Financial Rules Changing May 1, 2025: What’s New with ATM Fees and FD Rates

Consumers and investors should be aware of how these adjustments may impact their financial planning. It's essential to stay informed about these updates to make the most of your banking experience and optimize your savings strategies.

Banking operations, deposit interest rates, and ATM usage fees will all be impacted by a series of major financial changes that take effect on May 1, 2025. The Reserve Bank of India (RBI) has mandated revised ATM transaction and interchange fees, significant regional banking consolidation under the "One State-One RRB" policy, and new interest rate structures for savings and term deposits from a number of banks. 

Charges for going beyond free transaction limits have been updated as of May 1, 2025.

Banks are allowed to charge up to Rs 23 per transaction if clients go over their monthly free transaction limitations. Both financial and non-financial transactions are subject to this cap. Any applicable taxes will also be billed separately.

Each month, customers can use their own bank's ATMs to complete five free transactions, including both financial and non-financial ones. According to RBI guidelines, they are also qualified for free financial and non-financial transactions at other bank ATMs—three in metro areas and five in non-metro areas.

Earlier this month, the Finance Ministry launched the 'One State-One RRB (Regional Rural Bank)' project in 11 states with the goal of consolidating 15 RRBs into a single organization. The proposal, which will take effect on May 1, intends to reduce expenses and increase operational efficiency.

On April 8, 2025, a PIB statement stated that "43 RRBs are currently operating in 26 States and 2 UTs." After amalgamation.

NPCI and RBI update the interchange fee

A adjustment to ATM interchange fees has been agreed by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). The changes will go into effect on May 1, 2025. With effect from May 1, the interchange charge has been raised to Rs 7 for non-financial transactions and Rs 19 for financial transactions. On these transactions, the Goods and Services Tax (GST) will be charged in addition.

Interest rates for savings accounts and FDs will change on May 1.

The interest rates for savings accounts and fixed deposits under Rs 3 crore have been updated by Shivalik Small Finance Bank. Effective May 1, 2025, the new rates will be in effect.

content reference: thanks to ET, IT