ATM fee rate hike, new rail ticket rules, LPG reduction: Major financial changes that take effect from May 1 – Check details
The month in May is bringing a wave of financial changes that can impact everything from your daily expenses to your long-term investments. From the changes in higher ATM charges and rail bookings to new tax filing rules and the latest news on LPG prices, get a quick look at what you need to know:
ATM withdrawals have just become more expensive
From May 1, after your monthly free limit, using ATM now costs Rs 23 per transaction, which is higher than the first Rs 21. You can still get three free deals in metropolitan cities, and five free deals in non-sales, including cash withdrawals and non-financial transactions, such as checking balances. The Reserve Bank of India approved the increase to help banks pay for ATM maintenance costs.
Please read also:New ATM Trading Rules: RBI releases a revised framework for ATM Trading Fees; 5 Key Changes to Know
New railway ticket rules
Rail ticket booking is undergoing major changes. From May 1: Waitlist tickets will no longer be valid in sleeper berths or communication coaches. If you are on the waitlist, you will only be allowed to take the general coach. The booking period has been reduced to 60 days, down from 120 days. Now it only takes two days to refund the cancelled ticket. Plan ahead, especially if you are booking a long trip.
Commercial LPG prices are reduced
The Petroleum Marketing Company (OMC) has cut the price of 19 kg commercial LPG cylinders by about Rs 17, starting from May 1.
New prices include:
– Delhi: Rs 1,747.50
– Mumbai: Rs 1,699
– Kolkata: Rs 1,851.50
-Chennai: Rs 1,906
Price cuts are expected to benefit restaurants, hotels and commercial kitchens. However, domestic LPG prices remain unchanged, although the government may start price revisions every two weeks.
Please read also:Labor Day 2025: Banks, stock markets, schools will open on May 1? Everything you need to know
Home loans may be cheaper
To alleviate borrowers, home loan rates will fall further after the Reserve Bank of India's second repurchase rate fell by 25 basis points this year. The interest rate is now 6%, which is below 6.25%. Banks are expected to transfer earnings to consumers by reducing their repurchase loan ratios (RLLRs), thereby reducing EMIs for new and existing home loan customers.
One status, one RRB takes effect
The Treasury Ministry’s “One National RRB” policy has come into effect, consolidating 15 regional rural banks in 11 states starting from May 1. The fourth round of RRB restructuring reduced the total number of such banks from 43 to 28 states, from 43 countries, Northern University, Biharat, Biharat, Muharat, Maharashtra, Karnastella, and other leading countries, among other fruitful countries.
FD rate revised
Sundaram Finance Ltd has updated its fixed deposit rate, which will be updated from May 1. Now older people will earn 7.70% in 12 months and 8% in 24-36 months, while other depositors will earn 7.20% in 12 months, with longer term 7.50%.
ITR application begins in 2025-26
The income tax department has published ITR forms 1 and 4, so taxpayers who earn less than Rs 5 million per year can now begin filing assessments for the year 2025-26. A big change: If your long-term capital gains are as high as Rs 1.25 lakh, you can still use the simple ITR-1 (SAHAJ) form instead of the more complex ITR-2. More ITR forms are expected to be notified in the coming days.
