Various changes in different sectors including banking, driving license and GST from 1 October 2019 i.e. from today are going to significantly affect our lifestyles and budgets. According to the Reserve Bank guidelines, the banks will offer retail loans at repo rate linked interest rate, from today. At the same time, due to the revision in GST rates, the prices of various commodities will also be changed. In addition to this, some very important changes related to driving license have also come into effect from today.
Let us Know these Changes in Detail:
- Repo rate linked the interest rate
- Following the RBI guidelines, various public sector banks including SBI, Canara Bank and Corporation Bank have presented retail loans at repo rate based interest rates from October 1. This will cut down your monthly EMI due to a reduction in the repo rate by RBI.
- Earlier, banks did not give full benefit of the reduction in the repo rate to the customers instantly and this is the reason that the central bank issued guidelines on September 4, directing retail and MSME loans to be linked to external benchmarks.
SBI will Impose a Lesser Penalty for Not Maintaining a Minimum Balance
SBI, the nation’s largest bank, has announced a drastic reduction in the amount of penalty charged for not maintaining the minimum balance. This decision becomes effective from today. Apart from this, SBI customers from Metro and non-metro cities will be allowed to pay 10 and 12 transactions, respectively, for no charge.
Changes in the GST Rate Will cause Changes in the Prices of Goods
As per the decisions of the GST Council, the new GST rates have come into effect from October 1. Now the hotel rooms with rent up to Rs 1,000 are GST exempt. However, the new GST rate of 12 percent is applicable to rooms with a rent of Rs 7,500.
At the same time, the new GST rate of 12% is applicable to train coaches and wagons. In addition, caffeine drinks will also become expensive because of the leviability of 28% GST along with additional cess of 12% on such substances.
Huge Reduction in Corporate Tax
The government recently announced a drastic reduction in corporate tax which will give huge relief to domestic companies. Finance Minister Nirmala Sitharaman had declared the reduction of corporate tax from 30 percent to 22 percent. This reduction becomes effective from today. Also, manufacturing companies formed after October 1 will now have to pay corporate tax at the rate of only 15%.
Rules Related to Driving license and RC Have Changed
Many changes in the rules related to driving license have become effective from October 1. Under the changes, you will have to update your old driving license which can be done online. Along with the implementation of this rule, the color of driving license and RC will be the same across the country.
Discard of Cashback on Payment by Credit Card at Petrol Pumps
Cashback of 0.75 percent on payment by credit card at petrol pumps after filling petrol or diesel, will no longer be available. Banks offering credit cards have informed their customers through the message that the public sector petrol companies have decided to abolish this exemption from October 1. However, this exemption on payments by other means will sustain.