Changes from February 1 which will affect your personal finance and other things imt IG News

New Delhi : There is not much time left for the start of the new financial year. After 2 months we will enter the financial year 2023-24. Then people will once again start thinking about tax planning and other financial decisions. However, before that, in February, some changes are taking place, which may have an impact on the pocket of common people. Along with this, RBI’s MPC meeting will also take place where the impact of the change in policy rate will also be seen on your personal finances.

You should start preparing them now. There are 5 big changes happening in February that most people need to watch out for. Let’s see what these changes are.

MPC meeting

The decision of RBI’s monetary policy committee meeting will come on February 8. This is likely to see a 25-35 basis points hike in the policy rate. Importantly, the MPC had hiked the policy rate by 225 basis points last year. 100 basis points means one percent. After another hike, loans will become more expensive again.

T+2 redemption cycle

A T+1 settlement cycle was implemented in the stock from January 27. That is, the purchase and sale of shares will now appear in your demat account on the next day. Associated mutual funds which were now following T+3 redemption cycle, will now move to T+2 redemption cycle.

Canara Bank Service Charge

From February 13, Canara Bank will increase the service fee on the use of its debit cards. The annual fee of Classic Debit Card will increase from Rs 125 to Rs 200. It will be Rs 500 for Platinum Debit Card and Rs 300 for Business Debit Card. Card replacement fee has also been increased from Rs 50 to Rs 150.

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HDFC Rewards Redemption

HDFC Bank has changed the reward redemption terms for its Millenia Debit Card. This change will be effective from February 1. Customers can now redeem 70 percent of the product price and the remaining amount has to be paid through a credit card. You will be able to redeem only 3000 reward points per month for cashback.

Tax planning

Of course, this financial year is still 2 months away, but you should start tax planning now. You can start investing in various schemes from February itself to save tax. For example PPF, NPS, SSY, ELSS or life insurance premium etc.