Several money-related changes come into effect from July 1. In view of coronavirus pandemic, the government had earlier announced a number of financial relief measures including a waiver on ATM charges, relaxation on EPF withdrawals, stoppage of auto-debit in case of Atal Pension Yojana, among others.
While the government has again extended the deadlines for tax-related tasks, the other personal finance relaxations have ended on June 30.
Here's a list of money-related changes that take place from July 1: Charges on ATM cash withdrawal
Due to coronavirus lockdown, the government had waived ATM cash withdrawal charges till June 30. Since there is no new announcement on the same, previous
ATM withdrawal charges become applicable from July 1.
As per the banking rules, customers are charged for transactions at ATMs over and above the allowed number of free transactions. These ATM card charges apply depending on the type and nature of ATM - whether the ATM is located in a metropolitan or any other city in the country.
Non-maintenance of minimum account balance penalty
The government had waived the non-maintenance of the minimum account balance (MAB) penalty till June 30. This means customers failing to maintain
MAB in their savings accounts will be charged from July 1.
Banks require savings account customers to maintain a certain MAB, which varies depending on factors such as branch location. For non-maintenance of MAB, banks charge some fine from the customers.
Partial EPF withdrawal facility due to coronavirus ends
Employees’ Provident Fund (EPF) subscribers were allowed to make a partial non-refundable withdrawal from their accounts to address cash-crunch issues resulting from the coronavirus crisis till June 30. The government had also relaxed withdrawal rules for it.
This facility has now ended. However, subscribers can still make
partial withdrawals at other circumstances. Stamp duty on mutual funds
Investors will have to pay stamp duty on purchasing mutual funds from July 1. This will be applicable for the Systematic Investment Plan (SIP) as well as the Systematic Transfer Plan (STP). However, on the redemption of mutual funds, investors will not have to pay stamp duty.
From July 1, banks will start auto-debiting monthly contributions from the accounts of Atal Pension Yojana (APY) subscribers. The Pension Fund Regulatory and Development Authority had, in April, directed banks to stop the auto-debit of Atal Pension Yojana till June 30.
Auto-debit of Atal Pension Yojana