The commencement of 2024 marks the onset of significant financial transformations. Beyond just heralding a new year, January has ushered in substantial financial adjustments with potential impacts on individuals. Whether it pertains to car prices, UPI, or bank lockers, let's delve into the financial modifications that have come into play as of January 1, 2024.

 

Here are five major financial changes effective January 2024:

 

Inactive UPI IDs Disabled:

The National Payments Corporation of India (NPCI) issued a directive instructing payment applications to deactivate UPI IDs that have remained inactive for over a year by December 31, 2023. This measure aims to bolster security and thwart potential fraud associated with outdated or unused UPI IDs. Consequently, as of January 1, 2024, inactive UPI IDs for a year or more have been rendered inactive.

 

Revised Bank Locker Agreement:

Individuals with bank lockers were required to endorse the revised bank locker agreement by December 31. Failure to comply may have resulted in the freezing of bank lockers starting from January 1, 2024.

 

Simplified Insurance Documents:

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated insurance companies to furnish updated Customer Information Sheets (CIS) highlighting key policy details in simple terms from January 1, 2024. The customer information sheet will succinctly present information ranging from policy types, coverage details, waiting periods, limits, and sub-limits to exclusions, free-look periods, portability, guidance on claim submission procedures, and contact details for complaints.

 

Vehicle Prices Hiked:

As of January 2024, prospective car buyers will need to allocate more funds for their new vehicles. Several car manufacturers, including Maruti Suzuki, Tata Motors, and Mercedes, have announced plans to increase car prices. The rationale behind this move is attributed to heightened cost pressures driven by overall inflation and increased commodity prices.

 

Higher Interest Rates on Small Savings Schemes:

For the Jan-March 2024 quarter, interest rates on some small savings schemes have been raised. Notably, a 20 basis points increase has been implemented for both the Sukanya Samriddhi Account Scheme (SSAS) and the three-year time deposit. The interest rate for the Sukanya Samridhi Account Scheme (SSAS) has surged by 20 basis points to reach 8.20 percent for the March quarter