As we enter November, several key updates in financial regulations, banking terms, and service charges are set to impact various aspects of daily life in India.
From new rules on domestic money transfers to updated credit card charges, these changes will influence how people manage their budgets, handle banking, and interact with financial services.
Let’s break down these important updates to help you stay informed and prepared.
1. RBI’s New Rules for Domestic Money Transfers (DMT)
Effective from November 1, 2024, the Reserve Bank of India (RBI) introduced a new framework for Domestic Money Transfers (DMT).
This update aims to enhance security, promote regulatory adherence, and streamline user funds transfer processes.
The changes reflect the RBI’s emphasis on the growing digital infrastructure and ease of fulfilling KYC requirements, making DMT services more accessible and secure across banking outlets.
This regulation is designed to accommodate the widespread adoption of digital payment options while strengthening the financial system.
2. SBI Credit Card Finance Charges
Starting November 1, SBI Card will revise its finance charges for unsecured credit card users. The new finance charge rate will be 3.75% per month, applied to all transactions where balances are not paid in full.
Additionally, for utility payments exceeding Rs.50,000 within a billing cycle, a 1% fee will be charged. This new fee on utility payments, however, will take effect from December 1, 2024.
These changes underscore SBI’s approach to encourage timely payments while offsetting risks associated with large outstanding balances.
3. ICICI Bank Credit Card Fee and Reward Adjustments
On November 15, 2024, ICICI Bank will implement changes affecting various credit card benefits, including adjustments in late payment fees, fuel surcharge waivers, and reward points for select transactions.
Notable changes include:
- Discontinuation of spa benefits.
- No fuel surcharge waiver for transactions exceeding ₹100,000.
- 1% fee on education payments made via third-party services.
- Revised annual fee requirements and late payment charges.
Cardholders should review these updates to avoid unexpected fees and adjust their spending habits accordingly.
4. Indian Bank’s Special Fixed Deposit (FD) Deadline
The opportunity to invest in Indian Bank’s special Fixed Deposit (FD) scheme ends on November 30, 2024. Under this scheme, Indian Bank offers competitive interest rates across various categories:
- General public: 7.05% for 300 days, 7.25% for 400 days.
- Senior citizens: 7.55% for 300 days, 7.75% for 400 days.
- Super senior citizens: 7.80% for 300 days, 8.00% for 400 days.
This scheme, called “IND SUPER 400 DAYS,” is available for deposits starting from Rs.10,000 up to Rs.3 crore.
5. Advance Train Ticket Booking Limit Reduction
In a move impacting travelers, the Indian Railways has shortened the window for advance train ticket bookings from 120 days to 60 days, excluding the date of departure.
This change, effective November 1, is designed to streamline ticketing processes and improve seat availability closer to travel dates.
Passengers who already hold tickets booked under the previous 120-day rule will not be affected.
6. TRAI’s New Rule on Message Traceability
Beginning November 1, telecom companies in India are required to implement message traceability for both transactional and promotional messages.
This rule aims to combat spam and fraud by monitoring message origins and blocking those that do not comply with traceability standards.
This measure will help telecom companies enhance customer security and reduce instances of fraudulent messaging.
7. SEBI Insider Trading Norms for Mutual Funds
From November 1, 2024, SEBI’s Prohibition of Insider Trading (PIT) regulations will extend to cover mutual funds.
Senior employees and “connected persons” within mutual fund houses, including sponsors, trustees, auditors, and consultants, are now restricted from selling mutual fund holdings based on unpublished price-sensitive information.
This update aims to protect investors by preventing insider trading within the mutual fund sector.
8. NBFC-P2P Escrow Account Regulations Tightened
Under the revised RBI guidelines, Non-Banking Financial Company Peer-to-Peer (NBFC-P2P) lenders must adhere to a stricter one-day (T+1) transfer rule for funds held in escrow accounts.
This move is intended to ensure quicker, transparent transactions between lenders and borrowers.
The rule enforces a clear segregation between funds meant for disbursal and those collected for repayments.
9. LPG Price Updates
As is customary, the first day of each month may bring price adjustments for LPG cylinders. Both domestic and commercial LPG users should be prepared for potential changes in rates announced by petroleum companies.
Keeping an eye on these updates can aid in effective budget management, especially for businesses relying on commercial LPG supplies.
10. Jeevan Pramaan Life Certificate Submission Deadline for Pensioners
To avoid suspension of pension payments, pensioners are required to submit their Jeevan Pramaan life certificate by November 30, 2024.
The certificate can be submitted via the Jeevan Pramaan portal, through Internet or mobile banking, or by using doorstep digital life certificate services from India Post Payments Bank.
Missing the deadline may lead to a temporary halt in pension payments, making this submission essential.
Bottom line
With several financial, banking, and regulatory changes taking effect this November, staying informed is crucial for effective budget management and compliance.
From revised credit card charges to insider trading regulations for mutual funds, these updates reflect ongoing efforts to secure and optimize financial services.
By understanding and adapting to these changes, individuals and businesses alike can ensure smooth financial operations in the coming months.