Major Policy and Economic Changes from 1st June 2025: A Comprehensive Guide for Professionals and Citizens
Major Policy and Economic Changes from 1st June 2025: A Comprehensive Guide for Professionals and Citizens
In India, the beginning of June 2025 has brought a series of pivotal changes that impact daily life, personal finance, business operations, and the broader economy. As CMA professionals, finance experts, and informed citizens, it is vital to stay updated with the latest policy shifts and economic developments. This article on CMAknowledge.in explores all the major changes effective from June 1, 2025, providing a comprehensive, plagiarism-free, and SEO-optimized guide tailored for your insights.
1. EPFO 3.0 Launch – A Major Leap Toward Digitization
The Employees’ Provident Fund Organisation (EPFO) has officially rolled out its upgraded system – EPFO 3.0, from June 1, 2025. This upgrade represents a massive digital transformation aimed at improving user experience, reducing delays, and increasing transparency.
Key Features:
- Real-time claim settlement system
- Updated mobile application with chatbot support
- Digital tracking of Provident Fund transfers and withdrawals
- Seamless Aadhaar-PAN linkage
- Unified employer-employee dashboard
Additional CMA Note:
Payroll audits must consider automation-led PF error reduction. CMAs should ensure reconciliation reports between salary registers and PF returns match monthly.
Impact:
Professionals in payroll, HR, and accounting must realign their internal processes to ensure real-time compliance with the new system. Employers must register updated employee details promptly to avoid errors.
2. New Credit Card Rules by Major Banks
Several Indian banks like HDFC, Kotak Mahindra, Axis Bank, and American Express have introduced significant changes in their credit card policies effective June 1, 2025.
Summary of Key Changes:
- Reward Point Limitations: Caps introduced on reward points for utility, rent, and insurance payments.
- Lounge Access Restrictions: New quarterly spending thresholds for free lounge visits.
- Fuel Surcharge Revisions: 1% surcharge by Kotak Mahindra for fuel spends exceeding monthly caps.
- Annual Fee Waiver Conditions Updated: Increased minimum spends to qualify for waiver.
Expert Insight:
Corporate finance departments must re-evaluate reimbursement policies to align with reward benefit changes.
How It Affects You:
If you are a credit card user, your rewards and privileges might reduce unless you adjust your spending habits. Finance professionals must educate clients and employees to optimize credit card usage under new norms.
3. Fixed Deposit Interest Rate Cut by Suryoday Small Finance Bank
Starting June 1, Suryoday Small Finance Bank has revised its Fixed Deposit (FD) interest rates. The new range varies between 4% to 8.4%, depending on tenure.
Implications:
- Senior citizens and retirees depending on FD interest income may need to diversify their portfolios.
- Investment advisors and CMAs should guide clients towards hybrid or debt mutual funds where appropriate.
Financial Planning Note:
Short-term investors should explore liquid funds while long-term investors may evaluate corporate bonds for better returns.
4. Mutual Fund Cut-off Timings Revised by SEBI
To standardize Net Asset Value (NAV) declarations and improve transparency, SEBI has updated the cut-off timing for overnight mutual fund schemes.
Revised Timings:
- Offline Mode: 3:00 PM
- Online Mode: 7:00 PM
What This Means:
Investors and wealth managers must ensure that they place orders before the revised cut-off to receive same-day NAVs. This change is especially crucial for high-volume traders and institutional investors.
5. End of Free Aadhaar Update Facility
The window for free online Aadhaar updates at myAadhaar portal has officially ended on June 14, 2025.
New Rule:
- All demographic and biometric Aadhaar updates will now attract standard charges as per UIDAI regulations.
CMA Insight:
Professionals assisting in KYC, tax filings, and compliance must note that clients may now incur costs while updating Aadhaar-linked details.
Suggested Action:
Firms handling high-volume customer data should update their onboarding FAQs and cost disclosures.
6. Commercial LPG and Aviation Turbine Fuel (ATF) Price Cuts
Effective June 1:
- LPG Commercial Cylinder: ₹24 price reduction per 19-kg cylinder
- ATF: ₹2,414.25 cut in per kiloliter rate
Sectoral Impact:
- Food, hotel, and catering businesses will benefit from lower LPG costs.
- Airlines and cargo operators will have reduced fuel costs, potentially lowering ticket prices or freight rates.
Analyst Commentary:
Lower ATF prices can enhance EBITDA margins of budget carriers by 5–7% in Q2 FY26.
7. Reinstatement of RoDTEP Scheme for Exporters
The government has reinstated the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from June 1.
