As we step into the New Year 2024 brings along several significant changes that will impact various aspects of our lives. Let’s delve into the key updates that you should be aware of to navigate these changes effectively.
In the upcoming New Year, expect higher interest rates on small savings schemes, simplified insurance policy documents, de-activation of dormant UPI IDs, increased car prices, and the gradual elimination of physical document verification for SIM cards in the finance world.
1. New Year 2024 – Higher Interest Rates on Small Savings Schemes
For those invested in small savings schemes, noteworthy adjustments have been made to the interest rates. The Sukanya Samridhi Account Scheme (SSAS) sees a 20 basis points increase, reaching an attractive 8.20 percent for the March quarter. Additionally, the interest rate on a 3-year time deposit has been raised by 10 basis points, now standing at 7.10 percent for the quarter beginning on January 1, 2024.
2. New Year 2024 – Bank Locker Agreements Deadline
If you are among those who utilize bank lockers, there is a critical deadline to be mindful of. To avoid complications, ensure that you deposit money by completing the updated bank locker agreement before December 31. Failure to do so may result in your lockers freezing starting January 1.
3. New Year 2024 – Delayed Income Tax Return Filing
As the financial year 2022-23 comes to a close, it’s crucial to meet the deadline for filing Income Tax Returns. The last date is December 31, and failing to file on time will incur a late filing fee, as per Section 234F of the Income Tax Act. Individuals with a total income below ₹5 lakh will face a lower penalty of ₹1,000, while others will be subject to a ₹5,000 fine.
4. New Year 2024 – Documents for Simplified Health Insurance Policies
In a bid to enhance transparency, the Insurance Regulatory and Development Authority of India (IRDAI) has directed insurers to release revised Customer Information Sheets (CIS) for health insurance policyholders from January 1, 2024. This initiative aims to ensure that policy details are presented in a simplified manner for better understanding.
5.New Year 2024 – Increased Car Pricing
Several leading automakers, including Mercedes Benz, Audi, Maruti, and Tata Motors, have announced an impending increase in vehicle prices. This adjustment is attributed to rising input costs. While there are rumors suggesting a 2-3% price hike, certain models may experience a more substantial increase.
Find the official info – Tata Motors announces price increase of its commercial vehicles from January 2024
6.New Year 2024 – No Physical Verification for SIM Cards
The Department of Telecommunications (DoT) has issued a notification, urging telecom providers to transition away from physical client verification when providing SIM cards. The Know Your Customer (KYC) verification process will soon be entirely digital, simplifying the onboarding process for consumers who will only need to provide a photo ID.
7. New Year 2024 – No Penal Interest on Loans
Starting January 1, 2024, banks and financial institutions will adopt a new approach to loan defaults. Instead of imposing penal interest, a fine will be levied on debtors who fail to repay loans. This rule will be extended to cover all existing loans from June onwards. It’s essential to note that this rule does not apply to credit cards.
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Highlights of Changes in 2024:
| Changes | Highlights |
| Interest Rates on Small Savings Schemes | – SSAS interest rate increased to 8.20% for the March quarter. – 3-year time deposit rate raised to 7.10% from January 1, 2024. |
| Bank Locker Agreements Deadline | – Complete updated bank locker agreement by December 31 to avoid freezing. |
| Delayed Income Tax Return Filing | – File returns by December 31 to avoid penalty fees. – ₹5,000 fine for late filing, reduced to ₹1,000 if total income is below ₹5 lakh. |
| Simplified Health Insurance Policies | – Revised CIS for health insurance policyholders from January 1, 2024. |
| Increased Car Pricing | – Vehicle prices set to increase in January due to higher input costs. – Rumoured 2-3% hike, with certain models facing larger increases. |
| No Physical Verification for SIM Cards | – Gradual shift to entirely digital SIM card activation process. – Photo ID sufficient for KYC verification. |
| No Penal Interest on Loans | – From January 1, 2024, no penal interest on defaulted loan repayments. – Fines to be imposed instead. Rule extends to all existing loans from June. Does not apply to credit cards. |
Stay informed and be prepared for these changes as we embark on the journey through 2024. Whether it’s managing finances, filing taxes, or staying connected, adapting to these updates will be key to a smooth transition into the New Year.
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