Economy Current Affairs
Aadhaar-PF linking to LPG prices: 7 Banking and Finance Rules Changes that Come into Effect From Today
From Aadhaar-PF linking to Aadhaar-PAN linking, check the changes in banking and finance rules that will come into effect from September 1, 2021.
7 Banking & Finance rules change
From September 1, 2021, there will be several changes in rules that will have a direct impact on people from all walks of life.
Covering banking, finance, and other sectors, the mentioned changes will include an expected hike in LPG cooking gas prices and mandatory linking of Aadhaar card and PAN card.
1. Aadhar-PF linking
From September 1, 2021, employers will be able to credit their contribution to the Provident Fund (PF) only if the employee's Aadhaar number has been linked to their Universal Account Number.
The Employee's Provident Fund Organisation (EPFO) had amended Section 142 of the Code of Social Security, 2020, which made the linking between Aadhaar-PF mandatory in order to avail various services, seeking benefits, and receiving payments, among others.
2. Aadhaar-PAN linking
As per the notification issued by the State Bank of India (SBI), all of its customers will have to link their Permanent Account Number (PAN) with their Aadhaar Card by September 30, 2021.
Anyone who will fail to do this will have their identification as an SBI account holder nullified which will prevent them from doing certain transactions.
The PAN will be compulsory to deposit R.50,000 or more in a day. Those who wish to do even higher value transactions will be required to link their Aadhaar and PAN on the Income Tax Department website by September 30. Earlier, the deadline to do so was June 30, 2021, but it was extended by the government.
3. Increase in LPG cylinder prices
The price of the cooking gas, in August 2021, was increased by Rs. 25 per cylinder. Before that in July 2021, the rates of LPG cylinders were hiked by Rs. 25.50. Since the prices of LPG have witnessed a surge from two months in a row, it can be expected that it will continue in September as well. Since January 2021, the cooking gas prices have increased by Rs. 165 per cylinder.
4. Restrictions on GSTR-1 filing for defaulters
According to the Goods and Service Tax Network (GSTN), Rule- 59 (6) of the Central GST Rules will be implemented from September 1 onwards. It will restrict the taxpayers who have not filed the GSTR-3B returns, from filing their GSTR-1 returns.
5. A new system for cheque clearance
The Reserve Bank of India announced a new Positive Pay System for clearing the cheques in 2020 for verifying an issuer's details in order to stop any fraudulent acts. However, the system had come into effect from January 1, 2021. The delay happened because, while several banks in India already adopted the new system, the Axis Bank will be implementing the same from September 1.
Under this new system for cheque clearance, the customers who will be issuing the high-value cheques will be required to inform their respective banks before doing so. It will prevent bank frauds pertaining to the issuing and clearance of cheques.
6. Changes introduced in Car insurance
Buying your new dream car is going to be more expensive from September 1, 2021. After the decision announced by Madras High Court that mandated the own damage coverage for cars from September, now the customer will have to pay Rs. 10 to Rs. 12,000 more as the down payment for four-wheelers.
After the decision of the Madras High Court, bumper-to-bumper insurance will be now mandatory on new vehicles from September 1, 2021.
7. Prices increased of Maruti Suzuki
The prices will be increased on every model of Maruti Suzuki from September 1, 2021. This is the third time in a year that Maruti Suzuki India has announced a price hike without actually revealing the details amid the rising input cost.
The largest carmaker in India had earlier in January and April 2021 had also announced a price rise.