Consumer Alert: New Financial Regulations Enforced from June 1st

Starting June 1, 2025, several new financial rules are coming into effect across India. These changes will impact daily life, especially in banking, digital payments, fuel pricing, mutual funds, and official documentation. Here’s a complete breakdown:

New Rules for Credit Card Users

Credit card holders will face significant changes:

• Additional Charges on Utility Payments: Some banks may now impose extra charges on utility bill payments (like electricity and water) made through credit cards.
• Fuel Surcharge: Banks like Kotak Mahindra may charge 1% if monthly fuel transaction limits are exceeded.
• Limited Reward Points: Reward point benefits on rent, insurance, and utility payments may be capped.
• Auto-Debit Penalties Reduced: Failed auto-debit penalties might drop to 2%.
• International Charges: Transaction fees and reward systems for international payments could change, so users should verify terms with their banks.

ATM Withdrawal and LPG Price Revisions

• ATM Charges May Increase: Exceeding the free monthly withdrawal limit might result in higher ATM charges. Users should check specific bank policies.
• LPG Cylinder Prices Updated: On the 1st of every month, LPG prices are revised. Commercial LPG prices may rise or fall depending on oil company updates.

Impact on Fixed Deposits

Some banks are revising Fixed Deposit (FD) interest rates:

• Example: Suryoday Small Finance Bank may reduce interest rates by up to 60 basis points.
• This could affect savers relying on FDs for steady income.

Free Aadhaar Updates Deadline

• June 14, 2025 is the last date for free Aadhaar detail updates online.
• After this date, ₹25 will be charged for online updates and ₹50 at Aadhaar centers.

EPFO 3.0: UPI-Based PF Withdrawals Introduced

The Employees’ Provident Fund Organisation (EPFO) is rolling out EPFO 3.0:

• Members can now withdraw PF using UPI or ATMs.
• Initially available as a pilot for GPF and PPF users.
• Faster claim processing and simplified KYC under the new platform.

UPI Transaction Rule Changes (Effective June 30)

• From June 30, 2025, all UPI apps must display the actual bank name of the recipient instead of custom labels (like “Raju Kirana Shop”).
• This change improves transparency and helps prevent fraud.

Mutual Fund Cut-off Timing Changes

SEBI has announced new cut-off times for mutual fund transactions:

• Offline Transactions: Cut-off is now 3 PM. Orders submitted before this get same-day NAV.
• Online Transactions: New cut-off is 7 PM. Orders before this will also receive the same-day NAV.

Driving License Rules Continue in 2025

The rules introduced in June 2024 remain:

• Driving Tests by Private Institutes: Recognized schools can conduct driving tests and issue certificates.
• Those with certificates no longer need to take an RTO driving test.
• Fines: ₹2,000 for driving without a license; ₹25,000 if a minor is caught driving.

Key Passport Rule Updates

New rules affect those applying for passports:

• Born after Oct 1, 2023: Must submit a birth certificate as proof.
• Born before Oct 1, 2023: Can submit PAN, Aadhaar, or driving license instead.

12 Bank Holidays in June 2025

As per the RBI Calendar:

• Banks will remain closed on 12 days in June.
• This includes Sundays, second and fourth Saturdays, and Bakrid (June 7).