Higher ATM Fees and FD Interest Rate Cuts: Major Financial Changes from June 1

A number of crucial financial changes are set to come into effect from June 1, 2025. These changes range from PF policy updates to interest rate revisions on fixed deposits offered by banks. Take a look at how these changes could affect your pocket.

Easy withdrawals under EPFO 3.0

The Employees’ Provident Fund Organization is set to launch the upgraded EPFO 3.0 system from June 1. The new system aims to simplify PF withdrawals, streamline KYC updates, and expedite the claim process. It will also enable easy and quick access to funds through ATM-like cards.

Updates in Credit Card Rules

New credit card rules are likely to come into effect from June 1. These include a reduced 2% penalty on auto-debit failures, changes in additional charges on fuel and utility payments, revised fees on international transactions, and updates to reward point systems. Specifically, Axis Bank will revise how it classifies credit card transactions to clarify what is excluded from reward points and fee waivers. The aim is to help customers better understand and benefit from their credit card usage.

Revisions to FD Interest Rates

Banks such as HDFC and Axis have already announced changes in fixed deposit interest rates starting June 1, with more banks expected to follow suit. Currently, banks offer interest rates ranging from 6.5% to 7.5% on FDs. Further revisions may depend on the upcoming RBI monetary policy.

Higher Fee on ATM Withdrawals

An increase in ATM withdrawal fees is anticipated beyond the free transaction limits. Currently, a fee of ₹23 is charged per transaction, recently increased from ₹21.

As per existing rules, individuals are entitled to five free transactions per month at ATMs of their respective banks. In metro cities, three free transactions per month are allowed at ATMs of other banks, while in non-metro areas, the limit is five free transactions per month at ATMs of other banks.