New Year 2025: Key Changes in India Effective January 1, 2025

As the New Year 2025 begins, several significant changes in regulations and systems are set to impact various sectors in India. These updates, spanning automotive, finance, digital payments, and pension schemes, promise to reshape consumer experiences and business operations alike. Here’s a detailed look at the key changes effective from January 1, 2025.

1. Hike in Automobile Prices

Major automobile manufacturers, including Maruti Suzuki, Hyundai, Mahindra, and MG, have announced price increases of 2-4% across their vehicle ranges. Rising input and operational costs have been cited as the primary reasons. Customers planning to purchase new vehicles in 2025 may need to adjust their budgets to accommodate this change, which affects everything from hatchbacks to luxury cars.

2. Enhanced Financial Support for Farmers

To boost agricultural productivity and provide financial stability, the Reserve Bank of India (RBI) has raised the limit for unsecured loans to farmers from ₹1.6 lakh to ₹2 lakh. This change eliminates the need for collateral on loans up to ₹2 lakh, offering much-needed relief to small and marginal farmers. This move aims to address rising input costs and improve access to credit for the farming community.

3. Increased UPI Transaction Limits

In a bid to enhance digital payment systems, the RBI has revised transaction limits for UPI 123Pay and UPI Lite. The per-transaction limit for UPI 123Pay has doubled to ₹10,000, while UPI Lite now allows transactions up to ₹1,000. These updates will benefit underserved groups, particularly senior citizens and rural users, by improving access to seamless digital payment options.

4. Simplified Pension Withdrawals for EPFO Members

The Employees’ Provident Fund Organisation (EPFO) has introduced a new system allowing pensioners to withdraw pensions from any bank’s ATM. This is part of the Centralised Pension Payment System (CPPS), designed to simplify pension disbursements for 7.8 million members of the Employees’ Pension Scheme. This IT system upgrade will enhance accessibility and convenience for retirees nationwide.

5. Thailand’s Global e-Visa System

In a move to boost tourism, Thailand is launching a global e-Visa system starting January 1, 2025. This digital platform simplifies the visa application process for international travelers, eliminating the need to visit embassies or consulates. Notably, Indian citizens can continue visiting Thailand visa-free for up to 60 days.