Major Regulatory Changes in India from October 2025

October 2025 is a pivotal month for regulatory reforms in India. Several important rules across banking, finance, railways, online platforms, and pension schemes are coming into effect, impacting both individuals and businesses. These changes aim to improve security, transparency, and efficiency while modernizing India’s regulatory framework.

Here’s a comprehensive overview of the key rule changes and what they mean for you.

1. UPI Transactions: P2P "Collect" Feature Disabled

The October 2025 rule changes in India, the National Payments Corporation of India (NPCI) will disable the peer-to-peer (P2P) "collect request" feature on UPI platforms. Users will no longer be able to send "collect" requests through apps like PhonePe, Google Pay, or Paytm. This change has been introduced to enhance digital payment security and protect users from unauthorized transactions.

2. NPS (National Pension System) Updates

Non-government NPS subscribers can now invest up to 100% of their pension corpus in equity under the Multiple Scheme Framework (MSF), compared to the earlier limit of 75%. Additionally, the cost for maintaining an NPS account has been revised: electronic PRAN kits are now priced at ₹18, and physical PRAN cards at ₹40. Accounts with a zero balance will not attract any annual maintenance charges. These changes aim to provide greater flexibility and reduce costs for pension account holders.

3. Aadhaar Requirement for Railway Ticket Booking

Indian Railways is introducing stricter rules for ticket reservations. From October 1, only Aadhaar-verified IRCTC users will be able to book reserved general tickets during the first 15 minutes after the reservation window opens. This move is designed to prevent misuse and ensure fair access to train tickets for genuine passengers.

4. Faster Cheque Clearance by Banks

Starting October 4, 2025, the cheque clearing system will transition from a batch process to a continuous clearing mechanism, allowing real-time processing of cheques during banking hours. Initially, banks will confirm cheques by 7:00 PM, with further reductions in confirmation time planned later. This change is expected to make banking transactions faster and more efficient

5. Banking Charges Revisions

Several banks are revising fees and service charges from October 1, 2025. This includes locker rents, charges for returned cheques, and standing instruction failures. Customers are advised to review their banking setup to ensure they are aware of the new fee structure.

6. Online Platform Regulation

From October 1, 2025, regulations for online platforms are being updated to ensure transparency and user protection. Platforms offering competitions or contests with rewards will need to follow revised rules for verification and participation. This ensures safer and more organized online operations.

7. Loan and Capital Reforms

The Reserve Bank of India (RBI) is granting banks more flexibility in setting floating interest rates for loans, allowing borrowers to switch between fixed and floating rates. Additionally, rules for certain types of working capital loans have been revised, enabling longer repayment terms. Banks will also have improved flexibility for raising long-term capital. These changes aim to improve financial flexibility for borrowers.

8. Pension Scheme Maintenance Charges

The Pension Fund Regulatory and Development Authority (PFRDA) has revised maintenance charges for various pension schemes, including NPS Lite, Atal Pension Yojana, and unified pension schemes. After September 30, 2025, central government employees will no longer be able to switch from NPS to the unified pension scheme, making it essential for account holders to plan their investments carefully.

9. Trade and Shipping Law Updates

Significant changes in trade and shipping regulations are also coming into effect:

• India-EFTA Free Trade Agreement is scheduled to commence, facilitating smoother trade with the European Free Trade Association.

• The Carriage of Goods by Sea Act, 2025, replaces older shipping laws to modernize processes.

• The Merchant Shipping Act, 2025, introduces updated safety, environmental, and operational standards for shipping businesses.

These reforms are expected to improve efficiency in international trade and logistics.

10. Impact on Citizens

• Faster Banking Transactions: Real-time cheque clearing ensures quicker access to funds.

• UPI Security: Disabling the "collect" request feature enhances transaction safety.

• Railway Ticket Booking: Aadhaar verification ensures fair access to train tickets.

• Online Platforms: Updated regulations ensure organized operations and user safety.

• Pension Investments: Updated rules provide flexibility and cost savings for pension holders.

• Trade and Shipping: Businesses benefit from streamlined processes and modernized laws.

Conclusion

October 2025 brings significant changes in banking, pensions, railways, online platforms, and trade laws in India. These reforms reflect the government’s focus on security, transparency, and modernization.

Staying informed about these rule changes is essential for making smarter financial, travel, and business decisions. Whether you are an individual, a business owner, or an investor, understanding these regulations will help you adapt seamlessly to the new environment.

At Updatemee, we provide the latest updates and insights on policy changes in India to help readers stay informed and make well-informed decisions.