From home loan IMEs, auto insurance to deposits: 10 money-related changes in June


Here are the silver-related changes in June:

1.SBI home loan EMI to mount:

The largest public sector lender, the State Bank of India (SBI), has raised its interest rates on home loans effective June 1, 2022. The bank has raised the External Benchmark Lending Rate (EBLR) by 40 basis points to 7.05% plus CRP and the repo rate-linked lending rate (RLLR) increased to 6.65% plus CRP.

On ordinary home loans, SBI interest rates vary between 7.05% and a maximum of 7.35%. A concession of 5 basis points is granted to women borrowers subject to a minimum RER, ie 7.05%.

2. HDFC Retail Prime Lending Rate (RPLR):

Effective June 1, NBFC giant HDFC raised its retail prime rate (RPLR) on home loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 5 basis points.

On the HDFC website, it says the retail prime rate is 16.40%.

Interest rates on adjustable home loans range from 7.05 to 7.55% on loans up to 30 lakh for women, while for others the rate is between 7.10 and 7.60%.

Between 30.01 Lakhs to 75 Lakhs, the interest rate ranges from 7.30 to 7.80% for women and 7.35 to 7.85% for others. For real estate loans 75.01 lakh and above, the interest rate ranges from 7.40 to 7.90% for women and 7.45 to 7.95% for others.

3. Axis Bank service fees:

The bank has revised the specific service fees related to the current account with effect from June 1, 2022.

The average monthly balance (AMB) for semi-urban/rural areas increased from 15,000 to 25,000 or Term deposit of 1 lakh under the main version. The AMB on the Liberty version has been increased by 15,000 to 25,000 or expenses of 25,000/-, and these amended fees will take effect on June 1, 2022.

For non-maintenance of balance, the costs were increased by 7.5% of the shortfall of AMB/AQB/HAB, which was previously 75+ INR, accounting for 5% of AMB/AQB/HAB’s shortfall. The minimum price of the service, which was previously 75, will now be NIL, while the maximum fare will be 600. The maximum monthly service charge for metropolitan/urban areas is 600, for semi-urban areas – this is 300, and for rural areas – this is 250.

The monthly cash transaction limit was previously set to the first 5 transactions or 2 lakhs, whichever comes first, but it will now be set in the first 5 transactions or 1.5 lakhs, whichever comes first.

4. Union Bank savings bank deposits:

The public sector bank has revised its savings bank deposits with effect from 1 June.

For deposits up to 50 lakh, the interest rate is 2.75%, and for deposits between 50 lakh to 100 crore – the interest rate is 2.90%.

The interest rate is 3.10% for 100 crore to 500 crore, while the rate was 3.40% on deposits of 500 crore to 1,000 crore, and interest is 3.55% on deposits above 1,000 crores.

5. American Express Credit Cards:

Effective June 1, American Express Cardmembers are required to pay a processing fee of 99 + applicable taxes on all EMI transactions converted at online or in-store point of sale. The processing fee will only be waived if the transaction is canceled or refunded by the merchant and the cardholder requests foreclosure of the EMI transaction(s) within 30 days from the date of the transaction(s).

Additionally, the cardholder will now be required to pay a fee of 2% of the transaction amount as a processing fee to avail of the post-purchase EMI conversion feature, unless expressly waived otherwise. In the event that an offer is applicable, this fee will be refundable and will appear as a statement credit within 30 business days. In some cases, it may take up to 60 business days.

6. Revised India Post Payment Bank Savings Account:

The IPPB has reduced its interest rate on all customer variants of savings accounts by 25 basis points effective June 1, 2022.

To save deposit balances up to 1 lakh, the interest rate is 2% per annum from the previous 2.25% per annum.

For additional balances above 1,000,000 2 lakh, the interest rate is 2.25% per annum compared to the previous 2.5% per annum.

Interest will be paid to the client quarterly (calculated on the daily EOD balance).

7. Hallmark of gold:

The second phase of mandatory hallmarking for gold jewelery and gold objects came into effect on June 1.

The second phase of compulsory hallmarking will cover additional three carats of gold jewellery/artifact i.e. 20, 23 and 24 carats as mentioned in Indian standard IS 1417 and 32 new districts under the compulsory hallmarking scheme in which an AHC was implemented after the implementation of the first phase of the mandatory hallmarking order.

8. Penalty for failure to link PAN with Aadhaar:

The deadline for linking PAN to Aadhaar has been extended several times and the latest due date is now March 31, 2023. To ensure that taxpayers give importance to the PAN – Aadhaar link, the ministry has announced a multitude of penalties that can be avoided or mitigated only if the link is made.

Under the new provisions of the subsection, CBDT orders that a fine of 500 is levied “if such notification is made within three months from the date referred to in paragraph (2) of Section 139AA.”

This means that a penalty of 500 is applicable for the PAN – Aadhaar route within three months, i.e. June 30, 2022. If you fail to do so after June 30, the penalty has been increased to 1,000 in all other cases.

9. Motor third party liability insurance premium:

The Government has issued Guidelines for Motor Vehicle Rules (Basic Premium and Third Party Insurance Liability), 2022 which came into force on 1 June.

The basic premium for unlimited liability insurance has been notified for different categories of vehicles. The following premium reductions are also permitted under these rules:

– A 15% discount has been granted for buses for educational establishments.

– A reduced price of 50% of the premium was granted to a private car registered as a Vintage Car.

– Discounts of approximately 15% and 7.5% on the premium have been authorized for electric and hybrid vehicles, respectively.

10. Price of LPG:

The Petroleum Marketing Companies (OMC) have reduced the price of commercial 19kg LPG cylinder by around Rs 135 with immediate effect from June 1. In Delhi, the commercial 19 kg bottle now costs 2219.00 against the previous level of 2355.50 per cylinder. In Mumbai, the price of LPG is lowered to 2171.50 per cylinder from 2,307 while in Calcutta, a consumer will have to pay 2,322 per cylinder instead of 2,455. At the same time, instead of 2,508, a customer will need to spend 2373 in Chennai.

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