Several changes affecting LPG gas, petrol-diesel prices, railway tickets, and other services come into effect on the first of every month, directly impacting the common man. May 2025 will see several such changes that will affect your finances.
Business Desk: From May 1, 2025, several significant changes will directly impact your finances. These changes span various sectors, including ATM cash withdrawal charges, railway travel, FD and savings account interest rates, gas cylinder prices, and improvements in rural banking. Let's delve into these changes in detail so you can prepare accordingly.
1. Increased ATM Cash Withdrawal Charges
The Reserve Bank of India (RBI) has decided to increase charges for ATM cash withdrawals. Previously, customers paid approximately ₹21 for most withdrawals exceeding the free limit; this will increase to ₹23. This change will be implemented from May 1, 2025. However, this charge will only apply in metro cities, where up to three free ATM withdrawals per month are allowed. Withdrawals beyond this limit will incur the ₹23 surcharge.
This change will particularly affect those who frequently withdraw cash from ATMs and exceed their free withdrawal limit. This banking fee directly impacts personal finances. Considering this, if you're planning your finances, try to avoid frequent ATM cash withdrawals.
2. Changes in LPG Gas Prices
Gas cylinder prices are revised monthly, and May is likely to see another price adjustment. In April, the government increased prices across all cylinder types by approximately ₹50. Gas agencies anticipate further price revisions on May 1st. This directly impacts household expenses, as increased LPG gas cylinder prices increase kitchen budgets. The increase in commercial cylinder prices will also put pressure on restaurants and other businesses, ultimately affecting consumers.
3. Changes in FD and Savings Account Interest Rates
Following RBI repo rate reductions, banks are adjusting interest rates on FDs and savings accounts. Several public and private banks have already announced interest rate cuts. This will affect those investing in FDs and savings accounts. If you plan to invest in FDs or savings accounts, review the banks' new interest rates first.
Reduced FD interest rates mean lower returns. Savings account interest rates may also change, potentially reducing interest earned on savings. Therefore, you should review your investment plan in line with your financial goals, considering these changes.
4. Major Changes in Local Banks
Major changes are expected in Indian rural banks from May 1, 2025. Under a government initiative, the process of merging various state-level rural banks into larger banks may commence. This will be implemented under the "One State, One RRB" scheme. This will affect rural banks in West Bengal, Uttar Pradesh, Andhra Pradesh, Bihar, Jammu & Kashmir, Karnataka, Gujarat, Madhya Pradesh, Odisha, Rajasthan, and other states.
Consolidating these banks will strengthen banking services in rural areas, but it may affect customers currently using local banks. These customers might face additional procedural challenges initially.
5. Changes in Railway Travel
A significant change for railway passengers is coming into effect from May 1st. Passengers with waitlisted tickets will no longer be permitted to travel in sleeper or AC coaches. The railways have announced that passengers with waitlisted tickets will be prevented from boarding if a seat is unavailable. This directly affects passengers who book tickets last minute and are on the waiting list.
Those with waitlisted tickets will no longer be able to travel in AC or sleeper coaches. This rule necessitates advance booking of confirmed seats for those planning travel.
