Here is a look at five major money and operational changes that will come into effect from June, which will have an impact on your financial life.
Higher home loan interest rates
The State Bank of India (SBI) has increased its home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 percent, while the RLLR would be 6.65 percent plus CRP. According to SBI’s website, the increased interest rates will take effect on June 1, 2022. Previously, the EBLR stood at 6.65%, while the Repo-Linked Lending Rate (RLLR) stood at 6.25 percent.
According to the SBI website, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).”
SBI also announced another ten-basis-point rise in its marginal cost-based lending rates (MCLR) on loans (bps). From May 15, 2022, the new MCLR interest rates will be in effect.
Higher third-party motor insurance premiums
According to a gazette notification from the Ministry of Road, Transport, and Highways, the annual rate of third-party insurance for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been raised to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1500 cc will see the premiums fall to Rs 7,897 from Rs 7,890.
For two wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be Rs 1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804. The three-year single premium for a new car not exceeding 1000 cc has been fixed at Rs 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640. A new private vehicle exceeding 1500 cc will be insured at Rs 24,596 for three years under the newly notified rates.
The five year single premium for two wheelers not exceeding 75 cc is Rs 2,901, exceeding 75 cc but not 150 cc is Rs 3,851, and exceeding 150 cc but not 350 cc is Rs 7,365. A two wheeler exceeding 350 cc can be insured for five years at Rs 15,117 under the new rates.
A new private electric vehicle (EV) can be insured at Rs 5,543 for three years if it is not exceeding 30 KW. If the EV exceeds 30 KW but is less than 65 KW, the three year premium will be Rs 9,044. Larger EVs exceeding 65 KW will be insured at Rs 20,907 for three years.
These revised rates will be applicable from June 1, 2022. These rates were last revised for the financial year 2019-20 and were kept unchanged during the COVID-19 pandemic.
From June 1, 2022, the second phase of mandatory hallmarking will take effect, making Hallmarking of gold jewellery/artifacts fully mandatory in the existing 256 districts and 32 new districts covered by Assaying and Hallmarking Centres (AHC).
Only gold jewellery and antiquities weighing 14, 18, 20, 22, 23, and 24 carats shall be sold in these 288 districts, and they must be sold compulsorily with hallmarking.
India Post Payments Bank charges for Aadhaar Enabled Payments
The India Post Payments Bank (IPPB) has stated that issuer charges for the Aadhaar Enabled Payment System have been implemented (AePS). These fees will be implemented on June 15, 2022. The India Post Payments Bank is a subsidiary of Indian Post, which is governed by the Postal Department.
The first three AEPS transactions each month will be free, including AEPS cash withdrawal, AEPS cash deposit, and AEPS mini statement. Following the free transactions, each cash withdrawal or cash deposit will cost Rs 20 plus GST, while a mini statement transaction would cost Rs 5 plus GST.
Axis Bank’s revised savings account charges
The average monthly balance requirement for easy savings and salary programs in Semi-urban/ rural areas has been increased from Rs 15,000 to Rs 25,000 or Rs 1 lakh term deposit.
For a liberty savings account, the requirement has been increased from Rs 15,000 to Rs 25,000 or or spends Rs 25,000. These tariffs will be in effect from June 1, 2022.