Big financial reset from June 1: Credit Card, UPI, Aadhaar rules updated

Major changes coming into effect from June 1st, including credit card rules, Aadhaar corrections, and UPI transactions.

UPI Transaction

June is crucial for your finances. Avoid credit card penalties, fix Aadhaar errors for free, utilize new PF features, and be mindful of new UPI safety rules. This month brings several changes directly impacting your pocket and financial transactions.

Whether you're salaried, a business owner, or managing expenses, knowing these updates is vital. Let's understand these changes in detail to take timely action.

Credit Card

From June 1st, failing to auto-debit any bill or EMI from your credit card will incur a 2% penalty. Paying utility bills or buying fuel with your credit card might cost extra. Banks might also change reward point systems. Pay close attention to your credit card bills and auto-debits.

Provident Fund

Good News for PF Account Holders

EPFO may launch its new SIM version 3.0 in June, simplifying PF withdrawals, claims, and updates. Withdrawing PF money from ATMs might also start this month, a game-changer for PF account holders.

FD Interest Rates May Decrease

The RBI meeting on June 6th could lead to lower FD interest rates if the repo rate is reduced. Current FD rates are 6.5% to 7.5%. Investors should watch closely as this directly impacts savings.

Correct Aadhaar Card Errors

Until June 14, 2025, correct details like name, address, birth date, and gender on your Aadhaar card online for free. After this, each correction costs ₹50 and requires visiting an Aadhaar center. Fix any errors now via the My Aadhaar portal. This is the last free chance.

Salary

For Salaried Employees

Your employer will provide Form-16 by June 15th. This form is essential for filing income tax returns as it details tax deductions from your salary. You can only file your return after receiving it. This form serves as proof of your income and tax deductions.

UPI Transaction

New UPI Rule

From June 30th, a major change in UPI payments takes effect. You'll only see the recipient's actual bank-registered name, not their UPI ID's nickname. This aims to secure online payments and reduce fraud, making digital transactions more trustworthy.