UPI Rule Change, Minimum Bank Balance: Key Money Changes From April 1
The beginning of a new financial year on April 1 brings a series of changes that will impact taxpayers, salaried individuals, and consumers across India.
The beginning of a new financial year on April 1 brings a series of changes that will impact taxpayers, salaried individuals, and consumers across India. The financial year 2025-26 (FY26) will introduce new income tax slabs and updated UPI guidelines, among other changes.
Here is a breakdown of the major rule changes taking effect from April 1:
New Income Tax Rules
Individuals earning up to Rs 12 lakh per year will be exempt from income tax, announced Finance Minister Nirmala Sitharaman in her Budget 2025 speech. Effective from April 1, the updated tax structure includes a standard deduction of Rs 75,000 that will apply to salaried individuals, effectively making a Rs 12.75 lakh salary tax-free.
New Pension Scheme Rule Change
The Unified Pension Scheme (UPS), introduced by the government in August 2024, will replace the old pension scheme. This change will impact around 23 lakh central government employees. Employees with at least 25 years of service will be eligible for a pension equal to 50 per cent of their last 12 months' average basic salary.
Credit Card Rule Change
Several banks are modifying their credit card reward structures. There will be changes in the SimplyCLICK SBI Card and Air India SBI Platinum Credit Card reward points structure. Axis Bank will revise Vistara Credit Card benefits following the airline's merger with Air India.
UPI Rule Change
The National Payments Corporation of India (NPCI) has implemented new security measures for UPI transactions, including the deactivation of UPI linked to inactive numbers. Users who have not used their mobile number for UPI transactions for a prolonged period must update their details with their bank before April 1 to avoid losing access.
Banks and third-party UPI providers like PhonePe and Google Pay must phase out inactive numbers to prevent security risks.
Minimum Balance in Banks
Major banks, including State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank, will revise their minimum balance requirements from April 1. Customers failing to maintain the minimum balance may face penalties.
GST Rule Change
The Goods and Services Tax (GST) system will see the following updates: Mandatory Multi-Factor Authentication (MFA) - Taxpayers must complete MFA while logging into the GST portal for enhanced security. E-Way Bill Restrictions can only be generated for base documents that are not older than 180 days.
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