After the Reserve Bank of India (RBI) raised the repo rate in May, interest rates for housing and vehicle loans would climb. Some banks announced rate rises immediately following the RBI's decision, and several formal and informal banks will raise interest rates on loans beginning in June. Third-party auto insurance prices are anticipated to rise, and bank rates are changing. Here are some important regulatory and operational changes that will affect your financial life beginning in June.
Interest rates on SBI housing loans
The State Bank of India's (SBI) external benchmark lending rate (EBLR) for house loans would rise to 7.05 percent from 6.65 percent as of June 1. The bank repo-linked lending rate (RLLR) will jump from 6.25 percent to 6.65 percent.
(RLLR) will increase from 6.25 percent to 6.65 percent. When approving house loans, SBI adds a credit risk premium over the EBLR and RLLR.
The moves come after the Fed raised repo rates by 40 basis points in the first week of May. A basis point is equal to one-tenth of a percentage point.
Third-party auto insurance premium
Car and bike owners will face increased third-party insurance rates beginning June 1, according to the ministry of road transport and Highway and the Insurance Regulatory and Development Authority of India's FY23 budget.
The third-party charge will be Rs 2,094, up to Rs 22 for a private automobile with an engine size of less than 1,000 cc. The new third-party charges for a car with an engine capacity of 1,000 cc to 1,500 cc would be Rs 3,416.
If a bike's engine capacity is smaller than 75 cc, the new premium will be Rs 538, an increase of 11%. The premium for bikes with engine capacities ranging from 150cc to 350cc will increase to Rs 1,366 from Rs 1,193.
Processing costs for card-based EMI transactions
American Express credit cardholders will be charged extra fees for turning a purchase into an EMI transaction. Point-of-sale EMI transactions will incur a processing fee of Rs 99 plus taxes from June 1. These fees will apply to both online and in-person transactions. A time processing fee of 2% plus taxes will continue to be paid for post-purchase EMI requests. Converting large purchases into EMIs will entail a 14 percent annual interest charge.
Union Bank of India savings accounts interest rates
Beginning June 1, the Union Bank of India will change the interest rate on savings accounts. A deposit of up to Rs 50 lakh in an account will receive 2.75 percent interest each year. The interest rate is 2.90 percent for accounts ranging from Rs 50 lakh to Rs 100 crore. Rates for higher slabs vary from 3.1 percent to 3.55 percent. Previously, the bank offered a fixed interest rate of 2.90 percent to all savings account customers.
Axis Bank raises the minimum balance requirement.
Axis Bank has increased the average monthly balance threshold for simple savings and pay programs beginning June 1. The minimum balance requirement in semi-urban and rural regions would rise from Rs 15,000 to Rs 25,000, or Rs 1 lakh term deposit. The minimum balance requirement for liberty savings accounts has increased from Rs 15,000 to Rs 25,000 or Rs 25,000 in debit card purchases.
Gold hallmark through its second phase
From June 1, when the second phase of hallmark begins, retailers must only sell hallmark gold jewelry and antiquities weighing more than 2 grams. Previously, only 14K, 18K, and 22K jewels were hall-marked. With the establishment of most testing facilities, more districts have been added. Hall-marking is required for all.
India Post Payments, Bank has implemented new fees.
India Post Payments, Bank will start charging for Aadhaar Enabled Payments on June 15. (AePS). Every month, the first three AePS transactions, including cash withdrawals, cash deposits, and mini-statements, will be free. Each additional cash withdrawal or deposit will cost Rs 20 + GST. Each mini-statement request will be charged Rs 5 + GST.
Failure to link PAN with Aadhaar carries a double penalty.
The Central Board of Direct Taxes issued a punishment for failing to connect the permanent account number (PAN) with Aadhaar by the March deadline. If PAN and Aadhaar are not connected before June 30, the fee is Rs 500, and it is Rs 1,000 after that. June is the final month to link your PAN to Aadhaar and avoid incurring a double penalty.
