Starting June 1, 2025, a series of important changes in financial regulations and services will come into effect across India. These updates will influence savings, credit card usage, provident fund access, and more. Here’s a comprehensive overview of what to expect:
Employees’ Provident Fund Organisation (EPFO) 3.0 Launch
- The EPFO will roll out its upgraded 3.0 system, aiming to simplify provident fund withdrawals and streamline Know Your Customer (KYC) updates.
- The new platform is expected to significantly reduce claim processing times.
- A standout feature is the introduction of ATM-like cards, making it easier and faster for members to access their EPF funds.
Revised Fixed Deposit (FD) Interest Rates
- Suryoday Small Finance Bank and other institutions will revise their FD rates from June 1, 2025.
- For deposits below ₹3 crore, interest rates will range from 4% to 8.4%, with the highest rates available for tenures of 30 to 36 months.
- The interest rate for 5-year FDs will decrease by 60 basis points, moving from 8.6% to 8%.
- These changes reflect broader market adjustments as banks respond to evolving economic conditions.
Credit Card Policy Updates
- Axis Bank will implement phased changes to its REWARDS Credit Card starting June 20, 2025.
- Updates include new rules for earning reward points, changes in merchant categories, and revised validity periods for points.
- HDFC and Kotak Mahindra Bank will also introduce changes to their credit card benefits and fee structures in June.
- These modifications are intended to help cardholders better understand and manage their rewards and spending.
SEBI’s New Mutual Fund Cut-off Timings
- The Securities and Exchange Board of India (SEBI) has set new transaction cut-off times for overnight mutual fund schemes, effective June 1, 2025.
- Offline transactions must be completed by 3 PM, while online transactions have a 7 PM deadline.
- Orders placed after these times will be processed the next business day, which could affect the applicable Net Asset Value (NAV).
Aadhaar Card Update Deadline
- The last day to update Aadhaar details online for free is June 14, 2025.
- After this date, online updates will incur a fee of ₹25, and updates at physical Aadhaar centres will cost ₹50.
- Keeping Aadhaar information current is crucial for accessing various government and financial services.
Additional Noteworthy Changes
- Taxpayers should ensure they receive their Form 16 and Form 16A for TDS by June 15, 2025, to facilitate accurate income tax filing.
- Some banks may revise ATM withdrawal fees and minimum payment calculations for credit cards, potentially impacting regular banking habits.
These changes are part of ongoing efforts to modernise and optimise India’s financial systems. Individuals and businesses should review these updates carefully to remain compliant and make the most of the new opportunities and benefits.
