RBI New Guidelines for Fixed Deposits, Credit Cards, and UPI Transactions: Key Changes in 2025

Introduction

As we welcome the new year, the Reserve Bank of India (RBI) has announced key updates to its financial regulations, which will come into effect from January 1, 2025. These changes aim to provide more flexibility for fixed deposit holders, improve credit card benefits, and enhance the ease of UPI transactions. Let’s dive into the important updates you need to be aware of:

1. Fixed Deposit Updates for NBFCs and HFCs

• Small Deposits: For deposits under ₹10,000, you can withdraw the full amount within 3 months with no interest.
• Larger Deposits: Partial withdrawals (up to ₹5 lakh or 50% of the principal) can be made without earning interest.
• Early Withdrawal for Critical Illness: If you face a critical illness, you can withdraw your entire deposit early with no penalty.
• Maturity Notifications: NBFCs and HFCs must notify you about FD maturity 2 weeks in advance.

2. Credit Card Changes

• Processing Fees: A 1% fee will be charged on utility transactions above ₹50,000 and fuel transactions over ₹10,000.
• Lounge Access: Rupay cardholders can earn complimentary lounge visits based on spending:
  • ₹10,000-₹50,000: 2 visits/quarter
  • ₹50,000-₹1,00,000: 4 visits/quarter
  • ₹1,00,000+: 8 visits/quarter

3. UPI Updates

• The transaction limit for UPI 123Pay has increased from ₹5,000 to ₹10,000, benefiting feature phone users with limited internet access.

4. EPS Pension Withdrawal

• Pensioners can now withdraw their EPS pension from any bank branch across India, without needing to transfer their Pension Payment Order (PPO).

How These Changes Affect Your Financial Planning

• Fixed Deposits: You have more flexibility in withdrawing funds early, especially in emergencies like critical illness.
• Credit Cards: New fees and lounge access rules offer better rewards for high spenders. Review your credit card usage to take full advantage.
• UPI Transactions: The increased UPI 123Pay limit is ideal for larger, offline transactions, especially for feature phone users.
• Pensioners: The ability to withdraw your pension from any bank branch adds convenience.

Conclusion

These new RBI regulations enhance financial flexibility and access. Take note of these changes and adjust your financial strategies accordingly to make the most of the opportunities available.

FAQs:

1. What is the UPI limit now? The UPI limit is ₹1 lakh for regular transactions, with higher limits for specific payments like taxes and hospital bills.
2. How do the new FD rules impact me? If you have an FD with an NBFC or HFC, you can withdraw partial amounts or access your funds early in emergencies with more flexibility.
3. How can I benefit from credit card lounge access? Frequent spenders can earn complimentary lounge access based on their credit card usage.