5 New Financial Rules Applicable from 1st October and Directly Affecting Common Man’s Life.

Government of India has made 5 policy or regulation changes, related to finances, which will be applicable from 1st October. The changes in rules are crucial and will impact the daily life of every individual. Hence, each one of us must be aware of it.

Government of India is moving towards a developed economy. A strong economy demands strong steps and stringent regulations to monitor and control the financial activities around the country. Hence, the following changes have been introduced to financial policies, which will affect the daily finances of all the citizens.

Abolition of Discounts on Fuel Payments through Credit Cards.

As per a report by Press Trust of India, the 0.75% discount which was given to customers at petrol pumps on making payment for petrol/diesel through credit cards will no more be applicable.

These discounts were introduced by oil companies around 2.5 years ago, post demonetization, with the motive of diverting payments through credit cards. The discount for credit card based payments will no be eligible for discounting from 1st October onwards; however, it will still be applicable for payments made via debit cards and other digital modes.

External benchmarking of loans

The regulatory authority of banks, Reserve Bank of India has directed that all the floating interest rates including personal, housing; auto/vehicles etc are to be linked with an external benchmark. As per the explanation, the benchmark can be RBI’s repo rate, 3 or 6 month Treasury bill yield or any other market interest rate benchmark published by the Financial Benchmarks India Limited (FBIL). The regulation will be applicable from 1st October only.

The interest rate linked with the external benchmark will have to be changed at least once in three months. Hence, if there is any change in the external benchmark rate, then it will alter your EMI (equated monthly instalment) every 3 months or less. The terms of linkage to the external benchmark, and interest rate policies will be enlisted in your loan agreement with the bank.

DIN: A unique number for income tax Documents

 As per the new rules applicable from 1st October 2019, every document, letter, notice, order etc issued by the Income Tax Department will have a unique number embedded on them.

The number will be called ‘Document Identification Number’ (DIN) and will be a unique number generated by the computer system. The receiver of the document can go on the official e-filing website of the income tax department, and enter the DIN to verify the authenticity of the document.

Improvement in Government Pensioners Plan

Families of government employees, who passed away before completing 7 years of service, will also be eligible for an enhanced pension. This change was brought into force by amending Central Civil Services (Pension) rules via a notification dated September 19, 2019. The amendment is applicable from 1st October 2019.

The amendment is applicable retrospectively and will benefit the families of government pensioners who lost their lives before completion of service of seven years within 10 years before October 1, 2019.

Curb on the selling of travel insurance via online ticket portals

Insurance Regulatory and Development Authority of India (IRDAI) has imposed a curb on selling travel insurance online. Until now, the option for travel insurance was pre-selected default, for customers buying travel tickets online. However, the circular dated September 27, 2019, has imposed some changes.

The circular has stated that all the group insurance arrangements which are not in the compliance with the regulatory norms shall be terminated with effect from October 1, 2019. Apart from this, the government has imposed restrictions to curb the mis-spelling of travel insurance policies. The restriction has been put on online portals selling travel tickets to avoid mis-spelling of travel insurance.

Author: Keshav Kothari

A young CA Aspirant who is a writer and a photographer with the zeal to convey a positive perception through his work.

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