Money changes in January 2025: RBI’s new FD rules, quicker credit data updation, deadlines for tax-saver investment proofs, and more

The RBI has introduced new guidelines for FDs with NBFCs and HFCs, which will come into effect from January 1.

The year 2025 will begin with a slew of changes in the banking and financial space. The Reserve Bank of India (RBI) has introduced new guidelines for fixed deposits (FDs) with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs), besides mandating credit information data updates every fortnight. Banks have decided to introduce minimum spending criteria for their credit card customers who wish to access airport lounges, and more.

Whether you're an FD investor, a credit card holder or a mutual fund investor, several changes are set to affect your finances in January. Here's a rundown of the key updates.

RBI's new fixed deposit guidelines for NBFCs and HFCs

The RBI has introduced new guidelines for FDs with NBFCs and HFCs, which will come into effect from January 1. Key changes include revised premature withdrawal rules. For small deposits up to Rs 10,000, depositors can withdraw the entire amount within three months of depositing without interest. For larger deposits, partial withdrawals of up to 50 percent of the principal amount or Rs 5 lakh (whichever is lower) are allowed within three months without interest. Additionally, in cases of critical illness, depositors can withdraw the entire principal amount prematurely without interest, regardless of the deposit term. Furthermore, NBFCs will now notify depositors of maturity details at least two weeks before the maturity date, providing more timely updates.

Also read | 2025 outlook: Equity’s long-term prospects remain strong, bonds may continue to offer stable, remunerative returns

More frequent credit information data updates

Starting January 1, 2025, banks and financial institutions will update credit records more frequently, as proposed in the August 2024 monetary policy. Instead of monthly updates, as is the case currently, credit data will now be refreshed every fortnight (i.e., on the 15th and the last day of the month), or at shorter intervals as mutually agreed upon between the credit institutions and the credit information companies.

BOBCARD revisions: New charges, features, and lounge access rules

Starting January 1, BOBCARD will implement changes in its credit card terms features. Firstly, it has removed the earlier cap of 500 reward points per statement cycle on UPI transactions. Secondly, the bank has revised its tariff of charges on credit cards. From now on, cardholders will have to pay a 1 percent processing fee on wallet loading, utility transactions exceeding Rs 50,000 (capped at Rs 3,000 per transaction), and fuel transactions above Rs 10,000. However, HPCL ENERGIE BOBCARD holders will be exempt from the processing fee on fuel transactions.

Further, BOBCARD holders will be eligible for complimentary domestic airport lounge access if they meet the minimum spending requirement in the previous quarter. The minimum spending threshold varies by card type, such as Rs 40,000 for the Eterna credit card, and Rs 20,000 for Varunah Premium and Premier credit cards in the preceding quarter.

For instance, to be eligible for complimentary lounge access on the Eterna credit card in the January-March 2025 quarter, you need to spend a minimum of Rs 40,000 in the October-December 2024 quarter and similarly for the following quarters.

For newly issued cards, the minimum spending requirement is exempted for the first quarter, allowing cardholders to access domestic airport lounges.

RuPay introduces tiered lounge access policy for credit cardholders

RuPay credit card holders will have to get used to a new lounge access policy in Delhi starting January 1. The policy is spend-based, meaning cardholders will get complimentary lounge access based on their spending in the previous quarter.

The spend-based tiers are as follows: spending between Rs 10,000 and Rs 50,000 qualifies for two complimentary lounge visits per quarter (Tier 1), while spending more than Rs 50,000 to Rs 1 lakh earns four complimentary visits (Tier 2). Higher spending tiers offer more lounge visits: more than Rs 1 lakh to Rs 5 lakh (Tier 3) earns eight visits, and spending above Rs 5 lakh (Tier 4) offers unlimited complimentary lounge visits per quarter. This lounge access policy applies to select RuPay credit card variants, including Select, Platinum, and higher variants.

Also read | Yearender 2024: Five tax-saving hacks that can reduce your outgo in 2025

File your investment proofs in January 

Most employers ask their employees to submit proof of tax-saver investments made during the financial year in January. Ideally, tax planning should be a subset of your overall financial planning strategy, and the process should begin in April, rather than at the last minute, just before filing the declarations. Nevertheless, do not miss the deadline set by your employers, as it could lead to higher taxes being deducted from your salary in January, February and March. While you can claim a refund on excess taxes deducted at the time of filing your returns in July, timely declarations will help you avoid a potential cash crunch in the last quarter of the financial year. However, ensure that you do not make any investments in haste. Check whether your Employees' Provident Fund (EPF) deductions, home loan repayment or children's school fees can exhaust the Rs 1.5 lakh limit under section 80C (old tax regime). In that case, you need not look for tax-saving avenues, which come with lock-in periods.

Motilal Oswal MF halts SIPs in international funds

Effective January 5, Motilal Oswal Mutual Fund will temporarily halt inflows from existing systematic investment plans to its two international funds, Motilal Oswal S&P 500 Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund as it has exhausted the overseas investment limit. The upper limit available to asset management companies to invest in overseas securities is $7 billion. The fund will temporarily suspend existing SIPs, not terminate them, and will reinstate them if regulations change. The pause won't affect redemptions, withdrawals, or fund transfers.