New Rules: Know What Major Changes Will Happen From May 1

Passengers holding waiting tickets will not be permitted to travel in sleeper or AC coaches. Waiting tickets will only be valid for general coaches.

Several significant changes came into effect across India from 1 May 2025, directly impacting people's finances and daily lives. New rules have been implemented in various sectors, from railway ticket booking to banking and ATM transactions. These changes have forced both travellers and bank customers to adapt their strategies and plans.

Major Changes in Railway Ticket Booking

Indian Railways has implemented significant changes to its ticket booking rules, effective from 1 May. Travel on sleeper and AC coaches is no longer permitted for those holding waiting tickets; only general coaches will accept waiting tickets. This decision aims to control overcrowding on railways and ensure better facilities for confirmed ticket holders. Additionally, the Advance Reservation Period (ARP) has been reduced from 120 days to 60 days. This means tickets can now only be booked up to two months in advance.

The railways have also indicated potential changes to rules related to fares and refunds. Increases in three major charges are anticipated, potentially raising the cost of cancelling tickets. These changes highlight the need for travellers to plan their journeys more carefully and exercise greater caution when booking tickets. Those undertaking long-distance journeys will need to be particularly vigilant, given the reduced availability of waiting tickets.

Increased ATM Transaction Charges

Following new guidelines from the Reserve Bank of India (RBI), ATM transaction rules have also changed from 1 May. Customers will now incur additional charges for cash withdrawals, deposits, or balance checks exceeding the free transaction limit. Major banks like Punjab National Bank (PNB) and HDFC have revised their fee structures. Under the new rules:

• Cash Withdrawal: A charge of ₹23 per transaction will apply.
• Balance Check: The charge has increased from ₹6 to ₹7 per transaction.
• Non-financial Transactions: Banks like PNB will now charge ₹11 per transaction.

These increased charges could pose a challenge for frequent ATM users. Customers must now be mindful of their monthly free transaction limits to avoid unnecessary expenses.

Merger of Regional Rural Banks in 11 States

From 1 May 2025, the merger of 15 Regional Rural Banks (RRBs) across 11 states commenced. This move is in line with the central government's 'One State, One RRB' policy, reducing the number of RRBs in the country from 43 to 28. The aim of this merger is to improve operational efficiency, reduce costs, and provide better digital and customer service.

Customers should not experience any inconvenience due to this change, as the number of bank branches will remain unchanged. Only the bank's name will change, and services will be stronger than before. Customers with accounts in these banks do not need to change their account details or transaction processes. This step is considered a significant move towards making banking services more accessible in rural areas.