Beyond Budget 2024: Know Key Financial Changes, Rules Taking Effect in February

As the general public eagerly awaits the Budget 2024, several significant monetary changes are set to come into effect from February 1.

From revised National Pension System (NPS) withdrawal regulations to adjustments in Immediate Payment Service (IMPS) limits, the upcoming month brings forth key modifications that warrant our attention. Here, we delve into the key changes slated to take effect, offering insights into the evolving financial landscape set to unfold in the coming weeks.

New IMPS Rule From February 1:

Transferring money from one bank to another becomes more convenient with the National Payments Corporation of India (NPCI) announced new changes for the Immediate Payment Service (IMPS) online bank transaction system. As per the October order, the new changes allow people to transfer up to Rs 5 lakh between bank accounts without adding a beneficiary. This new rule will come into effect from February 1.

It means people can transfer money without entering the recipient details like bank account names, or IFSC codes. People can make transactions with the receiver's mobile number and the bank name.

New NPS Partial Withdrawl Rules

The Pension Fund Regulatory and Development Authority (PFRDA) has recently issued fresh guidelines over partial withdrawals within the National Pension System (NPS). These guidelines will come into effect from February 1.

As per the circular released by the PFRDA on January 12, NPS subscribers will now have the option to make partial withdrawals for various purposes, including higher education, marriage expenses, purchasing a residential house, and medical costs. However, it is important to note that the withdrawal amount should not exceed 25 per cent of the subscriber's total pension account contribution.

The subscribers should also note that the returns earned on the contributions made will not be eligible for partial withdrawal. However, they are allowed a maximum of three withdrawals throughout the tenure of their NPS account.

FASTags With Inadequate KYC To Be Deactivated

The NHAI (Nation Highway Authority of India) has announced that FASTags with valid balances but with inadequate KYC will get deactivated by banks post-31st January 2024. Hence, it has urged people to complete the 'Know Your Customer' (KYC) process for their most recent FASTag by upgrading KYC in accordance with RBI rules.

Sovereign Gold Bond:

The Reserve Bank of India (RBI) is preparing to release the final tranche of Sovereign Gold Bonds (SGBs) under the 2023-24 series. Referred to as SGB 2023-24 Series IV, this forthcoming offering is scheduled to commence its subscription period on February 12, 2024, concluding on February 16, 2024. Successful applicants can anticipate receiving their allotted Sovereign Gold Bonds on February 21, 2024.

ICICI Bank's Dynamic Currency Conversion Fee On Credit Cards

A dynamic currency conversion (DCC) fee of 1 percent, along with applicable taxes, will be imposed on every international transaction conducted in Indian currency at a global destination, starting from February 1. Similarly, transactions conducted in Indian currency with merchants situated in India but registered in a foreign nation will also incur these charges. These fees are applicable to all ICICI Bank credit cards.