As the new financial year 2024-25 begins on April 1, personal financial enthusiasts have several money-related changes to be aware of that can affect their budget and investments. The changes range from credit card rules announced by 4 banks, new services available and also tasks to be completed by tomorrow.
New NPS rule
The Pension Fund Regulatory and Development Authority (PFRDA) added to the security of the National Pension System (NPS) with a new security layer a two-factor Aadhaar-based authentication. According to PFRDA's March 15, 2024 circular, “The additional security layer, 2-Factor Aadhaar-based authentication, is being compulsorily implemented for all password-based users logging into the CRA system, effective from 1st April 2024.”
The move will reduce the risk of unauthorised access to the CRA system, safeguarding the interests of subscribers and stakeholders. The nodal offices have to map their Aadhaar details with NPS and use 2FA to log in to the CRA system. All the nodal and oversight offices and other stakeholders should also link their Aadhaar with their respective CRA user ID for 2FA verification.
Mutual Fund-Related Changes
Investors investing in regular funds must still validate their mobile numbers or email IDs as per KYC records. This validation can be done here at validate.cvlindia.com/CVLKRAVerification_V1/. If not done they will have their KYC put 'on hold' from April 1, 2024, as per CDSL Ventures' communication.
The rule is only applicable to fund investors transacting through Mutual Fund Distributors (MFDs) in regular plans and doesn't apply to those investing in direct plans.
As mandated by Sebi, mutual funds will stop inflows into schemes that invest in overseas exchange-traded funds (ETFs) starting from April 1 as the industry-wide limit in this regard is about to be exceeded.
No Penal Charges For Loan Defaults
Revised fair lending practices of the Reserve Bank of India (RBI) come into effect from April 1, 2024. Henceforth banks and non-banking financial companies (NBFCs) cannot charge penal charges for non-payment of EMIs or repayment of loans in the form of additional interest rates and use it as a revenue generation tool. But banks can charge it in the form of penal charges.
The penal charges thus charged must be prominently displayed on their websites under the 'Interest rates and Service charges' section under a head called 'Key Fact Statement. The new rule will apply to all new loans from April 1, 2024.
Also from this date, the RBI has prohibited banks from penalising or imposing charges on accounts that have been inactive (no transactions) for more than two years.
Big Changes In Credit Card Rewards From April
Starting April 2024, many credit card rewards programs are changing which may affect your spending habits or privileges.
SBI Card: No more reward points will be accrued on rent payments from April 1 for cards such as AURUM, SBI Card Elite, SBI Card Elite Advantage, SBI Card Pulse, and SimplyCLICK SBI Card. Given that SBI Card regularly updates their rewards program, it’s advisable to stay informed about any changes through the card website or app.
Yes Bank Card: Yes Bank has introduced a new spending criterion for allowing domestic lounges access. Starting from April 1 one has to spend Rs 10,000 in a quarter to get free access in the next quarter to airport domestic lounges. All other conditions such as the number of complimentary lounge visits per quarter remain the same.
ICICI Bank Card: A customer can spend Rs 35,000 in 3 months to unlock complimentary lounge access for the next quarter, from April 1. "To be eligible for complimentary lounge access in the Apr-May-Jun, 2024 quarter, you need to spend a minimum of Rs.35,000 in the January-February-March 2024 quarter and similarly for following quarters," the bank website says.
Axis Bank Cards: From April 20, 2024, no EDGE reward points will be awarded for spending on fuel, insurance, gold or jewellery. Also spending in these categories will not count towards your points to get you the annual fee waiver. Further, the complementary guest visits for domestic and international airport lounges have been halved from 8 to 4 guests.
E-Insurance
Effective from April 1, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated the digitisation of all insurance policies including life, health, and general insurance, which now have to be issued electronically.
Thus an individual's insurance plans will show collectively in his e-Insurance Account (eIA). “eIA” is an electronic insurance account for maintaining insurance policies issued in electronic form. Now cumbersome paperwork becomes unnecessary and users can view, download, and manage all policies in this single window of eIA.
