New KYC rules, surcharge on utility payment via credit card and more: Five personal finance coming up in May
Upstox
3 min read • Updated: April 30, 2024, 7:21 PM
Summary
In May 2024, there will be some changes in rules which may affect your savings and how you manage your money. From new KYC rules to banks implementing a few changes on various services and products, here are the new rules coming into effect next month.
A few key changes in rules are coming into effect in May that could affect your personal finances. While some banks are implementing revisions to their savings account charges, others are introducing surcharges on utility payments made via credit cards. In addition, the deadline for senior citizen fixed deposits (FDs) schemes by a private lender falls in the month of May.
Let’s take a closer look at the key financial changes set to happen in May 2024, which may affect how you manage your money.
New KYC rule: Ensure name matches on PAN and MF folio to avoid application rejection
A discrepancy in the name between your PAN (Permanent Account Number) and mutual fund folio can lead to the rejection of the application. As of April 30, a new KYC rule mandates that the name on a mutual fund application must precisely match the name on the person’s PAN card. This rule applies only to new investments and does not impact existing ones.
ICICI Bank rolls out updated charges for savings account services
ICICI Bank’s revisions include an annual fee of up to ₹200 for debit cards, with rural locations to be charged ₹99. Charges for cheque books will be waived for the first 25 leaflets annually, with ₹4 per leaf beyond this limit. Outward IMPS transactions will incur fees ranging from ₹2.5 to ₹15 per transaction.
The private bank will also impose a charge of ₹100 each time there’s a cancellation, duplication or revalidation of demand drafts or pay orders, along with ₹100 per application or letter for signature attestation. Stopping payment of a specific cheque through the branch will cost ₹100, but will be free through customer care and net banking.
Penalty charges of ₹500 per ECS/NACH debit return for financial reasons will apply from May.
YES Bank raises charges for maintaining low monthly balances in savings accounts
YES Bank is increasing the maximum charges for maintaining less-than-mandated average monthly balance (AMB) in savings accounts, now ranging from ₹250 to ₹1,000, up from the previous range of ₹250 to ₹750. Additionally, for ECS (electronic clearing service) returns due to insufficient funds, the bank will now impose a fee of ₹500 for the first instance. Subsequent returns will incur a charge of ₹550.
May 2 is the last day for HDFC Bank’s Senior Citizen Care FD
The deadline for investing in HDFC Bank’s senior citizen care fixed deposit is fast approaching, with May 2 marking the last date for investment. This deposit offers an interest rate higher by 0.75%, compared to regular FDs. This offer is for resident senior citizens aged 60 years and above, (not applicable to NRI) who wish to book an FD less than ₹5 crore for a tenure of five years and one day to 10 years.
YES Bank, IDFC First Bank introduce surcharge on utility payments with credit cards
YES Bank will impose a surcharge of 1% plus GST when the aggregate of utility bill payments made with a credit card exceeds ₹15,000. But this surcharge is not applicable on YES Bank’s private credit card. Similarly, for IDFC First Bank credit cards, a 1% surcharge will apply, along with GST, for utility bills exceeding ₹20,000 in a statement cycle.