As per reports, a few services will become more expensive from today i.e., June 1, impacting the lives of crores of people in the country. The announcement comes at a time when inflation has risen sharply as a result of higher input costs.

What impact will these developments have on us? If you own a car or are going to buy one, your insurance premiums will increase on June 1. A few banks have also announced modifications to certain service categories.

Here’s a rundown of the changes and how they’ll affect you:

Insurance Premiums

The Ministry of Road Transport and Highways (MoRTH) notified last week that the rate for third-party motor insurance for several vehicle types has increased. The increased charges will take effect on June 1st, according to the statement.

The amended tariffs will be as follows:

• Private cars with a 1,000cc engine will be attracted to Rs. 2,094 instead of 2,072.

• Private cars with engines ranging from 1,000cc to 1,500cc would draw Rs.3,416 people, compared to 3,221.

• Premiums for cars with engines larger than 1,500 ccs will be reduced from Rs.7,897 to Rs.7,890.

• The new premium for two-wheelers with engines larger than 350cc will be Rs.2,804.

• However, insurance prices for hybrid electric vehicles will be reduced by 7.5 percent.

• Private e-vehicles with less than 30 KW of power output will be charged Rs.1,780.

• Third-party insurance will cost Rs.2,904 for those with 30KW to 65KW of power.

Banking Services

• SBI’s home loan lending rate has risen by 40 basis points to 7.05 percent.

• With effect from June 1, Axis Bank has increased the service charges for salary and savings accounts. The average monthly balance requirement has also been increased from 15,000 to 25,000.

Following the RBI’s raise in policy rates to contain inflation in early May, certain banking rules were altered. More rate hikes are expected this month, according to financial experts.

India Post Payments Bank charges for Aadhaar Enabled Payments

India Post Payments Bank has launched Aadhaar Enabled Payment System service charges (AePS). The first 3 AePS issuer transactions every month (cash withdrawal, cash deposit & mini statement) will be free of cost. But if you cross the free transaction limit, then AePS issuer cash withdrawals & cash deposits will be charged at Rs.20 + GST / transaction.

First published on: 01 Jun 2022, 11:32 IST