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- By Aditi Priya Singh
- Mon, 31 Mar 2025 06:19 PM (IST)
- Source:JND
New Financial Year 2025-26: A financial year is 12 months used by governments, businesses and individuals for accounting and tax purposes. It helps in organizing financial records, filing taxes and planning budgets. In India, the financial year starts on April 1 and ends on March 31 of the following year. For example, the financial year 2025-26 will begin on April 1, 2025 and end on March 31, 2026.
For businesses, the financial year is crucial because it is during this time that they prepare their annual reports, determine their profits, and pay taxes. In a similar vein, people must submit their income tax returns for the fiscal year by the deadline established by the government. The fiscal year is also used by governments to establish new policies, plan budgets, and carry out economic reforms. Every year on April 1st, many financial changes go into effect, including changes to banking regulations, investment policies and tax laws.
List Of Major Changes In the Banking Sector From 1st April 2025
Here is the list of major changes in the financial sector, including new UPI rules, minimum account balance, ATM withdrawal charges and more.
1. New UPI Rules
Starting April 1, 2025, UPI transactions will not work by a new rule regarding inactive mobile numbers. If a mobile number linked to a UPI ID has been inactive for a long time, the UPI ID will stop working. Users need to update their mobile number with the bank to continue using UPI services smoothly.
2. Changes in Withdrawal Fees
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ATM withdraw new rule (Image: Canva)
Bank customers will now have to pay a fee after making three withdrawals from ATMs. A charge of Rs 20-25 will be applied for every additional withdrawal beyond the free limit. This change aims to encourage digital transactions and reduce unnecessary cash withdrawals.
3. New Minimum Account Balance Requirement
Banks may introduce changes in the minimum balance required for savings accounts. Customers are advised to check with their respective banks to ensure they meet the updated balance requirements and avoid penalty charges.
4. Enhanced Digital Banking Services
To improve customer experience, banks are launching new digital banking features. AI-powered chatbots and online services will enhance security and convenience, making digital banking more efficient and user-friendly.
5. New Credit Card Rules
Credit card holders, especially those using SBI and IDFC First Bank’s Vistara credit cards, will experience changes in their benefits. From April 18, 2025, perks like free ticket vouchers, milestone rewards, and renewal benefits will be discontinued. Axis Bank will also implement similar changes on its Vistara credit card.
6. GST Changes
A new security measure, Multi-Factor Authentication (MFA), will be mandatory for all taxpayers using e-way bills and e-invoices. This step will help prevent fraud and ensure a secure tax filing process for businesses.
7. Implementation of Positive Pay System (PPS)
To reduce banking fraud, the Positive Pay System (PPS) will now be mandatory for cheques above Rs 5,000. Customers must verify details like cheque number, date, beneficiary name and amount before processing payments, ensuring added security.
8. Changes in Savings Account and FD Rates
Several banks have announced changes in the interest rates of savings accounts and fixed deposits (FDs). The new interest rates will depend on the deposit amount, meaning customers may earn different interest rates based on how much they save.