Benefits:
- Refund of embedded taxes on exports
- Support for exporters in textiles, agriculture, pharmaceuticals, and chemicals
- Boosts global competitiveness of Indian goods
CMA Recommendation:
Export-oriented companies should realign their costing and pricing to accommodate the benefit of tax remission. CMAs should include RoDTEP benefits while preparing cost sheets.
8. New Apprenticeship Policy: Better Stipends and Education Integration
India’s new National Apprenticeship Policy came into effect on June 1, 2025.
Key Changes:
- Apprenticeship now integrated with academic degrees
- Monthly stipend ranges revised to ₹6,800–₹12,300
- Simplified onboarding and exit norms
- Online tracking of apprentice progress
Relevance for Businesses:
Manufacturing, retail, and service sector employers should tap into this opportunity for cost-effective workforce training. CMAs in manufacturing industries can include apprentice training cost in budgeting.
Additional Insight:
Costing teams must ensure correct classification of apprentice stipends under training cost centers for accurate budgeting.
9. Derivatives Expiry Day Regulation by SEBI
From June 15, 2025, all stock derivatives will only expire on Tuesdays or Thursdays, as per the new SEBI circular.
Objective:
- Reduce speculative trading patterns
- Maintain orderly trading volume across the week
Strategy for Traders:
Derivatives traders must revise their trading calendars and roll-over strategies. Financial analysts and fund managers need to revise their calendar-based planning models.
Trading Desk Tip:
Traders must align algo-trading systems with new expiry calendar to avoid slippages.
10. New Immigration and Foreigners Bill, 2025
The Immigration and Foreigners Bill has been introduced in Parliament and provisions are being notified gradually from June 2025.
Key Highlights:
- End-to-end digitization of visa processes
- Stronger surveillance on illegal immigration
- Simplified visa norms for tourists, professionals, and students
- Biometric registration of long-term visa holders
Impact:
Companies employing foreign nationals must monitor immigration norms. CMA professionals in international companies must update HR and compliance policies accordingly.
11. Introduction of e-Passports and Privacy Enhancements
India has started issuing e-Passports from June 2025.
What’s New:
- Embedded electronic chip
- Machine-readable zone for faster immigration
- Removal of parental names for privacy protection
- Enhanced data security
Relevance:
These passports reduce identity theft risk and improve travel efficiency. Travel agencies and corporate visa teams need to inform employees and clients.
12. Cryptocurrency Regulatory Discussion Paper
The Indian government will publish a discussion paper on crypto regulations in June 2025 to address legal and taxation frameworks.
What to Expect:
- Clarifications on crypto tax slabs
- Rules for exchanges and token listings
- Guidelines on cross-border crypto payments
CMA Angle:
Crypto-asset accounting may undergo significant changes. CMAs should prepare clients for regulatory disclosure and tax impact on crypto holdings.
Strategic Impact:
Companies accepting crypto must prepare robust audit trails and reconciliation practices.
FAQs: June 2025 Policy Changes
Q1. What is EPFO 3.0 and how does it affect employees?
A: EPFO 3.0 is a digitized platform that offers real-time claim settlements, improved user interface, and Aadhaar-PAN integration, helping employees access funds faster.
Q2. Are the new credit card rules applicable to all cards?
A: Changes vary by bank and card type. Most premium and mid-tier cards from HDFC, Axis, and Kotak are affected, especially in lounge access and reward points.
Q3. What are the alternatives to fixed deposits now?
A: Debt mutual funds, PPF, and Senior Citizen Savings Schemes are better suited for conservative investors looking for alternatives to lower FD returns.
Q4. Can I still update Aadhaar for free?
A: No. The free update facility ended on June 14, 2025. Standard fees now apply for demographic and biometric updates.
Q5. What should exporters do to benefit from RoDTEP?
A: Register for the scheme, maintain export documentation, and include RoDTEP in pricing strategy. Consult a CMA for proper implementation.
Q6. When will the crypto discussion paper become law?
A: The paper is expected in June 2025. Actual law-making will follow cabinet and parliamentary approvals, possibly by late FY26.
Conclusion: Adapting to Change with Clarity and Foresight
The developments effective from June 1, 2025, signal a broader vision of digitization, economic reform, regulatory compliance, and financial discipline. Whether you're an individual managing personal finances, a corporate decision-maker, or a CMA navigating compliance and advisory duties — adapting to these changes is critical.
Stay informed. Stay compliant. Stay successful.
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Summary Key Points in this article:
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