From today, these new banking services charges, ATM cash withdrawal rules and savings interest rates are applicable - All you need to know

From today i.e. 1st July, 2020, many banking services, rules and charges have changed. 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 witnessed a change from 1st July 2020 and their impacts on you as a banking customer:-

-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. 

-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

-Lesser interest on bank deposits: Bank account holders will get the lesser amount of interest rates

-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 the savings bank account

-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.