In News:

India’s financial ecosystem is undergoing significant operational changes aimed at strengthening stability, efficiency, and consumer protection. From August 1, 2025, several regulatory and institutional reforms—spanning digital payments, credit cards, fuel pricing, trading hours, and monetary policy—are set to reshape the financial landscape.

UPI Operational Reforms by NPCI

The National Payments Corporation of India (NPCI), which manages the Unified Payments Interface (UPI), has introduced revised operational rules to reduce transaction delays and prevent system overload during peak hours. UPI, India’s flagship digital payment platform, has emerged as the backbone of cashless transactions with over 14 billion monthly transactions (2025 data).

Key reforms effective from August 1, 2025:

• Balance Check Limit: Maximum 50 balance enquiries per day per app.
• Linked Account Enquiries: Limited to 25 per day per app.
• Auto-Pay Transactions: Permitted only during non-peak hours (before 10 AM, 1–5 PM, after 9:30 PM).
• Transaction Status Checks: Restricted to 3 per transaction, with a mandatory 90-second gap.
• Beneficiary Name Display: Recipient’s registered bank name will be shown before confirmation to curb fraud.

These reforms reflect an effort to balance user convenience with systemic efficiency while reducing risks of fraudulent transfers.

Credit Card Insurance Changes by SBI

The State Bank of India (SBI), India’s largest lender, has announced withdrawal of complimentary air accident insurance cover on several co-branded credit cards. Earlier, insurance covers of ?1 crore (ELITE series) and ?50 lakh (PRIME/Platinum series) were provided. The discontinuation reflects banks’ attempts to rationalize costs in a competitive credit market, but it also raises concerns regarding customer protection.

Fuel Price Revisions

Prices of LPG cylinders, CNG, PNG, and aviation turbine fuel (ATF) are subject to monthly review. Effective August 1, 2025, fresh revisions are expected in line with global crude trends and domestic subsidy policies. Given that LPG and CNG are crucial for households and transport, even marginal adjustments influence inflation and consumer spending.

Extension of Trading Hours

The Reserve Bank of India (RBI) has extended trading hours for money market instruments to deepen liquidity and align with global practices:

• Call Money Market: Extended to 9:00 AM – 7:00 PM (effective July 1, 2025).
• Market Repo & Tri-Party Repo (TREPs): Extended to 9:00 AM – 4:00 PM (effective August 1, 2025).

This reform is expected to improve liquidity management for banks and non-banking financial institutions, enhancing the efficiency of short-term borrowing and lending.