Bank customers, vehicle owners note! Here’s what gets expensive from June

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

Not just bank customers but vehicle owners must also know that the third-party motor insurance premium for various categories of vehicles will rise.

Here is a look at the financial changes and things that will get expensive from June.

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.

Axis Bank service charge hike

Private lender Axis Bank has increased the service charges for salary and savings account holders. Moreover, the bank has also revised the average monthly balance requirement to Rs 25,000 from Rs 15,000. Meanwhile, the minimum service fee on non-maintenance of balance will be zero. These charges are set to kick in from June 1, 2022.

Third-party motor insurance premiums

The third-party motor insurance premium for various categories of vehicles is set to increase from June 1. Two-wheelers having an engine capacity of less than 75cc, third-party cover will cost Rs 538. Two-wheelers with engine capacity exceeding 75cc but not exceeding 150cc, the cost of the premium will be Rs 714. Two-wheelers with engine capacity exceeding 150cc but not exceeding 350cc, the cost of the premium will be Rs 1366. For engine capacities above 350cc, the premium cost will be Rs 2,804.

In the case of four-wheelers, third party premium for a car with an engine capacity of less than 1000cc will be Rs 2,094; Rs 3,416 for a car with engine capacity exceeding 1000cc but not exceeding 1500cc. For cars with an engine capacity of more than 1500cc, the premium will be Rs 7,897.

India Post Payments Bank charges for Aadhaar Enabled Payments

India Post Payments Bank (IPPB) has introduced Aadhaar Enabled Payment System service charges (AePS). The bank informed that issuer charges for the Aadhaar Enabled Payment System 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.

Gold hallmarking

Meanwhile, another important change from June 1, 2022 is the second phase of mandatory hallmarking. This will make 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.