Stability in Small Savings Schemes
In a significant announcement for conservative investors, the government has decided to keep the interest rates on small savings schemes unchanged for the July-September 2026 quarter. This marks the ninth consecutive quarter without a change, providing
continued stability for those invested in government-backed instruments. According to a notification from the Ministry of Finance, popular schemes will continue to offer the same returns as the previous quarter. This means the Public Provident Fund (PPF) will maintain its 7.1% interest rate, while the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will continue to offer a higher rate of 8.2%. Other rates, such as those for the National Savings Certificate (7.7%) and Post Office Time Deposits, also remain steady. This decision provides predictability for millions of savers who rely on these schemes for safe, long-term wealth creation.
Key Income Tax Deadline Approaches
July is a critical month for taxpayers, as the deadline for filing Income Tax Returns (ITR) for the Financial Year 2025-26 is fast approaching. For most individual taxpayers, including salaried individuals and those filing ITR-1 or ITR-2 forms, the last day to submit their returns without a penalty is July 31, 2026. Missing this deadline can lead to several negative consequences, including a late filing fee. For those with an annual income exceeding ₹5 lakh, the penalty can be up to ₹5,000. Beyond the financial penalty, late filing can also restrict your ability to carry forward certain losses to future assessment years. It is crucial to gather all necessary documents and file your return on time to ensure compliance and avoid any last-minute hassles.
New Banking Rules to Protect Customers
In a move to enhance consumer protection, the Reserve Bank of India (RBI) is implementing a new framework from July 1 to curb the mis-selling of financial products by banks. Under these new regulations, customers who are sold unsuitable financial products through misleading practices will be entitled to a full refund and compensation for any losses incurred. This strengthens the rights of consumers and places greater accountability on banks to ensure the products they offer are appropriate for their customers' needs. Separately, the RBI has also introduced tighter funding norms for stockbrokers, which will come into effect on the same day. These rules require bank guarantees issued to brokers to be fully collateralised, a change aimed at reducing systemic risk in the financial markets.
Changes to Credit Card Rewards and Access
Credit card users should take note of several changes to reward programs and benefits that begin this month. HDFC Bank has updated its policy for complimentary domestic airport lounge access. Starting July 1, cardholders must spend at least ₹60,000 in the preceding calendar quarter to be eligible for three free visits in the current quarter. For example, to get lounge access between July and September, you must have spent the required amount between April and June. SBI Card is also revising its reward points program for certain co-branded cards from July 1, with new limits on earning points and an expanded list of transactions that will not qualify for rewards. Cardholders are advised to check with their banks to understand how these new rules might affect their benefits.
Updates on Aadhaar and Passports
There are a couple of other notable changes taking effect. The Unique Identification Authority of India (UIDAI) has introduced a temporary waiver on fees for updating the email address linked to your Aadhaar. From July 1 until December 31, 2026, this service, which normally costs ₹75, will be free when done through the official Aadhaar mobile application. On the travel front, applying for a passport will become more expensive. The Ministry of External Affairs has increased the service fees for both normal and Tatkaal passport applications, with the new rates effective from July 1. For instance, a standard 36-page passport will now cost ₹2,500, up from ₹1,500.
