A few changes related to money will take effect on January 1, 2024, the day the year 2023 ends and 2024 begins. The finance industry is expected to undergo significant changes. Interest rates on small savings plans will rise, insurance policy documentation will be easier to read, inactive UPI IDs will be deactivated, car prices will rise, and traditional physical SIM card verification will gradually disappear, among other changes.
Big Financial Changes Coming in January 2024
1. Inactive UPI IDs Disabled
By December 31, 2023, all payment applications are required by the National Payments Corporation of India (NPCI) to disable UPI IDs that have not been used for more than a year. The purpose of this instruction was to improve security and guard against possible fraud with outdated or useless UPI IDs. Accordingly, UPI IDs that haven’t been used for a year have been deleted as of January 1, 2024.
2. Revised Bank Locker Agreement
The revised bank locker agreement has to be signed by bank locker holders by December 31st. If you did not comply, bank lockers were to be frozen as of January 1, 2024.
3. Simplified Insurance Documents
As of January 1, 2024, insurance companies are required by the Insurance Regulatory and Development Authority of India (IRDAI) to furnish updated customer information sheets (CIS) that concisely summarize all significant policy data.
The insurance regulator had stated in a press release that everything from the type of policy to coverage details, waiting periods, limits and sub-limits, exclusions, free-look periods, portability, instructions on how to submit claims, and contact information for lodging complaints will be available “in simple language in a snapshot” in the customer information sheet.
4. Hike In Veichle Prices
Car purchasers will need to spend more money on their new vehicle starting in January 2024. Plans to increase automobile pricing have already been revealed by some automakers. Numerous automakers, including Mercedes, Tata Motors, and Maruti Suzuki, have justified their plans to raise car pricing by citing severe cost pressure brought on by general inflation and rising commodity costs.
5. Higher Interest Rates On Small Savings Schemes
The interest rates on a few modest savings plans have been increased for the quarter ending in January 2024. The interest rates for the three-year time deposit and the Sukanya Samriddhi Account Scheme (SSAS) have been noticeably raised by 20 basis points. The interest rate for the March quarter of the Sukanya Samridhi Account Scheme (SSAS) was increased by 20 basis points to 8.20 per cent.
