FD Rules, Credit Card Updates, and More: Upcoming Financial Changes in Jan 2025

As we enter 2025, several important changes are set to reshape the financial and regulatory landscape. These updates simplify processes, enhance user benefits, and improve accessibility across various sectors. Here’s a breakdown of the significant updates to look out for in January 2025.

EPF ATM Service

Starting in 2025, Employee Provident Fund (EPF) account holders will gain access to a new ATM service. This feature allows individuals to withdraw their EPF funds conveniently through ATMs. This update makes it easier for account holders to manage their savings and meet urgent financial needs.

Multi-Factor Authentication (MFA) for GST Compliance

From January 1, 2025, the government will mandate Multi-Factor Authentication (MFA) for all taxpayers on GST portals. This upgrade enhances security, reducing fraud risks. Businesses need to ensure that their mobile numbers are updated, employees are trained, and IT systems are ready to comply with this requirement.

New E-Way Bill Rules

Changes in the E-Way Bill (EWB) system will take effect in 2025. EWB generation will now require base documents not older than 180 days. Businesses will need to adapt their invoicing and logistics processes to ensure compliance with this rule, ensuring smooth operations and timely deliveries.

UPI Payments for Prepaid Payment Instruments (PPIs)

The Reserve Bank of India (RBI) is introducing UPI payments for full-KYC Prepaid Payment Instruments (PPIs). Starting January 1, 2025, PPI wallet holders can link their accounts to third-party UPI apps to carry out transactions securely. This move enhances flexibility and convenience for users.

Fixed Deposit (FD) Rule Changes

The RBI has introduced new rules for FDs with non-banking financial companies (NBFCs) and housing finance firms. Key updates include:

• Penalty-Free Withdrawals for Small Deposits: FD holders can withdraw amounts below ₹10,000 before maturity without penalties.
• Critical Illness Clause: Those facing critical illnesses can withdraw their entire FD amount before maturity.

These updates provide greater flexibility to FD holders while ensuring their financial security.

RuPay Credit Card Lounge Access

The National Payments Corporation of India (NPCI) has introduced tier-based criteria for complimentary airport lounge access for RuPay credit cardholders. Cardholders must meet specific spending thresholds to qualify for free lounge visits. Details vary based on card type and spending levels.

BOBCARD Lounge Access Updates

BOBCARD users will also see updates to their airport lounge access programs. To qualify for unlimited lounge visits, cardholders must spend ₹40,000 in the previous quarter. Other users will have limited visits per quarter, based on their spending. Spending progress can be tracked via the BOBCARD portal or mobile app.

Thailand’s E-Visa Expansion

In 2025, Thailand will expand its e-Visa system to all international travelers. From January 1, visitors from any country can apply for a visa online. This update simplifies the process for Indian travellers and makes it easier to plan trips to Thailand.

US Visa Appointment Changes

The US Embassy in India is introducing a new rule for non-immigrant visa appointments. From January 1, 2025, applicants can reschedule their appointment once without incurring additional fees. Further rescheduling will require a new application and fee payment. This policy ensures more streamlined scheduling for visa applicants.

How These Changes Impact You?

These updates span financial services, taxation, travel, and technology, offering a mix of opportunities and challenges. For instance:

• EPF ATM services simplify fund access for individuals.
• GST compliance upgrades enhance security for businesses.
• Fixed deposit rules and UPI-enabled PPIs improve flexibility in personal finance.
• Travel-related changes, like Thailand’s e-Visa expansion and US visa rescheduling rules, streamline planning for international trips.

What Should You Do?

• Stay informed: Read through the details of changes relevant to you, whether personal finance, taxation, or travel.
• Update your records: Ensure your contact information and accounts are up to date for seamless compliance.
• Plan ahead: Align your finances, travels, and business operations to benefit from these changes.

Conclusion

January 2025 brings a wave of changes designed to improve efficiency and accessibility in finance, compliance, and travel. By staying informed and proactive, individuals and businesses can make the most of these updates and confidently adapt to the evolving landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.