Big Updates You Need To Know This August 2025!

byPriyanka JuyalAugust 4, 2025

A lot is happening across India’s financial and legislative landscape—whether you’re a UPI user, a highway commuter, or just someone tracking India’s economic pulse. From RBI’s next big move to game-changing toll reforms, here’s a rundown of the five most important updates you need to stay ahead of.

UPI Rules Are Changing from August 1

Source: NPCI

Effective: August 1, 2025
Announced by: National Payments Corporation of India (NPCI)

New usage limits will be introduced for UPI apps to improve system performance and reduce failed transactions, especially during high-traffic periods.

Key Changes:

  • Balance checks limited to 50 times/day
  • Account view limited to 25 times/day
  • Autopay mandates allowed 1 execution + 3 retries, scheduled during non-peak hours
  • No change in actual transaction limits for UPI, UPI Lite, or UPI Autopay

Peak hours are from 10 AM to 1 PM and 5 PM to 9:30 PM

Why it matters:
These rules are intended to ensure faster and more reliable UPI transactions, with minimal disruption even during peak usage.

Major Reforms in Banking Laws

Source: PIB Press Release

Effective Date: August 1, 2025
Notified under: Gazette Notification S.O. 3494(E)

The Central Government has notified that important provisions under the Banking Laws (Amendment) Act, 2025 — specifically Sections 3, 4, 5, 15, 16, 17, 18, 19, and 20 — will officially come into effect from August 1, 2025. This was announced through Gazette Notification S.O. 3494(E) dated July 29, 2025.

Key Highlights:

  • New Limit for ‘Substantial Interest: The minimum amount to be considered a ‘substantial interest’ in banking is now ₹2 crore, up from the old limit of ₹5 lakh set in 1968.
  • Longer Term for Cooperative Bank Directors: The maximum term for directors (except chairpersons and full-time directors) in cooperative banks has been increased from 8 years to 10 years, as per the 97th Constitutional Amendment. 
  •  Unclaimed Amounts Can Be Sent to IEPF: Public Sector Banks (PSBs) can now transfer unclaimed shares, interests, and bond redemption amounts to the Investor Education and Protection Fund (IEPF), just like companies do under the Companies Act.
  • Better Audit Standards for PSBs: PSBs can now pay remuneration to statutory auditors, which is expected to attract high-quality audit professionals and improve audit standards across the sector.

Why it matters:
These changes strengthen legal and governance standards in banking, improve depositor safety, and align banking practices with constitutional guidelines.

RBI’s MPC Meeting: Policy Direction Ahead

Source: RBI

Dates: August 4–6, 2025
Announcement by: RBI Governor Sanjay Malhotra

After reducing the repo rate by 100 basis points earlier this year, the Reserve Bank of India’s Monetary Policy Committee (MPC) is now expected to adopt a more cautious approach. The stance has shifted from accommodative to neutral, indicating limited space for further rate cuts.

Moving forward, the committee will closely review incoming data and the evolving economic outlook to strike the right balance between growth and inflation.

Why it matters:
The MPC’s decisions directly influence interest rates, borrowing costs, and economic momentum. The outcome of this meeting will be closely watched by investors, banks, and policymakers.

FASTag Annual Pass Launched for Private Vehicles

Source: NHAI

Launch Date: August 15, 2025
Price: ₹3,000
To be available on: Rajmarg Yatra App, NHAI & MoRTH websites

The Ministry of Road Transport and Highways has introduced a FASTag Annual Pass to simplify toll payments for non-commercial private vehicles like cars, jeeps, and vans.

What You Get:

  • Valid for 1 year or 200 trips, whichever is earlier
  • Nationwide access across National Highways
  • No need for repeated toll payments
  • Faster travel and less congestion at toll plazas

Why it matters:
This pass is ideal for frequent intercity or regional travellers, offering convenience and cost savings while reducing toll-related delays.

Summary Table: What’s Changing and When?

With multiple key changes rolling out in August 2025—from updates in banking laws and tighter UPI usage rules to the launch of FASTag Annual Pass and the RBI’s policy meet—it’s clear that this month marks a significant shift in India’s financial and digital landscape. 

FAQs

What changes in banking laws will be effective from August 1, 2025?

From August 1, Sections 3, 4, 5, 15, 16, 17, 18, 19, and 20 of the Banking Laws (Amendment) Act, 2025, will come into force, as per Gazette Notification dated July 29, 2025.

What is the new ‘substantial interest’ limit from August 1?

The limit is raised from ₹5 lakh to ₹2 crore — a major update after more than five decades.

What UPI limits will apply starting August 1, 2025?

From August 1, users can check their balance only 50 times and view account details only 25 times per UPI app per day.

Why are these UPI usage limits being introduced from August 1?

To improve app performance, reduce technical issues, and handle high traffic better, especially during peak hours.

What is expected during the RBI MPC meeting on August 4–6, 2025?

The RBI is likely to keep interest rates steady while balancing inflation and economic growth.

What is the FASTag Annual Pass launching on August 15, 2025?

It’s a prepaid pass for ₹3,000 allowing up to 200 highway trips or 1 year of travel, whichever comes first.

Who can use the FASTag Annual Pass from August 15?

It is designed for private, non-commercial vehicles like cars and jeeps used frequently on toll roads.

What are the dates of the 2025 Monsoon Session of Parliament?

It started on July 21 and will continue till August 21, with 21 sittings over 32 days.
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