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Business News/ News / India/  New bank rules to digital payments to mandatory FASTags: 10 things changing from tomorrow

New bank rules to digital payments to mandatory FASTags: 10 things changing from tomorrow

Positive Pay system, new mode of GST return filing facility for small businesses, Saral Jeevan Bima from 1 January 2021
  • Let us know what is going to change from tomorrow
  • The Reserve Bank of India (RBI) has enhanced limits for contactless card payments from ₹2,000 to ₹5,000. (Mint)Premium
    The Reserve Bank of India (RBI) has enhanced limits for contactless card payments from 2,000 to 5,000. (Mint)

    From today, 1 January 2021, many rules are going to change, that includes mandatory FASTags for all four-wheelers across India. implementation of new cheque payment system to curb banking frauds, and new mode of Goods and Services Tax (GST) return filing facility for small businesses. So, before the new rules roll out, it is important to know them in advance.

    1) 'Positive Pay' system for cheques

    The Reserve Bank of India (RBI) has decided to introduce the 'positive pay system' for cheque from 1 January 2021. Under the new rule re-confirmation of key details may be needed for payments beyond 50,000. The concept of Positive Pay involves a process of reconfirming key details of large value cheques - such as the cheque number, cheque date, payee name, account number and amount.

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    2) Contactless card transaction limit increased

    The Reserve Bank of India (RBI) has enhanced limits for contactless card payments from 2,000 to 5,000. This will be effective from 1 January 2021 and will be at the discretion of the user. The move by RBI is to enhance digital payment. This will ensure a safe and secure manner, especially during the Covid-19 pandemic.

    3) GST-registered small business

    The businesses with a turnover of up to 5 crores will require to file only 4 GST sales returns, instead of 12 ( now) from 1 January. This change would impact about 9.4 million small businesses.

    4) FASTag mandatory for all four-wheelers

    The Union Ministry of Road Transport and Highways has issued a notification making a FASTag mandatory for all four-wheel vehicles from 1 January 2021. FASTag will be mandatory for four-wheelers or M&N category of vehicles that were sold before 1 December 2017. For this, the Central Motor Vehicles Rules, 1989 were amended.

    5) Standard term life insurance

    IRDAI, in October had directed all the life insurance companies to mandatorily come out with a standard, individual term life insurance policy called 'Saral Jeevan Bima' from January 1. This standardised policy will have a standard wording for sum assured with uniform features that will reduce the hassle of first-time buyers. This will be having a minimum and maximum sum assured of 5 Lakh and 25 Lakh, respectively.

    6) Landline to mobile phone calls

    You will be required to prefix '0' for making calls from landlines to mobile phones in the country, effective 15 January. The telecom department has asked telcos to work on the required infrastructure by January 1 in order to implement the new system effectively.

    7) LPG prices

    On the first day of every month, fuel retailers revise prices of LPG cylinders, which is primarily dependent on the international benchmark rate of LPG, and the US dollar and rupee exchange rate. Last month, it was hiked twice.

    8) Car prices

    Maruti Suzuki India and Mahindra and Mahindra will increase vehicle prices from January 1 to cope up with the impact of increasing input costs. MG Motor and Renault India will also be increasing the prices of all its cars in India.

    9) Electronic appliances to get costlier

    Prices of LED TV and appliances such as refrigerator, washing machines are expected to go up by around 10 per cent from January next year on account of rise in costs of key input materials like copper, aluminium and steel and increase in ocean and air freights charges.

    10) WhatsApp to stop working on select phones

    WhatsApp is going to withdraw support from some platforms from January 1. WhatsApp page mentions that it provides support for and recommend using these devices: Android running OS 4.0.3 and newer; iPhone running iOS 9 and newer; and Select phones running KaiOS 2.5.1 newer, including JioPhone and JioPhone 2.

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    Published: 31 Dec 2020, 07:52 AM IST
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