Seven Banking Rules Changing Today: UPI, Credit Card, Income Tax - List

At the beginning of the new financial year, several key financial changes will start taking effect from today. The government has made many changes in banking rules starting from UPI payment rules to the pension scheme.

It is imperative that citizens and taxpayers stay informed of the changes in the new income tax rules, changes in credit card norms, as well as changes to the UPI interface, among other changes that are taking effect on April 1, 2025.

Changes In Income Tax Slabs

The Union Minister of Finance, Nirmala Sitharaman in her 2025 Budget speech in February announced updated income tax slabs under the new income tax regime, which come into effect from April 1, 2025.

As part of the new income tax regime, individuals earning up to Rs 12 lakh annually will not need to pay income tax. A standard deduction of Rs 75,000 will apply for salaried individuals, effectively making Rs 12.75 lakh salary tax-free under the new regime.

While the new tax regime has changed the tax slab rates, the basic exemption limit has been hiked from Rs 3 lakh to Rs 5 lakh.

Changes In TDS

Sitharaman, in her Budget speech had also announced an increase in the limit for tax deducted at source (TDS) from Rs 5,000 to Rs 10,000, effective from April 1, 2025. As a result all mutual funds as well as equities investors will be able to keep more in their hand, with TDS being cut only once, the annual dividend income will exceed Rs 10,000.

Changes In UPI Payments

To strengthen the security network of UPI payments, the National Payments Corporation of India (NPCI) will enforce certain guidelines announced recently from April 1. These include:

• Inactive numbers will not be allowed to make payments.
• Public and private sector banks like the State Bank of India and HDFC Bank, and third-party UPI providers, such as PhonePe and Google Pay, will phase out inactive numbers which are linked to UPI due to security risks.
• Users can approach their banks to activate their inactive UPI accounts and update their details by April 1, 2025, to avoid losing their accounts.

Changes In Credit Cards

Rules have also been updated as per varying products, for consumers using credit cards. Users can check with their bank, branch manager, or customer relations officer for specific details. Among some credit cards that are affected by these changes are:

• There are certain changes in the reward point structures for the SBI Card with SimplyCLICK and Air India SBI Platinum Credit Card.
• There is also a revision of Vistara Credit Card benefits for Axis Bank, due to the airline's merger with Air India.

Changes In Minimum Balance Requirement

Public sector banks such as SBI, Canara Bank and Punjab National Bank (PNB), among others, are updating their minimum balance requirements from April 1, 2025.

The new minimum balance will be determined by market -- rural, semi-urban, and urban areas. Additionally, bank customers that are unable to maintain minimum balance will get penalized.

Changes In The Unified Pension Scheme

The Unified Pension Scheme (UPS) which was launched in 2024, will come into effect starting April 1, 2025, to replace the old pension scheme (OPS). This will affect about 23 lakh central government employees with a minimum working experience of 25 years.

According to the UPS, staff with at least 25 years of service will be eligible fir a pension equivalent to 50% of their last 12 months' average basic salary.

Changes In The Goods And Service Tax (GST) Rules

The Goods and Service Tax (GST) portal will require mandatory multi-factor authentication (MFA) to ensure better security for taxpayers, starting April 1. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days.

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