Significant Money Changes That Will Affect Your Pocket in April 2025

The budget 2025 introduced Significant tax reductions that will come into effect starting April 1. The Reserve Bank of India’s (RBI) monetary policy committee (MPC) will schedule a meeting between April 7 and 9 and will discuss about the reduction in repo rates that will directly affect your home loan EMIs. Here are some money changes in April that could affect your wallet.

Is RBI likely to reduce the repo rate?

The central bank dropped its repo rate by 25 basis points (bps) to 6.25% in February 2025. This was a first cut in the last five years. In February, retail inflation dropped to 3.61%, the lowest in seven months. This is below the RBI’s target of 4%. Because of this, economists believe the RBI may cut the repo rate by 25 basis points to 6% in April. When the RBI cuts the repo rate, existing borrowers with loans linked to it will experience a reduction in their home loan interest rates. Meanwhile, for new borrowers, the rate cut could also mean lower interest rates on new home loans, but as per the data, some private banks haven’t passed on the full benefit of the rate cut to new loans.

Introduction of Specialised Investment Funds (SIFs), a new category

An individual with high net worth looking for superior returns can explore Specialised Investment Funds (SIFs), a new category, which is a combination of mutual fund and portfolio management services (PMS). The entry requirement is Rs. 10 lakh, which is lower compared to other categories. Unlike mutual funds, which only use derivatives for hedging and adjusting the portfolio, SIFs can allocate up to 25% of their funds to derivatives.

For example, its ex-top 100 long-short fund can invest at least 65% in stocks that are outside the top 100 by market capitalization, with up to 25% short exposure in non-large-cap stocks using derivatives. Similarly, its equity long-short fund strategy will invest at least 80% in equities and allow up to 25% short positions through derivatives.

New regime set to reduce tax burden on taxpayers.

The old with-exemptions tax regime is expected to lose its shine as the announcements made by Finance Minister Nirmala Sitharaman in Budget 2025 come into effect starting April 1. According to data from the Finance Ministry, 72% of taxpayers switched to the new tax regime in FY24, and the tax concessions introduced in Budget 2025 are likely to increase the numbers even more.

The new tax regime is grabbing the attention of taxpayers. Under the new tax regime, individuals earning up to Rs. 12 lakh will not have to pay tax as they will get a rebate of up to Rs. 60,000.

People with higher incomes will also benefit from the new tax regime. According to calculations, if you earn more than Rs. 24 lakh a year, you would need to claim at least Rs. 8 lakh in deductions under the old tax regime for it to be better than the new tax regime. Common tax-saving options like Section 80C (claim up to Rs. 1.5 lakh for investments), Section 80D (claim up to Rs. 1 lakh for health insurance), and Section 24b (up to Rs. 2 lakh for home loan interest) will not be enough to balance out the benefits of the new tax regime.

SEBI introduces stricter regulations for NFOs

According to a circular by SEBI, funds need to be invested within 30 business days from the date of unit allotment. If an Asset Management Company (AMC) fails to meet this deadline, it can request a one-time 30-day extension, but for this, the AMC is required to get approval from its Investment Committee. The committee must review the reason for the delay and justify it.

If an AMC fails to invest the funds within 60 business days, SEBI requires the AMC to take necessary actions. This includes stopping new investments into the scheme until the funds are fully utilized. Furthermore, investors will have the option to withdraw their investments without facing any exit load. The AMC must also notify all investors through email or SMS, informing them of their right to exit the scheme without any penalties.

Digilocker will allow investors to store holding statements

From April 1, 2025, investors can store their holding statements from demat accounts and consolidated account statements (CAS) directly on DigiLocker. This initiative by SEBI is designed to make it easier for investors to manage their investments and ensure that their assets are not lost or forgotten over time.

Users can choose nominees within the DigiLocker app to access their accounts. If the user passes away, these nominees will have view-only access to the account. This ensures that the family or legal heirs can easily find important financial information without any problem. The digilocker will automatically inform the nominees when it receives information about the user’s death from KYC Registration Agencies (KRAs), which are regulated by SEBI. This will allow the nominees to start the transmission process with the relevant financial institutions.

Axis Bank changes Vistara credit card conditions following Air India merger

As Vistara merged with Air India, Axis Bank is changing its terms and conditions for the Vistara Creadit Card. Due to this change, the bank has introduced an interim measure that will be implemented on April 18, 2025. All renewals of the Vistara Credit Card will not incur annual fees anymore. However, many benefits linked with the card will not be continued, such as renewal benefits in the form of ticket vouchers, complimentary Maharaja Club tier memberships, and milestone rewards that earlier offered free tickets or vouchers.

SBI Card is making changes to the reward points structure for certain transactions

SBI Card is updating its reward point system for some selected transactions.

• Simply CLICK SBI cardholders will now earn 5X reward points on Swiggy transactions, which is a reduction from the 10X reward points. However, the 10X reward points benefit will still be available for purchases made with other partner brands like Myntra, BookMyShow, Yatra, Cleartrip, and Apollo 24×7.
• Air India SBI Platinum Credit Card holders will witness a modification in their reward points earnings. Earlier, the cardholders used to earn 15 reward points for every Rs. 100 spent on Air India tickets booked using the airline’s official website or mobile app. This benefit will now be cut to 5 reward points per Rs. 100 spent.
• Air India SBI Signature Credit Card holders will see their reward points earnings reduce from 30 points to 10 points per Rs 100 spent on Air India tickets booked using the same channels.