UPI rules, LPG price cuts, banking changes: Key financial updates for February 2025 you need to know

February 2025 brings a series of financial shifts that could impact consumers and businesses alike. Changes in banking policies, adjustments to UPI transaction rules, and revisions to LPG cylinder prices are among the key developments. Additionally, all eyes are on the upcoming Union Budget and the Reserve Bank of India's monetary policy review. Here’s a breakdown of the most significant updates.

UPI transaction ID rules take effect from February 1

To standardize UPI payments, the National Payments Corporation of India (NPCI) has mandated that all UPI transaction IDs must be strictly alphanumeric. Special characters will no longer be allowed. Transactions that fail to comply with this rule will be rejected by the system. Users should check their UPI apps to ensure that their transactions meet the new guidelines.

Commercial LPG cylinder prices see a minor cut

Oil marketing companies have announced a reduction in the price of 19 kg commercial LPG cylinders, effective immediately. In Delhi, the new price is Rs 1,797 after a Rs 7 cut. While this change is modest, businesses that rely on LPG—such as hotels and restaurants—may see some relief. Price adjustments in other cities will depend on local taxes and transport costs.

RBI monetary policy review on February 7

The Reserve Bank of India’s Monetary Policy Committee will meet from February 5-7, 2025. With the new RBI Governor Sanjay Malhotra at the helm, many experts anticipate a possible repo rate cut. Any change in the repo rate will have a direct impact on lending and deposit rates across banks.

Kotak Mahindra Bank 811 savings account updates

• A charge of Rs 5 per Rs 1,000 (minimum Rs 50) after the first free cash deposit of Rs 10,000 per month.
• Waivers on fees for PIN re-generation via courier, balance statements, and cash/instrument pickup for senior citizens.
• ATM decline fees of Rs 25, now applicable only to non-Kotak ATMs.
• A reduction in standing instruction failure fees from Rs 200 to Rs 100.
• Adjustments in free ATM transaction limits based on the card type.

IDFC FIRST Bank credit card rule changes from February 20

A revised statement date of the 20th of each month for FIRST Millennia, FIRST Wealth, and FIRST SWYP Credit Cards. The payment due date remains 15 days after the statement date.

• A 1% fee (minimum Rs 249) on education payments made via third-party platforms like CRED, PayTM, and MobiKwik, though direct payments to schools and colleges will not incur this charge.
• A joining and annual fee of Rs 499 plus taxes for Add-On Cards issued after February 20, 2025.
• A Rs 199 plus taxes card replacement fee across all credit cards.
• A Rs 499 plus taxes fee for Image Personalization cards issued after February 20.