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Whether you’re on time deposits, have a home loan, or are a taxpayer, there are several big changes coming in August that will affect your piggy bank.
Aggressive RBI Monetary Policy Announcement
For the month of June, India’s headline retail inflation rate, as measured by the Consumer Price Index (CPI), was 7.1%. This brings average April-June inflation to 7.3%, 20 basis points lower than the Reserve Bank of India’s (RBI) forecast of 7.5%, data from the Ministry of Statistics and Implementation showed. The programs are on Tuesday, July 12.
In a bid to curb high inflation, the RBI will remain aggressive on policy rate action at upcoming forex meetings, economists say.
Based on the rate hike announcement, banks could start raising interest rates on mortgage loans and other credit products that are pegged to the reverse repo rate as an external benchmark under the terms of the deal.
Pay penalties for late tax returns
Did you not file your Income Tax Return (ITR) before July 31? So be prepared to pay a late filing penalty. A late return is a return filed after the due date specified in the income tax rules. The ITR filing deadline is July 31, but returns can still be filed through December 31 of the fiscal year (currently 2022-23). A late filing penalty of Rs 5,000 will be imposed if the total income to be declared exceeds Rs 5,000,000. If the person’s total income is less than Rs 5,000, the fine to be paid can be up to Rs 1,000.
Check the modified customs clearance rules in BoB
In a message to account holders, the Bank of Baroda announced changes to its check clearing rules. From August 1, 2022, the bank said customers will be required to electronically confirm key information on checks worth Rs 5 lakh. Previously, customers had to confirm certain details for checks of Rs 10 lakh and above. The customer must authenticate the check with the bank before it can be cashed in the bank’s positive payment system.
Positive Pay is a fraudulent activity detection tool. To do this, it compares the information on the check presented for clearing: check number, check date, payee name, account number, amount, and other details against a list of previously authorized checks issued by the issuer. The process involves reconfirming important details of high-value checks.
Yes Bank increased penalties for early withdrawals of time deposits
Effective August 8, Yes Bank increased the penalty for early withdrawals of fixed deposits (FD) reserved for less than or equal to 181 days from the previous 0.25% to 0.50%. It also increased the penalty for early revocation of FDs with a maturity greater than 182 days to 0.75% from the previous 0.50%. The bank will impose a fine on all booked/renewed FDs for less than Rs 5 crore. The prepayment penalty does not apply to seniors.
Spend this festive season wisely
August brings shopping deals from e-commerce sites, chain stores, and independent convenience stores thanks to Raksha Bandhan, Independence Day, and other holidays. Plan and track your shopping expenses during the holiday season. Prepare a list of gift items to avoid impulse spending. Use associated bank cards to get additional discounts and rebates. Redeem your rewards points for additional savings. Avoid buying things you can’t use right away and free EMI programs as they are debt traps.