A financial blend for May: Home loans get cheaper, ATMs demand more, and more updates at the horizon!
Money shifts from ATM withdrawals to rail ticket purchases: Crucial modifications in monetary transactions effecting from May 1st.
Get ready to embrace the upcoming financial shifts this May! The Reserve Bank of India's repo rate cut is set to nudge down home loan interest rates. However, brace yourself as bank mergers in 11 states could potentially impact other borrowers.
Prepare for a slight pinch in your pocket starting May 1st as ATM interchange fees will increase, marking an additional charge for transactions exceeding the monthly cash limit. It is important to note that customers will still get three free ATM transactions in metro cities and five in non-metro areas per month.
Another factor to consider when dealing with finances this May is the updated rules for booking your tickets with the Indian Railways. Effective from May 1st, waiting list tickets for sleeper or AC coaches will not be considered valid. Instead, affected passengers will be allowed to travel only in general coaches. Moreover, the advance reservation period has been reduced from 120 days to 60 days, while the cancellation refund time has been drastically diminished to two days.
Furthermore, after an earlier price hike this month, there's a possibility that LPG prices might experience a rise once again in May. The Union Minister Hardeep Singh Puri has hinted at a review of LPG prices every fortnight, although no formal announcement has been made regarding this matter.
For senior citizens and women depositors, savings account holders with RBL Bank will now receive monthly interest payments with a maximum rate of 7%, while Shriram Finance Limited has announced revised fixed deposit rates for selected customers.
During the first weeks of May, taxpayers and entities with annual income below Rs 50 lakh will have the opportunity to file their Income Tax Returns. The Central Board of Direct Taxes has notified ITR forms 1 and 4 for the assessment year (AY) 2025-26, introducing benefits such as allowing taxpayers with accrued long-term capital gains (LTCG) of up to Rs 1.25 lakh within a financial year to file the user-friendly ITR-1 (Sahaj) form rather than the more complex ITR-2 form.
Lastly, under the 'One State, One RRB' policy, the merger of 15 regional rural banks across 11 states into a single RRB per state will go into effect on May 1st, resulting in a reduction of the total number of such banks from 43 to 28. The affected states include Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.
Keep these updates in mind and stay financially savvy throughout May!
Note: Some forecasts are currently unavailable for comparison due to limited data. For instance, historical context or projections regarding home loan interest rates, rail ticket booking rules, ATM fees, LPG prices, and bank mergers are elusive. However, mortgage rate projections for 2025 suggest mid-to-high 6% ranges.
Stay tuned for more updates and always tune into our website App for detailed insights and news!
- The Reserve Bank of India's repo rate cut may reduce home loan interest rates, offering a potential financial relief for home buyers.
- Brace for an increase in ATM interchange fees starting May 1st, affecting transactions exceeding the monthly cash limit.
- Be aware of updated rules for booking tickets with the Indian Railways from May 1st, with waitlist tickets for sleeper or AC coaches no longer valid, and a reduction in advance reservation period and cancellation refund time.
- LPG prices might rise again in May, with a potential review every fortnight, although a formal announcement is yet to be made.
- For senior citizens, women, and selected Shriram Finance Limited customers, there are revised interest rates and fixed deposit rates for savings and fixed deposit accounts, respectively.
- Taxpayers and entities with annual income below Rs 50 lakh can file their Income Tax Returns within the first weeks of May, with benefits such as the option to file ITR-1 (Sahaj) for accrued LTCG of up to Rs 1.25 lakh.
- Under the 'One State, One RRB' policy, 15 regional rural banks in 11 states, including Odisha, will merge into a single RRB per state, reducing the total number of such banks from 43 to 28, effective from May 1st.
