As May begins, several policy updates and service revisions are set to roll out, and many of them could directly affect your monthly expenses. From ATM charges and LPG prices to possible fees on UPI payments, here are six major changes taking effect from May 1, 2025, and how they may impact your wallet:
1️⃣ ATM Withdrawals Get Costlier
Using your ATM card too frequently? Be ready to pay more.
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Cash withdrawal charges after the free limit will increase from ₹17 to ₹19.
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Balance inquiries will now cost ₹7 instead of ₹6.
This move will especially impact those who rely on frequent withdrawals at non-home bank ATMs.
2️⃣ Railway Ticket Booking Process to Change
Indian Railways is tweaking the ticket booking process, both online and at counters.
Though pricing details are yet to be announced, digital and in-person bookings may see operational changes. Travelers should stay updated to avoid last-minute surprises or delays.
3️⃣ LPG Cylinder Prices May Rise Again
LPG prices are revised monthly, and a ₹50 hike last April has already burdened households.
A similar revision in May could further stretch middle-class and urban family budgets, especially for those using non-subsidized cylinders.
4️⃣ FD and Savings Account Returns Dropping
Following RBI’s repo rate cuts, many banks have slashed Fixed Deposit (FD) and savings account interest rates.
This impacts people who depend on bank interest for income — particularly retirees, homemakers, and salaried individuals. Review your banking strategy accordingly.
5️⃣ UPI May Get Pricier for Large Transactions
The government is reviewing a proposal to reintroduce MDR (Merchant Discount Rate) on UPI and RuPay payments — especially for merchants with annual turnover above ₹40 lakh.
If implemented:
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E-commerce, fuel, food delivery, and other large merchants may pass on this fee to consumers.
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Expect checkout charges or price hikes in such services.
6️⃣ Rural Bank Merger in 11 States
Under the “One State, One RRB (Regional Rural Bank)” scheme, rural banks in 11 states will be merged.
While this won’t affect costs directly, customers, especially in rural areas, may face temporary disruptions or changes in banking services, including branch access, IFSC codes, or fee structures.
💡 What Should You Do?
With May bringing in potential cost increases and service changes, it’s a good time to:
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Re-evaluate your monthly budget
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Monitor your bank’s communication
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Track utility prices like LPG and fuel
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Use UPI payments wisely, especially with large merchants
Bottom Line:
May 2025 may bring new financial stress points, especially for daily services. Stay alert, stay informed, and plan to keep your expenses in check.
