The Reserve Bank of India(RBI) launched recent changes which are shaking up the finances throughout the country. These revised rules will markedly affect the way you deal with money, take out loans, and communicate with your bank starting in the year 2025. A home loan seeker or an ATM user in the foreseeable future should be alerted by these recent changes. Learn how these recent changes affect your wallet and banking habits with up to date information.
Repo Rate Cut: Cheaper Loan, Lower Interest
The Reserve Bank of India reduced the repo rate from 6.25% to 6% in April 2025. The repo rate has recorded a 25 basis point reduction for the second time in a row. Consequently, the borrowers under a home loan or an auto loan may have lower monthly installment (EMI) value for a home loan, a car loan, or any other financial product. Although the reduction in the repo rate was supposed to encourage the borrowers, banks have not fully channeled this down to their clients. Banks are being conservative in announcing the full repo rate cut amid increased funding cost and increasing NPAs. Overall, borrowers would not expect to have some financial relief with this development.
ATM Withdrawals Now Expensive
The price of ATM withdrawals went up from May 1, 2025. Once approved by RBI, NPCI has introduced hike in interchange fee. There will now be additional fees for transactions, rather than before. This will increase pressure on customers who usually withdraw small amounts. The central bank is recommending the population to transition to digital payment systems.<<
Fixed Deposit: New Rules, New Facility
Fixed deposit guidelines for NBFCs and HFCs were amended from January 1, 2025. Deposits of Rs 10,000 or less can now be withdrawn within three months, without charging interest. A full withdrawal without paying interest is possible if there is a serious illness, as an exception. Though this step translates flexibility to the depositors, some of the investors feel uncertain about receiving an interest.
Strengthening Provisions For Digital Lending
On May 8, 2025, the Reserve Bank of India released digital lending rules. The centralized system now requires financial institutions to share information regarding their digital lending platforms. The launching of the portal is meant to reduce digital fraud and increase transparency. Credit score update: Every 15 days new information, Whenever an instituion inquires about your CIBIL score you receive immediate notification over SMS or over email. In addition to that you will be able to see your free annual credit report. This update will enable you to monitor your financial progress more often. It is now important for customers to be vigilant when choosing loans.
Credit score update New Information Every 15 Days
From January 2025 credit scores will be refreshed every 15 days. Institutions needing to know your CIBIL score will notify you quickly through SMS or Email about the particulars. There will be an available free credit report once a year. Under this new rule, you’ll find it relatively easy to keep abreast of your finances.
Bank Account Closure Be Cautious
Banks are obligated from January 1, 2025 to close accounts that have no funds in them and have not had transactions for two years. If for two years there are no transactions on the account, it will be considered inactive. This will help limit the occurrence of fraudulent activities as well as hacking attempt. Customers are advised to remain active in their accounts.
What Should You Do?
As a result of these changes, shift to online transactions and reduce the need for physical ATM withdrawals. When you are borrowing money, hunt the best interest rates. Get the current regulations in place before making any obligation when it’s a fixed deposit. Monitor your credit history, re-activate accounts that haven’t been used for a long period. Such simple steps will help you protect your financial well-being.
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