With the arrival of the new financial year on April 1, 2025, several key changes will impact financial transactions, including mutual funds, credit cards, UPI payments, and income tax. The Securities and Exchange Board of India (SEBI) has introduced a time limit for New Fund Offer (NFO) investments, while the government has implemented the Unified Pension Scheme (UPS) for employees. Additionally, mobile number databases for UPI transactions will need updating, and credit card reward points are undergoing modifications. Here’s a comprehensive look at all the major financial changes coming into effect from April 1.
SEBI has mandated that funds raised through New Fund Offers (NFOs) must be invested within 30 business days from the unit allocation date. If the Asset Management Company (AMC) fails to meet this deadline, it can seek a one-time extension of another 30 business days with approval from the investment committee.
Additionally, SEBI has introduced a new Specialized Investment Funds (SIFs) category, which sits between Mutual Funds and Portfolio Management Services (PMS). This category allows flexible investment strategies but requires a minimum investment of ₹10 lakh.
Starting April 1, 2025, the Unified Pension Scheme (UPS) under the National Pension System (NPS) will be implemented for central government employees. This scheme provides pension benefits based on service tenure. Employees with at least 25 years of service will receive 50% of their average basic salary from the past 12 months as a pension after retirement.
The National Payments Corporation of India (NPCI) has mandated that banks and Payment Service Providers (PSPs) update their databases by March 31, 2025 to remove recycled mobile numbers. This move is aimed at enhancing security and reducing transaction errors for UPI users.
Several banks are modifying their credit card reward programs from April 1. Changes include:
SBI Cards: The SimplyCLICK SBI Card will see a reduction in reward points on Swiggy transactions from 10x to 5x.
IDFC First Bank: The Milestone Club Vistara Credit Card benefits will be discontinued.
Axis Bank and Other Institutions: Additional modifications to reward structures are expected.
The government has announced significant income tax reforms, increasing the tax exemption limit from ₹7 lakh to ₹12 lakh. Here’s the revised tax structure:
Up to ₹4 lakh: No tax
₹4 lakh to ₹8 lakh: 5% tax
₹8 lakh to ₹12 lakh: 10% tax
₹12 lakh to ₹16 lakh: 15% tax
₹16 lakh to ₹20 lakh: 20% tax
₹20 lakh to ₹24 lakh: 25% tax
Above ₹24 lakh: 30% tax
These regulatory adjustments aim to increase transparency, enhance investor protection, and streamline financial transactions. Taxpayers will benefit from reduced tax liabilities, while credit card users must reassess their rewards programs. Mutual fund investors need to be aware of SEBI’s new investment timelines, and government employees can look forward to a more structured pension plan. Meanwhile, UPI users should ensure their mobile numbers are updated to avoid disruptions.
Stay informed and adapt accordingly to make the most of these financial changes in the new fiscal year!
