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?
| Topic | Effective Date | Key Impact |
|---|---|---|
| UPI Usage Rules | Aug 1 | More reliable, faster transactions |
| Banking Law Reforms | Aug 1 | Stronger governance & depositor safety |
| RBI MPC Meeting | Aug 4–6 | Direction on interest rates & inflation |
| FASTag Annual Pass | Aug 15 | Cost-effective travel across highways |
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.
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