Financial changes to watch out for in May: New KYC rules, banking charges and more

May brings a slew of financial adjustments affecting mutual fund investors and banking customers. Several banks will charge an additional 1 per cent fee on all utility payments made using their credit cards from May 1. This will be in addition to the rent payments that are made through credit cards. 

From revised fees to new KYC rules, here are five key money-related updates you need to know:

1. Mutual Fund Application KYC Rule: Starting April 30, mutual fund applications must match the name and date of birth on your PAN card. This harmonization aims to ensure consistency across official records.

2. ICICI Bank Savings Account Charges: ICICI Bank revises its savings account charges effective May 1. This includes fees on debit cards, cheque books, IMPS transactions, demand drafts, signature attestation, stop-payment requests, and ECS/NACH debit returns. ICICI Bank will collect new charges for savings account transactions such as cheque book issues, clearance, IMPS and debit returns. As per the revised rule, the customer can collect only 25 cheque leaves free for a year after which a fee of ₹4 will be charged

3. YES Bank Savings Account Charges: YES Bank increases charges for maintaining a low balance in savings accounts. Charges now range from Rs 250 to Rs 1,000, with additional fees for ECS returns due to insufficient funds.

4. HDFC Bank Senior Citizen Care FD Discontinuation: May 2 marks the last day to invest in HDFC Bank’s senior citizen care fixed deposit, offering a higher interest rate for residents aged 60 and above.

5. Utility Payments Surcharge with Credit Cards: YES Bank and IDFC First Bank introduce a surcharge on utility transactions made with credit cards. The surcharge applies when utility bill payments exceed Rs 15,000 (YES Bank) or Rs 20,000 (IDFC First Bank) in a statement cycle.

These changes underscore the importance of staying informed about evolving financial policies and practices.