With the beginning of 2025, several financial regulations have been updated, offering significant relief to pensioners, FD investors, and UPI users.
Simplified Pension Withdrawal Process
Starting January 1, 2025, the Employees’ Provident Fund Organization (EPFO) has streamlined the pension withdrawal process for senior citizens. Pensioners can now withdraw their pensions from any bank branch nationwide without additional verification. This initiative, implemented under EPFO’s IT modernization project, CITES 2.01, through the Centralized Pension Payment System (CPPS), will benefit approximately 7.8 million pensioners.
New Rules for Fixed Deposits
The Reserve Bank of India has revised rules for fixed deposits (FDs) with non-banking financial companies (NBFCs) and housing finance firms. Full withdrawal of FDs is now permitted in cases of severe illness. Additionally, pre-mature withdrawal of smaller deposits (below ₹10,000) has been made easier.
Changes in UPI Payments
UPI payments have seen significant updates. From January 1, 2025, UPI transactions via full-KYC third-party prepaid cards are now allowed. Additionally, the transaction limit for feature phone users under the UPI 123Pay service has been increased from ₹5,000 to ₹10,000, enhancing financial inclusion.
