ATM Fee Hike, New Railway Ticket Rules, LPG Rate Cut: Key financial changes take effect starting May 1—Check details

The month of May is bringing a wave of financial changes that could affect everything from your daily expenses to long-term investments. From higher ATM charges and changes in railway bookings to new tax filing rules and updates on LPG prices, here’s a quick look at what you need to know:

ATM withdrawals just got costlier

From May 1, using an ATM after your free monthly limit will now cost 23 rupees per transaction, up from the previous 21 rupees. You still get three free transactions in metro cities and five in non-metros—this includes both cash withdrawals and non-financial transactions like checking your balance. The Reserve Bank of India approved this increase to help banks cover ATM maintenance costs.

Also Read:New ATM Transaction Rules: RBI issues revised framework for ATM transaction charges; 5 key changes to know 

New railway ticket rules

Major changes are coming to railway ticket bookings. From May 1: Waiting list tickets won’t be valid in sleeper or AC coaches anymore. You’ll only be allowed to board general coaches if you’re on the waitlist. The advance reservation period has been reduced to 60 days, down from 120. You’ll now have just two days to claim a refund on a cancelled ticket. Plan ahead, especially if you’re booking long-distance travel.

Commercial LPG prices reduced  

Oil Marketing Companies (OMCs) have slashed the price of 19-kg commercial LPG cylinders by approximately Rs 17, effective May 1. 

New prices include:  

– Delhi: Rs 1,747.50  
– Mumbai: Rs 1,699  
– Kolkata: Rs 1,851.50  
– Chennai: Rs 1,906  

The price cut is expected to benefit restaurants, hotels and commercial kitchens. However, domestic LPG prices remain unchanged, though the government may begin fortnightly price revisions going forward.

Also Read:Labour Day 2025: Are banks, Stock Market, schools open on May 1? All you need to know

Home loans may get cheaper

Good news for homeowners: the RBI lowered the repo rate on April 9 by 25 basis points, bringing it down to 6 per cent. That’s the second cut this year, and many banks are expected to reduce their lending rates in response. If you have a repo-linked home loan, you could see your interest rate come down in May, lowering your EMI.

One State, one RRB takes effect

The Finance Ministry has announced the merger of 15 Regional Rural Banks (RRBs) across 11 states, including Uttar Pradesh, Bihar, Gujarat, and West Bengal. With this move, the total number of RRBs in India will drop from 43 to 28, following the “one state, one RRB” policy aimed at improving efficiency and reducing costs.

FD rates revised  

Sundaram Finance Ltd has updated its fixed deposit interest rates effective May 1. Senior citizens will now earn 7.70 per cent for 12 months and 8 per cent for 24-36 months, while other depositors will get 7.20 per cent for 12 months and 7.50 per cent for longer tenures.

Tax filing for FY 2024-25 

The Income Tax Department has released ITR forms 1 and 4, so taxpayers earning less than 50 lakh rupees per year can now start filing for Assessment Year 2025–26. A major change: if you’ve made long-term capital gains of up to 1.25 lakh rupees, you can still use the simple ITR-1 (Sahaj) form instead of the more complex ITR-2. More ITR forms are expected to be notified in the coming days.