Major Financial Changes from August 1: Impact on UPI, Credit Cards, Repo Trading & Banking Laws

Starting August 1, 2025, several major changes will come into effect in India’s banking, payment, and financial systems. These updates span across UPI transaction limits, credit card insurance policies, repo trading hours, and enforcement of amended banking regulations. Here's everything you need to know:

🔁 Repo and TREP Trading Hours Extended

The Reserve Bank of India (RBI) has extended the trading hours for market repo and Tri-Party Repo (TREP) operations by one hour. Effective August 1, these instruments will now be traded between 9 AM and 4 PM, instead of the previous closing time of 3 PM.

This move is expected to enhance liquidity and provide more flexibility in India’s short-term money markets. However, the trading hours for government securities, foreign exchange, and interest rate derivatives will remain unchanged. Notably, the call money market had already been shifted to a 9 AM to 7 PM schedule earlier in July.

💳 SBI Cards to Withdraw Complimentary Air Accident Insurance

From August 11, SBI Cards will discontinue the free air accident insurance benefit on multiple co-branded credit cards. The ₹1 crore insurance cover will be removed from high-end cards such as:

• UCO Bank SBI Card ELITE
• Central Bank of India SBI Card ELITE
• PSB SBI Card ELITE
• KVB SBI Card ELITE
• KVB SBI Signature Card
• Allahabad Bank SBI Card ELITE

In addition, a ₹50 lakh insurance cover available on SBI Card PRIME variants issued in partnership with various banks will also be withdrawn. Customers holding these cards are encouraged to review their insurance coverage and consider supplementary protection if needed.

📲 UPI to Face Daily Usage Caps and AutoPay Changes

• The National Payments Corporation of India (NPCI) will implement new restrictions and operational changes for UPI users starting August 1.
• Users will be able to check their bank balance only 50 times per day per UPI app.
• Linked account status checks will be limited to 25 times per day.
• AutoPay transactions will now be processed during predefined time slots, instead of random timings, to help reduce server overload.
• Payment service providers (PSPs) must delay repeated transaction status requests to improve system performance.
• NPCI has mandated that all UPI apps and partner banks comply with these changes and submit a system audit report by August 31, 2025.

🏦 Banking Laws (Amendment) Act, 2025 – Key Sections Come into Force

From August 1, several key sections of the Banking Laws (Amendment) Act, 2025 will be officially enforced, bringing several critical changes to India’s banking regulations.

Some of the major amendments include:

• Minimum paid-up capital for banks increased from ₹5 lakh to ₹2 crore
• Tenure of directors in co-operative banks extended to 10 years
• Stricter governance norms for co-operative and nationalised banks

SBI and other public sector banks are now required to transfer:

• Unclaimed dividends
• Unpaid interest
• Dormant shares
• to the Investor Education and Protection Fund (IEPF)
• Auditor appointments must now follow the provisions of the Companies Act, 2013

These changes aim to improve transparency, enhance corporate governance, and ensure better protection of investors' and depositors' interests.

⚠️ Final Word

The month of August brings a host of regulatory changes that will directly impact bank customers, credit card holders, UPI users, and financial institutions. Individuals and businesses are advised to stay informed and adjust their financial activities accordingly.