Fintech Updates February 2025: UPI Rules, Bank Charges, and Credit Card Changes You Need to Know

Key Fintech Changes in February 2025

From widely used UPI services to bank savings accounts, several significant changes have been implemented in the fintech sector, with more to come in the following days. Here are the details:

1. UPI Transaction ID Standardization

The National Payments Corporation of India (NPCI) has introduced new rules for UPI transaction IDs to ensure standardization.

• From February 1, 2025, UPI transaction IDs will only contain alphanumeric characters (letters and numbers).
• Special characters will no longer be allowed in transaction IDs.
• If a UPI app generates a transaction ID with special characters, that transaction will be rejected.
• Remember, UPI transaction ID is different from your UPI ID, so do not confuse the two.

2. Kotak Mahindra Bank 811 Savings Account Changes

Kotak Mahindra Bank has revised charges for cash transactions in its 811 savings account:

• First cash transaction of the month is free.
• After that, a charge of ₹5 per ₹1,000 deposited (capped at ₹50 per transaction) applies for cash deposits above ₹10,000 per month.

Additional changes:

• Courier-based PIN regeneration, cash/instrument pickup for senior citizens, and balance statements have been made free.
• ATM decline charges remain ₹25, but now apply only to non-Kotak ATMs.
• Standing Instruction (SI) failure charges have been reduced from ₹200 to ₹100.
• Free ATM transaction limits have been revised based on card type. Charges apply beyond these limits.

3. IDFC First Bank Credit Card Changes

Starting February 20, 2025, new rules will apply to IDFC FIRST credit cards (Millennia, FIRST Wealth, FIRST SWYP):

• Statement date changes for these credit cards.
• A 1% fee (minimum ₹249) will be charged on education payments made through third-party platforms like CRED, Paytm, and MobiKwik.
• However, this fee does not apply to payments made directly on school/college websites or POS machines.

4. RBI’s Monetary Policy Review on February 7, 2025

The Reserve Bank of India (RBI) will announce its next monetary policy review on February 7, 2025.

• The Monetary Policy Committee (MPC) meeting is scheduled for February 5-7, 2025 as part of the 2024-25 financial year calendar.
• Experts anticipate a possible repo rate cut, which would impact banks’ lending and deposit rates.

These changes could significantly affect how users transact via UPI, bank savings accounts, and credit cards. Stay informed and plan your financial transactions accordingly.