Bank locker agreements to car prices: Key money changes from January 2024

Here are a few new regulations which come into effect from January 1, 2024

Some key financial changes will take effect this month. Here are a few

Higher interest rates on small savings schemes: 

There has been a 20 basis points increase in the interest rate for both Sukanya Samriddhi Account Scheme (SSAS) and the three-year time deposit. The Sukanya Samridhi Account Scheme (SSAS) interest rate for the March quarter has been raised by 20 basis points to 8.20 per cent. In addition, the interest rate on a 3-year time deposit has gone up by 10 basis points to 7.10 percent for the quarter beginning on January 1, 2024.

Bank locker agreements 

Those with bank lockers had to sign the revised bank locker agreement by December 31, failing which, starting from the very next day, their lockers would be frozen.

Inactive UPI accounts to shut 

The National Payments Corporation of India (NPCI) had asked payment apps and banks to deactivate the UPI IDs and numbers that have not been active for more than one year. Every bank and third-party app had to comply by 31st December, 2023. Secondly, the NPCI is working to put into action the ‘UPI Tap and Pay’ feature across digital payment providers. The feature will be made available to UPI users by January 31, 2024. 

Paperless KYC for SIM card

The existing process of paper-based Know Your Customer (KYC) process will be replaced by paperless KYC from January 1, 2024. Rules for new mobile connections, however, remain unchanged. In a notification, the Department of Telecommunications (DoT) requested that telecom providers gradually stop requiring physical client verification before providing SIM cards to consumers. As a result, the Know Your Customer (KYC) verification will soon be entirely digital. After that, the clients will just need to provide a photo ID to complete the digital verification process.

Income Tax Returns Deadline 

December 31 was the deadline for both belated and revised ITRs (July 31 was the deadline for regular ITRs). Taxpayers filing belated returns must pay a maximum penalty of Rs 5000, but the process is free of cost for those submitting revised ones.

Simplified documents for insurance 
 

Insurance regulator Irdai has asked insurers to release revised customer information sheets (CIS) for health insurance policyholders with effect from January 1, 2024 to make sure that the clients are aware of the main points of the policy in an easy-to-understand manner.

Car prices to increase 

Top automakers like Maruti Suzuki, Tata Motors Audi India, Mahindra & Mahindra, Hyundai cars India and MG Motors are hiking prices of their four-wheelers from January 2024. The price hikes vary from 2 to 3 per cent mostly.