Key Financial Changes as FY 2025-26 Begins: LPG, Car Prices, Banking Rules & More

As the new financial year 2025-26 begins, several financial and policy changes have come into effect across India. These updates impact fuel prices, car costs, pension schemes, and tax benefits for senior citizens.

Car Prices Increased by Leading Automakers

Several automobile manufacturers have raised vehicle prices, effective from April 1:

• Maruti Suzuki: Up to 4% hike depending on the model.
• Kia, Hyundai, Mahindra & BMW: Prices increased by 3%.
• Renault India: 2% hike.

Despite this increase, petrol and diesel prices remain unchanged, providing slight relief for vehicle owners.

Higher Tax Exemption for Senior Citizens

To offer financial relief to retirees, the government has doubled the tax exemption on post office savings income from ₹50,000 to ₹1 lakh.

Mahila Samman Savings Certificate (MSSC) Scheme Discontinued

The Mahila Samman Savings Certificate scheme, which provided a 7.5% annual return on a two-year investment for women, has been officially discontinued by the government.

Banks May Revise Minimum Balance Rules

Major banks, including SBI, Canara Bank, and PNB, are expected to revise their minimum balance requirements. Customers must ensure their accounts meet the new balance criteria to avoid penalties.

New Pension Scheme for Government Employees

A Unified Pension Scheme (UPS) has been launched for central government employees. It balances the features of the Old Pension Scheme (OPS) and New Pension Scheme (NPS) and guarantees a minimum pension of ₹10,000 per month.

Commercial LPG Prices Reduced, ATF Costs Drop

The price of 19 kg commercial LPG cylinders has been cut by ₹44.50, providing relief to businesses. However, the cost of 14 kg domestic LPG cylinders remains unchanged at around ₹800 in major cities.

New Commercial LPG Prices:

• Delhi: ₹1,762 (₹41 reduction)
• Kolkata: ₹1,868.50 (₹44.50 reduction)
• Mumbai: ₹1,755.50 (₹42 reduction)
• Chennai: ₹1,921.50

Additionally, Aviation Turbine Fuel (ATF) prices have also been reduced, which could lead to lower airfare for travelers.

Revised ATF Prices Per Kilolitre:

• Delhi: ₹89,441 (down from ₹95,311.72)
• Kolkata: ₹91,921 (₹5,667.66 reduction)
• Mumbai: ₹83,575.42
• Chennai: ₹92,503.80

With these changes now in effect, individuals and businesses must stay updated and adjust their financial plans accordingly.