The New Year will begin with more burden on the pocket. Two days from now, withdrawing money from ATMs, buying cars, clothes and footwear will become expensive.
The Reserve Bank of India has allowed increase in charges on cash withdrawals after free transactions.
According to the RBI, after a free transaction, the bank will be able to charge Rs 21 per transaction from its customers instead of Rs 20.This rule will come into effect from January 1, 2022. Buying a car will also become expensive in the New Year. Those wishing to buy a car should be prepared to pay more for cars. These include cars of almost all car companies including Maruti Suzuki, Renault, Honda, Toyota and Skoda. Tata Motors will increase the prices of commercial vehicles by 2.5 per cent . Buying clothes and footwear will also get costlier. On the recommendations of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) announced that the GST rate on garments, textiles, and footwear would be raised from 5% to 12% with effect from January 1, 2022.
Persons booking autorickshaws online will also have to pay more. Beginning January 1, five per cent GST will be levied on autorickshaw bookings through online mode. This means that booking autorickshaws from app based cab service provider platforms like Ola, Uber will now become more expensive. However, there is no change in the fare of autorickshaws offline. It is exempt from tax.
Account holders of India Post Payment Bank (IPPB) will have to pay a charge for withdrawing and depositing more than a certain limit from January 1. Withdrawals from the basic savings account will be free four times a month but after four withdrawals, account holders will be charged 0.50% on each withdrawal. There will be no charge for depositing money in a basic savings account.
There is no charge for depositing up to Rs. 10,000 from other savings account and current account except basic savings account. 0.50% fee will be charged after 10 thousand which will amount to at least Rs 25 per transaction. Cash withdrawals up to Rs 25,000 per month in savings and current account will be free and thereafter 0.50% charge will be charged on every transaction.