The upcoming financial year, FY 2024–25, is just around the corner, bringing along various rule changes concerning personal finance. These changes, effective from April 1, cover areas such as personal finance, investment schemes, taxes, FASTag, and other money matters.
It’s crucial to stay informed about these changes as they can directly affect your finances and monthly budget. Let’s delve into the important financial adjustments taking place from April 1.
FY 2024-25 Financial Changes in April 2024
The upcoming fiscal year, starting from April 1, 2024 (FY 2024-25), will bring about new money rules. These changes could affect how people manage their finances, influencing their spending and saving habits. Therefore, staying informed and monitoring these changes is essential for everyone.
1. NPS New Login Rule
In light of increasing online fraud cases nationwide, the Pension Fund Regulatory and Development Authority (PFRDA) is updating the login process for National Pension System (NPS) accounts. Starting April 1, 2024, they’re implementing a stronger security system.
Users logging into the NPS Central Recordkeeping Agency (CRA) will now need to verify their identity with Aadhaar authentication along with their password. This change is compulsory and was announced via a circular from the PFRDA on March 15, 2024.
2. Mutual Funds
The Securities and Exchange Board of India (SEBI) has directed asset managers to stop taking in money for schemes investing in foreign exchange-traded funds (ETFs) starting April 1. This move comes as the industry has surpassed the $1 billion limit (about ₹8,311 crore as of March 21, 2024).
In reaction, the Association of Mutual Funds in India (AMFI) has instructed fund houses to pause accepting new investments for funds that put money into overseas ETFs from FY 2024-25.
3. Insurance
Starting April 1, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory to convert all insurance policies into digital format. This rule applies to all types of insurance, such as life, health, and general insurance, ensuring they are issued electronically.
4. Axis Bank Credit Card
The bank is updating its Magnus Credit Card starting April 20. Changes involve how you earn rewards, access lounges, and qualify for fee waivers. Spending on insurance, gold/jewellery, and fuel won’t earn points anymore. Some perks like concierge and airport services will be stopped.
To use domestic airport lounges, you’ll need to spend at least ₹50,000 in the last three months. Also, the free guest visits to lounges will decrease from eight to four per year, both for international and domestic lounges.
5. SBI Credit Card and Debit Card
Starting from April 1, 2024, SBI Card will no longer let you earn reward points when you pay rent using certain credit cards. These cards include AURUM, SBI Card Elite, SBI Card Elite Advantage, SBI Card Pulse, and SimplyCLICK SBI Card. This change means that by April 15, 2024, you won’t get any more reward points for paying rent with these cards.
SBI recently revealed plans to raise the yearly maintenance fees for specific debit cards by ₹75. This change will start from April 1, 2024, according to information available on the SBI website.
6. ICICI Bank Credit Card
Starting April 1, 2024, ICICI Bank clients will enjoy a complimentary airport lounge access after spending Rs. 35,000 in the previous three months. To get this benefit for the April-June 2024 quarter, you need to have spent at least Rs. 35,000 from January to March 2024. The same rule applies to the following quarters as well.
7. YES Bank Credit Card
Starting from April 1st this year, YES Bank credit card users can enjoy free access to domestic lounges if they spend ₹10,000 or above within three months. This means that the spending done in the previous quarter will determine eligibility for lounge privileges in the following quarter.
8. Ola Money Wallet
OLA Money has decided to switch entirely to small prepaid payment instrument (PPI) wallets. Starting from April 1, 2024, there will be a monthly limit of ₹10,000 for loading wallets. Customers were notified about this change via SMS on March 22.
Also Read: How To File ITR If You Forgot To Link Your Pancard with Aadhar Card?
Financial Changes in April 2024 FAQs
Q.1. What is the significance of the changes from April 1 for FY 2024-25?
Ans. These changes impact personal finance management for FY 2024-25, including NPS login, mutual funds, insurance, credit card updates, and Ola Money wallet limits.
Q.2. What changes are happening to the NPS login process?
Ans. Starting April 1, users must verify their identity with Aadhaar authentication and password to access NPS accounts, enhancing security against online fraud.
Q.3. How are mutual funds affected from April 1?
Ans. SEBI has directed asset managers to halt investments in schemes investing in overseas ETFs, affecting mutual fund investment strategies.
Q.4. What is the new insurance rule starting April 1?
Ans. IRDAI mandates the conversion of all insurance policies into digital format to streamline issuance and management processes.
Q.5. What updates are coming to credit cards from April 1?
Ans. Banks like Axis, SBI, ICICI, and YES are implementing changes including rewards, lounge access, fee waivers, and spending criteria, impacting card benefits and usage.
