As we all enter 2025, it’s time to gear up for some key financial changes rolling out today for January. The New Year promises a fresh start for your finances. From the new RBI guidelines for fixed deposits (FDs) to updates in credit card features, January 2025 is shaping up to be a month of transformation. It’s also the time when employees need to submit proofs for their tax-saver investments.
Let’s understand how these new RBI guidelines would impact how you save, spend, and invest.
Money Changes and New FD Rules
RBI has rolled out new FD rules for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).
These would have the following impact:
- You can withdraw small deposits of up to ₹10,000 entirely within three months without earning interest. For larger deposits, you can make partial withdrawals of up to 50% of the principal amount or ₹5 lakh (whichever is lower) within three months, also without interest.
- Depositors diagnosed with critical illnesses can withdraw the full principal amount prematurely without penalties. This shall not be affected by the FD term.
- NBFCs are now required to notify depositors of maturity details at least two weeks in advance.
- NBFCs and HFCs will now notify depositors about the maturity of their FDs at least two weeks before the due date. This gives you enough time to plan ahead.
More Frequent Credit Data Updation
Starting from January 1, 2025, banks and financial institutions will do credit date updation more frequently.
Currently, credit information updation is done once a month, but with these new RBI guidelines, credit data will now be updated twice a month. The updates will happen on the 15th day of each month and on the last day of the month.
In some cases, banks and credit information companies may agree to update the data even more often than that. This change, which was announced as part of the August 2024 monetary policy, aims to keep credit records more accurate and up-to-date.
BOBCARD: New Charges, Features, and Lounge Access Rules
From January 1, 2025, BOBCARD will be introducing several updates to its credit card features and charges.
These changes are important for cardholders to understand:
- Previously, there was a limit of 500 reward points for UPI transactions in each billing cycle. This limit has now been removed.
- New Charges on Credit Card Transactions:
- If you use your credit card to load money into a wallet, there will now be a 1% processing fee.
- If you use your credit card to pay utility bills (such as electricity or water) that exceed ₹50,000, a 1% fee will be charged. This fee is capped at ₹3,000 per transaction.
- If you make a fuel purchase that costs more than ₹10,000, there will be a 1% processing fee. However, cardholders of the HPCL ENERGIE BOBCARD will not be charged this processing fee for fuel purchases.
- Complimentary Domestic Airport Lounge Access
If you meet the required spending amount in the previous quarter, you will be eligible for free access to domestic airport lounges. The required spending depends on the type of card you have:
- Eterna Credit Card: You need to spend at least ₹40,000 in the previous quarter to qualify for complimentary lounge access.
- Varunah Premium and Premier Credit Cards: You need to spend at least ₹20,000 in the previous quarter to qualify for complimentary lounge access.
RuPay Credit Cards: New Lounge Access Policy
RuPay has introduced a new lounge access policy for credit cardholders starting from January 1, 2025. The policy is based on how much you spend during the previous quarter.
- Tier 1: If you spend between ₹10,000 and ₹50,000 in the previous quarter, you will receive two complimentary lounge visits per quarter.
- Tier 2: If you spend more than ₹50,000 but less than ₹1 lakh in the previous quarter, you will receive four complimentary lounge visits per quarter.
- Tier 3: If you spend more than ₹1 lakh but less than ₹5 lakh in the previous quarter, you will receive eight complimentary lounge visits per quarter.
- Tier 4: If you spend more than ₹5 lakh in the previous quarter, you will receive unlimited complimentary lounge visits every quarter.
The more you spend, the more lounge visits you can enjoy.
Submit Your Tax Saver Investment Proofs in January
In January, most employers ask employees to submit proof of their tax-saver investments made during the financial year.
However, if you’re submitting proof in January, it’s essential not to miss the deadline set by your employer. If you do, more tax could be deducted from your salary in the coming months (January, February, and March).
You must not rush into making tax saver investments just to meet the deadline. Before looking for new tax-saving options, first check for other deductions.
This could be your Employees’ Provident Fund (EPF) contributions, home loan repayments, or your children’s school fees. These can already help you reach the ₹1.5 lakh limit under section 80C (if you’re following the old tax regime). If you’ve already reached this limit, there’s no need to invest in additional tax-saving instruments.
These are the key money changes for 2025, and indeed, they’re the first step towards a better financial journey—let’s move forward together.
Source: MoneyControl
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.