March 2025 Rule Changes: Major Updates on LPG Prices, FD Interest Rates, Insurance Payments

Key Financial and Economic Changes Effective from March 1, 2025

With the arrival of a new month, several important financial and regulatory changes have come into effect from March 1, 2025. These modifications range from LPG cylinder prices and insurance premium payments via UPI to interest rates on Fixed Deposits (FDs) and mutual fund nominee rules. These updates will have a direct impact on household budgets, investments, and banking transactions.

Here’s a detailed look at the key rule changes that took effect from March 1, 2025, and how they will affect your finances and daily expenses.

1. UPI-Based Insurance Premium Payments Simplified

A major update in the insurance sector now makes it easier to pay insurance premiums via UPI. The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new feature called Bima-ASBA (Application Supported by Blocked Amount), which allows policyholders to block the required amount in their bank accounts for premium payments.

What This Means for You?

• Customers can now seamlessly pay insurance premiums through UPI, reducing delays and enhancing convenience.
• The Bima-ASBA feature ensures that funds remain blocked in the bank account until the payment is processed, minimizing transaction failures.
• This initiative is aimed at making insurance premium payments smoother and more secure, benefiting millions of policyholders across India.

2. Fixed Deposit (FD) Interest Rates May Change

From March 1, banks may revise their Fixed Deposit (FD) interest rates. These changes will be driven by liquidity conditions, inflation trends, and RBI policies. Some banks may increase rates to attract deposits, while others might lower them depending on their financial strategies.

How It Affects You?

• If banks increase FD rates, investors may earn better returns on their savings.
• If rates decrease, those looking to invest in FDs should act quickly before the changes take effect.
• Existing FD holders will not be affected unless they renew at new rates.

3. Mutual Fund & Demat Account Nominee Rule Changes

The Securities and Exchange Board of India (SEBI) has introduced a significant change in mutual fund and demat account nominee rules. Investors can now add up to 10 nominees for their portfolios.

Key Changes:

• Previously, investors could only nominate one or two individuals for mutual funds and demat accounts.
• Now, multiple nominees (up to 10) can be added, providing greater flexibility.
• Nominees can be added as joint account holders or assigned to separate folios/accounts.
• SEBI issued this directive via a circular on January 10, 2025.

What Investors Should Do?

• Investors should update their nominee details to ensure smooth asset transfer.
• New investors should designate multiple nominees to avoid legal disputes.

4. UAN Activation Deadline Extended to March 15

The Employees’ Provident Fund Organisation (EPFO) has extended the last date for employees to activate their Universal Account Number (UAN) and link it with Aadhaar from February 15 to March 15, 2025.

Why This Is Important?

• UAN activation is essential for seamless PF transactions, withdrawals, and employer contributions.
• Employees who fail to activate their UAN may face delays in receiving their Provident Fund (PF) benefits.
• Employees appointed in the current financial year must complete UAN activation by March 15 to remain compliant.

5. Banks to Remain Closed for 14 Days in March 2025

Before planning a visit to the bank, customers should be aware that banks will remain closed for 14 days in March 2025 due to a combination of festivals and scheduled holidays.

Bank Holidays in March Include:

• Holi
• Eid-ul-Fitr
• Second and Fourth Saturdays
• All Sundays

How to Prepare?

• Complete important banking tasks before these holidays to avoid disruptions.
• Use online banking and UPI transactions to manage finances during bank closures.

6. LPG Gas Prices Revised from March 1

Oil Marketing Companies (OMCs) have announced a price hike of ₹6 for 19 kg commercial LPG cylinders across multiple cities, including Delhi, Mumbai, Chennai, and Kolkata.

Impact on Consumers:

• Household LPG (domestic cylinder) prices remain unchanged, providing relief to families.
• The price hike affects commercial users, restaurants, and businesses, increasing operational costs.
• OMCs revise LPG prices every month, so consumers should track updates for future changes.

7. Changes in Air Turbine Fuel (ATF) Prices to Impact Airfares

Oil companies have revised Air Turbine Fuel (ATF) prices, which could affect airline ticket prices.

How This Affects Air Travelers?

• If ATF prices increase, airlines may pass on the costs to passengers, leading to higher airfare.
• If fuel prices decrease, some airlines may offer lower ticket prices to attract more passengers.
• Travelers should compare flight rates before booking tickets to get the best deals.

Final Thoughts: How These Rule Changes Will Impact You?

With these major financial and economic updates effective from March 1, 2025, individuals and businesses should stay informed and plan accordingly.

• LPG price hikes and ATF rate changes may impact monthly budgets and travel expenses.
• Banking and insurance transactions have been streamlined, enhancing convenience for users.
• Changes in nominee rules provide greater flexibility for mutual fund and demat account holders.
• Investors should monitor FD rate changes to maximize returns.
• The extension of the UAN activation deadline offers relief to employees who have yet to complete the process.

To avoid financial disruptions, individuals should adapt to these changes, review their investments, and plan their finances accordingly.