Starting May 1, 2025, your everyday banking is in for a shake-up. From ATM withdrawal fees to fixed deposit (FD) interest rates, major banks are rolling out new rules that could directly affect how you save, spend, and manage your money.
Under the “One State-One RRB” policy, regional banks are undergoing a major consolidation aimed at improving efficiency and coverage across states. The Reserve Bank of India (RBI) has also announced updated ATM transaction and interchange fees, which means customers may need to pay more for certain types of cash withdrawals or non-home bank transactions.
Revised Charges For Exceeding Free Transaction Limits
Customers can use their own bank’s ATMs up to five times a month for free. This includes both financial transactions like cash withdrawals and non-financial ones like balance inquiries. They can also use other banks’ ATMs for a limited number of free transactions. If they go beyond these limits, banks are allowed to charge up to ₹23 for each extra transaction. This fee applies to both types of ATM uses, and additional taxes will be charged on top of it.
One State-One RRB
The Finance Ministry launched the ‘One State-One RRB’ initiative earlier this month, which will merge 15 Regional Rural Banks (RRBs) into one bank in 11 states. The goal of this plan is to make operations more efficient and reduce costs. This change will take effect on May 1.
ATM Interchange Fees
The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have approved changes to ATM interchange fees, which will begin on May 1, 2025. The new fees will be Rs 19 for financial transactions and Rs 7 for non-financial transactions. In addition, Goods and Services Tax (GST) will be applied to these transactions.
Savings Account And FD Interest Rates Changes
Shivalik Small Finance Bank has revised its savings account, fixed deposit interest rates for amounts below Rs 3 crore. The new rates are effective from May 1, 2025.
According to an Economic Times Report, RBL Bank has informed its customers about a change in the way savings account interest is calculated, effective from May 1, 2025. According to an email sent by the bank on April 26, 2025, interest will now be calculated daily based on the end-of-day balance in the account. The interest will be credited to the account monthly. For balances up to Rs 1 lakh, the interest will be calculated at an annual rate of 3.25%. For amounts above Rs 1 lakh, the interest will be calculated according to progressive interest rate slabs.
