Credit Card Changes in Mutual Fund KYC: Changes regarding the use of credit cards in mutual fund KYC reflect regulatory efforts to enhance investor protection and ensure transparency in investment processes. Regulators may restrict credit card usage due to concerns about financial risk, money laundering, and investor suitability. This requires mutual fund institutions to update their procedures and encourage investors to use more appropriate payment methods, such as bank transfers or checks, for funding investments.
Key Banking Updates and Financial Changes
1. ICICI Bank revises charges on Savings Accounts
Starting today (May 1, 2024), ICICICI Bank has updated its service charges for various services including issuing checkbooks and digital transactions:
- Debit Card Fee: Annual fee of Rs. 200 reduced to Rs. 99 for rural areas.
- Checkbook: No charge for the first 25 leaves per year, then Rs. 4 per leaf.
- DD/PO Transactions: Rs. 100 for cancellation, duplicate, or revalidation.
- IMPS Transactions: Fees range from Rs. 2.50 for up to Rs. 1,000 to Rs. 15 for Rs. 5 lakh.
- Miscellaneous Charges: No fees for account closure, debit card PIN regeneration, and several other services. A notable charge of Rs. 500 per ECS/NACH debit return due to financial reasons, applied three times a month.
2. HDFC Bank extends Senior Citizen Care FD scheme deadline:
HDFC Bank announced an extension of the investment deadline for its Senior Citizen Care FD scheme offering attractive interest rates specially designed for senior citizens. The new deadline is May 10, 2024, for this scheme introduced in May 2020.
3. IDFC First Bank updates Utility Bill Payment Credit Card Fee:
Effective immediately, IDFC First Bank applies a 1% fee and 18% GST on credit card payments of utility bills (gas, electricity, and internet) exceeding Rs. 20,000. This fee does not apply to First Private credit cards, LICI Classic, and LICI Select cards.
4. New Charges and Credit Card Rules at Yes Bank from May 2024:
Yes Bank has updated its savings account charges:
- Minimum Balance and Charges: Higher limits for maintaining minimum balance and charges.
- Debit Card Fee and ATM Charges: Annual fees for different debit card types and ATM transaction fees.
5. Other Major Financial Changes in May 2024:
- New Mutual Fund KYC Requirement: Strict rule requiring exact name matching with PAN card for mutual fund applications.
- Reduction in Commercial LPG Prices: Oil marketing companies have reduced prices of commercial-use Liquefied Petroleum Gas (LPG) to benefit businesses. Indian Oil Corporation (IOC), supplying cooking gas nationwide under the name Indane, has reduced gas prices in the capital city.