5 changes coming into effect from August 1, will impact salary, EMI payments

The month of August will bring several changes to banking rules, which will impact the day-to-day operations performed by account holders. While those paying the equated monthly installments (EMIs) and receiving salaries will benefit, these changes could pinch account holders who use ATM cards frequently.

The changes coming into force from Sunday are a result of changes in rules introduced by the Reserve Bank of India (RBI) and regular updates introduced by banks.

Here is a look at some of these changes that will take effect from August 1:

NACH to be available on all days: The National Automated Clearing House (NACH) is a bulk payment system used by banks to transfer salaries and pensions, dividends and interest etc. It is facilitates payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premium. The NACH has been developed by the National Payments Corporation of India (NPCI) and is available only on bank working days. In June, the RBI announced that the bulk payment system will be available on all days starting August 1. This, RBI Governor Shaktikanta Das, is being done to leverage the 24x7 availability of real-time gross settlement (RTGS). NACH is also used as a mode of direct benefit transfer (DBT) to a large number of beneficiaries.

Interchange fees to be increased: This was again announced by the RBI in June. What the hike means is that performing financial as well as non-financial transactions at Automated Teller Machines (ATMs) will get costly. The RBI has allowed banks to increase the interchange fees from 15 to 17. For non-financial transactions, this fees will be increased from 5 to 6. ATM interchange is the charge paid by the bank that issues the card to the bank where it is used to withdraw cash. The fees has been increased after nine years given the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks, the RBI said. The last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014, it added.

India Post's revised charges to come into effect: Those who hold an account with the India Post Payments Bank (IPPB), will have to pay more to use the doorstep services. The bank currently has no charge for these services, but from August 1, it will start charging 20 (plus GST) for each such request. However, there won't be any limit on the number of transactions when an IPPB personnel visits a customer's home for doorstep service, according to India Post. But, it has clarified that the 'no charge' clause will be applicable only on serving multiple requests of a single customer. If there is more people who want to use IPPB's doorstep service, it will be considered as separate DSB delivery and will be chargeable.

ICICI banks to revise charges: India's leading private bank ICICI has said that it will revise limits of cash transactions, ATM interchange and cheque book charges for its domestic savings account holders. These changes will be effective from August 1, according to ICICI Bank's website. The revision of charges will be applicable for all the cash transactions - deposit as well as withdrawal. As per the bank's website, the customers who have regular savings account with the bank, are allowed four free transactions. Those above the free limits would invite a charge of 150 per transaction, according to ICICI.

Changes in price of LPG cylinders: The price of Liquefied petroleum gas (LPG) cylinder is reviewed on the first day of every month. And the exercise is scheduled to take place on August 1. The prices are decided based on the prevailing price of crude oil in the international market.

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