Key Financial Changes Coming in May: What You Need to Know
MAS Team | 30 April 2024
As we approach May, there are several significant changes on the horizon that will impact individuals, especially mutual fund investors and banking customers. May is expected to bring moderate financial changes, unlike the more eventful months of April and March. However, it's essential to highlight key adjustments that individuals should take note of.
Several banks are set to make alterations, such as revising charges on savings account services, introducing surcharges on utility payments using credit cards, and establishing deadlines for senior citizen fixed deposits (FDs).
Here are the key financial changes that will affect you this month:
PAN-MF Folio Name Matching Becomes Mandatory
Starting from April 30, mutual fund applications will face rejection if the name on the application does not match the name on the PAN (Permanent Account Number) card. This move aims to standardize names across official records, in accordance with SEBI-mandated KYC rules. New investors must ensure that their name and date of birth match those on their PAN and income-tax records.
ICICI Bank's Revised Fees on Savings Account Services
Effective May 1, ICICI Bank will implement changes to its charges on savings account services. These changes include annual fees on debit cards, charges for cheque books, fees for outward Immediate Payment Service (IMPS) transactions, among others.
YES Bank's Fee Revision for Low Balance in Savings Accounts
Similarly, YES Bank will revise its fees for maintaining an average monthly balance (AMB) below the mandated threshold in savings accounts. The charges will vary based on the type of account, location, and shortfall amount.
HDFC Bank's Discontinuation of Senior Citizen Care FD
HDFC Bank's senior citizen care fixed deposit will no longer be available after May 2, 2024. This FD offers an enhanced interest rate for resident senior citizens aged 60 years and above.
Surcharge Introduction on Utility Payments with Credit Cards
Both YES Bank and IDFC First Bank will introduce a surcharge on utility transactions made with credit cards, effective from May 1. The surcharge will apply when the aggregate utility bill payments exceed specified thresholds.
For instance, YES Bank will impose a surcharge when utility bill payments exceed Rs15,000, while IDFC First Bank's threshold is Rs20,000. These surcharges aim to cover expenses related to telecommunications, electricity, gas, water, internet services, and cable services. Stay informed about these financial changes to navigate May's transitions effectively.