Unveiling the Latest Updates Regarding NPS, IMPS, SGBs, and more
09 February, 2024
On February 1, 2024, the day when Finance Minister Nirmala Sitharaman presented the Interim Budget, a series of changes in the financial sector came into effect. Several regulatory bodies have been unveiling updates and amendments, many of which came into effect on February 1. Each of these amendments has potential implications for investors, account holders, and individuals involved in financial transactions.
Let’s have a look at these February new rules that could impact the Indian financial landscape:
NPS partial withdrawal new rule
The National Pension System (NPS) is a voluntary and long-term investment scheme by the Indian Government to help citizens create a corpus for their retirement. The Pension Fund Regulatory and Development Authority (PFRDA), which supervises and regulates pensions in India had released a circular in December 2023, introducing prospective changes in the NPS withdrawal rules.
As per the latest rules from PFRDA, NPS subscribers can make partial withdrawals only for specific purposes, such as higher education or marriage of their children and the first time purchase or construction of a residential property. Additionally, they cannot withdraw more than 25% of their contributions in their NPS accounts. These NPS new rules have come into effect from February 1, 2024.
IMPS money transfer new rule
The Instant Payment Service (IMPS), developed by the National Payments Corporation of India (NPCI), facilitates a seamless real time fund transfer between bank accounts. Initially, IMPS users could transfer only up to ₹1 lakh in a single transaction. However, after the implementation of the NPCI circular dated October 31, 2023, this limit has been increased to ₹5 lakhs.The new IMPS rule came into effect on February 1, 2024.
FASTag without KYC to become inoperative
The National Highways Authority of India (NHAI), through a recent circular, declared that all FASTags with pending KYC (Know Your Customer) will become inoperative after February 1, 2024. All FASTag users are urged to complete their KYC requirements as early as possible.
RBI to issue Sovereign Gold Bond 2023-23 Series 4
The Reserve Bank of India (RBI) is expected to issue the final tranche i.e. series 4 of Sovereign Gold Bonds (SGBs) 2023-24 (SGB Series 4) in February 2024. The SGB Series 4 will open for subscription on February 12, 2024, and will close on February 16, 2024.
SGBs allow you to invest in digital gold through government bonds. They are denominated in grams of gold and come with a fixed maturity tenure of eight years. Investors can trade SGBs on the stock exchanges like equity shares. In addition to the capital appreciation based on gold price per gram, SGB investors also receive a 2.5% per annum interest on their investment value, payable semi-annually.
To conclude
February brings with it a slew of changes in the financial landscape of India. From amendments to the NPS new rules to the release of the final tranche of Sovereign Gold Bonds 2023-24, investors and individuals alike are in for a series of key transformations.
By embracing these changes and adapting strategies accordingly, you can navigate the evolving financial terrain with confidence. HDFC Bank, with its gamut of financial products, can help you plan your finances seamlessly. Click here to know more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
