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Home / Money / Personal Finance /  From home loan EMIs, car insurance to deposits: 10 money-related changes in June
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The month of June has started and there is a host of key changes that will matter to your pockets. Whether you're applying for a home loan to get your dream house, or planning to purchase a car, or simply wanting to put your hard-earned money into deposits, key changes have taken place in June. Some banks have made key revisions in their home loans, saving deposits, and services charges starting June. Not just that, car and bike owners will pay higher third-party insurance premiums from June 1. Furthermore, you might end up paying a double penalty if your PAN is not linked with Aadhaar. However, buying LPG cylinders has gotten cheaper this month.

Here are the money related changes in June: 

1. SBI home loan EMIs to go up:

The largest public sector lender, State Bank of India (SBI) has increased its home loan interest rates effective from June 1, 2022. The bank has raised the external benchmark-based lending rate (EBLR) by 40 basis points to 7.05% plus CRP and the repo rate linked lending rate (RLLR) has risen to 6.65% plus CRP.

Under the regular home loans, SBI interest rates range lowest from 7.05% to a maximum of 7.35%. There are 5 basis points concession available to women borrowers subject to minimum EBR i.e. 7.05%.

2. HDFC Retail Prime Lending Rate (RPLR):

Effective from June 1, NBFC giant HDFC has increased its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points.

On HDFC's website, it shows that the Retail Prime Lending Rate is at 16.40%.

Adjustable home loan interest rates vary from 7.05 - 7.55% on loans up to 30 lakh for women, while for others the rate is between 7.10 - 7.60%.

Between 30.01 Lakhs to 75 Lakhs, the interest rate varies from 7.30 - 7.80% for women and 7.35 - 7.85% for others. For housing loans 75.01 lakh and above, the interest rate ranges from 7.40 - 7.90% for women and 7.45 - 7.95% for others.

3. Axis Bank services charges:

The bank has revised specific service charges related to the current account with effect from June 1, 2022.

The average monthly balance (AMB) for Semi-Urban/Rural regions has increased from 15,000 to 25,000 or 1 lakh Term Deposit under the prime version. The AMB on the Liberty version has been increased from 15,000 to 25,000 or spending of 25,000/-, and these amended fees will take effect on June 1, 2022.

For non-maintenance of balance, the fees have been raised by 7.5%  of the shortfall from AMB/AQB/HAB, which was formerly 75+ INR, accounting for 5% of the shortfall from AMB/AQB/HAB. The minimum service price, which was previously 75, will now be NIL, while the maximum fee will be 600. The maximum monthly service charge for metro/urban regions is 600, for semi-urban areas - it is 300, and for rural areas - it is 250.

The monthly cash transaction limit was previously set at the first 5 transactions or 2 lakhs, whichever comes first, but it will now be set at the first 5 transactions or 1.5 lakhs, whichever comes first.

4. Union Bank saving bank deposits:

The public sector bank has revised its saving bank deposits with effect from June 1.

For deposits up to 50 lakh, the interest rate is 2.75%, and for deposits between 50 lakh to 100 crore - the rate of interest is 2.90%.

The rate of interest is at 3.10% for 100 crore to 500 crore, while the rate was at 3.40% on deposits of 500 crore to 1,000 crore, and the interest is at 3.55% on deposits above 1,000 crore.

5. American Express credit cards:

Effective from June 1, American Express cardmember are required to a processing fee of 99 + taxes as applicable on all EMI transaction(s) converted at Point of Sale online or in-store. The processing fee will only get reversed if the transaction is cancelled or refunded by the merchant and cardmember requests for the foreclosure of the EMI transaction(s) within 30 days from the date of transaction(s).

Further, the cardmember will now be needed to pay a fee of 2% of the transaction amount as the processing fee to avail of the post-purchase EMI conversion facility, unless expressly waived otherwise. In the event, that any offer is applicable, this fee will be refundable and appear as a statement credit within 30 working days. In certain cases, this may take up to 60 working days.

6. India Post Payment Bank savings account revised:

The IPPB has trimmed its interest rate on all the customer variants of Savings Accounts by 25 basis points effective from June 1, 2022.

For saving deposits balances up to 1 lakh, interest rate is at 2% per annum from the previous 2.25% per annum.

For incremental balances above 1 lakh to 2 lakh, the interest rate is at 2.25% per annum from the previous 2.5% per annum.

Interest will be paid to customer quarterly (Computed on the daily EOD balance).

7. Gold Hallmarking:

The second phase of the mandatory hallmarking for gold jewellery and gold artefacts has come into effect from June 1.

The second phase of the mandatory hallmarking will cover additional three caratages of gold jewellery/artefacts viz.20, 23 and 24 carats as mentioned in the Indian Standard IS 1417 and 32 new districts under the mandatory hallmarking regime wherein an AHC has been setup post-implementation of the first phase of the mandatory hallmarking order.

8. Penalty on failure to link PAN with Aadhaar:

The deadline to link PAN with Aadhaar has been extended on several occasions and now the latest due date is set on March 31, 2023. To ensure that taxpayers are giving importance to PAN - Aadhaar linking, the department has announced a host of penalties that can be avoidable or lessened only if the linking is done.

Under the new provisions of the sub-section, CBDT directs that a fine of 500 is levied "in case where such intimation is made within three months from the date referred to in sub-section (2) of section 139AA."

That means, a penalty of 500 is applicable for PAN - Aadhaar linking within three months, i.e. June 30, 2022. If failure to do so after June 30, then the penalty has been increased to 1,000 in all other cases.

9. Third-party motor insurance premium:

The government issued guidelines Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022, which have come into effect from June 1.

The base premium for third-party insurance for unlimited liability has been notified for various classes of vehicles. Following discounts in premium are also allowed in the said rules:

- Discount of 15% has been provided for Educational institution buses.

- Discounted price of 50% of the premium has been allowed to a private car registered as Vintage Car.

- Discount of about 15 % and 7.5% on the premium has been allowed for Electric and Hybrid Electric Vehicles, respectively.

10. LPG price:

Oil marketing companies (OMC) have reduced the price of 19 kg commercial LPG cylinder by around Rs135 with immediate effect from June 1. In Delhi, the 19 kg commercial cylinder now costs 2219.00 against the previous level of 2355.50 per cylinder. In Mumbai, the LPG price is lowered to 2171.50 per cylinder from 2,307 whereas, in Kolkata, a consumer will have to shell out 2,322 per cylinder instead of 2,455. At the same time, instead of 2,508, a customer will have to spend 2373 in Chennai.

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