As November 2024 arrives, significant financial changes are poised to impact Indians across various sectors. From stricter regulations against insider trading in mutual funds to revised KYC requirements for money transfers, these updates aim to enhance investor protection and improve financial security. Additionally, pensioners must be mindful of deadlines for submitting life certificates, while credit card holders will encounter new interest rates and revised terms.
1. Tighter regulations against insider trading in mutual funds
Effective November 1, 2024, the Securities and Exchange Board of India (Sebi) will implement stricter regulations to combat insider trading in mutual funds. The new Prohibition of Insider Trading Regulations will prohibit senior personnel at fund houses from selling their mutual fund investments if they possess confidential information regarding potential challenges within the firm or its investment schemes. According to a Moneycontrol report, This initiative seeks to bolster investor protection by limiting insider trading practices, stabilising net asset values (NAV), and safeguarding the interests of unitholders.
2. Revised KYC requirements for money transfers
The Reserve Bank of India (RBI) has introduced significant changes to domestic money transfer regulations, also effective November 1, 2024. These changes enhance Know Your Customer (KYC) requirements, mandating payment system operators to maintain detailed records of beneficiaries including names and addresses. Additionally, every transaction initiated by a remitter will require validation through an additional factor of authentication (AFA). These measures aim to bolster security and improve the integrity of cash payout services, particularly for recipients without bank accounts.
3. Changes in P2P lending regulations
New guidelines from the RBI will also impact peer-to-peer (P2P) lending platforms operated by non-banking financial companies (NBFCs). While the two-account structure for managing funds will remain, the updated regulations mandate that funds be transferred within one day of a transaction. This change is designed to enhance fund segregation and ensure timely processing of transactions, thereby increasing trust in the P2P lending system.
4. Deadline for Jeevan Pramaan Life Certificate
Pensioners must submit their Jeevan Pramaan life certificate by the end of November to prevent interruptions in their pension payments. This certificate serves as proof of life and is essential for ensuring continued eligibility for pension disbursements. Timely submission is critical as failing to meet the deadline will result in an immediate halt of pension payments.
5. Interest rate increases on credit cards
Effective November 1, 2024, HSBC and SBI Card will raise their monthly interest rates for credit cards. HSBC will increase its rate from 3.49 per cent to 3.75 per cent, while SBI Card will adjust its rate from 3.50 per cent to 3.75 per cent. This increase translates to higher costs for cardholders, prompting consumers to reassess their spending habits and repayment strategies to mitigate potential financial impacts.
6. ICICI Bank credit card changes
Starting November 15, 2024, ICICI Bank will implement several changes to its credit card terms and conditions. Notably, the spending limit for airport lounge access will increase from Rs 35,000 to Rs 75,000 per quarter. Additionally, the bank will introduce caps on rewards earned from utility, insurance, and grocery purchases, adjust its surcharge waiver policy on fuel transactions, and impose a Rs 199 annual fee for supplementary cardholders. These modifications may influence how customers utilise their credit cards, particularly in maximising rewards and benefits.
Moreover, ICICI Bank plans to waive fuel surcharges for transactions up to Rs 50,000 per month across all credit cards, with premium cardholders enjoying a raised waiver limit of Rs 1 lakh per month. This change is designed to alleviate the financial burden on consumers regarding fuel expenses and incentivise increased spending through credit cards.
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