RBI Cracks Down on Mis-Selling
In a significant move to protect consumers, the Reserve Bank of India (RBI) has implemented a new framework to curb the mis-selling of financial products. Starting July 1, if a bank or other regulated entity sells you an unsuitable financial product through
unfair or misleading practices, you are entitled to a full refund. You may also be able to claim compensation for any financial loss incurred as a result of the mis-selling, a change that significantly strengthens consumer rights in the banking sector. The final directions for this framework were released in mid-June and are now officially in effect.
Credit Card Rewards and Lounge Access Shift
If you rely on your credit card for airport lounge access, it’s time to check the new terms. HDFC Bank has introduced a spending-based criteria for several of its popular cards. From July 1, cardholders must spend at least Rs 60,000 in the preceding calendar quarter to qualify for complimentary domestic lounge visits. For instance, to get access in the July-September quarter, you needed to have spent that amount between April and June. Similarly, SBI Card has revised the reward point structure for its co-branded PhonePe cards, changing the limits on earning points and expanding the list of transactions that are not eligible for rewards.
Passport Fees and Aadhaar Updates
Planning an international trip? Be prepared for higher costs. The Ministry of External Affairs has increased passport application fees effective July 1, the first major update since 2012. The fee for a standard 36-page passport has risen from Rs 1,500 to Rs 2,500, while a 60-page booklet now costs Rs 3,500 instead of Rs 2,000. On a positive note, the Unique Identification Authority of India (UIDAI) has waived the Rs 75 fee for updating the email address linked to your Aadhaar. This service is free from July 1 until December 31, 2026, when done through the Aadhaar mobile app.
Tax Filing Deadline Approaches
July marks the final month for many taxpayers to file their Income Tax Returns (ITR) for the Financial Year 2025-26 (Assessment Year 2026-27). The deadline for most salaried individuals and those filing ITR-1 or ITR-2 forms is July 31, 2026. Missing this deadline can lead to a penalty of up to Rs 5,000 for those with an annual income over Rs 5 lakh, and Rs 1,000 for those below that threshold. It's a crucial deadline to avoid financial penalties and ensure you can carry forward any eligible losses.
Stability in Small Savings Schemes
For those invested in government-backed small savings schemes, there is stability for now. The Finance Ministry announced that interest rates for the quarter running from July 1 to September 30, 2026, will remain unchanged. This marks the ninth consecutive quarter without a rate change. This means schemes like the Public Provident Fund (PPF) will continue to offer 7.1%, the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will both hold at 8.2%, and the National Savings Certificate (NSC) remains at 7.7%.
