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As we step into May, there are several important financial updates that deserve your attention. From changes in bank charges to regulatory updates, here's what you need to know.
1. ICICI Bank revises charges on savings accounts
Starting today (May 1, 2024), ICICI Bank has updated its service charges across a range of services including cheque book issuance and digital transactions:
— Debit card fees: An annual charge of Rs 200, reduced to Rs 99 at Gramin locations.
— Cheque books: No charge for the first 25 leaves per year, thereafter Rs 4 per leaf.
— DD/PO transactions: Rs 100 for cancellations, duplicates, or revalidations.
— IMPS transactions: Charges vary from Rs 2.50 for transactions up to Rs 1,000 to Rs 15 for transactions between Rs 25,000 and Rs 5 lakh.
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— Miscellaneous fees: No charges for account closure, debit card PIN regeneration, and several other services. A notable Rs 500 charge applies for ECS/NACH Debit Returns due to financial reasons, capped at three instances per month.
2. HDFC Bank extends Senior Citizen Care FD deadline
HDFC Bank has announced an extension for its Senior Citizen Care FD scheme, offering higher interest rates specially tailored for senior citizens. The deadline to invest in this scheme is now extended to May 10, 2024. This scheme, first introduced in May 2020, is designed to provide a secure and profitable investment option for seniors.
3. IDFC First Bank updates credit card charges for utility bill payments
Effective from today, IDFC First Bank is imposing a 1% surcharge plus 18% GST on credit card payments for utility (gas, electricity and internet) bills over Rs 20,000 in a statement cycle. However, cards like the FIRST Private Credit Card, LIC Classic, and LIC Select will not incur this surcharge.
4. Yes Bank's new charges and credit card rules from May 2024
Updates to savings account charges
Starting May 1, 2024, Yes Bank has revised its savings account charges:
Minimum balance requirements and charges:
— Savings Account PRO Max: Minimum balance of Rs 50,000 with a maximum charge of Rs 1,000 for non-maintenance.
— Savings Account Pro Plus / Yes Essence SA / Yes Respect SA: Minimum balance of Rs 25,000 with a maximum charge of Rs 750.
— Savings Account PRO: Minimum balance of Rs 10,000 with a maximum charge of Rs 750.
— Savings Value / Kisan SA: Minimum balance of Rs 5,000 with a maximum charge of Rs 500.
— My First YES: Minimum balance of Rs 2,500 with a maximum charge of Rs 250.
Service charge slab:
— If balance is ≥ 100% of the requirement: No charge.
— If balance is > 50% but less than required: 5% of the shortfall.
— If balance is ≤ 50% of the requirement: 10% of the shortfall (5% for Savings Value accounts).
Debit card fees and ATM charges
Debit card annual fees:
— Element Debit Card: Rs 299
— Engage Debit Card: Rs 399
— Explore Debit Card: Rs 599
— Rupay Debit Card (only for Kisan account): Rs 149
ATM transactions:
— First five transactions per month are free at other bank ATMs.
— Thereafter, Rs 21 per financial transaction and Rs 10 per non-financial transaction.
YES Bank credit card changes
— Fuel fee adjustments: Specific adjustments have been made to the fuel fee category, except for 'private' card types, affecting how annual and joining fee waivers are calculated.
— Utility bill payments: A 1% tax plus GST will be charged on utility bill payments exceeding Rs 15,000 per cycle, except when using the Yes Bank Private Credit Card.
Other Key financial changes in May 2024
5. New Mutual Fund KYC requirement
From April 30, a strict rule has been implemented requiring the name on your mutual fund application to match exactly with your PAN card. This is critical for new investors as any discrepancy will lead to application rejection. This rule aims to standardise how your name appears on financial documents.
6. Price reduction for commercial LPG
In a welcome move for businesses, Oil marketing companies (OMCs) have reduced the price of commercial-use liquefied petroleum gas (LPG). Meanwhile, the Indian Oil Corporation (IOC), which supplies cooking gas across the country under the name Indane, reduced the price of cooking gas in the national capital by Rs 19 to Rs 1,745.5 per 19-kilogramme cylinder,. This adjustment marks the second reduction in close proximity, reflecting changes in global oil prices and supply factors.
