New Banking Rule – Starting May 30, 2025, Indian banking customers will see major updates in the way they use ATMs, UPI apps, and cheque facilities. These changes have been introduced as part of the Reserve Bank of India’s (RBI) latest initiative to enhance transaction security and streamline daily banking processes. With new withdrawal limits, cheque verification rules, and UPI usage caps, it’s important for account holders to understand how these updates may impact their daily transactions.
Why These Banking Changes Were Introduced
The Reserve Bank of India has implemented these new banking rules to combat rising digital fraud, ensure secure transactions, and standardize banking experiences across urban and rural areas. With the growing use of UPI, ATMs, and cheques, these updates aim to improve transparency, strengthen verification processes, and protect customer funds more effectively.
The RBI, along with several leading banks, has decided to revise transaction rules based on rising fraud cases and the increased volume of digital payments. These updates aim to:
- Strengthen user authentication and fraud prevention.
- Encourage digital transparency in cheque-based transactions.
- Avoid misuse of ATM and UPI facilities with new caps and limits.
- Promote financial inclusion by ensuring uniformity across urban and rural accounts.
ATM Withdrawal Limits Revised – What You Need to Know
Starting May 30, 2025, the Reserve Bank of India has lowered daily ATM withdrawal limits for most account holders to curb fraud and promote digital payments. Savings account holders in metro cities can now withdraw up to ₹20,000 per day, down from ₹25,000, while non-metro users are limited to ₹15,000. Senior citizens retain the previous ₹25,000 limit. After five free transactions, a charge of ₹21 + GST will apply. Planning withdrawals smartly is now more important than ever.
From May 30, ATM withdrawal rules will be updated for savings and current accounts across major public and private banks. Here’s a snapshot of the key updates:
New ATM Withdrawal Rules (Effective May 30, 2025)
| Category | Old Limit (Per Day) | New Limit (Per Day) | Free Transactions | Charges After Limit |
|---|---|---|---|---|
| Savings Account (Metro) | ₹25,000 | ₹20,000 | 5 | ₹21 + GST |
| Savings Account (Non-Metro) | ₹20,000 | ₹15,000 | 5 | ₹21 + GST |
| Current Account | ₹50,000 | ₹40,000 | 5 | ₹21 + GST |
| Senior Citizens | ₹25,000 | ₹25,000 (Unchanged) | 6 | ₹21 + GST |
| Rural PMJDY Account Holders | ₹10,000 | ₹10,000 | 3 | ₹21 + GST |
| ATM Interchange Fees | ₹17 | ₹21 | – | As per usage |
| Cardless Withdrawals (UPI) | ₹10,000 | ₹5,000 | – | Based on provider |
UPI Transaction Limits – New Rules for 2025
Digital payments through UPI apps such as PhonePe, Google Pay, Paytm, and BHIM will also see updated limits to enhance security and manage high-volume traffic efficiently.
Updated UPI Rules & Limits
| Transaction Type | Previous Limit | New Limit (From May 30) | Applicable Per | Verification Needed |
|---|---|---|---|---|
| P2P (Person-to-Person) | ₹1,00,000 | ₹75,000 | Per Day | Yes, via OTP + PIN |
| P2M (Merchant Payments) | ₹2,00,000 | ₹1,00,000 | Per Transaction | Yes, via UPI App |
| Wallet to UPI Transfer | ₹50,000 | ₹25,000 | Per Day | Yes |
| Credit Card Linked UPI | ₹1,00,000 | ₹50,000 | Per Day | Biometric / OTP |
| Bill Payments | Unlimited | ₹1,00,000 | Per Transaction | App-based Security |
| New UPI User Limit | ₹5,000/day | ₹2,500/day | First 3 Days | UPI Registration |
| QR Code Scan Limit | ₹1,00,000 | ₹50,000 | Per Day | Standard UPI Rule |
Cheque Issuance and Clearance – Key Updates
To reduce cheque fraud and increase accountability, the RBI has issued new cheque-related protocols:
Major Changes in Cheque Handling from May 30
- Positive Pay Mandatory: Cheques above ₹50,000 must be verified via Positive Pay system.
- Digital Tracking: Real-time tracking of cheque status via bank apps is now mandatory.
- Cheque Bounce Fee Increase: Penalty on cheque bounce raised to ₹750 from ₹500.
- Cheque Return Window: Reduced from 3 days to 1 working day for urban areas.
Revised Cheque Regulations
| Cheque Amount | Positive Pay Required | Clearance Time | Bounce Penalty | Status Update Method |
|---|---|---|---|---|
| Below ₹10,000 | Not Required | Same Day | ₹150 | SMS / Email |
| ₹10,000 – ₹50,000 | Optional | 1 Working Day | ₹300 | Bank App / SMS |
| Above ₹50,000 | Mandatory | 2 Working Days | ₹750 | Positive Pay Portal |
| Senior Citizens | Not Compulsory | 1 Working Day | ₹150 | SMS / Phone Call |
| Govt Transactions | Required | Same Day | No Charge | Bank Alert System |
How Will These Changes Impact You?
These updated banking norms will have the following implications:
- Daily ATM cash withdrawals will need better planning, especially for metro users.
- UPI users must monitor daily limits closely to avoid transaction declines.
- Cheque users should opt into Positive Pay to prevent delays or rejections.
- Senior citizens and rural account holders receive some relaxations, but they still need to stay updated.
Important Tips to Manage These Changes Smoothly
- Set daily spending alerts through your bank’s mobile app.
- Register for SMS and email alerts to avoid transaction failures.
- Use credit cards or NEFT for large payments to avoid UPI/ATM caps.
- Verify cheque status online before submission to avoid bounce penalties.
- Maintain adequate account balance to avoid failed transaction charges.
The new banking rules from May 30, 2025, mark a significant shift in daily financial practices. While these changes may appear restrictive initially, they are designed to enhance transparency, reduce fraud, and promote safer banking experiences for everyone. It is essential for account holders to stay aware of these changes, update their app settings, and plan their transactions accordingly.
Frequently Asked Questions (FAQs)
1. What is the new daily ATM withdrawal limit for savings accounts?
From May 30, the limit is ₹20,000 per day for metro savings account holders.
2. Are the new UPI rules applicable to all banks?
Yes, the updated UPI rules apply across all UPI-enabled banks and apps.
3. What is Positive Pay, and who needs it?
Positive Pay is a cheque verification system mandatory for cheques above ₹50,000.
4. Will senior citizens be affected by the ATM or cheque rule changes?
Senior citizens will see minimal changes; their ATM withdrawal limit remains ₹25,000, and Positive Pay is not mandatory for them.
5. Can I increase my UPI daily limit manually?
No, the limits are set uniformly by the RBI and banks and cannot be changed by users.