Top financial changes in August: New UPI rules, RBI repo rate decision and revision in bank credit cards terms

From August, NPCI is revising UPI rules, watchout for the RBI’s upcoming repo rate decision and so on.

August 1 brings in transformative updates in India’s financial landscape, starting with the National Payments Corporation of India (NPCI) revising unified payments interface or UPI rules to cap balance inquiries at 50 per app daily, ban background checks and schedule autopay transactions for non-peak hours.

Meanwhile, the hot topic is the August 6 Reserve Bank of India (RBI) monetary policy committee (MPC) decision, with most observers expecting the central bank to keep its policy repo rate unchanged at 5.5 percent, even as some predict a cut of 25 basis points (bps).

Then there is the proposal by the Securities and Exchange Board of India (SEBI) to amend rules governing the mutual fund industry to bring in more clarity and innovation, and also the fact that tax filers must verify their returns within 30 days of the income-tax department acknowledging receipt of the return.

Changes to UPI rules

NPCI has introduced several key updates to the UPI rules. One significant change is the limit on balance inquiries—users can now use UPI to check how much there is in the bank account linked to the payment gateway only 50 times per app per day. Additionally, background balance checks by apps will no longer be allowed.

Another important update pertains to scheduled autopay transactions. Recurring payments such as utility bills, OTT subscriptions or equated monthly instalments (EMI) will now be executed only during designated off-peak time slots.

The new rules also focus on security and account management. UPI IDs linked to mobile numbers that have been inactive for more than 12 months will be automatically disabled to prevent misuse after number reassignment. Moreover, new bank accounts added to UPI will undergo enhanced verification, including stronger user authentication and validation checks.

Will RBI cut the repo rate or hold?

The central bank has reduced the repo rate by a total of 100 bps this year to boost growth, bringing it to 5.5 percent now.

A Moneycontrol poll of economists and bank treasury heads found most expect the MPC to maintain the status quo on interest rates in the upcoming review on August 6.

However, some among them believe that the central bank may cut rates by 25 bps amid a sharply easing inflation print.

If that happens, existing borrowers with repo rate-linked loans will see an equivalent reduction in their home loan interest rates. New borrowers also stand to gain, but as per BankBazaar data, some private sector banks have not passed on the entire rate cut benefit to those availing fresh home loans.

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SEBI's mutual funds overhaul proposal

The market watchdog has released a draft circular proposing significant changes to mutual fund scheme categorisation and rationalisation norms. The goal is to improve investor clarity, reduce portfolio overlaps and foster product innovation. Key proposals include allowing asset management companies (AMCs) to launch a second scheme in the same category if the existing scheme is over five years old and has assets under management over Rs 50,000 crore. The new scheme must have similar investment objectives and asset allocation, with a separate information document, and the original scheme must stop accepting new subscriptions. The draft is open for public consultation until August 8.

Verify your I-T returns within 30 days

For individual taxpayers who filed their returns in July or are filing in August, online submission is not the final step in the process. You will have to verify the returns within 30 days of having filed them online. That is when the income tax department will take it up for processing. You can easily do this online through the I-T e-filing portal (www.incometax.gov.in) using your Aadhaar, pre-validated bank account, demat account and so on. It is best to complete this process along with ITR submission instead of taking a break for 30 days.

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Changes to NeuCoins expiry rules on HDFC Tata Neu Infinity Credit Card

From August 1, NeuCoins earned on your HDFC Tata Neu Infinity Credit Card will have a new expiry policy. Previously, NeuCoins didn't expire as long as you kept using your card, with the expiry date extending automatically. However, from August 1, NeuCoins will expire one year from the month they're earned. Each month's NeuCoins will have their own expiry date. For example, NeuCoins earned on August 5, 2025, will expire on August 31, 2026.

However, NeuCoins earned before August 1, 2025, will now expire on July 31, 2026, regardless of when you earned them.

SBI Card discontinues air accident cover on co-branded credit cards

Starting August 11, SBI Card will discontinue the complimentary air accident insurance on several co-branded credit cards. This means that co-branded cards like SBI Card ELITE, SBI Signature and others will no longer offer the Rs 1 crore insurance cover, while cards in the SBI Card PRIME range will lose their Rs 50 lakh cover.

Spend smartly this festive season

India's festival season is just around the corner, kicking off in August with Raksha Bandhan, followed by Independence Day, Krishna Jayanti and Ganesh Chaturthi.

E-commerce sites, retail chains and local stores will launch festive offers. To shop smart, set a budget and track expenses. Maximise rewards by redeeming points and plan ahead with a gift list to avoid impulse buys. Use partner bank cards for extra discounts and cashbacks. Be cautious of debt traps like unused purchases and zero-cost EMI schemes.