Starting May 1, 2025, South Africa’s banking industry will implement major regulatory changes aimed at improving financial security, reducing fraud, and increasing transparency across all customer transactions.
From new ID verification protocols to updated transaction fees and faster interbank transfers, these changes are expected to affect millions of individuals and businesses across the country.
Here’s everything you need to know to stay compliant and avoid disruptions.
What’s Changing on May 1?
1. Stricter Identity Verification Requirements
To strengthen security and meet compliance standards, banks are now enforcing enhanced Know Your Customer (KYC) checks. Customers will experience:
- Mandatory biometric verification (fingerprint or facial recognition) for new accounts
- Re-verification every 3 years for existing customers
- Accepted documents include Smart ID cards, green barcoded ID books, chip-enabled driver’s licenses, and valid passports (for foreign nationals)
Accounts without completed verification may be temporarily frozen or suspended until the process is completed.
2. Updated Banking Fees Across All Major Banks
Banks have introduced a more standardized and transparent fee structure, affecting everyday transactions, account management, and digital banking services.
| Service | Old Fee (Approx.) | New Fee (Effective May 1) | Details |
|---|---|---|---|
| ATM Withdrawal (Own Bank) | R6 per R1,000 | R4.50 per R1,000 | Lower fee to promote in-bank withdrawals |
| ATM Withdrawal (Other Bank) | R11 per R1,000 | R8 per R1,000 | Fee capped across major banks |
| Debit Order Reversal | R115 | R135 | Increased to discourage insufficient funds |
| Monthly Maintenance (Basic Account) | R65 | R50 | Applies to entry-level accounts |
| Interbank EFT Transfer | R40 (avg.) | R25 (flat) | Online transfers more affordable |
| International Card Usage Fee | 2.75% | 2.50% | Reduced transaction charges |
| Instant EFT (via apps) | R8 | R5 | Reduction on app-based services |
Customers are encouraged to review their specific bank’s fee guide for additional service updates.
3. Faster Interbank Transfers
To boost efficiency in the digital era, interbank transfer timelines have been shortened significantly. This move is designed to support faster retail and business payments.
| Transaction Type | Old Timeframe | New Timeframe |
|---|---|---|
| Standard EFT (Domestic) | 2-3 business days | Within 2 hours |
| Immediate Payment | Up to 1 hour | Within 10 minutes |
| Scheduled Payments | Next-day execution | Same-day execution |
| Online App Transfers | 1-2 business days | Within 1 hour |
| Business Bulk Payments | Up to 4 business days | Within 24 hours |
This change applies to all major banks, and missed timeframes may now trigger automatic user notifications.
4. Mandatory Two-Factor Authentication (2FA)
For all online transactions exceeding R500, two-factor authentication is now compulsory. This includes:
- Verification via SMS, banking app, or email
- A daily online transaction limit of R10,000, unless manually approved by the account holder
- Payment links must be generated through authorized banking platforms
This added layer of security is designed to combat growing incidents of online fraud and identity theft.
Who Will Be Most Affected?
While the new rules apply to all customers, some groups will experience more significant impacts:
- Students and pensioners may benefit from lowered basic account fees
- Small businesses will enjoy reduced EFT fees and faster settlements
- Frequent travelers and international shoppers will see lower currency conversion charges
- Customers with outdated documents must update identification to maintain account access
- Online shoppers and app users will need to activate or upgrade 2FA settings immediately
The South African banking rules taking effect on May 1, 2025, represent a major shift toward greater security, transparency, and digital efficiency.
Whether you’re a personal account holder or a business owner, these changes will likely influence how you transact, how much you pay in fees, and how securely your identity is protected.
The key is to act now—update your details, enable 2FA, and understand the new fees—to avoid any interruptions in your daily banking.
By staying informed and prepared, you’ll be in a strong position to benefit from these reforms while protecting your finances and personal information.
FAQs
What happens if I don’t complete my biometric or ID verification?
Your account may be restricted or temporarily suspended until you provide the necessary documentation and complete the verification process.
Will these changes apply to all types of accounts?
Yes, the new rules impact personal, student, senior, and business accounts across all major banks in South Africa.
How can I ensure I’m ready before May 1?
Update your ID documents, enable two-factor authentication on your bank app, and review your bank’s latest fee schedule.