Big changes in banking services from July 1 - ATM cash withdrawal rules to savings interest rates - All you need to know

From this 1st July, many banking services, rules and even charges are going to change. And, these changes will directly impact bank customers. For the convenience of our readers and banking customers, here we list out the banking services, rules and charges which are going to witness a change from 1st July, 2020 and their impact:-

Lesser interest on bank deposits: Bank account holders will get lesser amount in terms of interest rates

ATM cash withdrawal: Rebate and exemptions on ATM cash withdrawal will come to an end. There was a relief from government on ATM cash withdrawal for the three months - April, May and June - in the wake of Covid-19 pandemic

Savings account minimum balance: The monthly minimum balance requirement will be active again on your savings account. Reportedly, Bank of Baroda may even freeze your account, if you as a banking customer fail to maintain minimum monthly balance in your savings account of bank. Noteworthy, Vijaya Bank and Dena Bank have been merged into Bank of Baroda

Different rules for metros, city and rural areas: Reportedly, there will different rules for metros, city and rural areas for savings account monthly minimum balance requirement

Maximum 3.25% interest: At the max, there will be  3.25% interest rates on the savings bank account.
 
Punjab National Bank: PNB to slash 0.50% interest rates on savings bank accounts

Account freeze: Reportedly, a bank account may become frozen if the banking customer fails to submit documents required for continuing the banking services

On June 10, sate-run lender Bank of Baroda had said that it will reduce its benchmark lending rate across various tenors by 15 basis points. Accordingly, the bank will reduce its marginal cost of funds based lending rates (MCLR) across various existing levels and tenors w.e.f. June 12.

The MCLR, the minimum lending rate below which a bank is not permitted to lend, is an internal reference rate for banks to determine the interest they can levy on loans.

Consequently, with the cut, EMIs on eligible loan accounts which are linked to MCLR will get cheaper.