From banking services to car insurance; Know what’s getting expensive from June 1


From June 1, you will have to pay more for various things. