New Year 2025 EPFO, UPI Changes in India: With only hours remaining in 2024, preparations for welcoming 2025 are underway. Several significant regulation changes will take effect on January 1, 2025, coinciding with the start of the new year. These updates are in various sectors, including automotive, finance, and digital payments, which are likely to impact individuals and businesses alike. Top 5 key changes in India, effective January 1, 2025: From increased car prices and enhanced financial services for farmers to improved digital payment systems and simplified pension withdrawals, enlisted below are five key updates which would necessitate proactive planning by individuals and businesses alike. 1. Increased car prices: Major automobile manufacturers such as Maruti Suzuki, Hyundai, Mahindra, and MG have announced they will raise their vehicles' prices by up to 2-4%. Automakers, ranging from hatchback manufacturers to luxury car brands, have announced price increases starting in January, attributing the hikes to rising input and operational costs. While the extent of the increases differs, customers looking to buy a vehicle in the new year may encounter higher prices, according to a PTI report. 2. Kisan loan reforms by RBI: To credit farmers and improve agricultural productivity and financial stability, the Reserve Bank of India (RBI) has introduced a significant change in agricultural financing, with farmers now being eligible for unsecured loans up to ₹2 lakh (which was previously ₹1.6 lakh) without the need for mortgage guarantees. The move aims to provide financial relief to small and marginal farmers by waiving collateral and margin requirements for agricultural loans up to Rs 2 lakh, addressing rising input costs and improving access to credit. 3. UPI payment limit increase: The Reserve Bank of India (RBI) announced an increase in transaction limits for UPI 123Pay and UPI Lite. The per-transaction limit for UPI 123Pay has been raised from ₹5,000 to ₹10,000, while the limit for UPI Lite has increased from ₹500 to ₹1,000. These changes will take effect on January 1, 2025. Industry experts see this as a positive move, particularly benefiting underserved groups like senior citizens and rural users, who have limited access to digital payment methods. 4. EPFO pension withdrawal simplification: Pensioners under the Employees' Provident Fund Organisation (EPFO) will benefit from new rules allowing them to withdraw their pensions from any bank's ATM. An IT system upgrade, India's Labour Ministry is actively developing to simplify and streamline the PF withdrawal process and enhance overall service and accessibility for retirees. In September 2024, India's Minister of Labour and Employment, Mansukh Mandaviya, gave the green light to the Centralised Pension Payment System (CPPS). Starting from January 1, 2025, this system will allow 7.8 million members of the Employees' Pension Scheme to receive their pensions from any bank branch across the country. 5. Thailand E-Visa System Implementation To improve travel accessibility, Thailand will introduce its global e-Visa system on January 1, 2025. This digital platform is designed to simplify the visa application process for international visitors, offering a convenient way to secure travel authorization before arriving in Thailand. It's important to note that Indian citizens can visit Thailand without a visa for stays of up to 60 days. The Thai Ministry of Foreign Affairs made the announcement, emphasizing the country’s efforts to boost tourism and make entry procedures easier. Travelers can now apply for an e-Visa through a user-friendly online system, removing the need for embassy or consulate visits.
