New Delhi: July is coming to an end and starting August 1, a lot of money-related, insurance policy and other rules will change. In fact, there are going to be some important changes in the financial rules which will impact your life from next month onwards. From minimum balance charges to long-term motor vehicle insurance cover policies and rules related to PM Kisan Scheme, a lot will change from August 1.
Here are all the rule changes which come into effect from August 1:
PM Kisan installment: Sixth installment will be released under PM-Kisan scheme. The sixth installment of the Prime Minister Kisan Samman Nidhi Yojana will start from August 1. The Narendra Modi government of the Center is going to transfer Rs 2,000 to the farmers’ account. Note that under this scheme, farmers get Rs 6,000 every year in three equal installments of Rs 2,000, directly into their bank account every four months. The fifth installment was released by the government on April 1, 2020.
Minimum balance rules: Bank of Maharashtra, Axis Bank, Kotak Mahindra Bank and RBL Bank have announced that they will charge a penalty for not maintaining minimum from August 1. In Bank of Maharashtra, account holders having savings account in metro and urban areas will now be required to keep a minimum amount of Rs 2,000 in the account. Earlier this amount used to be Rs 1,500. Under the new rule, if the amount is less than Rs 2,000, the bank will charge Rs 75 as a penalty in metro and urban areas, Rs 50 in semi-urban areas and Rs 20 per month in rural areas.
RBL Bank savings account interest rate change: Interest rates of savings account RBL Bank (RBL Bank) have been changed and that revised rates will be effective from August 1. After the recent revision, customers will now get an interest of 4.75 per cent annually on deposits up to Rs 1 lakh on a savings account. On the other hand, customers will get 6 per cent on deposits of Rs 1-10 lakh and 6.75 per cent interest on deposits ranging from Rs 10 lakh to Rs 5 crore.
Motor vehicle insurance: Insurance Regulatory and Development Authority of India (IRDAI), in June, directed insurance companies to stop selling long-term motor insurance package policy to new vehicle owners from August 1, 2020. Starting next month, the long-term comprehensive motor insurance which covers damage to the vehicle and damages (or losses) caused to a third-party person, for three years for cars and five years for two-wheelers will be scrapped. After the new rules, new car buyers will not be forced to take car insurance for 3 and 5 years. Car or bike shopping may become cheaper from August due to changes in new rules.