August 2025 sees a wave of shifts in India’s financial sector. The National Payments Corporation of India (NPCI) has updated UPI guidelines. The Reserve Bank of India (RBI) is scheduled to declare its next monetary policy move on August 6. In the meantime, SEBI has issued a proposal to reshape mutual fund scheme classes.
The Income Tax Department has clarified timelines for return verification also, HDFC Tata Neu Cards now have a fixed NeuCoins expiry, and SBI Card is discontinuing air accident insurance cover on certain credit cards. These changes, coupled with the coming festive season, necessitate wise financial planning.
UPI Rules Undergo a Major Overhaul
NPCI has introduced a limit of 50 balance inquiries per application per day. Apps no longer have the ability to perform background balance checks. Autopay transactions such as EMIs, subscriptions, and utility bills need to be processed only during off-peak hours. Inactive UPI IDs associated with mobile numbers which have been unused for more than 12 months will automatically be shut down. New bank accounts being added to UPI will be subjected to stricter verification and authentication.
RBI to Keep Repo Rate at 5.5%
The RBI has already reduced the repo rate by 100 basis points in 2025. Now it is at 5.5% and a poll by Moneycontrol indicates the RBI is likely to keep the rate in its MPC meeting on August 6. Experts, however, anticipate a cut of 25 bps in view of easing inflation. A reduction will be helpful for borrowers as interest rates on repo-linked loans will fall, though a few banks might not give the complete benefit to new borrowers.
SEBI Mutual Fund Reform Proposal
SEBI has released a discussion paper that seeks to permit AMCs to introduce a second scheme in the same class, if the inaugural scheme is more than five years old and has AUM of more than ₹50,000 crore. The initial scheme should cease to receive new subscriptions. The new scheme should maintain the identical investment mandate. The public comment period for the draft is open till August 8.
Timely Verification Necessary to File ITR
Also Read: Aditya Infotech IPO: Allotment & Listing Date, GMP, and Investor Demand
E-filing your income tax return is no longer sufficient. You need to authenticate it within 30 days of e-filing. Authentication is required for the Income Tax Department to complete the processing of the return. You can do this on the I-T portal based on your Aadhaar, bank account, or demat details. Experts recommend this during filing to save time.
NeuCoins on HDFC Tata Neu Cards Will Now Expire
From August 1, NeuCoins earned on HDFC Tata Neu Infinity Credit Cards shall get expired one year from the date they’re earned. NeuCoins of each month shall have a different expiry. For instance, coins earned on August 5, 2025, will get expired on August 31, 2026. Coins earned prior to August 1, 2025, shall get expired on July 31, 2026, irrespective of the original earn date.
SBI Card Eliminates Air Accident Insurance
Starting August 11, SBI Card will withdraw the free air accident cover on many co-branded cards. For instance, SBI Card ELITE and SBI Signature will stand to lose their ₹1 crore cover. SBI Card PRIME range of cards will stand to lose their ₹50 lakh cover.
Plan Your Spending This Festive Season
Festivities start in August with Raksha Bandhan, Independence Day, Krishna Janmashtami, and Ganesh Chaturthi. Consumers must plan ahead, utilise rewards and partner bank deals, and beware of zero-cost EMI pitfalls. Pre-planning and controlled expenditure can maximise festive savings.
