Key Financial Changes from June 1, 2025: SEBI’s Mutual Fund Rules and Kotak Credit Card Revisions

As we step into June 2025, some important financial updates are set to impact investors and consumers alike. From changes in mutual fund operations to adjustments in credit card rewards, here’s a quick rundown of key developments effective June 1 that everyone should be aware of.

SEBI Revises Cut-off Timings for Overnight Mutual Funds

The Securities and Exchange Board of India (SEBI) has announced a significant update concerning Overnight Mutual Fund Schemes (MFOS). Starting June 1, the cut-off timings for repurchasing units in these funds will change to streamline the pledge-based upstreaming of client funds.

New Cut-off Timings

• Offline transactions: 3 PM
• Online transactions: 7 PM

Overnight funds primarily invest in risk-free government securities maturing within a day, offering a safe and liquid option for managing client money. By adjusting the cut-off times, SEBI aims to improve operational efficiency, especially related to pledging units as collateral in Mutual Fund Online Systems (MFOS).

For investors, this means that transactions made after the new cut-off timings will be processed on the next business day, impacting the applicable Net Asset Value (NAV) at which redemptions occur.

Kotak Mahindra Bank Credit Cards: Reward Cuts and Fee Hikes

Starting June 1, Kotak Mahindra Bank will implement changes to its credit card reward programs and fees, affecting many cardholders.

1. Reward Limits 

New caps will be introduced on reward points earned across multiple spending categories, including:

• Utility bill payments
• Education fees
• Wallet loading
• Fuel purchases
• Rent payments
• Government spends
• Insurance premiums
• Online gaming

2. Fee Increases 

Alongside reward adjustments, some credit card fees are also set to increase, though specific fee hikes will vary based on card type.

This move likely aims to balance sustainability of reward programs with the evolving cost structures faced by banks. For customers, it’s a good time to review credit card usage and evaluate whether current cards still align with their spending patterns and benefits expectations.

What This Means for You?

• Mutual Fund Investors: If you hold overnight fund units, keep the revised cut-off timings in mind to optimise redemptions or transactions. Earlier transactions may now affect your NAV differently, especially for offline investors.
• Credit Card Users: Review your Kotak Mahindra credit card statements and rewards structure. Consider alternatives or adjust spending habits if you heavily rely on rewards in capped categories.

Read More: New UPI Rules from August 1: Balance Checks, Autopay Mandates to Be Limited.

Conclusion

Financial landscapes are always evolving, and regulatory changes like those announced by SEBI, along with shifts in bank policies, highlight the need for vigilance. As June 1 approaches, take a moment to assess how these updates affect your portfolio and finances to stay ahead and make the most of your money.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.