Money changes in February: Impact on UPI, credit cards & other transactions

Key financial changes in February include updates to UPI, credit card terms, savings account rules, and more

As February 2025 begins, several significant regulatory changes have come into effect, impacting daily financial transactions and services. Effective February 1, 2025, these updates cover various aspects, including ATM cash withdrawals, UPI transactions, and other banking services. Customers are advised to stay informed about these changes to understand their implications on everyday financial activities.

 

Key financial changes in February

 

UPI transaction ID update: Effective February 1, 2025, the National Payments Corporation of India (NPCI) has mandated that all Unified Payments Interface (UPI) transaction IDs must consist solely of alphanumeric characters. The aim of this change is to enhance standardisation and clarity in UPI transactions, making them more secure and easier to process. Transactions that do not comply with this new rule will be rejected by the system, so users are encouraged to check their UPI apps accordingly.

 

Change in minimum balance rules altered: SBI now demands Rs 5,000 (earlier Rs 3,000), PNB demands Rs 3,500 (earlier Rs 1,000), and Canara Bank now demands Rs 2,500 (earlier Rs 1,000). Account holders with a lesser balance than the minimum will be charged penalty amounts.

 

Changes in Kotak Mahindra Bank’s 811 Savings Account: Kotak Mahindra Bank has revised its savings account rules effective February 1, 2025. A fee of Rs 5 per Rs 1,000 (with a minimum of Rs 50) will apply to cash deposits exceeding Rs 10,000 per month. ATM decline fees now apply only to non-Kotak ATMs (Rs 25). The standing instruction failure fee has been reduced from Rs 200 to Rs 100. 

 

IDFC FIRST credit card updates and changes: Effective February 20, IDFC FIRST credit cards will undergo several updates. The statement dates will be revised, and new fees will be applicable for education payments made via platforms like CRED and PayTM. Additionally, the card replacement fee will now be Rs 199 plus applicable taxes. Furthermore, after February 20, a joining and annual fee of Rs 499, along with applicable taxes, will be introduced.

 

RBI monetary policy review on February 7: The Reserve Bank of India’s Monetary Policy Committee will meet from February 5-7. 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.