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Financial changes set to kick in from June 1, 2022. Check here

From increased SBI home loan interest rates, gold hallmarking to hiked Axis Bank’s savings account charges, five important money changes will come into effect from next month. Here’s a detailed look at the changes that will impact individuals from June 1, 2022.

ET Now Digital

Updated May 28, 2022, 07:01 IST

New Delhi: As the month of May draws to a close, people must be aware of the key financial changes that are set to kick in next month. From increased home loan interest rates to gold hallmarking, the month of June will introduce a few important money changes that must not be ignored.

While it is wise for everyone to take note of the changes, those who will be directly affected include State Bank of India home loan borrowers, Axis Bank, India Post Payments Bank customers and vehicle owners.

Here is a look at 5 major financial changes that will come into effect from June 2022:

SBI home loan interest rates

India’s largest public lender State Bank of India (SBI) has hiked its home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 per cent. The RLLR would be 6.65 percent plus CRP. The revised interest rates will take effect on June 1, 2022.

According to the bank’s website, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).” The lender has also announced another 10-basis-point rise in its marginal cost-based lending rates (MCLR) on loans (bps). These took effect from May 15, 2022.

Axis Bank’s savings account charges

Private lender Axis Bank has hiked the average monthly balance requirement for easy savings and salary programs in semi-urban/rural areas from Rs 15,000 to Rs 25,000 or Rs 1 lakh term deposit. For a liberty savings account, the requirement has been increased from Rs 15,000 to Rs 25,000 or spends Rs 25,000. These charges are set to kick in from June 1, 2022.

Gold hallmarking

From June 1, 2022, the second phase of mandatory hallmarking will take effect, making Hallmarking of gold jewellery/artifacts fully mandatory in the existing 256 districts and 32 new districts covered by Assaying and Hallmarking Centres (AHC). This means that only gold jewellery and antiquities weighing 14, 18, 20, 22, 23, and 24 carats shall be sold in these 288 districts, and they must be sold compulsorily with hallmarking.

Third-party motor insurance premiums hiked

The annual rate of third-party insurance for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been hiked to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1500 cc will have premiums of to Rs 7,897, up from Rs 7,890.

Meanwhile, for 2-wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be Rs 1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804. The three-year single premium for a new car not exceeding 1000 cc has been fixed at Rs 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640.

A new private vehicle exceeding 1500 cc will be insured at Rs 24,596 for three years under the newly notified rates. The 5-year single premium for 2-wheelers not exceeding 75 cc is Rs 2,901, exceeding 75 cc but not 150 cc is Rs 3,851, and exceeding 150 cc but not 350 cc is Rs 7,365. A two wheeler exceeding 350 cc can be insured for five years at Rs 15,117 under the new rates.

A new private EV can be insured at Rs 5,543 for three years if it is not exceeding 30 KW. If it exceeds 30 KW but is less than 65 KW, the three year premium shall be Rs 9,044. Larger EVs exceeding 65 KW will be insured at Rs 20,907 for three years. These rates will be applicable from June 1, 2022.

India Post Payments Bank charges for Aadhaar Enabled Payments

Another key financial change that individuals must bear in mind is that the India Post Payments Bank (IPPB) has stated that issuer charges for the Aadhaar Enabled Payment System have been implemented (AePS). These fees will be implemented on June 15, 2022.

The first three AEPS transactions will be free per month, including AEPS cash withdrawal, AEPS cash deposit, and AEPS mini statement. Following this, each cash withdrawal or cash deposit will cost Rs 20+GST, while a mini statement transaction would cost Rs 5+GST.

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