The first day of any month isn’t just about flipping the calendar—it’s often when new rules, price changes, and regulatory decisions come into effect that directly impact your pocket.
August 1, 2025, is one such date packed with important financial updates. From revised UPI transaction limits to potential changes in LPG and CNG prices, from RBI’s upcoming monetary policy that may affect your EMI, to changes in TDS, PAN-Aadhaar linking rules, and even hiring freezes by corporate giants like TCS—this blog breaks it all down.
Let’s dive into each of these changes with clear explanations and the context you need to prepare financially.
🏦 UPI Rules Change from August 1, 2025
UPI (Unified Payments Interface) has transformed the way India pays—almost eliminating the need for cash and ATMs. But starting August 1, 2025, several new restrictions will apply.
🔄 New UPI Limits and Rules:
Let’s break this down step by step:
- Balance Check Limit: You can now check your bank balance only 50 times per day across UPI apps like Google Pay, PhonePe, and Paytm.
- Transaction Status Check: Limited to 3 times per day, with a minimum 90-second gap between each check.
- Auto-Debit Timing Restrictions: Auto payments like Netflix, Amazon Prime, EMIs, and SIPs will only be allowed in these 3 time slots:
- Before 10:00 AM
- Between 1:00 PM and 5:00 PM
- After 9:30 PM
- Payment Reversal Limit: Max 10 reversal requests per month, and only 5 allowed per individual.
💡 Why is NPCI Implementing These Rules?
The National Payments Corporation of India (NPCI) says these limits are intended to:
- Reduce server load during peak hours
- Minimize UPI failures
- Prevent unnecessary traffic due to repeated balance checks
📌 Fun Fact: UPI services went down multiple times in March and April 2025 due to heavy load—this change is a direct response.
🔐 Face Recognition-Based UPI: A New Feature in Testing
So far so good? Now let’s talk about something futuristic.
NPCI is also testing a biometric authentication feature for UPI. That means, soon you might not need to enter your PIN manually. Instead:
- Face recognition or fingerprint scan may approve payments
- This improves security and speed
- Reduces the risk of PIN-based frauds
🧪 This feature is still in beta mode and might roll out gradually after regulatory approval. It’s not confirmed for August 1, but trials may begin in the same month.
🔥 Possible Changes in LPG, CNG, and ATF Prices
Next, let’s talk about something that affects everyone’s kitchen and commute—fuel prices.
🛢 Monthly Price Review by Oil Companies
Every month, Indian oil companies reassess the prices of:
- LPG (domestic and commercial)
- CNG and PNG (natural gas)
- ATF (aviation turbine fuel)
While official confirmation is pending, there’s a strong possibility that LPG prices may be revised on August 1.
Let’s understand the impact with a real-life example:
- As of now, the 14.2kg domestic LPG cylinder in Delhi costs ₹853
- If prices go up by ₹50, yearly cost increases by ₹600
- If prices go down by ₹50, you could save ₹600 annually
- This is based on a household using one cylinder per month
Note: On July 1, 2025, the government had cut commercial cylinder prices by ₹60, but kept domestic rates unchanged. Let’s wait and see what happens this month.
📉 Will Your EMI Reduce After August 6, 2025?
RBI’s Monetary Policy Committee (MPC) is set to meet between August 4–6, 2025. This meeting may directly impact your EMI, FD returns, and overall borrowing cost.
💸 Repo Rate: What May Happen?
Current repo rate: 5.5%
Speculation from sources suggests:
- A possible 50 basis point cut
- Bringing it down to 5.0%
If this happens, here’s what it means for you:
- Lower EMIs on:
- Home loans
- Car loans
- Personal loans
But there’s a flip side…
- Fixed Deposit (FD) rates may fall
- Senior citizens and general depositors may get lower interest returns
- If you’re planning to open a new FD, better do it before August 6
📅 Reminder: The previous repo rate cut was termed “final” by RBI—but now that optimism is back, anything can happen on August 6.
⏰ RBI Trading Hours to Be Extended
In case you’re into markets or finance professionally, here’s something niche but important.
RBI has announced extended hours for:
- Market Repo
- Tri-party Repo (TREPS) operations
🕒 New Timing:
- New: 9:00 AM to 4:00 PM
- Earlier: Only till 3:00 PM
Also, from July 1, Call Money Market operations were extended till 7:00 PM.
