Starting May 1, 2025, a number of significant financial changes will affect banking activities, deposit interest rates, and ATM usage costs. These consist of new interest rate structures for savings and fixed deposits by several banks, major regional banking consolidation under the “One State-One RRB” policy, and updated ATM transaction and interchange fees as instructed by the Reserve Bank of India (RBI).
Customers should be aware of these updates to manage their finances efficiently.
Revised charges for exceeding free transaction limits from May 1, 2025
If customers exceed their monthly free transaction limits, banks are permitted to charge a maximum of Rs 23 per transaction. This cap applies to both financial and non-financial transactions. In addition, applicable taxes will be charged separately.Customers are eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (including financial and non-financial) at other bank ATMs-three transactions in metro centres and five transactions in non-metro centres, as per RBI guidelines.
One State-One RRB
The Finance Ministry started the ‘One State-One RRB (Regional Rural Bank)’ initiative earlier this month in 11 states, which aims to combine 15 RRBs into a single entity. The plan aims to improve operating efficiency and rationalize costs, and it will go into effect on May 1.
According to a PIB release on April 8, 2025, “At present, 43 RRBs are functioning in 26 States and 2 UTs. Post amalgamation, there will be 28 RRBs in 26 states and 2 UTs with more than 22000 branches covering 700 districts. Their predominant area of operation is in rural areas with approx. 92% of branches in rural/semi urban areas.”
RBI- NPCI revise interchange fee
The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have approved a revision in ATM interchange fees, with the changes set to take effect from May 1, 2025. The interchange fee has been increased to Rs 19 for financial transactions and Rs 7 for non-financial transactions, effective May 1. Goods and Services Tax (GST) will be applied additionally on these transactions.
Savings account and FD interest rates changes from May 1
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.
IDFC FIRST Bank
IDFC FIRST 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.
RBL savings account calculation
RBL Bank sent an email to its customers informing them of this change in savings account interest calculation.
According to an RBL Bank customer email dated April 26, 2025, “Effective May 1, 2025, enjoy monthly payout of your savings interest. The Interest will be calculated and accrued daily, based on the end of day balance in your account and will be paid / credited to your account on a monthly basis. Interest in the Savings Account up to Rs 1 Lakh is calculated at 3.25% p.a. and for remaining balance will be calculated on progressive interest rate slabs.”
