Rules Changing Effective May 1: As the month has begun, a number of important changes that have an immediate impact on the ordinary person have gone into effect. Interest rates on fixed deposits, the cost of LPG cylinders, ATM withdrawal fees, and the process for reserving train tickets are just a few of the many rules that have changed since May 1. These adjustments have been made by important institutions like Indian Railways and the Reserve Bank of India (RBI) in order to encourage systemic transparency, digital efficiency, and economic adaptability.

 

ATM Withdrawals Get Expensive

The fee for withdrawing money from an ATM has gone up from May 1. The Reserve Bank increased the costs when the free transaction cap was reached. For any withdrawal exceeding the free limit, customers used to pay Rs 21. Right now, it costs Rs 23. In metropolitan regions, customers are often allowed to make five free ATM withdrawals per month from their bank and three from other banks (or five in non-metros). The rise is due to the growing cost of operating an ATM.

New Regulation Regarding Rail Ticket Purchases

A modification has been made to the Indian Railways ticket-buying system. As of May 1, tickets for the AC coach and sleeper waiting lists will no longer be available. Only general coaches are available to those who have waiting tickets. Additionally, the reserve term of 120 days has been reduced to 60 days. Higher ticket and refund costs might potentially be a consequence of the new regulatory structure. The move is expected to improve the tourist experience and address overbooking issues.

The Cost of LPG Cylinders Is A Little Lower

In many locations, the price of commercial LPG cylinders has dropped, which is a little but noteworthy development. In Kolkata, the price of a 19-kg commercial cylinder has increased from Rs 1868.50 to Rs 1851.50. In Mumbai, the cost has dropped from Rs 1713.50 to Rs 1699. In Delhi, the cylinder will now cost Rs 1906.50 instead of Rs 1921.50. There is a little distinction that helps businesses and commercial customers that rely on LPG.

Interest Rate Adjustments for Savings and FD

Interest rates on fixed deposits and savings accounts are also being adjusted. Since the Reserve Bank of India cut the repo rate in its most recent bi-monthly monetary policy review, several banks have started to cut interest rates. In addition to loans, savings accounts and deposit plans are also affected by this decline, and further rate reductions could be on the horizon.

The Pravah Portal Is Now Required

In an effort to expedite regulatory procedures, the RBI has required all banks, NBFCS, and other regulated financial companies to utilise the Pravah site. As of May 1, licence, authorisation, and approval applications must only be submitted via the Pravah site using the relevant digital forms. This is expected to increase the openness and efficiency of regulatory filings.

Mergers of Banks

Meanwhile, there has been a major structural shift in rural banking. As of May 1, eleven states have adopted the “One State, One Regional Rural Bank” policy: Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan. Under this initiative, a number of regional rural banks in a single state have amalgamated to enhance service delivery and simplify operations.