Let’s decode these terms quickly:
- Market Repo: Banks lend money by temporarily selling government securities.
- TREPS (Tri-party Repo): Same as above but involves a 3rd party like the Clearing Corporation of India (CCIL) to ensure transparency and safety.
- Call Money Market: Ultra-short-term lending (1 to 14 days) between banks or financial institutions.
These changes aim to improve liquidity management and overnight lending among institutions.
🛡 SBI to Withdraw Insurance Benefits on Certain Credit Cards
Let’s move to the next major change affecting credit card users.
From August 11, 2025, State Bank of India (SBI) will withdraw complimentary air accident insurance from certain co-branded credit cards.
Affected Cardholders:
- SBI Elite and Prime Co-branded Cards
- Issued in partnership with:
- UCO Bank
- Central Bank of India
- Punjab & Sind Bank
- Karur Vysya Bank
- Allahabad Bank
Currently, these cards offer ₹50 lakh to ₹1 crore insurance cover for air accidents. Post August 11, this benefit will no longer apply.
💰 Income Tax Return (ITR) Validation Window Reopened
Here’s some relief for taxpayers.
If your income tax return (ITR) was marked invalid because of non-verification (e.g., missed OTP, failed digital signature), then good news!
The CBDT has extended the window to validate such returns until March 31, 2026.
Why is this important?
- You might still be eligible for pending refunds
- No need to refile your return—just complete verification (e.g., Aadhaar OTP or DSC)
🧾 Big Update on PAN-Aadhaar and TDS Deductions
Have you received TDS notices demanding 20% deduction because of PAN inactivity?
Here’s what’s changing:
Key Relief:
- If your PAN was inactive between April 1, 2024 – July 31, 2025, and TDS was deducted at 20%
- You can link PAN and Aadhaar by September 30, 2025
- The higher 20% deduction rule will be removed
- For new transactions after August 1:
- If PAN is inactive, you get 2 months to link it
- During this period, 20% deduction won’t apply
So, if you’ve sold property or done high-value transactions with inactive PANs, act fast!
📉 TCS Freezes Senior Hiring & Salary Increments
Let’s wrap up with some big corporate news from India’s largest IT firm—Tata Consultancy Services (TCS).
What’s Happening?
- TCS has halted senior-level hiring
- Annual salary hikes delayed or paused, especially for mid and senior managers
- The company has also laid off over 12,200 mid-to-senior level employees
- This is reportedly the largest layoff in TCS’s 50-year history
Sources (as per Economic Times) suggest this cost-cutting move is due to reduced global IT spending and tightening margins.
❓ FAQs: Let’s Clear Common Questions
Q1: Will the new UPI limits apply to all users and apps?
Yes, NPCI rules apply universally across Google Pay, PhonePe, Paytm, etc.
Q2: Is the face recognition UPI feature available for everyone now?
Not yet. It’s in the testing phase and will launch post regulatory approval.
Q3: Should I rush to book FDs now?
If you’re planning one, yes. RBI’s August meeting could lead to lower interest rates.
Q4: What if I forgot to verify my ITR earlier?
You now have until March 31, 2026 to validate it and claim pending refunds.
Final Thoughts
August 1, 2025, isn’t just another date—it’s a turning point for personal finance in India.
From how you pay and bank, to how much you earn, save, and invest—every update this month can impact your financial decisions. Take this opportunity to:
- Update your PAN-Aadhaar link
- Reassess your FD and EMI plans
- Review your UPI usage patterns
- Understand your credit card benefits
- Validate any pending income tax returns
Stay alert, stay informed—and make smart money moves before the changes catch you by surprise.
Tags and Hashtags
Tags: UPI new rules, August 2025 finance updates, LPG price change August, RBI repo rate meeting, EMI reduction August, PAN Aadhaar link update, TDS 20% penalty, SBI credit card insurance removal, TCS hiring freeze, India financial policy
Hashtags:
#UPIRules #August2025Updates #FinanceNewsIndia #LPGPrice #RepoRate #EMIUpdate #PANLinking #IncomeTaxReturn #SBIUpdate #TCSNews
