New Banking Rules May 2024: Understanding the Impact on Your Finances

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INVC NEWS
Mumbai  : As the calendar flips to May, the financial landscape undergoes significant shifts, with new regulations impacting the pockets of consumers across the board. From changes in fuel prices to alterations in banking policies, here’s a comprehensive breakdown of what to expect and how it may affect you.

### Changes in Fuel Prices: What You Need to Know

Petroleum companies routinely reassess the prices of commercial and domestic cylinders of petrol, diesel, and LPG on a monthly basis. Notably, the government has decreed a reduction in the prices of commercial LPG cylinders by Rs 19, providing a slight reprieve to consumers. With the ongoing Lok Sabha elections, citizens are understandably vigilant, monitoring any fluctuations in fuel costs that may impact their daily expenditures.

### Key Updates for Mutual Fund Investors

For mutual fund investors, a pivotal change comes into effect as of May 1, 2024. Following this date, applications with names that do not precisely match those on PAN cards face cancellation, underscoring the importance of consistency in official records. The Securities and Exchange Board of India (SEBI) has revised KYC regulations to mandate alignment between the name and date of birth on mutual fund applications, PAN cards, and income tax records. Importantly, existing investors remain unaffected by this revision, which primarily targets new applicants.

### Revised Charges at ICICI Bank

Effective May 1, ICICI Bank implements adjustments to its savings account services, impacting consumers’ financial transactions. Among these changes is the introduction of an annual fee of up to Rs 200 for debit card usage, with rural areas subject to a reduced fee of Rs 99 per year. Additionally, while the issuance of up to 25 checks annually remains fee-free, subsequent checks incur a charge of Rs 4 each. Notably, Outward Immediate Payment Service (IMPS) transactions attract fees ranging from Rs 2.5 to Rs 15 per transaction, signaling a shift in the cost dynamics of banking services.

### Fee Modifications at Yes Bank

Simultaneously, Yes Bank revises its fee structure for savings accounts, particularly impacting customers with balances below the mandatory average monthly balance (AMB). The bank now levies charges ranging from Rs 250 to Rs 1,000, an increase from the previous range of Rs 250 to Rs 750, depending on the account type, branch location, and deficit amount. Furthermore, the imposition of fees on ECS returns due to insufficient funds sees an adjustment, with Rs 500 charged for the initial return and Rs 550 for subsequent occurrences.

### Altered FD Terms for Senior Citizens

Senior citizens seeking to invest in fixed deposit accounts at HDFC Bank face an impending deadline of May 2, 2024. These specialized accounts offer a 0.75% interest rate premium over standard FD accounts, catering specifically to individuals aged 60 years and above. While this deadline remains subject to potential extension, it underscores the importance of timely action for eligible investors seeking enhanced returns on their savings.

### Surcharge Impositions on Credit Card Utility Payments

In a bid to streamline financial operations, Yes Bank and IDFC Bank announce surcharges on utility payments made via credit cards, effective May 1. Utility payments encompass various services such as telephone bills, electric bills, gas, water, internet, and cable services. Yes Bank imposes a 1% surcharge on payments exceeding Rs 15,000, accompanied by GST, while IDFC Bank levies GST and a Re 1 surcharge on payments surpassing Rs 20,000, aiming to offset processing costs associated with these transactions.

## Conclusion

As the new month unfolds, it brings forth a cascade of changes impacting the financial landscape. From adjustments in fuel prices to revisions in banking regulations, consumers must remain vigilant and adapt to the evolving economic environment. By staying informed and proactively managing their finances, individuals can navigate these transitions effectively, ensuring financial stability and peace of mind in the face of uncertainty.

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