February 2025 brings several important financial changes that could have lasting effects on how taxpayers and citizens manage their money. Staying informed about these updates is essential for making smart financial decisions.
Key Financial Updates You Should Know – From Budget 2025 to UPI and Banking Changes
As we step into February 2025, several key financial changes are coming into effect, from tax relief in the Union Budget to modifications in banking and credit card terms. Here’s a quick rundown of what’s new:
Union Budget 2025: Big Tax Relief for Salaried Individuals
Finance Minister Nirmala Sitharaman has given taxpayers some much-needed relief in the Union Budget 2025-26. The tax-free income limit has been raised from ₹7 lakh to ₹12 lakh under the new tax regime. Factoring in a standard deduction of ₹75,000, salaried individuals can now earn up to ₹12.75 lakh tax-free. However, this exemption does not include capital gains, which continue to be taxed separately under short-term and long-term rates.
RBI Monetary Policy: Repo Rate Cut Expected?
The RBI’s Monetary Policy Committee (MPC) is set to meet between February 5-7, 2025, to review the repo rate. Speculation is high about a possible rate cut, which, if implemented, could impact loan EMIs and deposit rates. Borrowers and depositors should keep an eye out for the official announcement later this week.
UPI Transaction ID Update: No More Special Characters
Starting February 1, 2025, all UPI transaction IDs must strictly contain only alphanumeric characters (letters and numbers). As per the latest NPCI guidelines, any transaction IDs with special characters will be rejected. This move aims to bring better transparency and standardization to UPI payments.
IDFC FIRST Credit Card Changes: New Fees and Revised Billing Dates
If you hold an IDFC FIRST credit card, note that from February 20, 2025, there are some important updates:
- Revised Statement Dates – Your billing cycle might change, so check your statement.
- New Charges on Education Payments – Transactions on platforms like CRED and Paytm will now attract additional fees.
- Card Replacement Fee Hike – A replacement card will now cost ₹199 + taxes.
- New Joining & Annual Fee – A charge of ₹499 + taxes will apply for new cardholders.
Kotak Mahindra Bank 811 Account: Updated Fees & Limits
Kotak Mahindra Bank’s Kotak811 savings account has rolled out revised charges from February 1, 2025:
- Cash Deposit Charges – Deposits beyond ₹10,000 per month will now incur a fee of ₹5 per ₹1,000 (minimum ₹50).
- ATM Withdrawal Limits – Some withdrawal rules have been adjusted (customers should check with the bank).
- Standing Instruction Failure Fee Reduced – This charge has been lowered from ₹200 to ₹100.
Customers should review these changes carefully and visit the official bank website or contact customer support for further details.
Therefore, it is important for tax payers, customers and other users of these services to carefully understand the new rules and regulations. For more clarity on these developments it is advisable to consider visiting the respective official websites of these platforms.
