Effective June 1, 2025, banking rules will witness major changes all across India, bringing in a direct effect on how customers manage their daily transactions. Changes will also respond to the need for transparency, security, and user convenience-but costs and limits may be the other leg users will have to stand on, so to speak. Here is an overview of the five key changes in banking.
1. Revised UPI Transaction Limits
UPI or the Unified Payments Interface is the most widely accepted digital payment method. From June 1, the per-day transaction limit for UPI transactions will be increased to ₹2 lakh from ₹1 lakh, for verified users. The greater limit will encourage higher-value payments via mobile apps, but the users should have KYC updated to avail of the higher limit.
2. Increased ATM Withdrawal Charges
Banks will revise free ATM withdrawal limits and charges. Most people may still get 3-5 free transactions in a month, but beyond the free limit, charges will increase from ₹21 to ₹23 per transaction. The rationale behind this is the increased operational costs faced by banks.
3. Cheque Clearing Window Reduced
Cheque clearing times will be brought down to improve processing efficiency. Cheques would now be cleared by banks within one working day for most interbank transactions if they are deposited on the same day before the 1:00 P.M. cut-off. This shall help to reduce delays in the settlement of funds for customers and businesses.
4. New KYC Verification Rules
The Reserve Bank of India has updated for stricter KYC rules to prevent fraud incidences. If you now have a bank account in any bank, you will be periodically subjected to an e-KYC update; in particular, members whose records have not undergone any change in the last two years must comply. Non-compliance will lead to the temporary discontinuation of banking services.
5. Transaction Alerts For Auto-Debit Mandatory
While deducting payments for bills, EMIs, or subscriptions through auto-debit facilities, an SMS and e-mail alert should be sent to customer numbers just moments-before deduction. Banks must also allow customers to put a hold or cancel the transaction on the basis of an alert in the application or via its Internet banking. The whole idea is to empower the customer to prevent deductions from happening without their knowledge.
Conclusion
The above changes depict the banking sector moving toward more secure, faster, and customer-centric services. Service disruptions are something to be endured by customers; hence, they should keep contact numbers updated, complete henceforth any KYC requirements, and constantly keep an eye on transactions.
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