New Financial Rules for 2024: We entered into a new fiscal year in April 2024 with important updates affecting our money and investments. These revisions are essential information for everyone to know, regardless of how we manage insurance, save for retirement, or even make payments. This is an overview of the changes and how they may affect you.
E-insurance Digitisation
The Insurance Regulatory and Development Authority of India (Irdai) has made the mandatory digitization of all insurance policies effective today, April 1. This includes health, life, and general insurance, and all policies must be issued electronically.
Automated Provident Fund Transfers
When a subscriber changes employment, the Employees’ Provident Fund Organisation (EPFO) makes sure that their balances are automatically transferred to their new organisation. This removes the requirement for holders of EPFO accounts to manually request a transfer of their Provident Fund (PF) balance.
New Ceiling Pricing Implementation
The Department of Pharmaceuticals has declared that as of April 1, 65 formulations’ new ceiling pricing would take effect. These include essential pharmaceuticals like analgesics and treatments for long-term illnesses like type 2 diabetes. The National List of Essential Drugs (NLEM) prices increased by 0.00551%, which was caused by changes in the wholesale price index (WPI). This prompted modifications. Essential medications include pain relievers, antivirals, antibiotics, antimalarials, and medications for type 2 diabetes are included in the newly amended rate list.
FASTag Service Interruptions
FASTag services may have interruptions as of right now for those who have not updated their vehicle’s KYC information with their respective banks. For non-compliant users, banks will deactivate FASTags; this could lead to multiple toll tax payments at toll plazas. Users of FASTag are advised by the National Highways Authority of India (NHAI) to make sure that RBI regulations are followed.
Updated KYC Requirements for Mutual Fund Transactions
Updated KYC documents will be necessary for all mutual fund transactions starting on April 1st, including withdrawals and investments. Conventional evidence like bank statements would no longer be accepted; instead, official documentation for these transactions will be Aadhaar IDs, passports, and voter IDs.
SEBI Imposes Restrictions on International ETF Investments
In an effort to control foreign exposure, the Securities and Exchange Board of India (Sebi) has instructed asset managers to stop making new investments in international exchange-traded funds (ETFs) as of April 1. According to MF executives, Sebi issued the orders claiming a close violation of the $1 billion ETF investment limit.
SBI Bank credit card
The SBI Card’s reward point accumulation policy has undergone changes. The procedure for accruing points through rental payments will be especially impacted by these adjustments. Customers who own cards like the SimplyCLICK SBI Card, AURUM, or SBI Card Elite should be aware of these changes.
ICICI Bank credit card
Starting on April 1, customers who spend Rs 35,000 or more in the previous calendar quarter are eligible for one complimentary visit to an airport lounge. This condition is applicable to entry for the quarter ending in April–June 2024; comparable prerequisites will be in place for access to the lounge in subsequent quarters.
Axis Bank credit card
Revisions to the Axis Bank Magnus Credit Card, including adjustments to the lounge access programme and the reward point earning mechanism, will take effect on April 20.