New Rule May 1, 2025: April 2025 saw many major financial changes, and May is set to bring more updates.
From May 1, withdrawing money from ATMs will become more expensive, while home loan borrowers may get some relief. Also, it’s time to start preparing for Income Tax Return (ITR) filing.
ATM Transactions Will Be Costlier
From May 1, 2025, using ATMs beyond the free limit will cost more. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees.
This fee is charged when a customer uses an ATM of a bank other than their own. After the free limit, each transaction will cost up to ₹23, excluding taxes.
This applies to both financial (like cash withdrawal) and non-financial (like balance inquiry) transactions.
HDFC Bank has informed its customers that starting May 1, the fee for ATM transactions beyond the free limit will increase from ₹21 to ₹23.
In metro cities, HDFC Bank offers 5 free transactions at its own ATMs and 3 at other bank ATMs.
In non-metro areas, 5 free transactions are allowed at both HDFC and other bank ATMs.
For non-HDFC ATMs, charges will apply on all types of transactions once the free limit is crossed.
At HDFC Bank ATMs, only cash withdrawals will be chargeable after the free limit.
Punjab National Bank (PNB) has also updated its charges. Starting May 9, 2025, customers using ATMs of other banks will be charged ₹23 for financial transactions and ₹11 for non-financial ones, plus GST, after using their free quota.
Home Loans May Get Cheaper
On April 9, 2025, RBI reduced the repo rate by 25 basis points — the second time since February. The rate is now down from 6.25% to 6%.
Many banks may pass this benefit on to their customers by lowering the Repo Linked Lending Rate (RLLR).
This move can help reduce the EMIs for those with floating rate home loans, which are directly linked to the repo rate. Since October 2019, all new floating rate loans are tied to this rate.
Start Preparing for ITR Filing
May is also the time to begin preparing for filing your Income Tax Return (ITR). You should collect all necessary documents now — either in digital or physical format.
These may include Form 16, investment proofs, and bank statements.
ITR filing starts once Form 16 is issued in June, but it’s smart to be ready early. If anything is unclear, consult a tax advisor.
