Rules to come effect from 1st August, 2020

Rules to come effect from 1st August, 2020

New rules has come into existence whichmay effect our lives. It will be implemented after replacing the old one. These changes include the rate of contribution in EPF, change in insurance, interest rates rules on banks accounts.

EPF deducted @12%

The Finance Minister announced that monthly EPF contributions (of both employers and employees) were to be reduced from 24% to 20% for the months of May, June and July 2020.

The deductions will be revert to old rates from August onwards, i.e. 12% EPF contribution for each employer and employee.

Out of the total 24 percent contribution, the employee’s share (i.e., 12 percent) and employer’s 3.67 per cent goes to the EPF account, while the remaining 8.33 percent of the employer’s share is diverted to the Employees’ Pension Scheme (EPS) account.

Penalty for non-maintenance of minimum balance in bank account

From 1st August, 2020, it will be mandatory to maintain a minimum balance in bank account else a penalty will be charged by the bank.

As per Bank of Maharashtra, Axis Bank, Kotak Mahindra Bank and RBL Bank have announced that they will charge a penalty for not maintaining minimum from 1st August 2020.

In Bank of Maharashtra, account holders having savings account in metro and urban areas will now be required to keep a minimum amount of Rs 2,000 in the account. Earlier this amount used to be Rs 1,500. Under the new rule, if the amount is less than Rs 2,000, the bank will charge Rs 75 as a penalty in metro and urban areas, Rs 50 in semi-urban areas and Rs 20 per month in rural areas.

Cars, bikes, scooters are getting cheaper in price

As per IRDAI notification, it has decided to withdraw long term package covers offered for 3 years or 5 years for new car and new 2 wheelers respectively with effect from 1st August, 2020.

After the new rules, new car or bike buyers will not be forced to take insurance for 3 and 5 years. Car or bike shopping may become cheaper after this change.

New Rule for E-commerce companies

Under the new rules, E-commerce companies will now have to tell on their site that the product they are selling is made in which country.