Mumbai: Several financial and banking-related changes have come into effect from June 1, impacting consumers, taxpayers and businesses across the country. The changes cover UPI payments, ATM withdrawals, tax deadlines, LPG prices and property transaction rules.
These updates are aimed at improving security, simplifying processes and strengthening compliance in the financial system.
Extra Security for High-Value UPI Payments
One of the biggest changes relates to Unified Payments Interface (UPI) transactions.
Under the new framework, high-value UPI payments may require additional authentication beyond the usual PIN verification. The move is aimed at enhancing security and reducing the risk of fraud in large-value digital transactions.
The changes are expected to provide greater protection for users as digital payments continue to grow rapidly.
ATM Withdrawal Rules Revised
Banks have also revised rules for ATM withdrawals.
UPI-based cardless cash withdrawals will now be counted within customers' monthly free ATM transaction limits. Once the free limit is exhausted, customers may have to pay additional charges for further withdrawals.
The change brings cardless withdrawals under the same framework as regular ATM transactions.
Advance Tax Deadline Approaching
Taxpayers should note that June 15 is the deadline for paying the first instalment of advance tax for FY27.
Individuals with an estimated annual tax liability exceeding Rs 10,000 must pay 15% of their estimated tax by the due date. Failure to do so could result in interest charges under tax rules.
EPFO Testing UPI-Based Withdrawals
The Employees’ Provident Fund Organisation (EPFO) is reportedly testing a new system that may allow subscribers to withdraw provident fund money through UPI.
If implemented, the facility could significantly reduce processing time and make PF withdrawals faster and more convenient for employees.
PAN, Property and LPG Changes
Tax-related rules linked to PAN usage have also been revised. Certain cash deposits above Rs 50,000 may no longer require PAN, though reporting requirements for high-value transactions remain in place.
Property transaction rules have also been updated, with higher thresholds for mandatory PAN disclosure and additional reporting requirements for select transactions.
Meanwhile, commercial LPG prices have increased. The price of a 19-kg commercial cylinder in Delhi has been raised by Rs 42. However, domestic LPG cylinder prices remain unchanged, providing relief to households.
RBI Policy Meeting in Focus
The Reserve Bank of India's Monetary Policy Committee (MPC) will meet from June 3 to June 5.
Market participants and consumers will closely watch the outcome, along with movements in petrol, diesel and CNG prices amid changing global crude oil trends.
