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Major Financial Rule Changes Effective From 1 June 2025: What You Need To Know?

Komal Bajpai

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Updated: 31-05-2025 at 12:34 PM

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June 2025 is a significant time for several new financial rule changes that will affect personal finance in India. These changes include more digital services, new deadlines and fees, etc. The changes will help cut through the red tape that was often the norm, but will bring better transparency. It is important for businesses and individuals that understand these changes and how to navigate through them.

1. EPFO 3.0: Digital Services For Provident Fund Members

The Employees' Provident Fund Organisation (EPFO) is releasing EPFO 3.0 on 1st June 2025. It's a major upgrade to the EPFO services being offered to members, and aims to make provident fund (PF) related transaction services fast and simple.

Key Changes:

Instant Withdrawals from PF: Members will be able to withdraw amounts in PF immediately, using Unified Payments Interface (UPI) and direct credit at Automated Teller Machines (ATMs), subject to approval from the National Payments Corporation of India (NPCI).
KYC with No Hand-offs: Service speeds of Know Your Customer (KYC) will improve significantly, as the turnaround times will reduce substantially, leading to a faster user experience.
Real-time Balance Checks: Members will also be able to check their balances and easily transfer PF amounts, which will create some element of checking their funds.

Effect: There are over 27 crore EPFO members, so these changes will favourably affect a massive number of people who depend on EPFO and PF, and possibly make it easier for these transactions.

2. Free Aadhaar Update Ending: 14 June 2025

The Unique Identification Authority of India (UIDAI) has announced an end date for the update of Aadhaar details online for free. The UIDAI will only allow free updates to the Aadhaar standard details online until 14 June 2025.

Details:

Free Updates Available: Individuals will still be able to update their identity and address proof documents online without charge until the end date.
After the End Date: The cost to update Aadhaar details will be ₹25 through the online portal and ₹50 at an actual Aadhaar location.
Updates Recommended: UIDAI has abandoned the previous advice that an individual should update Aadhaar details every ten years. UIDAI will recommend the timely updating of Aadhaar details to avoid unnecessary challenges when accessing government services.

What to Do: Residents should immediately check and update their Aadhaar details to ensure they will use the free service and to ensure everything is accurate in Aadhaar.

Also Read: How To Track Your EPF Claim Progress Easily?

3. Updates In Credit Card Rules

On 1 June 2025, several banks will also change their credit card terms - fees, reward points, and transaction fees.

Key Points:

Utility Payments: Some banks (i.e. Kotak Mahindra Bank) have begun to charge 1% on utility bill payments over set monthly limits, using a credit card.
Reward Points: The reward points on rent, insurance and fuel categories may be capped or changed, which may change the amount of benefits available to cardholders.
Penalty Fees: Fees from unsuccessful auto-debit transactions are expected to change to 2%, which is a nice relief to customers.

Advice: Cardholders should be checking their modified bank terms and conditions for potential impact on credit card use.

4. TDS Certificate Deadline: June 15, 2025

As employers and deductors are required to provide to their employees, you must issue a Tax Deducted at Source (TDS) certificate, otherwise known as Form 16, to them on or before June 15, 2025.

Why Is It important?

ITR Filing: For salaried individuals, Form 16 is very critical in filing their Income Tax Return (ITR) accurately.
Verification: The TDS certificate contains a summary of the salary paid to the employee and the related deduction of taxes from their weekly or monthly pay, which allows for verification and ultimately compliance.

Required Action: Employees must ensure that they receive Form 16 from their employer by June 15, 2025, to avoid any issues with ITR filing.

5. Mutual Fund Cut-Off Timings

Effective June 1, 2025, the Securities and Exchange Board of India (SEBI) has updated the cut-off times for all transactions in overnight funds.

Details:

The new cut-off time for subscription and redemption in any overnight fund is now 1:30 PM, as part of SEBI's make its operation more efficient.
Impact on Investors: Investors should be aware of the new cut-off time so they can take appropriate action to ensure their intentions can be executed and comply with the same day.

Recommendation: Investors should review the guidelines of the cut-off times with their related fund managers or financial advisors, and the implications for their acquired investments.

Also Read: Government Clarifies: What Is Valid Proof of Indian Citizenship?

6. LPG Cylinders Price Change

Under usual practice, oil marketing companies will revise LPG (liquefied petroleum gas) cylinder prices on 1 June 2025.

Price Change Factors For LPG Cylinders Include:

World crude oil prices: LPG prices are linked directly to world crude oil prices.
Exchange rate fluctuations of INR against USD: The import costs for marketers can vary with INR exchange rates against the USD, impacting local LPG prices.

Consumer helpful hints: Consumers should be mindful of the revised price so they can organise their monthly purchases.

7. Fixed Deposit Interest Rate Changes

From June 2025, banks have publicly stated that Fixed Deposit (FD) Interest Rates will be changing.

Summary:

Interest rates will decrease for some banks: Banks have decreased their rates due to monetary policy changes and liquidity situations.
Special limited-time deposit schemes: Banks may introduce limited-time, special deposit schemes to take advantage of increased payments.

Consumer guidance: Compare Fixed Deposit rates offered by banks. Choose your tenure of investment, the options available for interest payments, and make an informed decision on your investments.

Conclusion

Changes starting 1 June 2025 are disrupting the financial landscape in India. It is essential, for planning and property compliance purposes, to remain updated on these shifts and incorporate them into your financial planning. Both individuals and companies need to proactively adjust to these regulatory changes to maximise their financial health.

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