From 1st September 2025, the Reserve Bank of India (RBI) has rolled out fresh changes in the rules governing savings bank accounts. These changes will directly impact millions of customers across public sector banks, private banks, and regional rural banks. The new regulations aim to bring more transparency, digital convenience, and better financial discipline for account holders.
Key Changes in Savings Account Rules
RBI has issued guidelines that focus on interest calculation, minimum balance requirements, and transaction charges. Banks have been instructed to communicate these rules clearly to all customers.
One of the biggest changes is the uniform method of interest calculation across all banks. Earlier, some banks used different cut-off timings, which often led to confusion. From September, all banks will calculate interest on a daily end-of-day balance, ensuring fairness.
Additionally, banks can no longer levy hidden charges on digital transactions. Any service fee or penalty must be pre-disclosed to customers.
Impact on Minimum Balance and Penalty Rules
Many banks used to deduct penalties if customers failed to maintain the average monthly balance. With RBI’s intervention, a uniform penalty structure has been introduced. Customers will not be burdened with excessive deductions, and the penalty will remain reasonable.
To give more clarity, here’s a snapshot of the revised norms:
| Particulars | Previous Rule | New Rule (From 1 Sept) |
|---|---|---|
| Interest Calculation | Based on bank’s own system | Daily end-of-day balance for all banks |
| Digital Transaction Charges | Some banks levied hidden charges | No hidden charges, must disclose upfront |
| Minimum Balance Penalty | Different banks had different penalty slabs | Uniform penalty structure across banks |
| Dormant Account | No specific time limit | Account declared inactive only after 24 months of no activity |
| Passbook/Statement Charges | Charges varied | First statement/passbook free every quarter |
Why RBI Made These Changes
The RBI has been receiving complaints from customers about lack of clarity in interest payouts, unfair charges, and inconsistent rules across banks. By enforcing these changes, RBI is ensuring:
- Transparency in banking rules
- Protection of customers from hidden charges
- Uniformity across all scheduled banks
- Promotion of digital transactions
What Account Holders Should Do
If you maintain a savings account, make sure to check your bank’s official communication regarding these changes. It is important to:
- Monitor your end-of-day balance regularly to maximize interest.
- Use digital transactions without worrying about hidden charges.
- Avoid penalties by keeping the minimum required balance.
- Keep your account active with periodic transactions.
Conclusion
The new savings account rules effective from 1 September 2025 are a big relief for customers. With uniform guidelines on interest calculation, reduced hidden charges, and a fair penalty system, banking is expected to become more transparent and customer-friendly.
