Major Financial Changes From August 1: Credit Card Rules To UPI Transactions, Key Details Here
A slew of new financial rules and regulatory updates will roll out from August 1, impacting everything from digital payments to credit cards and trading hours.
Starting Aug. 1, a slew of important changes across banking, taxation and trading operations are set to impact consumers, businesses and investors. From new UPI rules to extended trading hours and policy updates, here’s a look at major changes that can affect your finances.
New UPI Rules In Place
The National Payments Corporation of India (NPCI) has introduced fresh guidelines to make UPI transactions more efficient. Daily limits have been set for various activities such as balance checks (50 times per app), transaction status checks (three times with 90-second intervals) and linked account inquiries (25 times per app).
Auto-pay features will only work during non-peak hours: before 10 a.m., between 1 p.m. and 5 p.m., and after 9:30 p.m.
In addition, users will now be able to see the registered bank name of the beneficiary before making a payment, helping reduce transaction errors and fraud.
Repo Market Trading Hours Extended
From Aug. 1, the trading window for market repo and Tri-Party Repo (TREP) operations will be extended by one hour. The revised trading time will now be from 9 a.m. to 4 p.m.. This follows the earlier change in call money trading hours, which were extended in July from 5 p.m. to 7 p.m. Timings for other financial markets, such as government securities and forex, remain unchanged.
SBI To Withdraw Free Insurance Cover On Select Cards
State Bank of India (SBI) will be discontinuing the complimentary air accident insurance cover on a range of co-branded credit cards. The cards include those issued in partnership with UCO Bank, Central Bank of India, Karur Vysya Bank, South Indian Bank, Karnataka Bank and others.
Cardholders are advised to review their benefits as insurance coverage of up to Rs 50 lakh and Rs 1 crore on the above-mentioned credit cards will no longer apply.
Credit Lines On UPI To Begin By Month-End
Beginning Aug. 31, UPI users will be allowed to link pre-approved credit lines such as loans backed by fixed deposits, shares or property. Users will be able to make payments, merchant transactions and even cash withdrawals through UPI, within daily limits set by NPCI.
RBI Policy Meeting This Month
The Reserve Bank of India’s Monetary Policy Committee will meet from Aug. 4 to Aug. 6. The committee will review the current repo rate, which could influence lending rates and interest earnings across the financial system.
Fuel Price Review Due
As with every month, prices for LPG, CNG, PNG and aviation turbine fuel (ATF) are expected to be reviewed in August. Any change in rates could directly affect household budgets and travel costs.
Economic Bills Under Discussion In Parliament
The Monsoon Session of Parliament, running until Aug. 21, is deliberating several financial and tax-related reforms. Outcomes from this session may affect ease of doing business and tax compliance in the future.
