Key Points:
- Major financial changes begin April 1, 2025, impacting UPI transactions, ATM fees, car prices, and income tax rules.
- Banks to enforce stricter minimum balance requirements and implement RBI’s Positive Pay System for cheque security.
- Income tax rebates increased under the new tax regime; cars to see price hikes across major brands.
New Delhi: As the financial year 2025-26 begins on April 1, several significant changes in banking, taxation, and consumer policies will come into effect. These updates will impact crores of people across India, from daily transactions to long-term investments. Here’s a detailed look at the key changes you need to prepare for:
1. UPI Accounts Linked to Recycled Numbers Will Be Deactivated
The National Payments Corporation of India (NPCI) has mandated banks and UPI service providers to update mobile number databases regularly to prevent fraud caused by recycled numbers. Starting April 1, UPI IDs linked to inactive or reassigned mobile numbers will be automatically deactivated. Users must ensure their registered mobile numbers are active to avoid disruptions in transactions.
2. ATM Withdrawal Charges Revised
From May 1, withdrawing cash from ATMs will become costlier. The fee for financial transactions will rise from ₹17 to ₹19 per transaction once users exceed their free transaction limit. Non-financial transactions like balance inquiries will now cost ₹7 instead of ₹6. This change is expected to encourage digital payments and reduce reliance on cash withdrawals.
3. Cars to Become Expensive
Major automobile manufacturers like Maruti Suzuki, Hyundai, Tata Motors, and Mahindra have announced price hikes effective April 1 due to rising input costs. Prices are expected to increase by up to 4%, impacting popular models like Maruti Swift and Hyundai Creta. This marks the third price hike by automakers in 2025.
4. Minimum Balance Requirements in Savings Accounts
Banks are revising their minimum average balance rules based on account type and location (urban, semi-urban, rural). Customers failing to maintain the required balance will face penalties starting April 1. These changes aim to encourage responsible banking practices.
5. Positive Pay System for Cheque Security
The RBI’s Positive Pay System (PPS) will become mandatory for cheques above ₹50,000 from April 1. Under PPS, account holders must electronically share cheque details such as number, date, amount, and payee name with their bank before clearing. This system aims to curb cheque-related fraud.
6. Income Tax Rules Updated
The Union Budget 2025 introduced several tax reforms effective April 1:
- Tax rebate under Section 87A increased from ₹25,000 to ₹60,000.
- Individuals earning up to ₹12 lakh annually will not pay income tax under the new regime.
- TDS exemption limits for senior citizens raised from ₹50,000 to ₹1 lakh on interest income.
How These Changes Will Impact You
These updates reflect efforts by regulatory authorities and industries to improve financial security and streamline operations while addressing inflationary pressures. From higher costs for car buyers and ATM users to enhanced protections against fraud through PPS and UPI updates, individuals must adapt their financial plans accordingly.
Stay informed about these changes as they take effect whether it’s updating your mobile number with your bank or planning your tax filings under the revised income tax slabs to ensure a smooth transition into FY 2025-26.
