Big Rule Changes from July 1: Train Fares, PAN Card, ATM Withdrawals & More—Here's How Your Budget Will Be Affected

Starting July 1, 2025, several key changes in government and banking regulations will come into effect, directly impacting daily expenses for millions of Indians. From train ticket fares to credit card charges, and even the price of cooking gas, these updates are set to influence your household budget and financial planning in a noticeable way.

Here’s a detailed breakdown of the 7 major rule changes effective from July 1 and how they will impact your wallet.

🚆 1. Train Fares to Increase for the First Time Post-Pandemic

Indian Railways has announced a hike in passenger fares beginning July 1:

• Sleeper class (non-AC) tickets will be costlier by 1 paisa per kilometer

• AC class tickets will see a hike of 2 paisa per kilometer

• For 2S class, the fare will rise by 0.5 paisa per kilometer

• No change in fare for local trains under 500 km

This is the first fare revision since the COVID-19 pandemic and is likely to marginally affect frequent train travelers, especially those taking long-distance journeys.

📱 2. Tatkal Ticket Booking Will Require OTP Verification

Booking Tatkal train tickets via IRCTC’s website or app will now require an extra step of authentication:

• A One-Time Password (OTP) will be sent to your registered mobile number

• The OTP must be entered during the booking process, or the transaction will fail

This move aims to improve security and reduce misuse of the Tatkal system.

🆔 3. Aadhaar Mandatory for New PAN Card Applications

From July 1, if you plan to apply for a new PAN card, you will have to provide your Aadhaar number:

• Aadhaar verification will be compulsory during the application process

• Other documents like ID proof or birth certificates won’t be sufficient alone

This rule intends to streamline PAN issuance and prevent fraudulent or duplicate PAN cards.

🏧 4. ATM Withdrawals to Become Costlier for ICICI Bank Customers

ICICI Bank will revise its ATM withdrawal charges:

• Only 3 free transactions per month will be allowed in metro cities

• Beyond that, you’ll be charged:

  • ₹23 per financial transaction

  • ₹8.50 per non-financial transaction

• In non-metro cities, the limit is extended to 5 free transactions

Frequent ATM users will need to plan their cash withdrawals more carefully to avoid additional charges.

✈️ 5. SBI to End Free Air Accident Insurance on Select Credit Cards

Effective July 15, 2025, SBI will withdraw complimentary air accident insurance from certain premium credit cards:

• ₹1 crore insurance benefit on:

  • SBI Card ELITE

  • Miles ELITE

  • Miles PRIME
    will be discontinued

• ₹50 lakh insurance cover on:

  • SBI Card PRIME

  • PULSE
    will also be terminated

This will especially affect frequent flyers who relied on SBI cards for travel insurance coverage.

🔥 6. LPG Cylinder Prices to Be Revised

As per the usual monthly schedule, LPG cylinder prices will be updated on July 1:

• Both domestic and commercial LPG rates will be revised

• Any increase in price may disturb household budgets, especially for middle-class families

It’s advisable to refill your cylinder before July 1 in case prices go up.

💳 7. HDFC Bank Credit Card Charges to Be Updated

HDFC Bank is introducing new charges and limits on its credit cards starting July 1:

• 1% fee will be charged for credit card payments made via third-party apps

• Utility bill payments using HDFC credit cards will also incur additional charges

This move is expected to impact users who commonly pay bills or make payments via wallets and aggregator apps.

📌 Summary: How These Changes Will Affect You Rule Change Impact

Train Fare Hike	Increases travel cost
Tatkal OTP	Adds a security step
Aadhaar for PAN	Streamlines PAN application
ATM Charges	Costlier cash withdrawals
SBI Insurance Removal	Reduced credit card travel benefits
LPG Price Revision	Affects monthly kitchen budget
HDFC Card Fees	Increased digital transaction cost

🧠 Final Thoughts

These upcoming changes—though individually small—can cumulatively affect your monthly expenses. Whether you're a daily commuter, a card user, or a homemaker managing the household budget, it's crucial to stay informed and plan ahead.

Being proactive now can help you avoid unnecessary charges and better manage your money post-July 1.