RBI Cracks Down on Mis-Selling
In a significant move to protect consumers, the Reserve Bank of India (RBI) is implementing a new framework to curb the mis-selling of financial products by banks, effective July 1. Under these new rules, if a bank is found to have mis-sold a product using
unfair or deceptive practices, the customer is entitled to a full refund. They may also receive compensation for any financial loss incurred because of the mis-selling. This rule aims to increase transparency and ensure banks recommend products that are genuinely suitable for their customers, rather than pushing ones that don't fit their needs.
Changes to Credit Card Rewards and Access
Credit card users, take note. Several banks are revising their reward point programs and benefits from July 1. SBI Card is changing the reward points program for its PhonePe SBI Credit Card PURPLE and SELECT BLACK variants, introducing new limits on earning points. Meanwhile, HDFC Bank is tightening its criteria for complimentary airport lounge access. Cardholders will now need to have spent at least ₹60,000 in the previous calendar quarter to avail three free domestic lounge visits in the current quarter. For access between July and September 2026, you must have spent the minimum amount between April and June 2026.
Free Aadhaar Email Updates
The Unique Identification Authority of India (UIDAI) has introduced a welcome relief for all Aadhaar holders. From July 1, 2026, until December 31, 2026, the authority is waiving the usual ₹75 fee for updating the registered email address associated with your Aadhaar. This service can be availed for free through the Aadhaar mobile application. It’s a good opportunity to ensure your contact details are current, which is crucial for receiving important updates and for authentication purposes.
Passport Fees Are Going Up
If you're planning to apply for a new passport or renew an existing one, be prepared for higher costs. The Ministry of External Affairs has increased the service fees for both normal and Tatkaal passport services, with the new rates coming into effect from July 1. Applicants are advised to check the updated fee structure on the official passport portal before starting their application to avoid any payment-related issues.
Deadline for Income Tax Returns
While not a new rule, July brings a crucial deadline for taxpayers. The last day for most individual taxpayers (those filing ITR-1 and ITR-2) to file their Income Tax Return for the Financial Year 2025-26 is July 31, 2026. Missing this deadline can lead to penalties, including a fine of up to ₹5,000 for those with an annual income over ₹5 lakh. It can also limit your ability to carry forward certain losses to future years, so it is wise to file your returns on time.
New Rules for Lenders and Borrowers
The RBI is also introducing stricter guidelines for loan recovery agents, which take full effect on July 1. Lenders will now be held fully responsible for the actions of their recovery agents. Agents can only contact borrowers between 8:00 AM and 7:00 PM and must present proper identification and authorization. In a separate move impacting the stock market, the RBI has tightened lending rules for brokers engaging in proprietary trading. Starting July 1, all bank credit extended to these firms must be 100% collateralized, a move aimed at reducing speculative behavior and enhancing banking sector stability.
