Higher ATM Fees, Rural Bank Mergers: Here's What Will Change Starting May 1, 2025
Starting May 1, 2025, a few important financial changes will be coming into effect, affecting citizens across the country. The most prominent change remains the revised framework for ATM transaction charges, in addition to the government pushing ahead with its drive to make the rural banking system efficient by consolidating the regional banks.
ATM withdrawal charges:
After the Reserve Bank of India (RBI) approved a hike in ATM interchange fees, the amount a bank pays to another for using its services -- the customers will have to fork a little extra while withdrawing cash from ATMs.
Customers will now have to pay Rs 23 per transaction after exhausting their free monthly limit. This is an increase from the current charge of Rs 21 per transaction.
Customers are allowed:
Five free transactions per month (both financial and non-financial) at ATMs of their own bank.
Three free transactions per month at ATMs of other banks in metro cities.
Five free transactions per month at ATMs of other banks in non-metro areas.
Also Read | ATM Withdrawals To Get Costlier From May 1: Check New Charges
One State-One RRB
Earlier this month, the Finance Ministry started its 'One State-One RRB (Regional Rural Bank)' drive in 11 states, under which 15 RRBs across 11 states will be amalgamated into one. The scheme will come into effect from May 1 and is intended for achieving better operational efficiency and cost rationalisation.
"The Central Government hereby provides for the amalgamation of the said Regional Rural Banks into a single Regional Rural Bank, which shall come into effect on and from the 1st day of May, 2025 with such constitution, property, powers, rights, interests, authorities and privileges; and with such liabilities, duties and obligation," a notification by the Finance Ministry said.
With this fourth round of consolidation of regional rural banks (RRBs), the number would reduce to 28 from the existing 43.
Savings account and FD interest rates
Starting May 1, savings account holders at RBL Bank will receive interest payments monthly instead of quarterly. As per an email from the bank, the highest interest rate, which depends on the balance kept, in its savings account stands at 7 per cent.
"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," read the email.
Meanwhile, Shriram Finance Limited (SFL), an NBFC under the Shriram Group, has revised its Fixed Deposit (FD) interest rates, according to a report in The Economic Times. Senior citizens aged 60 years or above will receive an additional interest of 0.50 per cent per annum, while women depositors will receive an extra 0.10 per cent interest per annum.
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