RBI New Guidelines 2025 – As we step into the new financial year on April 1, 2025, several significant changes are coming into effect across banking, taxation, and financial regulations. These updates will impact individuals, businesses, and investors, making it essential to stay informed. Understanding these changes will help you manage your finances better, avoid unnecessary penalties, and plan effectively for the year ahead.
Revised Income Tax Slabs
From April 1, 2025, a new tax structure will be implemented. The biggest change is that individuals earning up to Rs 12 lakh annually will now be exempt from paying income tax under the new tax regime. Additionally, salaried employees will benefit from a standard deduction of Rs 75,000, making income up to Rs 12.75 lakh tax-free. However, this exemption is only available to those who opt for the new tax regime. Those following the old tax regime will continue with the existing slabs and deductions.
Changes in Tax Deducted at Source (TDS)
- For Investors: TDS on dividends and mutual fund earnings will now be deducted only if total income from these sources exceeds Rs 10,000 in a financial year. Earlier, this limit was Rs 5,000.
- For Senior Citizens: The TDS exemption limit on interest earned from fixed and recurring deposits will double from Rs 50,000 to Rs 1 lakh per financial year. This means TDS will only be deducted if interest earnings exceed Rs 1 lakh.
- For Rental Income: The threshold for TDS on rental income has been increased from Rs 2.4 lakh per year to Rs 6 lakh per year, offering relief to landlords.
Changes in Tax Collected at Source (TCS)
From April 1, 2025, the threshold for TCS under the Liberalised Remittance Scheme (LRS) will be increased from Rs 7 lakh to Rs 10 lakh. TCS will be applied only if remittances exceed this limit in a financial year. This change will impact foreign travel expenses, investments abroad, and other remittance transactions.
Increase in ATM Transaction Charges
Starting May 1, 2025, the Reserve Bank of India (RBI) will increase ATM withdrawal charges. While customers will continue to enjoy five free transactions per month at their bank’s ATMs, charges beyond this limit will rise from Rs 21 to Rs 23 per transaction. Additionally, GST will be applicable on these charges.
Implementation of the Positive Pay System (PPS)
To prevent cheque fraud, the RBI will introduce the Positive Pay System from April 1, 2025. Customers issuing cheques above Rs 50,000 will need to pre-register details such as cheque number, date, payee name, account number, and amount with their bank. If there is a mismatch, corrective measures will be taken before processing the payment.
Minimum Balance Requirement in Bank Accounts
Many banks will update their minimum balance policies, requiring customers to maintain a certain balance in their savings accounts to avoid penalties. These requirements will vary based on the bank and whether the branch is in a rural, semi-urban, urban, or metro area.
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Changes in Interest Rates on Savings Accounts and FDs
Banks are set to revise interest rates on savings accounts and fixed deposits (FDs). Savings account interest rates will now be based on the balance maintained, with higher balances earning better interest rates. Fixed deposit rates may also see adjustments, so customers are advised to check with their banks before investing.
UPI Transaction Policy Updates
The National Payments Corporation of India (NPCI) has introduced new security guidelines for UPI transactions. If a mobile number remains inactive for a long time, the associated UPI ID will be deactivated. Users must update their number with their bank to continue using UPI services.
DigiLocker for Investment Nomination
From April 1, 2025, investors in the stock market and mutual funds will be able to store their holdings’ statements from their demat accounts and Consolidated Account Statement (CAS) in DigiLocker. This move by SEBI aims to simplify access to investment details and reduce unclaimed assets.
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Unified Pension Scheme (UPS) for Government Employees
The Central Government has introduced the Unified Pension Scheme (UPS) under the National Pension System (NPS) for its employees. This scheme ensures a fixed monthly pension post-retirement, supported by contributions from both employees and employers. The scheme will be operational from April 1, 2025, benefiting lakhs of government employees.
NSE and BSE to Act as Backups for Each Other
To prevent trading disruptions, NSE and BSE will serve as alternative platforms for each other from April 1, 2025. This means that if one exchange faces technical issues, traders can continue their transactions on the other. SEBI has mandated both exchanges to create a contingency plan for smooth implementation.
With these financial and banking changes coming into effect from April 2025, it is crucial to stay informed and plan accordingly. These updates will impact tax liabilities, transaction costs, banking services, and investments. Being proactive in understanding these changes will help you optimize your finances, avoid penalties, and make the most of available benefits.
