Key Financial Updates for February 2025: Budget Announcements, Banking Changes, and UPI Rules
financial updates: As February 2025 begins, several crucial financial changes are set to impact taxpayers, banking customers, and digital payment users. From tax relief in the Union Budget to new rules for UPI transactions and credit card updates, staying informed is essential for managing finances effectively.
Union Budget 2025: Higher Tax-Free Income Limit
In a major relief for salaried individuals, Finance Minister Nirmala Sitharaman has announced an increase in the tax-free income limit under the new tax regime. The exemption threshold has been raised from ₹7 lakh to ₹12 lakh. With a standard deduction of ₹75,000, salaried employees can now earn up to ₹12.75 lakh without paying income tax. However, capital gains remain taxable under the existing short-term and long-term tax rates.
RBI Monetary Policy: Potential Repo Rate Cut
The Reserve Bank of India’s Monetary Policy Committee (MPC) is scheduled to meet between February 5 and 7, 2025. Speculation is high about a possible reduction in the repo rate. If implemented, this could lead to lower loan EMIs and impact fixed deposit interest rates. Borrowers and depositors should stay updated on the official announcement.
UPI Transaction ID Changes: No Special Characters Allowed
Effective February 1, 2025, all UPI transaction IDs must consist strictly of alphanumeric characters. According to the latest guidelines from the National Payments Corporation of India (NPCI), any transaction IDs containing special characters will be rejected. This change aims to enhance transparency and uniformity in digital transactions.
IDFC FIRST Credit Card Updates: New Fees and Billing Cycle Changes
From February 20, 2025, IDFC FIRST Bank credit cardholders should take note of the following updates:
- Revised Billing Cycle – Some customers may experience a change in their statement generation date. It is advisable to check the updated schedule.
- New Charges on Education Payments – Payments made through platforms like CRED and Paytm for educational purposes will now incur additional fees.
- Increased Card Replacement Fee – The cost of replacing a lost or damaged card has been increased to ₹199 plus applicable taxes.
- New Joining and Annual Fees – A charge of ₹499 plus taxes will apply to new cardholders.
Kotak Mahindra Bank 811 Account: Updated Fees and Limits
Kotak Mahindra Bank has introduced changes to its Kotak811 savings account charges, effective February 1, 2025:
- Cash Deposit Fees – Deposits exceeding ₹10,000 per month will now attract a fee of ₹5 per ₹1,000, with a minimum charge of ₹50.
- ATM Withdrawal Limits – Certain withdrawal limits have been revised. Customers should check with the bank for specifics.
- Lowered Standing Instruction Failure Fee – The penalty for failed standing instructions has been reduced from ₹200 to ₹100.
What These Changes Mean for Consumers
With these financial updates, taxpayers and banking customers should review how these changes impact their financial planning. It is advisable to check official sources, such as government websites and bank portals, for detailed information and clarifications.
Staying informed and adapting to new policies can help in making better financial decisions and avoiding unnecessary penalties or charges.
