RBI Cracks Down on Mis-Selling by Banks
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. Starting July 1, if a bank or regulated entity sells you an unsuitable product through misleading
practices, you will be entitled to a full refund and compensation for any losses. This rule empowers customers and places a greater responsibility on banks to ensure their sales practices are transparent and fair. It's a welcome step towards building greater trust in the banking system.
Credit Card Perks Get a Revamp
Your credit card benefits might look a little different this month. Several major banks are updating their policies. For instance, HDFC Bank has introduced a new spend-based criteria for complimentary domestic airport lounge access; cardholders must now spend at least ₹60,000 in the preceding quarter to qualify for the benefit. Similarly, SBI Card is revising the reward point rules for some of its co-branded cards, including new limits and changing which transactions are eligible for points. It is a good time to review your card's terms and conditions to understand how these changes affect your rewards.
Passport Application Fees Are Going Up
If you're planning to apply for a new passport or renew your old one, be prepared to pay more. The Ministry of External Affairs has increased the fees for passport services effective July 1. The fee for a normal 36-page passport has been increased to ₹2,500, while a Tatkaal application for the same will now cost ₹5,000. Fees for larger booklets and other services have also been revised upwards, marking the first major fee hike in several years.
Your Income Tax Filing Clock is Ticking
While not a new rule, July serves as a critical reminder for taxpayers. The deadline for filing Income Tax Returns (ITR) for most individuals and non-audit cases (using ITR-1 and ITR-2 forms) for the Financial Year 2025-26 is July 31, 2026. Missing this deadline can lead to penalties, restrict your ability to choose certain tax regimes, and limit your options for carrying forward losses to future years. It's time to gather your documents and get your filing done to avoid last-minute stress.
A Small but Welcome Aadhaar Update
In a bit of good news, the Unique Identification Authority of India (UIDAI) has offered a temporary waiver on a specific service. From July 1 until December 31, 2026, you can update the email address linked to your Aadhaar card for free using the official mobile app. The usual fee of ₹75 for this service has been waived for this six-month period, making it easier to keep your details current.
Stricter Rules for Railway Travel
Indian Railways is increasing penalties for certain offences starting July 1 to improve compliance and discourage ticketless travel. The minimum penalty for travelling without a valid ticket is set to double from ₹250 to ₹500. Additionally, fines for male passengers travelling in coaches reserved for women could go up to ₹2,500. Steeper penalties will also apply for other violations like travelling on another person's ticket or creating a nuisance.
