Top 5 financial changes to watch in February 2025: Budget, credit cards, and UPI updates

Union Budget 2025: The month of February 2025 rolls out with several key financial changes and updates. These changes can have long-term ramifications for the the money management practices of tax payers and other citizens.

Beginning from the most recent Union Budget 2025 announcements to changes in credit card terms and conditions. Along with tweaks in saving account charges and UPI regulatory updates, here's what one needs to know:

• Union Budget 2025: FM Nirmala Sitharaman gave taxpayers much needed relief in Union Budget 2025-26 by making income up to ₹12 lakh tax-free from ₹7 lakh earlier. Factoring in the standard deduction of ₹75,000 for the salaried class, an income up to ₹12.75 lakh will be tax-free. This income, however, excludes capital gains tax, which are taxed at separate short-term and long-term tax rates.
• RBI monetary policy meeting: Reserve Bank of India's Monetary Policy Committee (MPC) is all set to meet by the end of this week. The meeting is scheduled to be held between February 5-7, 2025. The goal of the meeting will be to review the repo rate. There is an anticipation of a rate cut. This step if taken might influence the loan EMIs and deposit rates.
• UPI transaction ID Updates: From today i.e., February 1, UPI transaction IDs will be restricted to using alphanumeric characters only. This has been mandated according to the guidelines of National Payments Corporation of India (NPCI). Any transactions made in the IDs, using special characters are going to be rejected. This step on a cumulative basis will ensure greater transparency and standardization in UPI payments.
• IDFC FIRST credit card updates and changes: It is important to note that starting from February 20, 2025, IDFC FIRST credit cards will have revised statement dates. They will also have new fees on education payments made through platforms like CRED and PayTM. Further, the card replacement fee for IDFC FIRST credit card will now be charged as ₹199 along with additional taxes. Post February 20, 2025 once the changes come into effect, there is going to be a joining and annual fee of ₹499 along with applicable taxes.
• Kotak Mahindra bank 811 savings account rules: Kotak811 accounts are going to witness revised charges from today, including a fee of ₹5 per ₹1,000 (minimum ₹50) on cash deposits beyond ₹10,000 per month. Changes to ATM withdrawal limits and waived fees for certain services are also noteworthy. The standing instruction failure fee has now reduced from ₹200 to ₹100. Customers are advised to review these changes and clearly understand how these changes will impact their interaction with the bank. For attaining clarity on the same customers should visit the official website or the designated customer support of the bank.

Therefore, it is important for tax payers, customers and other users of these services to carefully understand the new rules and regulations. For more clarity on these developments it is advisable to consider visiting the respective official websites of these platforms.