9 Money Related Changes You Should Know About In January 2025

The year 2025 has just begun presenting a fresh opportunity to plan your finances better. In order to do your financial planning efficiently it is important to keep track of all the money-related changes which can affect you.

Many changes related to the banking and financial space will come into effect in the first month of the new year itself. These changes range from Reserve Bank of India’s (RBI) new guidelines for fixed deposits to changes related to credit card usage. Here’s a look at 8 key money related changes which are likely to affect you in January:

Belated ITR Filing Deadline

The deadline to file belated and revised Income Tax Returns (ITRs) for assessment year (AY) 2024-25 for resident individuals has been extended to January 15, 2025. Earlier the Central Board of Direct Taxes (CBDT) December 31, 2024 as the deadline for filing belated and revised ITR.

EPFO Withdrawal Rules

The Employees' Provident Fund Organisation (EPFO) has changed the pension withdrawal process to make it easier for pensioners to withdraw money. The streamlining will be done as a part of the Centralised Pension Payment System (CPPS). After the changes come into effect on January 1, pensioners will be able to withdraw their pension from any bank in India without additional verification.

RBI’s New Guidelines For Premature Withdrawal From Fixed Deposits

The Reserve Bank of India has announced a new set of guidelines for opening Fixed Deposit accounts with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs). The new guidelines are effective from today, January 1, 2025.

According to the guidelines, depositors can withdraw the entire amount deposited by them in their fixed deposit accounts within three months of the date of deposition without interest. The rule is applicable only on accounts which have deposits of up to Rs 10,000.

However for accounts with larger deposits, partial withdrawals of not more than 50 per cent or Rs 5 lakh (whichever is less) can be made within three months.  In special circumstances such as cases of critical illness depositors can withdraw the entire principal amount prematurely without interest. Additionally NBFCs have been directed by the RBI to notify depositors of maturity details at least two weeks before the maturity date.

Fortnightly Credit Record Updates

Banks and financial institutions will now update credit records on a fortnightly basis or at shorter intervals. The new timeline for credit record updation has come into effect on January 1, 2025. The new timeline was proposed earlier last year in August. Prior to January 1, credit records were updated on a monthly basis.

Increased Transaction Limit For UPI 123Pay

UPI123 Pay is a payment system which enables users of feature phones to conduct transactions without an internet connection. The National Payments Corporation of India (NPCI) has raised the limit for the payment system to Rs 10,000 from Rs 5000 as per a NPCI circular dated October 25, 2024.

Tax Slabs Under New Tax Regime

Finance Minister Nirmala Sitharaman announced a few changes related to the application of income tax on different tax slabs as a part of the Union Budget 2024. These changes will come into effect in the ongoing fiscal 2024-25. Here’s a look at the income tax applicable on various tax slabs under the New Tax Regime:

Up to Rs 3 lakh - 0 per cent

Rs 3 lakh to Rs 7 lakh - 5 per cent

Rs 7 lakh to Rs 10 lakh - 10 per cent

Rs 10 to Rs 12 lakh - 15 per cent

Rs 12 to Rs 15 lakh - 20 per cent

Above Rs 15 lakh - 30 per cent

New Lounge Access Policy For RuPay Credit Cardholders

Lounge access is a much sought after benefit. However a new spend-based lounge access policy has been introduced for RuPay credit card users. The new lounge access policy will come into effect starting January 1. The frequency of your complimentary lounge visit will now be decided by the amount of money you have spent. Here’s a look at the different spend-based limits:

Tier 1- Rs 10,000 to Rs 50,000- 2 complimentary lounge visits per quarter

Tier 2- Rs 50,000 to Rs 1 lakh - 4 complimentary lounge visits per quarter

Tier 3 More than Rs 1 lakh to Rs 5 lakh- 8 complimentary lounge visits per quarter

Tier 4 Rs 5 lakh and above- Unlimited complimentary lounge visits per quarter.

Bank of Baroda Credit Card Related Changes

Bank of Baroda has removed the cap of 500 reward points per statement cycle for UPI transactions. The bank has also announced changes in the tariff of charges on credit card use. Bank of Baroda credit card users will need to pay a 1 per cent processing fee on wallet loading, additionally the tariff will also apply on utility transactions exceeding Rs 50,000 (capped at Rs 3,000 per transaction), and fuel transactions above Rs 10,000. The bank has said that HPCL ENERGIE BOBCARD holders are exempt from the processing fee on fuel transactions.

The bank has also said that BOBCARD holders will be eligible to access domestic airport lounges if they meet the minimum spending requirement in the previous quarter. The minimum spending limit depends on the type of card. However cardholders with newly issued cards are exempt from this rule and have complimentary access to domestic airport lounges.

Submission of Investment Proofs For FY25

Employees who have opted for the Old Tax Regime can submit the proof of their tax-saver investments made during the financial year in January. Generally, employers ask employees for such investment proofs in January. While the process of tax planning should begin in April itself, it's important to submit your investment proof to your employer on time. If you do not submit your investment proofs on time, a higher amount of tax may be deducted from your salary in January, February and March.