There are only a few days left to change the year. As soon as 2019 comes into force, some new rules and changes will be implemented in the country. In some cases, these changes will be beneficial and will create some problems elsewhere.
5 major changes that will be implemented from the new year
Let’s say about 5 such major changes that will be implemented from the new year-
1. The magnetic striped card will not run
Magnetic striped cards will stop running in the country from December 31 onwards. At present, there are two types of debit and credit cards in operation with magnetic stripe and EMV chip. Magnetic stripe cards are old technology, and such cards have stopped being made. The reason for this is their low coinage.
In 2016, the Reserve Bank of India (RBI) had ordered all banks to replace ordinary magnetic stripe cards of customers with chip cards. RBI’s steps have been taken to ensure that the customer’s ATM-debit and credit card details are secure.
To complete this work, RBI has declared deadline on 31 December 2018, that is, by this date, the customers’ magnetic stripe cards should be replaced with EMV chip cards. Due to this, banks are now issuing only ATM or debit cards with chips and are also appealing to customers to replace old cards with chip cards as soon as possible.
2. NPS will be fully tax-free
NPS (National Pension Scheme) will fall under the EEE category from the next financial year. Recently, the government announced this. This means that the withdrawal of NPS from the maturity period of NPS on completion or retirement from the new financial year 2019-20 will be completely tax-free. Apart from this, the contribution made by the government under the NPS for Central Government employees has been increased to 14 percent. As of now, it is 10 percent. However, the minimum contribution of employees will be 10 percent.
3. Cars are going to be expensive
Most auto companies are going to increase the price of their cars from 1 January 2019. These include companies like Tata Motors, Ford India, Nissan India, Maruti Suzuki, Toyota Kirloskar, BMW, Reno, Isuzu, Volkswagen, etc. Companies say that the manufacturing costs of vehicles have increased, due to which companies are forced to pass the burden on customers.
4. Non-CTS Checkbook will not run
Banks will not clear non-CTS checks from 1 January 2019. This is happening as per the RBI directive. Due to this, banks are appealing to customers to replace their non-CTS checkbooks with the CTS checkbook at the earliest. SBI has stopped accepting non-CTS checks since December 12.
5. More Accidental cover for vehicles drivers and riders
The Insurance Regulatory and Development Authority of India (IRDAI) has increased the Compulsory Personal Accident (CPA) cover from Rs 1 lakh to Rs 15 lakh for a car / commercial vehicle driver or two-wheeler rider who dies in an accident. Under this new rule, now all vehicle insurance companies will have to include this new personal accident cover of Rs 15 lakh in their accidental policies. The new rule will be effective from 1 January 2019. In addition to the owner or driver-rider, the person traveling with them as an associate driver will also be included.