As the curtains draw on the financial year 2023–24, the dawn of the new fiscal year heralds a slew of financial alterations set to come into effect from April 1. Here’s a comprehensive look at the key changes that will reshape personal finance in FY 2024–25:
Enhanced security measures for NPS
The Pension Fund Regulatory and Development Authority (PFRDA) is set to revamp the login process for the National Pension System (NPS), introducing stringent security protocols. Effective April 1, NPS account holders will need to undergo two-factor authentication, bolstering system security. Authentication can be completed through the receipt of One-Time Passwords (OTPs) on registered mobile numbers, ensuring enhanced protection against unauthorised access.
EPFO simplifies job transitions
In a bid to streamline job transitions, the Employees’ Provident Fund Organisation (EPFO) will automate the transfer of subscriber balances to their new employers. Effective April 1, EPFO account holders will no longer need to initiate transfer requests, simplifying the process of managing Provident Fund (PF) balances during job changes.
Default transition to new income tax regime
From April 1 onwards, the new income tax regime will transition into the default tax structure. Taxpayers who do not explicitly opt for the old tax regime will automatically fall under the purview of the new tax framework. Notably, individuals earning up to Rs. 7 lakh per annum will be exempt from tax liabilities under the new regime.
KYC update mandatory for FASTag
Starting April 1, individuals who have not updated their vehicle’s KYC information with their respective banks may encounter disruptions in FASTag services. Banks will deactivate FASTags for non-compliant users, potentially resulting in double toll tax payments at toll plazas. The National Highways Authority of India (NHAI) has urged FASTag users to ensure compliance with Reserve Bank of India (RBI) regulations by promptly completing the KYC process.
SBI credit card policy overhaul
The State Bank of India (SBI) is set to implement significant revisions to its credit card policies. Notably, SBI credit cardholders will no longer accrue reward points for rent payments effective April 1. However, these changes will apply to specific credit cards initially, with broader implementation slated for April 15.
Restructuring of Ola money wallet
Ola Money has announced plans to transition its wallet services to smaller Prepaid Payment Instrument (PPI) categories, imposing a monthly wallet load limit of Rs. 10,000. Effective April 1, users will be subject to the revised wallet load restrictions, marking a strategic overhaul of Ola Money’s operational framework.
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