From mutual fund info validation to opening e-insurance accounts, here are seven key financial changes this April

IRDAI decided to retain the current surrender charges regulations which allow smaller payouts on premature exit from endowment policies.

Like March, April will be a hectic month if you are a mutual fund investor or a prospective insurance policyholder.

In April existing investors need to validate their mobile number/email id, otherwise they cannot transact in their mutual fund portfolios. The Insurance Regulatory and Development Authority’s (IRDAI) rules on mandatory e-insurance accounts for fresh policies sold from April 1 will also come into effect. Further, several banks are reducing the benefits on their credit cards. Let’s look at some of the most important money changes that’ll impact you during the month.

Existing MF investors need to validate their mobile number/email ID

To continue transacting from April 1, existing mutual fund (MF) investors must validate their mobile number/ email ID by March 31. If that is not done, then the investor’s KYC will be put ‘on hold’ with effect from April 1 as per a recent CDSL Ventures email sent to MF distributors. To validate their details, investors can click on the following link of CVL KRA Validation and enter their PAN and other details. Upon submission, they will either get a message indicating that their details have been verified or will be sent an OTP to complete the process. Alternatively, investors can try NDML KRA, CAMS KRA or Karvy KRA. The validation needs to be done only with one of the KRAs.

With respect to documents needed for KYC, those investing in MFs for the first time will henceforth have to do this based only on one of the officially valid documents (OVD). As per CAMS, these are Aadhaar, voter ID, MNREGA card, etc, and as per KFintech, these are passport, driving licence, voter ID, and proof of possession of Aadhaar number, etc.

In case of existing investors, re-KYC needs to be done only if they are opening a new folio. For transactions in existing folios, this is not needed. For re-KYC, one must submit a physical KYC form along with one of the OVDs.

Also read | Mutual fund KYC March 31 deadline: Existing investors get some relief

E-insurance now mandatory for all policyholders

The IRDAI mandates the conversion of all insurance policies into electronic format effective from April 1. You can convert your existing physical insurance policies into electronic forms or on buying the new policy/renewal insurer will now issue the policy in an electronic form.

An e-insurance account enables policyholders to hold their life insurance and general insurance policies from multiple insurers, in an electronic form. This means they no longer need to keep physical documents pertaining to the policies. An insurance repository holds the records of the policies just like a depository holds details of shares held by an individual.

You can open an e-insurance repository account with the CAMS repository, Karvy Insurance Repository, NSDL National Insurance Repository and Central Insurance Repository of India.

IRDAI's new product regulations come into effect from April 1

In a blow to policyholders, the IRDAI decided to retain the current surrender charges regulations which allow smaller payouts on premature exit from endowment policies. Put simply, it scrapped its December 2023 draft that had proposed lower surrender charges (and thus higher surrender values, that is, payouts on early exit). So, if you surrender your policy after paying two annual premiums, you will get only 30 percent of your premiums back. For surrenders in the fifth year, the payout will be slightly higher at 50 percent of premiums paid until then. Many policyholders let their policies lapse once they realise that they have been mis-sold an unsuitable policy or they are unable to pay premiums over the long term.

SBI revises its debit card fees

The State Bank of India (SBI) has revised its debit card fees effective from April 1. The fee for classic/silver/global/contactless debit cards was Rs 125 plus GST. Now, the fee has been hiked by 60 percent to Rs 200 plus GST. Similarly, the fee for prime/premium business debit cards was Rs 350 plus GST and now it will be Rs 425 plus GST. The bank has raised debit card fees across the categories by Rs 75.

Also read | The Money Calendar 2024-25: Keep up with investments, taxes, lenders and more

Axis Bank revises benefits on its credit card portfolio

Axis Bank has revised benefits for nearly its entire credit card portfolio. It has trimmed benefits on travel credit cards as well, which includes the Atlas credit card, and co-branded credit cards such as Vistara Infinite and Vistara Platinum. The changes will be effective from April 20, 2024.

Some of the critical changes are revisions in the EDGE reward points redemption and transfer programme, and the capping of accelerated rewards on travel spends on the Atlas credit card. EDGE rewards from Axis Bank is a loyalty programme that allows customers to earn points across all retail products.

Also, some of the popular services, such as meet-and-greet, concierge, airport transfers, etc, on credit cards are being taken away. A minimum spend of Rs 50,000 is required in the preceding quarter to avail of domestic lounge access. Essential spending categories like utilities, insurance and government payments are excluded from card reward points. On the Reserve card, the annual bonus of 50,000 EDGE reward points has been discontinued.

Banks’ minimum spending criterion on cards for airport lounge access

Effective April 1, ICICI Bank credit cardholders will get one complimentary airport lounge access by spending Rs 35,000 in the preceding calendar quarter. It means that spending made in the preceding calendar quarter will unlock access for the subsequent calendar quarter. For instance, to be eligible for complimentary lounge access in the April-June 2024 quarter, you need to spend a minimum of Rs 35,000 in the January-March 2024 quarter and similarly for the following quarters.

This updated spending criterion to avail complimentary domestic airport lounge access will be applicable to 21 credit cards of ICICI Bank.

Similarly, from April 1, YES Bank credit cardholders will be able to unlock complimentary domestic lounge access by spending Rs 10,000 or more in a calendar quarter. It means that spending made in the preceding quarter will unlock access for the subsequent quarter.

SBI card discontinues reward points on rent payment transactions

SBI Card has announced that the accrual of reward points on rent payment transactions will be discontinued for certain credit cards effective from April 1. Popular SBI credit cards where reward points will not be applicable on rent payments are AURUM, SBI Card Elite, SBI Card Pulse, SBI Card Platinum and Gold SBI Card.