Bank account holders of major public sector banks are set to see important changes as new banking regulations come into effect in 2026. Customers of State Bank of India, Punjab National Bank, and Bank of Baroda need to pay close attention, as these rule changes directly affect daily banking operations, account security, and compliance requirements.
The new regulations have been introduced in line with updated guidelines issued by the Reserve Bank of India to strengthen the banking system, reduce fraud, and protect genuine customers.
Why Banks Introduced New Account Rules in 2026
Over the past few years, banks have faced rising cases of digital fraud, mule accounts, identity misuse, and inactive accounts being exploited for illegal transactions. With the rapid growth of UPI, online transfers, and mobile banking, regulatory authorities have emphasized stricter monitoring and customer verification.
The 2026 rule changes are aimed at improving transparency, ensuring that every account holder is properly verified, and making the banking ecosystem safer without disrupting genuine users.
Mandatory KYC Update Becomes More Strict
One of the most important changes is stricter enforcement of Know Your Customer norms. Customers whose KYC details are incomplete or outdated may face transaction restrictions. Banks will now actively monitor KYC status and send reminders for updates.
If KYC is not completed within the prescribed timeline, debit transactions such as withdrawals, transfers, and digital payments may be temporarily blocked until verification is done.
Inactive and Dormant Accounts Under Close Watch
Accounts that remain inactive for a long period are now being closely monitored. If an account shows no customer initiated transactions for an extended duration, it may be classified as inoperative.
Under the new rules, such accounts may face temporary restrictions as a safety measure. Reactivation usually requires a simple verification process at the branch or through approved digital channels.
Tighter Monitoring of Large and Unusual Transactions
Banks are enhancing surveillance of accounts that show sudden large transactions or patterns that do not match the customer’s income profile. This does not mean normal customers will be penalized, but unusual activity may trigger alerts.
In such cases, banks may seek clarification or supporting documents to ensure transactions are legitimate. This step helps prevent fraud and protects account holders from unauthorized activity.
Minimum Balance and Penalty Awareness
While minimum balance rules are not new, banks are now placing stronger emphasis on customer awareness. Customers are being informed more clearly about minimum balance requirements and applicable penalties.
Failure to maintain the required balance may attract charges as per the bank’s policy, though many basic savings accounts continue to enjoy relaxed norms.
Digital Banking Security Rules Strengthened
With digital banking usage at an all time high, banks are introducing additional security checks. Customers may notice enhanced authentication steps for certain transactions, especially high value ones.
These measures may slightly increase transaction time but significantly reduce the risk of fraud, phishing, and unauthorized access.
5 Key Bank Account Rule Changes Customers Should Know
- Stricter enforcement of KYC updates for uninterrupted transactions
- Closer monitoring and verification of inactive or dormant accounts
- Enhanced checks on large or unusual transactions
- Clearer communication on minimum balance rules and penalties
- Stronger digital banking security and authentication measures
What SBI, PNB and BoB Customers Should Do Now
Customers should first check whether their KYC is fully updated, including PAN, Aadhaar, address, and mobile number where applicable. Those who have not used their account for a long time should make a small transaction or visit their branch to avoid inactivity issues.
It is also important to respond promptly to any communication from the bank regarding verification or clarification requests.
Will These Rules Affect Normal Banking
For customers who maintain updated KYC, use their accounts regularly, and conduct legitimate transactions, there will be little to no impact. The new regulations mainly target risk prevention and system integrity rather than everyday banking convenience.
Most restrictions, if applied, are temporary and are lifted once compliance is completed.
Common Misunderstandings Around the New Rules
A common misconception is that accounts will be closed automatically or that penalties will be imposed on all customers. This is not true. Banks follow a step by step process that includes alerts, reminders, and assistance before any restriction is applied.
Another myth is that digital payments will be limited for everyone, whereas only flagged or non compliant accounts may face checks.
Conclusion
The bank account rule changes introduced in 2026 for SBI, PNB, and Bank of Baroda customers are focused on safety, transparency, and fraud prevention. By ensuring KYC compliance, keeping accounts active, and staying informed through official bank communication, customers can continue enjoying smooth banking services. These regulations are designed to protect both the financial system and genuine account holders in the long run.
Disclaimer: Banking rules and enforcement procedures may vary based on account type and individual customer profile. Customers should always refer to official bank notifications or visit their branch for the latest and most accurate information.