New financial rules in August: FASTag, SBI credit cards, UPI changes effective this month

A series of significant regulatory changes will take effect in India from August 2025, affecting various aspects of financial transactions and services. These updates include modifications to the Unified Payments Interface (UPI), the introduction of new FASTag annual passes for private vehicles, and changes to the benefits associated with certain State Bank of India (SBI) credit cards. Each of these changes carries implications for consumers' daily financial activities and choices.

FASTag annual passes

Commencing on 15 August 2025, the Ministry of Road Transport & Highways will introduce a new FASTag annual pass available for Rs 3,000. This pass allows for up to 200 toll transactions or is valid for one year, whichever comes first. The initiative is designed to streamline toll payments for frequent highway users, offering a more economical option. Importantly, this pass is optional; existing FASTag users can continue using the current system without any disruptions. This move is expected to benefit those who frequently travel long distances, providing them with a cost-effective solution to manage toll expenses. 

UPI transactions

In the realm of digital payments, the National Payments Corporation of India (NPCI) has unveiled updates to the UPI ecosystem. These changes aim to enhance the efficiency of UPI transactions by regulating balance inquiry requests and the use of application programming interfaces (APIs) such as Autopay Mandate Execution and Validate Address. These amendments are expected to affect users of popular platforms like Paytm, PhonePe, and Google Pay. As digital transactions become more prevalent, these updates are crucial for maintaining a secure and efficient payment environment.

SBI credit cards

Another critical update involves SBI credit cards, where, from 11 August 2025, several co-branded cardholders will lose their complimentary air accident insurance benefits. This change affects premium variants including ELITE and PRIME, as well as select Platinum cards, which previously offered insurance covers of Rs 1 crore and Rs 50 lakh. The withdrawal of these benefits may prompt affected cardholders to reassess their credit card options. Cardholders are encouraged to review their current benefits and consider alternative insurance options if necessary.

PNB KYC

Concurrently, the Punjab National Bank (PNB) has issued a directive for its customers to update their Know Your Customer (KYC) information by 8 August 2025. This requirement is in line with the Reserve Bank of India's guidelines, ensuring the continued operation of bank accounts for those whose KYC updates are pending as of 30 June 2025. This move underscores the importance of compliance with regulatory standards in the banking sector. Customers who fail to update their KYC details may face disruptions in their banking services, highlighting the necessity of timely compliance.

These changes reflect ongoing efforts to optimise financial systems and services in India, impacting consumers and businesses alike. By adopting these new measures, authorities aim to enhance transaction efficiency, security, and overall consumer experience. As these rules take effect, stakeholders are advised to stay informed and adapt accordingly, ensuring a smooth transition to the updated regulatory framework.