The month of June begins today and is set to bring some major financial changes with it. The month, which will officially mark halfway to the calendar of the year will bring significant changes in bank and insurance rates. From service charge revisions in Axis Bank, higher premiums for car insurance to an anticipated change in cylinder prices — a host of these new rules will affect the pocket of the common man from this month.

Let’s look at the changes to come into effect from June

SBI customers to pay higher home loan interest rates

The State Bank of India (SBI) has raised its home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 per cent. Earlier the EBLR rate was 6.65 per cent. When offering any type of loan, including house and vehicle loans, banks also add a Credit Risk Premium (CRP) over the EBLR. According to SBI’s website, the increased interest rates will take effect on June 1, 2022. All floating rate home loans will have interest rates linked to EBLR.

Hike in Axis Bank service charge

Axis Bank has revised its banking and non-banking service charges for customers with savings and salary accounts at the bank. This includes an increase in the service fee per month over non-maintenance of minimum account balance and an increase in the monthly average balance requirement.

From June 1, the monthly average balance requirement will be up from Rs 15,000 to Rs 25,000, while the monthly service fee for non-maintenance of account has also been increased.

Motor insurance premiums for two-wheelers

It is important to note that the third-party motor insurance premium for various categories of vehicles will increase, as announced by the Union ministry of road transport and highways.

For those who own two-wheelers with an engine capacity of less than 75cc, the cost of third-party cover has gone up to Rs 538. For two-wheelers with engine capacity exceeding 75cc but not exceeding 150cc, the cost of the premium will be Rs 714. Two-wheelers with engine capacity exceeding 150cc but not exceeding 350cc, the cost of the premium will be Rs 1366. Two-wheelers with engine capacities above 350cc, the cost of the premium will be Rs 2,804.

Motor insurance premiums for four-wheelers

Third-party rates for private four-wheelers have also witnessed a hike. From 1 June, the third-party premium for a car with an engine capacity of less than 1000cc will be Rs 2,094. For a car with engine capacity exceeding 1000cc but not exceeding 1500cc, the third-party premium will be Rs 3,416. For cars with an engine capacity of more than 1500cc, the premium for them will tand at RS 7,897. These rates were last revised for the financial year 2019-20 and were kept unchanged during the COVID-19 pandemic.

India Post Payments Bank charges for Aadhaar Enabled Payments

India Post Payments Bank (IPPB) has introduced Aadhaar Enabled Payment System service charges (AePS). This means AePS Issuer transaction charges will come into effect from June 15, 2022. However, the first three AePS issuer transactions each month, such as cash withdrawal, cash deposit, and mini statement, will be free of charge. If you cross the free transaction limit, then AePS issuer cash withdrawals and cash deposits will be charged at Rs20 plus GST per transaction, and mini statement transactions will be charged at Rs5 plus GST per transaction.