Major financial changes from June 1: EPFO 3.0, Aadhaar update, and more
Several financial changes will take effect across India, including TDS deadline, SEBI's new cut-off timings for overnight mutual fund schemes
A series of financial rules will be introduced from June 1 onwards, expected to impact various financial aspects such as savings, credit card rules, and provident fund (PF) access.
Several significant financial changes will take effect across India, including the introduction of the Employees' Provident Fund Organisation (EPFO) 3.0 system, the TDS deadline, and SEBI's new cut-off timings for overnight mutual fund schemes.
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EPFO goes digital
Starting June 1, the EPFO will introduce its long-awaited upgrade — EPFO 3.0.
This revamped system aims to streamline the process of withdrawing PF money. Members will now be able to withdraw PF funds instantly using UPI or even through ATMs.
Additionally, the EPFO 3.0 will allow users to check their PF balance and transfer funds to preferred bank accounts via UPI platforms, facilitating easier and quicker access to EPF funds for users.
Aadhaar update deadline
June 14 is the last day to update Aadhaar details for free on the official myAadhaar portal.
Post this deadline, individuals will have to pay a fee of Rs 25 for online updates and Rs 50 at physical Aadhaar centres. This move aims to encourage individuals to keep their personal information in official records up to date.
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Form 16 deadline
The deadline for issuance of the tax deduction at source (TDS) certificate under Form 16 is June 15. Form 16 is a certificate provided by employers to salaried employees, confirming that tax has been deducted from their salary.
This document is crucial for income tax filing as it validates the TDS deducted from salaries and submitted to the income tax department.
This certificate must be issued by June 15 of the relevant year. For instance, for the financial year 2024-25, Form 16 should be issued by June 15, 2025.
New mutual fund rules
The Securities and Exchange Board of India (SEBI) has introduced changes to the cut-off timings for overnight mutual fund schemes, starting June 1.
From June 1, the cut-off times for overnight mutual fund schemes will be 3 PM for offline transactions and 7 PM for online transactions.
These changes aim to improve transparency and consistency in the net asset value (NAV) calculation process.
Any order made after these times will be processed the next working day and may get a different NAV than expected.
Watch Here: EPFO 3.0 | PF withdrawal at ATM, new pension options and more
FD interest rate changes
Suryoday Small Finance Bank is revising its fixed deposit (FD) interest rates from June 1. New rates for deposits below Rs 3 crore will range from 4 per cent to 8.4 per cent, depending on tenure.
The highest interest rate applies to tenures between 30 and 36 months. Notably, the interest rate for 5-year FDs will be lowered by 60 basis points, from 8.6 per cent to 8 per cent.
Credit card fee revisions
Several banks, including Kotak Mahindra Bank and Axis Bank, are set to roll out credit card fee structure revisions and changes in rewards structure.
Kotak will introduce charges for services such as standing instruction failures and foreign currency conversion. The bank will also introduce a new approach for determining the Minimum Amount Due — the smallest amount to be paid every month to avoid late payment fees.
Axis Bank will introduce phased changes to its REWARDS Credit Card. Key changes involve point accrual rules, merchant category revisions, and changes in the validity of reward points.