Money changes in April: Impact on GST, credit cards & other transactions

From April 1, several significant financial rule changes will come into effect in India, impacting taxpayers, UPI users, credit card holders. Customers are advised to stay informed about these changes to understand their implications on everyday financial activities.

 

Credit card rule changes

 

Credit card holders will see changes in their reward points and benefits. SBI SimplyCLICK and Air India SBI Platinum Credit Card users will face adjustments in their reward structures.

 

Additionally, Axis Bank is set to revise the benefits of its Vistara Credit Card following Vistara’s merger with Air India, potentially impacting its perks and travel advantages for customers.

 

UPI

 

To improve the security and efficiency of the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has introduced new directives. Effective from April 1, these guidelines mandate banks and third-party UPI providers, such as PhonePe and Google Pay, to implement measures for deactivating inactive numbers.

 

Unified Pension Scheme

 

The Unified Pension Scheme (UPS) is set to take effect from April 1, providing central government employees under the National Pension System (NPS) with a pension based on their service tenure.

 

Under this scheme, employees with a minimum of 25 years of service will be entitled to a pension amounting to 50 per cent of their average basic salary from the last 12 months, ensuring financial stability after retirement. This initiative is part of broader measures to enhance pension benefits for government employees.

 

DigiLocker to store holding statements for investors

 

Starting April 1, investors will be able to store their demat account holding statements and consolidated account statements (CAS) directly in DigiLocker. This initiative by SEBI aims to simplify investment management and prevent assets from being lost or forgotten over time.

 

Within the DigiLocker app, users can designate nominees who will have view-only access in case of the user's passing. When DigiLocker receives information about the user’s death from SEBI-regulated KYC Registration Agencies (KRAs), it will notify the nominees, allowing them to initiate the transmission process with relevant financial institutions.

 

GST rules to change

 

The Goods and Services Tax (GST) framework is set for key modifications. Taxpayers accessing the GST portal will be required to use Multi-Factor Authentication (MFA) as an added security measure.

 

Additionally, E-Way Bills (EWB) can only be generated for base documents that are no older than 180 days, a step aimed at enhancing compliance and curbing tax evasion.

 

Mutual fund rule changes

 

Under new SEBI regulations, fund houses must deploy funds raised through new fund offers (NFOs) within 30 business days. If an asset management company (AMC) fails to invest within this period, it can request a one-time extension of 30 days with approval from the Investment Committee.

 

However, if no investment is made within 60 days, the AMC must stop new investments and allow investors to exit without any penalties.