Flight fares to RTGS, NEFT charges: What gets costlier & cheaper from today

Topics Paytm | sbi

Did your spending take a hit between January and June? The first half of 2019 is over and today, the latter half begins. Business Standard brings to you a list of products and services that might either pinch your pockets or ease your expenses in the coming months.

What becomes more expensive from today? 

1. M&M cars to pinch your pockets even more from today

Mahindra & Mahindra (M&M) is set to hike price of its cars by up to Rs 36,000 from today. "This price increase is due to the implementation of AIS 145 safety norms across all passenger vehicles in India," the company said. Mahindra said, the SUVs that will take a substantial price increase are the Scorpio, Bolero, TUV300 and KUV100 NXT, while brands such as the XUV500 and Marazzo will increase prices marginally.

Implementation of AIS 145 Safety Norms from July 1, 2019 mandates the fitment of several safety features including driver airbag, seat belt reminder for driver and co-driver, rear parking sensors and an over speed alert for the driver across all passenger vehicle models, the company added. 

These safety upgrades has led to some cost increases. Consequently, M&M will pass on the burden of cost-hike to its customers.

2. Air travel to become slightly more expensive from today

From today onwards, travelling by air will cost you more than it used too untill yesterday. The Ministry of Civil Aviation has decided to increase the aviation security fee (ASF) from Rs 130 to Rs 150 for each Indian passenger. For international passengers, the ASF will be increased from $3.25 to $4.85.

ALSO READ: Air travel to become bit costlier as govt announces hike in aviation security fee from July 1

3. IndiGo hikes fees for cancellation

Budget carrier IndiGo has announced that it is increasing cancellation charges and changes made to tickets by Rs 500. The charges were implemented on June 28 and will be applicable on changes made to tickets three days prior to a flight's departure.

4. Foreign trips set to get at least 10% costlier

Overseas tour costs are expected to increase by at least 10 per cent more, thanks to the grounding of Jet Airways. For passengers, air ticket price accounts for nearly half of the total cost for short-haul destinations like Dubai, Bangkok or Singapore while it accounts for around 35-40 per cent for Europe. “This is peak travel season and there is a capacity crunch caused by cancellation of Jet flights. This has led to around 20 per cent escalation in fares. We expect 10 per cent increase in foreign tours costs,” said Rakshit Desai, managing director of FCM Travel Solutions.

5. Fork out fee on Paytm transactions from today?

An Economics Times report said that from today, Paytm would pass on the Merchant Discount Rate (MDR) that banks and card companies charge for digital transactions to consumers. According to the report, Paytm would charge:

— 1% on payments through credit cards
— 0.9% for debit cards
— Up to Rs 12-15 for transactions by net banking and UPI

Paytm, however, denied levying transaction fee. In a statement, Paytm said: "Paytm App/Payment Gateway does not charge or levy any convenience/transaction fee from our customers on using any payment method which includes cards, UPI, net-banking, and wallet. Paytm customers will continue using all the services available on the platform without any fee."

"We do not have any plans to levy any such fee in the future as well," it added.

What becomes cheaper from today?

1. SBI home loan

SBI to offer repo rate-linked home loans from today. It will also reduce interest rate on cash credit account and over draft customers with limits of over Rs 1 lakh. The current repo-linked lending Arate (RLLR) for cash credit and overdraft customers is 8 per cent.

"The benefit of reduction in repo rate by 25 bps (basis points) by RBI has been passed in its entirety to CC/OD customers (limits above Rs 1 lakh) banking with us, with effect from 1st July 2019," an SBI statement said.

2. Fund transfers via RTGS, NEFT to cost less from today

The Reserve Bank of India (RBI) had decided to waive all charges on fund transfer through popular RTGS and NEFT systems from today. It has asked banks to pass on the benefits to customers.

The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers while the National Electronic Funds Transfer (NEFT) System is used for fund transfers of up to Rs 2 lakh.

3. LPG cylinder to cost Rs 100 less in Delhi from today

In a respite to consumers, non-subsidised cooking gas cylinders (LPG) will cost Rs 100 less in Delhi from today. According to Indian Oil Corporation (IOC), non-subsidised LPG gas cylinders will be available for Rs 637 per cylinder. "The price of non-subsidised LPG in Delhi will decrease by Rs 100.50/cylinder w.e.f. 1st July 2019 based on LPG Prices in international market and USD-rupee exchange rate," IOC said in a press release.

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