E-insurance, FASTag, ITR filing, medicine prices: What changes from April 1
New Delhi, Apr 1, 2024
As April 2024 begins, we enter a new financial year with significant updates impacting our finances and investments. Whether it's about how we handle insurance, save for retirement, or even make payments, these updates are crucial for everyone to know. Here’s a breakdown of what’s changing and how it might impact you.
E-insurance digitisation
Starting today (April 1), the Insurance Regulatory and Development Authority of India (Irdai) has mandated the compulsory digitisation of all insurance policies. This encompasses life, health, and general insurance, necessitating all policies be issued in an electronic format.
EPFO automatic transfers
An adjustment within the Employees’ Provident Fund Organisation (EPFO) ensures that subscribers' balances are automatically transferred to their new organisation upon changing jobs. This eliminates the need for EPFO account holders to request a transfer of their Provident Fund (PF) amount manually.
Revisions in drug pricing
The Department of Pharmaceuticals has announced that revised ceiling rates for 65 formulations will be effective from April 1. These include crucial medications such as painkillers and drugs for chronic conditions like type 2 diabetes. The adjustments are a response to a 0.00551 per cent inflation in the National List of Essential Drugs (NLEM) prices, reflective of changes in the wholesale price index (WPI).
The new revised rate list includes essential drugs such as painkillers, antivirals, antibiotics, antimalarials, and drugs for type 2 diabetes.
FASTag KYC requirements
Starting today, individuals who have not updated their vehicle’s KYC information with their respective banks may encounter disruptions in FASTag services. Banks will deactivate FASTags for non-compliant users, potentially resulting in double toll tax payments at toll plazas. The National Highways Authority of India (NHAI) has urged FASTag users to ensure compliance with RBI regulations.
Mutual funds and KYC compliance
From April 1, mutual fund transactions, including investments and withdrawals, will require updated KYC documentation. Traditional proofs such as bank statements will become invalid, with Aadhaar ID, passport, and voter ID becoming the officially valid documents for these transactions.
The Securities and Exchange Board of India (Sebi) has directed asset managers to cease new investments in overseas exchange-traded funds (ETFs) from April 1, aiming to regulate foreign exposure.
Sebi issued the directives citing a near breach of the $1 billion ETF investment limit, according to MF executives. Find out the details here
OLA Money wallet transition
OLA Money announced that it is entirely switching to small PPI (prepaid payment instrument) wallet services, with a maximum wallet load restriction of Rs 10,000 per month starting April 1, 2024.
As per an SMS sent by Ola to its customers, from April 1 onwards, you will have the choice to provide your approval in order for Ola Money to continue offering wallet services to:
Change the full KYC to Small PPI setting on your Ola Money wallet
OR
Shut off your wallet: Close the wallet after taking the full withdrawal, if any. There is no bank transfer fee.
NPS security measures
The National Pension System (NPS) will introduce two-factor authentication from April 1, bolstering security with OTP verification for account access.
New Income Tax regime adoption
April 1 marks the transition to the new income tax regime as the default option. Individuals failing to choose the old regime will automatically be enrolled in the new framework, offering tax exemptions for incomes up to Rs 7 lakh annually.
Credit and debit card policy changes
Several Indian banks have announced important changes to their credit and debit card policies, effective from April 2024. Details here
SBI credit card
Reward points revision: SBI Card has introduced modifications to its reward points accumulation policy. These changes will particularly affect the process of gathering points through rental payments. Cardholders of products such as the AURUM, SBI Card Elite, and SimplyCLICK SBI Card will need to take note of these adjustments.
Annual maintenance charges: Furthermore, from today, an increase in the annual maintenance fees for select debit cards by Rs 75 will be implemented, as officially announced on their website.
ICICI Bank credit card
Complimentary lounge access: From April 1, customers can avail of one free airport lounge visit by achieving a spend threshold of Rs 35,000 within the preceding calendar quarter. This stipulation applies for access during the April-June 2024 quarter, with similar requirements set for future quarters to obtain lounge access.
Axis Bank credit card
Changes to Magnus credit card: Effective from April 20, revisions will be made to the Axis Bank Magnus Credit Card, including changes to the reward points earnings mechanism and the lounge access scheme.
[The Business Standard]
