- Date : 30/05/2022
- Read: 4 mins
Quite a lot of changes have taken place in the financial sector in the current year of 2022. These changes would directly or indirectly impact your financial decisions. Hence, it is necessary that you be aware of these changes. This will help you plan your finances better.
There have been quite a few financial changes in that took place in the year 2022. These changes would directly or indirectly impact your financial making decisions and it is vital that you are well aware of these changes. Learning about these changes will help you plan your finances better.
The following are the 5 important money matter changes in 2022:
Add your nominees on EPF website
For individuals who are working in a particular company and hold an Employees’ Provident Fund (EPF) account, then it was mandatory to complete the EPF nomination by December 31, 2021. In case, those failed to do so, then they are likely to lose on various benefits from January 1, 2022 onwards. Earlier, the EPFO authority had shared guidelines for nominations, wherein in case of the untimely demise of the EPF subscriber, the nominee can easily file the claim online.
Also Read: FAQs About Employee's Provident Fund
ATM cash withdrawals become costlier
From January 2022 onwards, once your cash withdrawal limit is exhausted, it would be expensive to do withdrawals from ATMs. As per an RBI notification that was issued in the month of June 2020, an individual is eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities . This would be effective from January 1, 2022. The customers will have pay Rs 21 per transaction. The payment has to be made at their own banks' ATMs if you want to withdraw money once the limit is exceeded.
India post payment bank to levy charges on deposits and withdrawals
For individuals who hold an account in India Post Payments Bank (IPPB), with effect from January 2022, they will have to bear charges for depositing and withdrawing cash from their account on exceeding the prescribed limit. In the savings (other than basic savings account) and current accounts, the cash deposits will be free up to Rs 10,000 per month. Post this, a charge of 0.50 percent of the value subject to minimum Rs 25 per transaction is likely to be imposed. On the other hand, the cash withdrawal will be free up to Rs 25,000 per month. After this, a charge of 0.50 percent of the value subject to minimum 25 per transaction will be levied.
File that belated income tax return
Considering that the extended deadline to file ITR for AY 2021-22 by individuals has long ended on December 31, 2021, a belated return can be filed from January 1, 2022 up to March 31, 2022. A belated return, however, will need to shell out late-filing fees of Rs 5,000 as per Section 234F. However, for those whose income is less than Rs 5 lakh, the penalty is restricted to Rs 1,000, if the income tax return (ITR) is filed after December 31 but before March 31, 2022.
SEBI revises risk management framework for mutual funds
A risk management framework (RMF) has been brought into effect by SEBI as an effort towards protecting the interests of investors and to ensure that mutual funds extend a high standard of service, which has been effective from January 1, 2022. SEBI’s new RMF terms risk management as an independent and specific function of the asset management company. For each risk, such as investment risk, compliance risk, operational risk and cyber security, the Asset Management Company (AMC) has been directed to appoint a risk officer. In addition, a Chief Risk Officer (CRO) needs to be duly appointed in each asset management company. The RMF highlights the policies, procedures, roles and risk management functions of the management, board of the AMC and board of the trustees.
Conclusion
It is important and necessary to be aware of the above listed money matter changes, which would directly or indirectly impact your financial decisions.
There have been quite a few financial changes in that took place in the year 2022. These changes would directly or indirectly impact your financial making decisions and it is vital that you are well aware of these changes. Learning about these changes will help you plan your finances better.
The following are the 5 important money matter changes in 2022:
Add your nominees on EPF website
For individuals who are working in a particular company and hold an Employees’ Provident Fund (EPF) account, then it was mandatory to complete the EPF nomination by December 31, 2021. In case, those failed to do so, then they are likely to lose on various benefits from January 1, 2022 onwards. Earlier, the EPFO authority had shared guidelines for nominations, wherein in case of the untimely demise of the EPF subscriber, the nominee can easily file the claim online.
Also Read: FAQs About Employee's Provident Fund
ATM cash withdrawals become costlier
From January 2022 onwards, once your cash withdrawal limit is exhausted, it would be expensive to do withdrawals from ATMs. As per an RBI notification that was issued in the month of June 2020, an individual is eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities . This would be effective from January 1, 2022. The customers will have pay Rs 21 per transaction. The payment has to be made at their own banks' ATMs if you want to withdraw money once the limit is exceeded.
India post payment bank to levy charges on deposits and withdrawals
For individuals who hold an account in India Post Payments Bank (IPPB), with effect from January 2022, they will have to bear charges for depositing and withdrawing cash from their account on exceeding the prescribed limit. In the savings (other than basic savings account) and current accounts, the cash deposits will be free up to Rs 10,000 per month. Post this, a charge of 0.50 percent of the value subject to minimum Rs 25 per transaction is likely to be imposed. On the other hand, the cash withdrawal will be free up to Rs 25,000 per month. After this, a charge of 0.50 percent of the value subject to minimum 25 per transaction will be levied.
File that belated income tax return
Considering that the extended deadline to file ITR for AY 2021-22 by individuals has long ended on December 31, 2021, a belated return can be filed from January 1, 2022 up to March 31, 2022. A belated return, however, will need to shell out late-filing fees of Rs 5,000 as per Section 234F. However, for those whose income is less than Rs 5 lakh, the penalty is restricted to Rs 1,000, if the income tax return (ITR) is filed after December 31 but before March 31, 2022.
SEBI revises risk management framework for mutual funds
A risk management framework (RMF) has been brought into effect by SEBI as an effort towards protecting the interests of investors and to ensure that mutual funds extend a high standard of service, which has been effective from January 1, 2022. SEBI’s new RMF terms risk management as an independent and specific function of the asset management company. For each risk, such as investment risk, compliance risk, operational risk and cyber security, the Asset Management Company (AMC) has been directed to appoint a risk officer. In addition, a Chief Risk Officer (CRO) needs to be duly appointed in each asset management company. The RMF highlights the policies, procedures, roles and risk management functions of the management, board of the AMC and board of the trustees.
Conclusion
It is important and necessary to be aware of the above listed money matter changes, which would directly or indirectly impact your financial decisions.
