New Bank Rules 2026: Changes in Nominee, FD, KYC, Fraud and Loan Process

Several banking-related changes have been applied covering areas such as nominee details, fixed deposits, digital banking fraud, dormant salary accounts, KYC, pledged gold and silver etc.

These changes may affect customers how they manage their bank accounts, deposits, loans and complaints. 

The key takeaway for customers is to keep records updated, report issues promptly, and maintain proper documents.

1. ATM and UPI Cash Withdrawals

• Earlier ATM withdrawals were unlimited but later banks introduced monthly free ATM-transaction limits.
• ATM withdrawals can also be done through UPI without carrying a debit card by scanning a QR code at an ATM.
• Only 5 free withdrawal are available where 3 times from card and 2 time through UPI.
• For more than 5 limits - ₹23 charge for an additional transaction, but charges may differ by bank.

2. Failed ATM Transactions

It generally occurs when you go for cash withdrawal from ATM but due to technical issue the account is debited but cash is not dispensed.

For this the customer must submit a complaint:

• The deducted amount should be returned within five working days. 
• If the refund is delayed, the bank must pay compensation of ₹100 per day for the ATM failure.

3. NBFC Interest Calculation Rules

Earlier, interest calculations was based on 360 days, now the calculation would change to a 365-day basis.

As the interest is spread across more days under a 365-day calculation, there may be a small reduction in the borrower’s effective instalment burden.

4. Correct Nominee Details to Avoid Problems in Death Claims

A nominee is the person who registered with a bank or financial institution to receive money from an account or deposit after the account holder's death.

• One of the most important things is that the customers should check - whether their nominee information is accurate and updated.
• Nominee's name, date of birth, gender, relationship and address should match with official ID documents such as Aadhaar, Permanent Account Number (PAN), or other identity and address proofs.

If the information is incorrect, it may create difficulties when the nominee makes a claim.

In Case of Joint Account

Survivorship Clause = For Joint Bank Account.

Types of Joint Bank Account are Either or Survivor, Anyone or Survivor, Former or Survivor, Latter or Survivor.

Here, 

Under an "Either or Survivor" arrangement, both the holder can deposit or withdraw money independently. If one account holder dies, the surviving holder continues operating the account.

Documents Required for a Death Claim

• If valid nominee details and Survivorship clause exist, then document required like Claim Form, Death certificate, Identity Proof, Address/KYC proof and  Account or deposit details.

Claim Timeline

• A valid claim is settled within 15 calendar days.

Compensation For Delay

• If the bank delays in payment beyond that period, the compensation is applicable on savings/deposit interest rate plus additional 4% for the delay period.

5. Premature FD Withdrawal Rules After the Depositor's Death

Closing an Fixed Deposit before maturity usually comes with a penalty. But the rule is different when the FD holder passed away - premature withdrawal facility is available to nominee.

A nominee may request premature closure by submitting documents such as Death Certificate, Claim Form, Identity Proof, Address Proof and FD Details.

Is There a Penalty for Closing the FD After Death?

No penalty is charged when the FD is closed because of the depositor's death.

6. Digital Banking Fraud

Digital banking fraud can happen through OTP scams, malicious applications, stolen credentials and other methods.  

Earlier, the burden of proof was on customer who had to proof that whether they shared any OTP, PIN, or password etc.

Now under new RBI rule, the customer's liability may be zero or limited - if the bank is negligent.

• Eligible victims may get 85% of the net loss or ₹25,000, whichever is lower, for fraudulent electronic transactions up to ₹50,000. This benefit is available once in a lifetime.
• The customer must still report the fraud immediately to bank and report through helpline number 1930 within 5 calendar days.

7. Complaint through RBI Ombudsman 

If your bank or NBFC fails to solve a complaint, you may approach to RBI Ombudsman which is a free grievance mechanism - no lawyer, no fee.

• The customer should first raise the complaint with the concerned bank or financial institution.
• Wait for the response from bank.
• If there is no response within 30 days, or if the response is not satisfactory, the customer can approach the RBI Ombudsman within 90 days from the date on which the applicable timeline expires or from the date of the last communication from the Regulated Entity.

From 1st July 2026, RBI Ombudsman provide:

• Compensation up to Rs 30 lakh, for any consequential loss suffered by the complainant.
• Additional compensation up to Rs 3 lakh for loss of the complainant’s time, expenses incurred, harassment / mental anguish suffered, etc.

8. Dormant or Inoperative Salary Accounts

Salary account may become dormant or inoperative if there is no transaction for more than 2 years. 

Inoperative means no salary, UPI transaction or two years or more but it doesn't cause you to lose money. 

• Transactions are restricted until account is re-activated.
• Re-activation can be done with KYC Document such as Aadhaar, PAN, and address proof.
• Video KYC may also allow you to reactivate remotely, without visiting any branch.
• Interest that the bank credits automatically does not count as a customer transaction, so passive interest alone won't keep the account active.
• No penalty applies just because the account went dormant.

9. CKYC Process

CKYC i.e., Central KYC (Know Your Customer) is a verification process every bank, mutual fund, and insurer requires. 

Central KYC has been designed to reduce the need to repeatedly submit the same documents to different financial institutions.

After completing KYC once, you are issued a 14-digit KYC number.

You can provide your CKYC number and complete an OTP verification in other participating institutions.

10. Getting Your Gold or Silver Back After Repaying a Loan

If you have taken loan against gold or silver jewelry, this is about how quickly you should get your collateral back once you pay the same.

• If loans are paid fully (principal, interest, and any other dues) then the lender is required to return your pledged items promptly - either the same day or within 7 working days.
• If the lender delays - Compensation is up to Rs. 5000 per day.
• If only part of the loan Is repaid then do not expect all your jewelry back - only the proportional share of collateral tied to the amount repaid is typically released.

Rules applies to commercial banks, cooperative banks, NBFCs and housing finance companies.