Big money changes coming from June 1: EPFO 3.0 roll-out, FD rates, credit card charges & more

Starting June 1, 2025, a series of significant financial changes are set to take place across India, altering the landscape for savings, credit card regulations, and provident fund access. These changes are poised to impact individuals and businesses, introducing a mix of new opportunities and challenges in the financial sector.

Among the major developments is the rollout of the enhanced Employees' Provident Fund Organisation (EPFO) 3.0 system. This upgrade aims to simplify the process of provident fund withdrawals and expedite Know Your Customer (KYC) updates. The new system is expected to reduce claim processing time significantly and introduce ATM-like cards for quicker access to EPF funds. These changes are designed to enhance the overall efficiency and user experience for EPFO members.

In addition, taxpayers must be aware of the approaching deadline for receiving their Tax Deducted at Source (TDS) certificates, specifically Form 16 and Form 16A, by June 15, 2025. These documents are crucial for accurate tax filing and reconciliation, ensuring compliance with income tax regulations. The timely receipt of these forms is essential to avoid any discrepancies during the tax return process.

The Securities and Exchange Board of India (SEBI) has also implemented new cut-off timings for overnight mutual fund schemes, effective June 1, 2025. The cut-off times are now set at 3 PM for offline transactions and 7 PM for online transactions. This change aims to improve the management of client funds and streamline the movement of pledges, potentially altering the net asset value (NAV) received depending on transaction timing.

Another important deadline fast approaching is June 14, 2025, for updating Aadhaar details online for free. After this date, a fee of Rs 25 will be charged for online updates, and Rs 50 for updates at physical Aadhaar centres. This initiative underscores the importance of maintaining current personal information in official records.

Credit card holders should note the upcoming changes by Axis Bank, effective June 20, 2025, which will introduce phased adjustments to its REWARDS Credit Card. These changes will alter point accrual rules and merchant categories, affecting how cardholders can maximise their benefits. Such updates are intended to help users better manage their spending and understand the evolving card benefits.

Similarly, Suryoday Small Finance Bank is set to reduce interest rates on fixed deposits starting June 1, 2025. The revised rates will range from 4% to 8.4% for deposits under Rs 3 crore, with the most favourable rates applying to tenures between 30 to 36 months. This shift reflects broader market trends as financial institutions adjust to the changing economic environment.

HDFC Bank has also announced revisions to its lounge access policy for Tata Neu Infinity and Tata Neu Plus credit cardholders, effective June 10, 2025. Under the new policy, lounge access will be granted via vouchers based on quarterly spending milestones, replacing direct card swipes. This change is aimed at streamlining benefits and encouraging increased card usage.

Finally, Kotak Mahindra Bank will update its credit card fee structure starting June 1, 2025. The adjustments involve new fees for various services, including standing instruction failures and dynamic currency conversion. Additionally, the bank is implementing a new method for calculating the Minimum Amount Due, affecting cardholders' payment strategies.