The month of May is bringing several changes this year across various sectors, including banking, transportation, energy, and taxation. Here is a comprehensive overview of the key changes.
Table of Contents
Changes to Come into Effect
ATM Withdrawals
Starting from May 1, 2025, the Reserve Bank of India (RBI) has approved an increase in interchange fees for ATM transactions exceeding the free monthly limit. The fee per transaction will rise by ₹2, from ₹21 to ₹23. Customers are allowed three free transactions per month in metro cities and five in non-metro cities. Transactions beyond these will incur additional charges.
Railway ticket booking
From May 1, 2025, passengers with waiting list tickets will no longer be able to travel in the sleeper or AC coaches. According to Indian Railways, these tickets will not be considered valid in such coaches. Meanwhile, the Indian Railway has shortened the advanced reservation period from 120 days to 60 days, while the cancellation refund time is cut down to a mere two days.
Gas cylinder price
The price of LPG cylinders was increased by ₹50 earlier this month – the current price of the cylinder is ₹550 per unit under the Pradhan Mantri Ujjwala Yojana and ₹853 under the non-Pradhan Mantri Ujjwala Yojana. Now, Union Minister Hardeep Singh Puri has indicated that the government will review LPG prices every fortnight. However, no official statement has been made yet. The prices of cylinders may rise again in May.
FD rates
Several banks have revised their Fixed Deposit interest rates, offering higher interest rates to attract investors. RBL Bank will offer a maximum interest rate of 7% on savings accounts. The banks have recently adjusted their interest rates. The adjustments also apply to senior citizens, who will receive an additional interest rate of 0.50% per annum, while women depositors will receive an extra 0.10% interest per annum.
Income tax returns
The Income Tax Department officially notified ITR forms 1 and 4 for the assessment year 2025-26 on April 30. The new rule says that people with a total annual income of less than ₹50 lakh will not be able to file their tax returns.
The forms also indicated that several changes have been made for small investors. Taxpayers with long-term capital gains (LTCG) of up to ₹1.25 lakh in a financial year can now opt for the simpler ITR-1 (Sahaj) form instead of the more detailed ITR-2, making the filing process more convenient.
Bank mergers
The government has proposed the ‘One State, One RRB‘ initiative to merge regional rural banks, reducing their number from 43 to 28, which is set to take effect on May 1, 2025.
These changes reflect the government’s ongoing efforts to streamline various sectors of the economy. Individuals should stay informed about the updates to make well-informed decisions.
