Key changes from August 1: New FASTag rules, tax deadline, faster cashless insurance approvals, credit card rules. Check details

There are a couple of key changes in financial policies and banking regulations are set to impact consumers and investors from August 1. The new rules span taxation, banking fees, investment options and other services. Here are important changes to be aware of this month. 

FASTag changes 

The National Payments Corporation of India (NPCI) will enforce new guidelines for FASTag users from August 1. The National Payments Corporation of India (NPCI) has issued new guidelines, with a key update being the mandatory FASTag KYC requirements.  

Effective today, FASTag users must update their KYC details until October 31, especially if their FASTag is between 3 to 5 years old. Any FASTags older than five years must be replaced.  

Vehicle registration number and chassis number must be linked with the FASTag. New vehicle owners must update their FASTag with the vehicle's registration number within 90 days of purchase. 

FASTag providers must verify their databases. To improve identification and security, FASTag providers are now required to upload clear, high-quality photos of the vehicle’s front and side. 

To ensure seamless communication and timely updates, it's mandatory to link each FASTag to a mobile number. 

Cashless authorisation for non-life insurances 

From August 1, non-life insurance companies will have to convey their decision on granting cashless authorisation within one hour of having received the request through hospitals. 

The Insurance Regulatory and Development Authority of India (IRDA), in a master circular on health insurance issued on May 29, 2024, had directed the companies to put in place the systems and procedures required to facilitate prompt approvals by July 31. This is part of the regulator’s larger strategy to pave the way for 100 percent cashless authorisation. Insurers have been asked to ensure that. 

Revised terms for HDFC credit card users 

HDFC Bank has revised terms for its credit card portfolio from today. In line with other banks, the lender will charge a 1 percent fee on transactions for using third-party payment apps (CRED, Paytm, Cheq, MobiKwik, and others) for rental and educational transactions. The bank has also introduced a 1 percent charge on utility transactions above Rs 50,000. 

The bank has introduced a rewards redemption fee of Rs 50. It has also hiked annual/renewal fees on two of its credit cards that have a tie-up with Indigo Airlines — 6E Rewards XL–IndiGo HDFC Bank Credit Card and 6E Rewards–IndiGo HDFC Bank Credit Card. And finally, it has revised its late payment fee structure as well on these two cards. 

Google Maps 

Starting August 1, Google Maps will reduce its service charges by up to 70 per cent to attract partners. Additionally, billing will switch from dollars to rupees. Regular users won't be affected, as no extra charges will be implemented for them. 

New tax regime 

If you have missed the deadline for filing ITR, the new tax regime will be considered default for you from August 1. Even if you file a belated ITR until December 31, 2024, you will not be able to opt for old tax regime for tax calculation.