RBI’s – The Reserve Bank of India (RBI) has shared new rules for savings accounts that will start from 1st October 2025. These new rules will change ATM charges and the minimum balance requirement in banks across India. RBI wants to make banking easier, more transparent, and more helpful for all customers. These changes will give account holders better control and smoother banking services.
RBI’s New Savings Account Rules (Effective from 1st October 2025)
| Aspect | Previous Rule | New Rule (Effective 1st October) |
| ATM Charges | ₹20-₹25 per transaction (depending on bank) | First 5 transactions per month are free, after that ₹10 per transaction |
| Minimum Balance Requirement | ₹500–₹2000 (varied by bank) | ₹500 for urban and metro branches |
| Penalty for Non-Maintenance | ₹100–₹250 per month (varied) | Penalty if balance stays below ₹500 for more than 3 months |
| Interest on Balances | No change | Same as before, calculated monthly |
Change in ATM Charges
One of the biggest updates is about ATM charges. Earlier, banks charged between ₹20 and ₹25 for each extra withdrawal after the free limit.
From 1st October, account holders will get 5 free ATM transactions every month. This includes both same-bank and other-bank ATMs. After these 5 free uses, banks will charge only ₹10 per transaction. This small charge makes ATM withdrawals cheaper and easier for people who use cash often.
This change will surely make many customers happy, as they can now save money on ATM fees.
Updated Minimum Balance Requirement
The RBI has made the minimum balance rule the same for all banks to bring fairness. Earlier, each bank had different minimum balance rules — from ₹500 to ₹2000, depending on the area.
From 1st October:
- In urban and metro branches, customers must keep a minimum balance of ₹500.
- In rural branches, the minimum balance will stay at ₹200.
This update will help people in both cities and villages keep their accounts active without much pressure. It also supports small account holders who find it hard to maintain higher balances.
Penalty for Not Keeping Minimum Balance
Before, banks used to charge ₹100–₹250 every month if customers failed to maintain the minimum balance. These penalties were different for each bank.
From 1st October, a penalty will be charged only if your account balance stays below ₹500 for more than 3 months. This gives customers more time to manage their money and avoid quick penalties.
This rule is fair and gives a cushion to those who sometimes miss keeping enough balance in their accounts.
Interest on Savings and Account Maintenance
The interest rate on savings accounts will remain the same. RBI has not made any changes in this part. The interest will continue to be calculated on monthly balances as per each bank’s rule.
These new rules focus mainly on improving customer convenience. With simpler ATM charges and a lower minimum balance, people can now enjoy a stress-free banking experience. Especially for those who earn less or depend on small savings, this change brings real relief.
Steps Customers Should Take
With the new RBI rules coming soon, here’s what you should do:
- Keep an eye on your ATM usage. Try not to cross 5 ATM transactions in a month to avoid extra ₹10 charges.
- Always maintain at least ₹500 in your account if you are in an urban or metro area.
- Read your bank’s updated rules so you don’t face any confusion or surprise penalties.
If you follow these small steps, you can easily stay ahead and enjoy all benefits of the new system.
Conclusion
The RBI’s new savings account rules from 1st October 2025 are made to simplify banking for everyone. With fewer ATM charges, lower minimum balance, and fair penalty rules, customers can now handle their money more freely. These changes are a positive move toward making banking easy, fair, and transparent for every Indian.
Disclaimer: This article is for general information only. The rules and charges mentioned are based on official RBI announcements. Please check with your bank for exact details and updates before making any financial decisions.