New Delhi: There will be some changes and new rules that will come into effect starting June 1, whihc will impact your financial lives. For customers of the State Bank of India (SBI), Axis Bank and India Post Payments Bank, there are certain rules that would kick in from June and have a bearing on your finances. Other than bank customers, the third-party motor insurance premium for various categories of vehicles will also witness a rise that will directly impact the monthly budget of vehicle owners.
Let’s look at the changes to come into effect from June
SBI customers to pay higher home loan interest rates
The State Bank of India (SBI) has raised its home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 per cent. Earlier the EBLR rate was 6.65 per cent. When offering any type of loan, including house and vehicle loans, banks also add a Credit Risk Premium (CRP) over the EBLR. According to SBI’s website, the increased interest rates will take effect on June 1, 2022. All floating rate home loans will have interest rates linked to EBLR.
Axis Bank service charge hike
Axis Bank has also raised service charges for salary and savings account holders. The average monthly balance (AMB) requirement has been revised to Rs25,000 from Rs15,000 while the minimum service fee on non-maintenance of balance will remain zero.
Motor insurance premiums for two-wheelers
It is important to note that the third-party motor insurance premium for various categories of vehicles will increase, as announced by the Union ministry of road transport and highways.
Those who own two-wheelers with an engine capacity of less than 75cc, the cost of third-party cover has gone up to Rs 538. For 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. Two-wheelers with engine capacities above 350cc, the cost of the premium will be Rs 2,804.
Motor insurance premiums for four-wheelers
Third party rates for private four-wheelers have also witnessed a hike. From 1 June, third-party premium for car with an engine capacity of less than 1000cc will be Rs 2,094. For a car with engine capacity exceeding 1000cc but not exceeding 1500cc, the third-party premium will be Rs 3,416. For cars with an engine capacity of more than 1500cc, the premium for them will tand at RS 7,897. These rates were last revised for the financial year 2019-20 and were kept unchanged during the COVID-19 pandemic.
India Post Payments Bank charges for Aadhaar Enabled Payments
India Post Payments Bank (IPPB) has introduced Aadhaar Enabled Payment System service charges (AePS). This means AePS Issuer transaction charges will come into effect from June 15, 2022. However, the first three AePS issuer transactions each month, such as cash withdrawal, cash deposit, and mini statement, will be free of charge. If you cross the free transaction limit, then AePS issuer cash withdrawals and cash deposits will be charged at Rs20 plus GST per transaction, and mini statement transactions will be charged at Rs5 plus GST per transaction.