MPC meeting, Tax filing, Credit card charges and more. 6 important financial changes from November 2022

Financial changes in November 2022

6 important financial changes from November

The Indian financial market keeps evolving to keep pace with changing times. Interest rates are changed, monetary policies are reviewed, and other important financial changes are made from time to time.

As the new month starts, the financial landscape is poised to undergo a major shift. Here is a look at six such changes which will have a major impact on your finances –

1. An unscheduled meeting of RBI and an expected rate hike

Inflation rates are rising steadily, and despite efforts, the RBI (Reserve Bank of India) failed to curb the rates. As such, the RBI announced an unscheduled meeting of the MPC (Monetary Policy Committee). The meeting is supposed to be held on 3rd November 2022, and the RBI might increase the interest rates to check inflation.

In July-September 2022 quarter, the CPI (Consumer Price Index) was recorded at 7%, higher than the ideal rate of 6%. As such, interest rates might be hiked to control CPI. If the RBI hikes the repo rate, banks are expected to increase interest rates on home loans and other loans linked to the repo rate.

2. Tax filing extension 

The deadline has been extended for taxpayers who must file their ITR with audit reports. Now, you can file your returns by 7th November 2022 rather than 20th October 2022.

Tax audit is required for businesses whose total sales exceed Rs.1 crore. However, if the aggregate sales proceeds or cash payments is up to 5% of the total sales, the audit threshold limit increases to Rs.10 crores. For professionals, a tax audit is required if the gross receipts from their practice exceed Rs.50 lakhs.

3. Rent payments with a credit card

Many third-party websites and mobile apps allow you to pay the house rent through their platforms using your credit card. However, if you choose to do so, you might have to pay a processing fee for the rent paid.

While many banks have introduced the processing fee, SBI is levying the same from November 15th. The fee has been fixed at Rs.99 plus GST.

4. Increased credit card charges on EMIs 

Many credit cards allow you to convert your big-ticket purchases, over Rs.2500, to affordable EMIs. However, this conversion incurs a charge and a processing fee.

Effective from 15th November 2022, SBI credit card has hiked its processing charge from Rs.99 to Rs.199 plus GST. Furthermore, you have to pay interest at 14% on the converted EMIs.

Related - Know how credit card interest is calculated

5. ICICI Bank changes the charges on NRI Accounts

ICICI Bank has also increased its charges and penalties on NRI Savings Accounts. This change is effective from 1st November 2022.

6. Charge revision in IndusInd Savings Account

Like ICICI Bank, IndusInd Bank is also reviewing its charges associated with savings accounts from 1st November 2022. Besides increasing the charges, IndusInd has also imposed new charges associated with its savings accounts and specified debit cards.

Related - Know what digital and regular savings accounts are

All these changes will pinch your pockets harder. So, know about them so that you can plan your finances accordingly.

The Indian financial market keeps evolving to keep pace with changing times. Interest rates are changed, monetary policies are reviewed, and other important financial changes are made from time to time.

As the new month starts, the financial landscape is poised to undergo a major shift. Here is a look at six such changes which will have a major impact on your finances –

1. An unscheduled meeting of RBI and an expected rate hike

Inflation rates are rising steadily, and despite efforts, the RBI (Reserve Bank of India) failed to curb the rates. As such, the RBI announced an unscheduled meeting of the MPC (Monetary Policy Committee). The meeting is supposed to be held on 3rd November 2022, and the RBI might increase the interest rates to check inflation.

In July-September 2022 quarter, the CPI (Consumer Price Index) was recorded at 7%, higher than the ideal rate of 6%. As such, interest rates might be hiked to control CPI. If the RBI hikes the repo rate, banks are expected to increase interest rates on home loans and other loans linked to the repo rate.

2. Tax filing extension 

The deadline has been extended for taxpayers who must file their ITR with audit reports. Now, you can file your returns by 7th November 2022 rather than 20th October 2022.

Tax audit is required for businesses whose total sales exceed Rs.1 crore. However, if the aggregate sales proceeds or cash payments is up to 5% of the total sales, the audit threshold limit increases to Rs.10 crores. For professionals, a tax audit is required if the gross receipts from their practice exceed Rs.50 lakhs.

3. Rent payments with a credit card

Many third-party websites and mobile apps allow you to pay the house rent through their platforms using your credit card. However, if you choose to do so, you might have to pay a processing fee for the rent paid.

While many banks have introduced the processing fee, SBI is levying the same from November 15th. The fee has been fixed at Rs.99 plus GST.

4. Increased credit card charges on EMIs 

Many credit cards allow you to convert your big-ticket purchases, over Rs.2500, to affordable EMIs. However, this conversion incurs a charge and a processing fee.

Effective from 15th November 2022, SBI credit card has hiked its processing charge from Rs.99 to Rs.199 plus GST. Furthermore, you have to pay interest at 14% on the converted EMIs.

Related - Know how credit card interest is calculated

5. ICICI Bank changes the charges on NRI Accounts

ICICI Bank has also increased its charges and penalties on NRI Savings Accounts. This change is effective from 1st November 2022.

6. Charge revision in IndusInd Savings Account

Like ICICI Bank, IndusInd Bank is also reviewing its charges associated with savings accounts from 1st November 2022. Besides increasing the charges, IndusInd has also imposed new charges associated with its savings accounts and specified debit cards.

Related - Know what digital and regular savings accounts are

All these changes will pinch your pockets harder. So, know about them so that you can plan your finances accordingly.

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