free withdrawals from another bank's ATM are allowed. Anyone who withdraws cash from an ATM operated by another bank more than three consecutive times will be subject to an additional fee of ₹20 to ₹25. 

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Credit Card Benefits

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Major banks like the State Bank of India (SBI) and IDFC First Bank are introducing changes to their credit card offerings, starting April 1, 2025. 

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SBI is cutting the SimplyCLICK Swiggy rewards by half to 5X and Air India Signature points from 30 to 10. 

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IDFC First Bank credit card holders will no longer be entitled to enjoy its Club Vistara milestone benefits. Axis Bank’s Vistara credit cardholders will also face similar changes from April 18, 2025, onwards.

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Learn how to avoid common credit card mistakes.

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Minimum Balance Requirement

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Several banks, including Canara Bank, Punjab National Bank, and SBI, have revised their minimum balance requirements. 

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The minimum balance requirement will vary for people from urban and rural areas. Failure to maintain the minimum account balance will result in penalties.

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Savings Account Guidelines

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Many banks are also revising their interest rates on savings accounts and fixed deposits (FDs). 

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Interest rates on savings accounts will be specified according to the balance amount. This means savings accounts with larger balances will be subject to attractive interest rates.

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Here’s all you need to know about long-term savings plans and their benefits.

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Introduction of Positive Pay System (PPS)

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To enhance security for transactions, several banks are adopting the Positive Pay System (PPS). 

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Cheque book payments adobe ₹5000 are subject to verification to reduce fraudulent activities. Account holders will need to provide details like the payee name, cheque number, and date during verification.

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AI Digital Banking

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In an effort to promote digital banking, banks are also introducing AI-powered chatbots and advanced online tools to help consumers.

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Enhanced security measures such as two-factor authentication and biometric verification will also be reinforced. 

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