From LPG to UPI Major Financial and Economic Changes from February 1: What You Need to Know

New Delhi: As February 1 approaches, several significant financial changes are set to take effect, impacting households, businesses, and consumers alike. Along with the much-anticipated Union Budget 2025, which Finance Minister Nirmala Sitharaman will present, adjustments in LPG prices, UPI transaction rules, automobile costs, banking policies, and aviation fuel rates will take place. Here’s a detailed look at the key updates:

1. LPG Price Revision

On the first day of every month, oil marketing companies revise the prices of LPG cylinders. These changes apply to both domestic and commercial cylinders. With the Union Budget scheduled for February 1, there is speculation about whether the government will provide any relief in cylinder prices or whether there will be an increase. Earlier, on January 1, the prices of 19 kg commercial LPG cylinders were reduced, benefiting businesses.

2. UPI Transaction Rules to be Modified

The National Payments Corporation of India (NPCI) is introducing a significant change in UPI transactions. From February 1, 2025, UPI transactions using special characters in transaction IDs will be blocked. Going forward, only alphanumeric characters (letters and numbers) will be accepted. This move aims to standardize transaction identifiers and improve security measures. Any payment initiated with an invalid transaction ID format will automatically fail.

3. Maruti Suzuki Cars to Become Costlier

India’s largest car manufacturer, Maruti Suzuki India Limited (MSIL), has announced a price hike for its models due to rising input costs and operational expenses. From February 1, car prices will increase by up to ₹32,500. The models affected include Alto K10, S-Presso, Celerio, Wagon R, Swift, Dzire, Brezza, Ertiga, Eeco, Ignis, Baleno, Ciaz, XL6, Fronx, Invicto, Jimny, and Grand Vitara. This price hike could impact potential buyers who were considering purchasing a Maruti car in the near future.

4. Kotak Mahindra Bank’s Banking Rule Updates

Kotak Mahindra Bank has informed customers about changes in its banking services, which will take effect from February 1. These changes include revisions in free ATM withdrawal limits and updated fees for various banking services. Customers should check the revised charges to avoid unexpected fees on their transactions.

5. Change in Aviation Fuel (ATF) Prices

Oil marketing companies revise aviation turbine fuel (ATF) prices on the first of every month. If there is an increase in ATF prices on February 1, it could lead to higher airfares, directly affecting air travelers. Fluctuations in ATF rates play a crucial role in determining airline ticket pricing.

Impact on the Common People

These changes, collectively, will impact the financial landscape for businesses and consumers alike. While the revision in LPG and ATF prices may affect household and travel budgets, the new UPI transaction rules will bring more security to digital payments. The increase in car prices and banking charges could lead to additional expenses for consumers.

As the Union Budget 2025 is also set to be unveiled on February 1, citizens are keen to see whether the government introduces any measures to counterbalance these financial adjustments. Stay tuned for further updates.