Customers with lockers at the State Bank of India (SBI), Bank of Baroda and a few other banks will have to soon sign the revised locker agreements by June 30.
The month of May has concluded and June has begun. This month, there will be some major monetary changes that will have a direct impact on our finances and monthly budget. From revised bank locker agreements and new rules in mutual fund investments to higher pensions on salary, here’s what you need to watch out for.
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RBI’s monetary policy
On June 8, the Reserve Bank of India (RBI) will make its second monetary policy announcement for the fiscal year 2023-2024. When the RBI chose to maintain its repo rate at 6.5 per cent in the first bi-monthly monetary policy review of FY 2023-24, borrowers were relieved. Now, we need to see if the June Monetary Policy Committee (MPC) meeting results in a rate hike. The banks will once more raise the interest rates on loans if the repo rate is increased.
Revised locker agreement
Customers with lockers at the State Bank of India (SBI), Bank of Baroda and a few other banks will have to sign the revised locker agreements by June 30. Other banks too will follow suit. RBI extended the deadline for banks to finish the renewal procedure in stages by December 31, 2023. On June 30, 2023, the first instalment of the renewal of 50% of the contracts is due.
Read More: Investing In Mutual Funds In Child’s Name? New SEBI Rule From June 15
Parents can invest in mutual funds on behalf of their children
The Securities and Exchange Board of India (SEBI), which regulates the capital markets, has announced a new rule that will take effect on June 15. The new rule will allow investments in mutual funds to be made from a minor’s bank account, a minor’s parent’s or legal guardian’s account, or a joint account of a minor and a parent or legal guardian.
In the past, banking regulations required that the funds be transferred through a bank account that was kept in the child’s name. It has been noted that not having a bank account in the child’s name makes it difficult to make investments for minors.
Insider trading to stop in mutual funds
To catch frauds like front running and insider trading, SEBI has suggested monitoring and internal control systems. According to SEBI, such a system must, at the very least, be able to detect front-running, insider trading, mis-spelling products and the misuse of information by Asset Management Companies (AMCs). It should also be able to keep a vigil on its employees, distributors, brokers, dealers and other parties, as well as delays in order execution by brokers and dealers. By June 3, the regulator will accept comments on the suggestions.
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SEBI is seeking feedback on ideas to update the expense ratio methodology
To make Mutual Funds more transparent, SEBI has come up with a uniform Total Expense Ration (TER) in the scheme. It will be a game-changer. The deadline for the feedback was initially June 1 which has now been extended to June 6.
June 15 is the deadline to deposit the first instalment of advance tax
If you are salaried and also have earnings from other sources like deposits, rent and capital gains, you will have to assess your advance tax liability. As per section 208 of the Income Tax Act 1961, anyone whose estimated tax liability is Rs 10,000 or more in a financial year, after necessary deductions like TDS and TCS, will have to pay advance tax. The tax needs to be paid in four instalments, and by June 15, the taxpayer will have to pay 15 per cent of the advance tax.
Apply for a higher pension till June 26
June is the last month to apply for the new Higher Pension Scheme for EPS of Employees Provident Fund Organisation (EPFO). The earlier deadline for submission of the application was May 3 which has been extended to June 26.
Change in lounge access for Axis Bank credit cardholders
Owners of Axis Bank credit cards are entitled to free lounge access at several Indian airports. The number of complimentary lounge access has now been restricted based on the card type. The bank has updated its airport lounge access program credit cardholders which will be effective from June 1 and will be valid till August 31, 2025.
