New Rules Alert! 5 Big Shifts from May 1That Will Impact Your Home and Wallet
The Reserve Bank of India has raised ATM cash withdrawal charges beyond the free transaction limit from ₹17 to ₹19 per transaction
Cash Transaction – New Rules Alert – 5 Big Shifts from May 1 – taxscan
Cash Transaction – New Rules Alert – 5 Big Shifts from May 1 – taxscan
As May 2025 dawns, some important rule changes have taken place inIndia. These changes will have a direct bearing on family budgets, banking practices, and everyday conveniences. Here's a quick summary of the five biggest changes you should know about-and how they might impact your home and purse.
ATM TRANSACTION CHARGES INCREASED
The majority of citizens across the country use ATMs daily or at least once a week. While fixed charges existed earlier, these fees are now set to increase.
What’s changed: The Reserve Bank of India has raised ATM cash withdrawal charges beyond the free transaction limit from ₹17 to ₹19 per transaction. Balance enquiry fees have also gone up from ₹6 to ₹7 per transaction.
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Who’s affected: Anyone who frequently withdraws cash or checks balances at ATMs, especially after exhausting their free monthly quota, will feel the pinch. You can expect high banking costs if you rely on the ATM services more.
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Customers can make five free transactions (financial as well as non-financial transactions) per month from their bank's own ATMs. Customers can also enjoy free transactions (financial as well as non-financial) in other bank ATMs-three free transactions in the metro centres and five free transactions in the non-metro centres, according to RBI guidelines.
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LPG GAS CYLINDER PRICE
Every household in India uses LPG gas cylinders. From May 1st, there is a price revision for the same. The rate of LPG gas cylinders is an important determinant of domestic and business expenditures in India.
As a commonly used fuel for cooking, the LPG price directly affects millions of households and companies. Global crude oil prices, government subsidies, transportation fees, and tax rates are all considerations in arriving at the monthly retail price of an LPG cylinder.
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What’s changed: As is customary, LPG cylinder prices have been revised on May 1. In April, domestic cylinder prices rose by ₹50, and a similar increase could hit consumers this month. The domestic LPG prices were reduced especially in Delhi.
Who’s affected: All households using LPG for cooking. There is no debate that 85% of the Indian households are using the LPG connection.
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RAILWAY TICKET BOOKING
Indian railway is a major means of transport employed by middle class and poor class individuals in India to travel longer distances. Even the high class individuals and other VIPs hardly employ the same. Apart From Indian Railways' base fare, customers are also responsible for paying additional charges such as reserve charges, superfast surcharge, GST, and convenience fee while e-booking from online websites.
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What’s changed: Indian Railways has revamped its ticketing system. Waiting list tickets are now only valid in General class-no more waiting tickets for Sleeper or AC coaches. The Advance Reservation Period (ARP) is reduced from 120 to 60 days. Additional hikes in certain rail travel charges are also expected.
Who’s affected: Regular train travelers, especially those booking long in advance or relying on waitlisted tickets. An extra amount will be added to your booking if you pay through platforms like PhonePe or Google Pay, as they charge a minimum ₹10 convenience fee per transaction.
ONE STATE - ONE RRB POLICY
What’s changed: Fifteen regional rural banks (RRBs) across 11 states have been merged, reducing the total number of RRBs from 43 to 28. Over 22,000 branches in 700 districts are affected.
Who’s affected: Rural customers and anyone banking with RRBs.
Cash Transactions Can Lead to Fines! Are you at risk? - Click Here
SAVINGS AND FD RATES CHANGES
Shivalik Small Finance Bank has reset its savings account, fixed deposit interest rates below Rs 3 crore. The new interest rates will come into effect from May 1, 2025, reported Economic Times.
RBL Bank has notified its customers regarding a modification in the calculation of interest on savings accounts, which is effective from May 1, 2025. As per an email notice issued by the bank on April 26, 2025, interest will be calculated on a daily basis on the basis of end-of-day balance in the account. The interest will be credited to the account every month. For balances up to Rs 1 lakh, the interest shall be charged at an annual rate of 3.25%. For balances in excess of Rs 1 lakh, the interest shall be charged as per progressive interest rate slabs, reported ET.
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