Here are the significant changes taking effect from 1 June 2025 that will affect taxpayers, and digital payment users.
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Several financial changes will take effect from 1 June 1 2025. The changes, including rollout of EPFO 3.0, UPI guidelines on ultimate beneficiary in online transaction, among others, will transform personal finance for millions of people nationwide.
Here are the significant changes taking effect from 1 June 2025 that will affect taxpayers, and digital payment users.
National Payments Corporation of India (NPCI), the Umbrella Organisation that facilitates services like UPI Payment, Bharat Bill Pay, RuPay Card, and all retail payments in India has issued a circular mandating that ultimate beneficiary is to be showcased in UPI transaction. NPCI said that to instill confidence in customers that they are sending money to the correct beneficiary and to avoid potential risk. The UPI ecosystem members shall adhere to the rules latest by 30th June 2025, post which it shall be treated as non-compliance, NPCI has added.
The following changes need to be implemented by UPI apps:
1. Display of only Ultimate Beneficiary Name (CBS name) for P2P and P2PM transactions: UPI applications shall ensure that only the ultimate beneficiary's name (Banking name as fetched from Validate Address API) is displayed to the user on the pre-transaction details page. Names extracted from QR codes, user-defined names of the payee, or any other logic should not be displayed to the payer in the UPI App.
2. Restrict user detail modification of beneficiary name: UPI Apps shall disable any features allowing users to modify their 'Beneficiary Name' for transaction purposes in interface. the app
Union Labour Minister Mansukh Mandaviya has announced that EPFO is set to introduce ‘EPFO 3.0’, bringing banking-like convenience to its subscribers. "In the coming days, the EPFO 3.0 version will come. This means the EPFO will become equivalent to a bank. Like transactions are carried out in a bank, you (EPFO subscribers) have your Universal Account Number (UAN), and you will be able to do all your work," Mandaviya said.
The EPFO plans to launch a ground-breaking new PF withdrawal method via the Unified Payments Interface (UPI). Labour and Employment Secretary Sumita Dawra said that the ministry has approved NPCI's recommendation, and members may withdraw PF through UPI and ATM by the end of May or June this year. This may also be a good pilot for members of other schemes like the General Provident Fund (GPF) of Govt Employees of the Public Provident Fund (PPF) of Banks.
Bank of Baroda said that it shall implement a phased reduction in threshold for Positive Pay Confirmation from Rs 5 lakh to Rs 2 lakh. This mandatory threshold is applicable for high-value cheques in three phases:
Rs 4 Lakhs & above from 01.05.2025 Rs 3 Lakhs & above from 01.08.2025 Rs 2 Lakhs & above 01.11.2025
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