New Rules for Public Sector Banks: The country’s major public sector banks—SBI, PNB, and Bank of Baroda—have issued several new rules and features for account holders in October 2025. These changes are aimed at promoting digital banking, security, and financial inclusion. The key points are explained in simple language below.
Minimum Balance Changes
SBI and PNB have removed the minimum balance requirement for most savings accounts. This will reduce the pressure on small account holders. Meanwhile, BOB has imposed limits on some accounts based on digital transactions or balance—so BOB customers should check the rules with their branch.
Account Inactivity
If there has been no transaction in an account for two years, the bank may deactivate the account and proceed with further processing. Such accounts will need to be activated by contacting the bank.
KYC Updates Now Mandatory and Regular
As per RBI guidelines, every account holder must update their KYC (Aadhaar, address, photo, etc.) every 2–3 years. Failure to do so may result in limited bank services or account blockage/closure. Therefore, timely KYC completion is essential.
ATM and Digital Transaction Fees
The number of free ATM withdrawals has been reduced. Additional fees will apply for exceeding the free withdrawal limit. This is aimed at encouraging people to switch to digital transactions and reducing unnecessary cash withdrawals. Security has also been enhanced in mobile/net banking—features like additional OTP and face verification have been added.
₹1 Lakh Financial Assistance Scheme
A scheme has been launched in partnership with the government and banks to directly credit ₹100,000 to the bank accounts of eligible account holders from October 2025. This scheme is for financial assistance purposes, and eligibility will be announced separately. Check eligibility and disbursement rules with your local bank/government office.
Improving Digital Banking Security
New features have been implemented to enhance security in mobile apps and net banking—OTP verification, biometric options, and real-time alerts on transactions. This will help reduce online fraud.
Bank Merger Plan (Possible)
The government is working on merging smaller public sector banks into larger ones. This merger aims to strengthen the banking system and increase access to services. Collaboration between SBI, PNB, and BOB is expected to increase.
What should account holders do?
- Update your KYC documents on time.
- Keep your bank’s app/net banking settings and security alerts enabled.
- Find out about ATM free withdrawal limits and fees.
- Contact the bank for eligibility and application procedures for the ₹1 lakh scheme.
- Keep your account activity regular to prevent it from becoming inactive.
Conclusion
These updates aim to make account management simpler, safer, and more inclusive. Minimum balance waivers, stricter KYC rules, improved digital security, and financial assistance schemes—these measures are beneficial for customers. However, it’s best to check with your bank or its official website for complete details and eligibility.
