Are You Aware of These 8 major Financial Changes That are Coming Up in June 2023?

A look at 8 major financial changes that are getting effective in June 2023

Major Financial Changes in June 2023

There is a lot to look forward to in the financial world this summer. Be it repo rate decisions or changes in mutual funds, bank locker-related rules or tax payment deadlines, a lot is happening in personal finance that you need to keep track of.

Here is a quick snapshot of all the important personal finance deadlines or implementations falling in June 2023.

1. MPC decision: Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) will meet in June to decide whether to keep the repo rate on pause or make changes. As always, the repo rate decision will have reactions in the financial world. You would remember that in April, the MPC decided to pause the interest rate hike for the first time in almost a year. The RBI did mention that the pause decision was temporary and that the withdrawal of the accommodative stance will continue.

Also Read: Do you know these things about RBI’s repo rate?

2. SEBI’s Mutual Fund rules: The Securities and Exchange Board of India has now allowed a minor’s investment in mutual funds. From 15 June 2023, mutual fund investments can be made from a minor’s bank account, from the minor’s parent or legal guardian’s account or from a joint account of the minor and parent or legal guardian.

3. Insider trading, frauds: By 3 June 2023, SEBI expects to get comments from stakeholders on a consultation paper that aims to deter insider trading and other fraudulent practices in the mutual fund industry.

4. Total Expense ratio: By 6 June 2023, also expects to receive all the views on its proposal to overhaul mutual funds’ total expense ratio mechanism. This proposal has suggested that costs like brokerage, taxes and B-30 city commissions must be included in the total expense ratio. 

5. Fees: SEBI has also suggested the linking of mutual fund schemes’ performance and management fees. 

Also Read: What is SEBI’s new TER rule and why it may benefit you

6. Advance Tax - June is also important in your tax calendar as 15 June is the deadline for the first quarter’s advance tax payment. Taxpayers are required to pay 15% of their estimated annual tax liability by this date.

7. Locker Agreements - Customers who have lockers in the branches of a few banks like SBI and Bank of Baroda are required to sign a revised locker agreement by the end of June 2023. It is expected that soon all other banks will come up with this requirement.

8. Pension option deadline - The deadline for the higher pension option has been extended by the Employees’ Provident Fund Organisation (EPFO). Employees who have been EPFO members before 1 September 2014 but have not opted for the higher pension option can do so now. The new deadline is 26 June 2023. The option can be exercised on the EPFO portal through an online process. 

Also Read: EPFO members can now opt for a higher pension. Know if you are eligible to claim a higher pension.

These, in brief, are some of the important "things-to-do" for you in the personal finance space for June 2023.


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