These 5 changes are going to happen in the new year, how will you affect yourself?
There are few days left to change the year. As soon as 2019 applies, some new rules and changes will be implemented in the country. In some cases, these changes will be beneficial and will cause some problems. Let’s say about the 5 major changes that come into effect from the new year-
1. Will not run Magnetic stripe card
Magnetic stripe cards will stop running in the country since December 31. At present, there are two types of debit and credit card in the currency of Magnetic Stripe and EMV chip. The magnetic stripe card is old technology, and such cards have been stopped. The reason for this is to be less secure than them.
Reserve Bank of India ( RBI) , in 2016, had ordered all the banks to replace the simple magnetic stripe cards of the customers with a chip card. Reserve Bank of India has taken this step to ensure customer’s ATM Debit and Credit Card details remain secure.
In order to fulfill this work, the RBI has declared deadline December 31, 2018, i.e., at all times, by this date, the customers’ magnetic stripe card should be replaced by the EMV chip card. Because of this, the banks are now issuing chip-based ATM or debit cards and are urging customers to replace old cards with chip cards as soon as possible.
2. NPS will be full tax free
NPS (National Pension Scheme) will come in the EEE category from next financial year. Recently the government had announced this. This means that the completion of maturity period of NPS or withdrawal of NPS on retirement from the new financial year 2019-20 will be completely tax-free. Apart from this, the contribution made by the government under the NPS for Central Government employees has been increased to 14 per cent. So far it is 10 percent. However, the minimum contribution to employees will be 10 per cent.
3. Cars are going to be expensive
From January 1, 2019, most auto companies are going to increase their car prices. These include companies like Tata Motors, Ford India, Nissan India, Maruti Suzuki, Toyota Kirloskar, BMW , Reno, Isuju, Volkswagen. Companies say the manufacturing costs of vehicles have increased, due to which companies are forced to put their burden on the customer.
4. Do not run non-CTS checkbook
Banks will not clear non-CTS checks from January 1, 2019. This is happening according to RBI instructions. As a result, Bank customers are appealing to replace their non-CTS check books at the earliest CTS checkbook. SBI has stopped accepting non-CTS checks since December 12.
What is CTS and non-CTS?
CTS means check truncation system. Under this system an electronic image of the check is captured and the physical check is not required to be sent from bank to bank for clearance. Everything gets online. This eliminates the hassle of managing physical checks, sending them from one place to another. Also, the time spent on this and the expenditure on check clearance is also saved.
Non-CTS checks can not be read by the computer at the same time. Therefore they have to physically send from one place to another for clearance. So, the clearance in the clearance is also high. RBI has already given instructions to the banks that they will issue only the CTS-2010 standard check checks.
5. More Accidental Cover for Vehicle Drivers and Riders
The Insurance Regulatory and Development Authority of India (IRDAI) has increased the Comparison Personal Accident (CPA) cover from Rs 1 lakh to Rs 15 lakh for accidental car / commercial vehicle driver or two-wheeler rider. Under this new rule, now all vehicle insurance companies will have to add personal expenditure cover of this new 15 lakh rupees to their Accidental Policies. The new rule will take effect from January 1, 2019. In addition to the owner or driver-rider, the person traveling along with him as a co-driver will also be involved.