April is the start of the new financial year, 2022-23. There are several new regulations and rules being introduced: third-party motor insurance premiums could increase, bank tariffs being changed and more. Here are some key regulatory and operational changes.
Higher third-party motor insurance premiums
Car and bike owners need to brace themselves for an increase in their third-party motor insurance premiums from April. The Insurance Regulatory and Development Authority of India proposed the increase for FY23 after a Covid-19-induced gap of three years.
For a private car with an engine capacity of 1,000cc to 1,500cc, the third-party component premium could go up to Rs 3,416 from Rs 2,863. If a bike’s engine capacity is 150cc to 350 cc, the premium may increase by Rs 381 to Rs 1,366. However, the regulator’s final decision is awaited.
Mobile wallets to become interoperable
Last April, the Reserve Bank of India proposed to make interoperability mandatory for full-KYC mobile wallets from FY23. This means that effective April 1, a Paytm wallet holder should be able to send money to a MobiKwik wallet holder and vice versa.
At present, money can only be sent between digital wallets operated by one company. In 2018, the RBI made mobile wallet interoperability voluntary. Now, after three years, there has been a migration towards full-KYC prepaid payment instruments.
Axis Bank raises minimum balance requirement
Effective April 1, new norms will apply to savings and salary account holders of Axis Bank. The bank has increased the average minimum balance for a savings account to Rs 12,000 from Rs 10,000 in the metros/urban cities. The bank has also reduced the free monthly cash transaction limit to Rs 1.5 lakh or four free transactions from Rs 2 lakh or four free transactions, whichever is earlier.
Edelweiss MF removes subscription limit on IPO fund
Edelweiss Asset Management has revoked the limit for subscriptions for its recently listed IPO fund. The fund, as the name suggests, invests in companies entering the capital markets through initial public offers. Edelweiss imposed an investment cap of Rs 1 lakh per PAN, which took effect on February 1, 2022. However, the fund house clarified that the portfolio’s liquidity profile is “comfortable” and it is doing away with the limit.
Savings account mandatory to invest in post office schemes
India Post has changed the rules for investing in post office monthly income scheme, Senior Citizen Savings Scheme, and Post Office Term Deposits. From April 1, interest income from these schemes will not be given out in cash to investors. It has been made mandatory for investors to open a savings account with them and link it with these investment schemes. The interest income from these schemes will be credited to these savings accounts.
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