To give an impetus to digital banking, the Reserve Bank of India (RBI) will remove all charges on money transfers done through RTGS and NEFT modes. (File photo)
Come July 1 and there would be some changes in banking, saving plans schemes which could have an effect on our day-to-day lives. Here are five areas that could be important for us:
RBI waives off RTGS, NEFT charges to boost digital movement of funds
To give an impetus to digital banking, the Reserve Bank of India (RBI) will remove all charges on money transfers done through the Real-Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) modes. Till now, banks would normally charge anywhere between Rs 30 and Rs 55 for a single RTGS transaction, while NEFT charges could go up to Rs 20.
Basic bank account holders allowed zero balance, RBI directs banks
Banks will now provide cheque books and other facilities to basic account holders or no-frills account holders, as directed by the Reserve Bank of India (RBI). However, the banks cannot ask the account holders to maintain any minimum balance in lieu of such facilities. Earlier, additional facilities made these accounts like regular savings account, thus attracting requirement of maintaining minimum balance and other charges.
SBI to introduce home loans linked to RBI’s repo rate
The State Bank of India (SBI) is going to introduce repo linked home loan product from July 1, 2019. As a borrower, when the RBI brings about a change in the repo rate, if the loan is linked to MCLR, there may not be any immediate impact on your EMI in the same or next month. The EMI will be reset after 6 or 12 months as per the contract. However, if the loan is linked to the repo rate, the transmission may be quicker.
Changes in prices of LPG cylinders
There could be a change in the prices of LPG cylinders. The prices of LPG cylinders were raised on May 1 and implemented on June 1. Oil marketing companies had increased the prices of domestic LPG cylinder by 28 paise in May, while prices of non-subsidized cylinders were raised by Rs 6.
Interest rates on small saving schemes could see a cut
Interest rates on small saving schemes such as National Savings Certificate and Public Provident Fund will remain unchanged for the April-June quarter, according to a government notification.
Interest rates on small savings schemes is reset before each quarter and depends on government bond yields in the previous quarter.