New Rules Effective from June 1, 2025: Here's What Will Change and How It Impacts Your Wallet

New Rules Effective from June 1, 2025: Here's What Will Change and How It Impacts Your WalletAs June begins, several significant regulatory changes are set to roll out across the country, directly affecting your daily finances and transactions. From updated EPFO services and UPI payment protocols to changes in fuel prices and credit card fees—these new rules starting June 1, 2025, will impact millions of Indians.

Here’s a complete breakdown of the major changes coming your way and how they may affect your budget:

1. EPFO 3.0 Launch: PF Withdrawals Made Easier

The Employees' Provident Fund Organisation (EPFO) is launching EPFO 3.0, a major upgrade aimed at streamlining provident fund withdrawals. With this update, users will now be able to withdraw PF money using ATMs and UPI apps, making the process faster and more accessible. This change is expected to benefit over 90 million salaried employees across India.

2. UPI Payments Will Now Show the Real Account Holder’s Name

In a major update to improve transparency and security in digital transactions, UPI platforms will now display the actual name of the account holder during transactions, instead of just the QR code name or nickname. This will help reduce fraudulent transactions and identity confusion. All UPI apps are required to implement this rule by June 30, 2025.

3. New Fees and Penalties for Kotak Credit Card Users

Starting June, Kotak Mahindra Bank credit card holders should be aware of changes in fee structures:

• A 2% penalty (ranging between ₹450 and ₹5,000) will be levied if an auto-debit transaction fails.

• In addition, some cards will see their monthly finance charges rise from 3.50% to 3.75%.

These changes could lead to higher monthly outflows for those who frequently use their credit cards.

4. FD Interest Rate Adjustments

Interest rates on fixed deposits (FDs) are expected to change across several banks in June. For instance, Suryoday Small Finance Bank has already slashed its 5-year FD interest rate from 8.6% to 8%. Other banks may follow suit depending on market trends, potentially affecting long-term savers.

5. LPG Cylinder Price Review on June 1

As is customary, LPG cylinder prices will be reviewed on the first of the month. In May, domestic gas prices remained stable, while commercial cylinders dropped by ₹17. Consumers can expect revised prices for both household and commercial cylinders from June 1, 2025.

6. Possible Revisions in CNG, PNG, and ATF Prices

Prices for Compressed Natural Gas (CNG), Piped Natural Gas (PNG), and Aviation Turbine Fuel (ATF) may also be revised on June 1. Oil companies conduct monthly reviews of these fuels, and any fluctuations in international crude prices could lead to changes.

7. New Cut-Off Timings for Overnight Mutual Fund Investments

From June 1, SEBI's new cut-off timings for overnight mutual funds will be enforced:

• Offline investments must be completed by 3:00 PM

• Online investments should be done by 7:00 PM

Any investments made after these deadlines will be considered for the next business day.

8. Free Aadhaar Update Deadline Ends June 14

The free Aadhaar update window provided by UIDAI is closing on June 14, 2025. After this date, any updates to your Aadhaar card—such as address or name changes—will cost ₹50 per update. It’s advisable to make any necessary changes before the deadline to avoid extra charges.

In Summary

The beginning of June brings a series of changes that directly impact your finances—from easier PF withdrawals and safer digital payments to altered interest rates and utility costs. Staying informed about these updates can help you plan better, avoid penalties, and maximize savings.

Tip: Keep your financial tools updated—whether it's your Aadhaar, UPI app, or mutual fund platform—to avoid disruptions or missed opportunities.