Major Rule Changes from May 1, 2025: New ATM Charges, LPG Price Revision, Railway Booking, RRB Merger, and India-Pakistan Policy Shift

These Five Policy Changes Could Impact Your Finances, Travel, and Daily Life from May 1

New Delhi, April 30, 2025 — As May begins, India is set to implement five major policy changes that could have a direct effect on the daily lives and finances of millions. From increased banking charges and LPG price updates to major railway booking revisions and geopolitical directives, these regulatory moves are expected to influence household budgets, travel plans, and rural banking accessibility.

Here’s a breakdown of the five key changes effective May 1, 2025:

1. ATM Interchange Fees Increased Nationwide

The Reserve Bank of India (RBI) has approved a hike in interchange fees for ATM transactions. Starting May 1:

• Cash withdrawals from ATMs outside your bank’s network will now cost ₹19 per transaction (up from ₹17).

• Non-financial services such as balance inquiries at third-party ATMs will also attract fees.

Impact: This change will increase the cost burden for users reliant on interbank ATM transactions, especially in semi-urban and rural areas with limited ATM coverage.

2. LPG Cylinder Prices May Change

Oil marketing companies revise LPG cylinder prices on the 1st of every month. On May 1:

• Expect possible changes in 14kg domestic and 19kg commercial LPG cylinder rates.

• Recent trends show fluctuations in commercial LPG, while domestic rates have largely remained unchanged.

Impact: Any price hike could affect kitchen budgets and food service businesses across the country.

3. Merger of Regional Rural Banks Under ‘One State, One RRB’ Policy

As part of the Finance Ministry’s rural banking reform, the ‘One State, One RRB’ policy will be enforced:

• 15 regional rural banks in 11 states will be merged.

• The total number of RRBs will reduce from 43 to 28.

Impact: While the move aims to strengthen rural banking efficiency, it may lead to temporary service disruptions in some localities.

4. Major Changes to Indian Railway Ticket Booking Rules

The Indian Railways has announced sweeping changes to booking policies:

• No more waitlisted tickets in AC and Sleeper coaches. Only General class passengers will be eligible for waiting list bookings.

• The Advance Reservation Period (ARP) will be reduced from 120 days to 60 days.

• Additionally, three service charges related to cancellations and modifications have been increased.

Impact: This will affect long-term travel planning and increase ticket prices, particularly for peak-season travelers.

5. Diplomatic Shift: Pakistan Nationals Ordered to Leave India by May 1

In a significant geopolitical move, the Indian government has:

• Ordered all Pakistani nationals present under SAARC visa exemptions to exit India by May 1.

• Suspended the Indus Waters Treaty (1960).

• Closed the Attari border crossing.

• Ordered 25 Pakistani diplomatic personnel, including military advisors, to return.

Impact: These measures reflect a sharp deterioration in India-Pakistan relations, with potential implications for cross-border trade and regional diplomacy.