Big Financial Updates: Financial Changes Effective from June 1, 2025: What You Need to Know
Big Financial Updates: Starting Sunday, June 1, 2025, several key financial changes will come into effect that could directly impact how you manage your personal finances. From new credit card charges to updates on ATM withdrawals, LPG prices, FD rates, and Aadhaar card updates, these changes are important for salaried professionals, business owners, and households alike. Staying informed will help you avoid extra charges and make smarter money decisions.
1. Credit Card Charges and Reward Changes
If you use your credit card to pay bills or refuel, expect some new charges. From June 1, banks like Kotak Mahindra will start charging a 1% fee on fuel purchases once you cross a monthly limit. Additionally, reward points may be restricted on certain payments such as rent, utility bills, and insurance premiums.
Auto-debit penalties are also being revised. If an automatic payment fails due to insufficient balance, the penalty may now be as low as 2%. International transaction fees and reward policies may also change, depending on your bank. It’s advised to review the latest updates on your bank’s official website or app.
2. ATM Withdrawal Charges May Increase
Banks may revise the charges for withdrawing cash from ATMs beyond your free monthly limit. Each bank has its own rules, so it’s important to check with your specific bank to understand the updated fees and avoid unexpected charges when withdrawing cash.
3. LPG Cylinder Price Update
On the first of every month, LPG prices are reviewed and updated. The change depends on global market conditions and may lead to a price increase, decrease, or no change at all. Keep an eye on official announcements to plan your household budget accordingly.
4. Fixed Deposit Interest Rate Cuts
Some banks are reducing fixed deposit (FD) interest rates from June 1. For example, Suryoday Small Finance Bank is cutting rates by up to 0.60%. While most FD rates currently range between 6.5% to 7.5%, changes in market conditions could impact future returns. If you’re planning to invest, it’s wise to compare the latest FD rates across banks before locking in your money.
5. Free Aadhaar Card Update Deadline Nears
The deadline for updating your Aadhaar card for free on the myAadhaar portal is June 14, 2025. After this date, charges will apply — Rs 25 for online updates and Rs 50 at physical Aadhaar centres. Make sure to update your details before the deadline to avoid any fees.
Final Note
These financial changes, although routine, can affect your monthly expenses and savings if you’re not prepared. Be sure to review your banking terms, utility payments, and investment plans in light of the new rules starting June 1, 2025.
