- New UPI rules have been implemented from April 1, 2025, to enhance security and efficiency.
- ATM cash withdrawal charges have been revised, affecting the costs for frequent ATM users.
- Changes in minimum balance requirements and interest rates for fixed deposits (FD) by major banks.
Effective April 1, 2025, several new financial rules have been implemented in India, impacting UPI transactions, ATM cash withdrawals, highway toll rates, and other banking services. These changes aim to enhance security, transparency, and promote digital payments for customers. Let’s delve into details of these regulations.
New UPI Regulations Effective from April 1, 2025
NPCI (National Payments Corporation of India) has issued new guidelines that came into effect from April 1, 2025, to make UPI (Unified Payment Interface) transactions more secure and efficient. These changes include measures to remove inactive mobile numbers from UPI, updates to transaction limits, and restrictions on collect payment features.
Key Changes in UPI Rules
- Removal of Inactive Mobile Numbers: Mobile numbers that have been inactive for a long time or reassigned to another person will be removed from bank records. This will reduce the possibility of fraud and incorrect payments.
- Weekly Database Updates: Banks and Payment Service Providers (PSPs) must check the Mobile Number Revocation List (MNRL) weekly to remove old or changed numbers from the UPI system.
- Increased Limit for UPI 123Pay: Transaction limits for UPI 123Pay, designed for feature phone users, have been increased from ₹5,000 to ₹10,000.
- Restrictions on Collect Payment: To prevent fraud, “Collect Payment” feature on UPI has been limited to large and verified merchants. For individual transactions, this limit has been set to ₹2,000.
What Users Should Do?
- Update the mobile number registered with your bank account.
- If your number has changed, update it immediately in your bank and UPI apps like Google Pay, PhonePe, and Paytm.
Revised ATM Cash Withdrawal Charges
Changes to ATM cash withdrawal policies have been implemented from April 1, 2025, potentially increasing costs for customers. These revisions include reduced free transaction limits and increased interchange fees.
Main Changes in ATM Withdrawal Rules:
- Reduced Free Withdrawal Limit at Other Banks’ ATMs: Customers are now allowed only 3 free transactions (in metro cities) and 5 free transactions (in non-metro cities) at other banks’ ATMs. After this limit, a fee of ₹20–₹25 per transaction will be charged.
- Further Increase in ATM Charges from May 1, 2025: Reserve Bank of India (RBI) has increased the ATM interchange fee to ₹23, effective from May 1.
- No Charges on Failed ATM Transactions: If an ATM transaction fails due to a technical fault, it will not be counted as a free transaction.
Impact of These Changes
- Cash withdrawals will become more expensive for those who frequently use ATMs.
- Digital payments (UPI, mobile banking) will be promoted as they are now a more affordable option.
Highway Toll Rate Revisions
As of April 1, 2025, toll rates have been revised on some national highways. While detailed information was not available in the search results, it is expected that there may be a slight increase in toll rates due to inflation and maintenance costs.
Other Key Banking Changes
Several other significant changes have been implemented in the banking sector, impacting minimum balance requirements, Positive Pay System (PPS), and interest rates on deposits.
Minimum Balance Requirements
- Major banks such as SBI, Punjab National Bank, and Canara Bank have revised their minimum balance policies.
- Different minimum balance amounts have been set for urban, semi-urban, and rural areas. Customers may be penalized if they do not maintain these balances.
Positive Pay System (PPS) Implementation
- For check payments exceeding ₹50,000, customers must pre-verify details such as the check number, date, recipient’s name, and amount with the bank. This is a security measure to prevent fraud.
Fixed Deposit (FD) and Savings Account Interest Rates
- HDFC Bank has closed its special FD scheme and revised FD interest rates for the general public (maximum 7.25% for a tenure of 10–21 months).
- YES Bank has also increased FD rates, offering up to 7.98% for a tenure of 12–24 months.
Credit Card Benefits Reduced
- SBI Card’s SimplyCLICK and Air India SBI Platinum Card users will face a reduction in reward points.
- IDFC First Bank has discontinued Club Vistara Milestone benefits.
| Topic | Details |
| UPI 123Pay Limit | Increased to ₹10,000 |
| ATM Free Transactions (Metro) | 3 |
| ATM Free Transactions (Non-Metro) | 5 |
| ATM Interchange Fee (from May 1, 2025) | ₹23 |
| HDFC Bank FD Interest (10-21 months) | Up to 7.25% |
| YES Bank FD Interest (12-24 months) | Up to 7.98% |