Hike in Axis Bank service fee, SBI home loan interest: Key changes in June


The month of June is less than a week away and, as is the case each month, some new or revised financial rules will come into effect in June as well. While some of the changes will come into effect from the very first day, others will come into force later in the month. Some of these rules will also hit the pocket of the common man.

Here are some key financial changes that will be implemented in June 2022:

(1.) Axis Bank service charge hike: The leading private sector lender has revised the average monthly balance (AMB) requirement to 25,000 from 15,000; on the other hand, the minimum service fee on non-maintenance of balance will be zero, down from the existing 75. The maximum price will be 600, 300 and 250 for metro/urban regions, semi-urban areas and rural places, respectively. Both changes will be in force from June 1.

(2.) Rise in SBI home loan interest: The State Bank of India (SBI) announced, with effect from June 1, an increase of 40 basis points, to 7.05%, to External Benchmark Lending Rate (EBLR), and changed the Repo-Linked Lending Rate (RLLR) to 6.65% plus Credit Risk Premium (CRP).

(3.) Costlier cars and bikes: Also from June1, the third-party motor insurance premium for various categories of vehicles will increase, as announced by the Union ministry of road transport and highways. This will likely result in the cost of cars and two-wheelers going up.

Also Read | Lower insurance premium for school buses, e-vehicles

(4.) ATF price hike: Aviation Turbine Fuel (ATF) prices are revised generally on the first and sixteenth of a month. On May 16, ATF prices, in the tenth straight increase of the year, rose by 5.29%, or 6,188.25 per kilolitre, to an all-time high of 1,23,039.71 per kilolitre.

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