The practice of charging default interest on agricultural loans while farms are facing drought or natural disaster is history.
The change is one of several Banking Code of Practice improvements that start on Saturday.
Banks will also ensure services to people with limited English and those living in remote areas are inclusive and accessible, and remove overdraft and dishonour fees on basic, low fee or no fee accounts for concession card holders.
As well the industry will guarantee certain features for basic bank accounts: transaction accounts that have features such as no account-keeping fees, free monthly statements and no minimum deposit amounts.
Australian Banking Association chief executive Anna Bligh says the changes are part of the industry’s response to the financial services royal commission.
“These changes to the code are in addition to a number of actions already taken by banks as a direct result of the royal commission, including ending fees for no service and a remediation bill topping $5.8 billion in the 12 months since the final report,” she said.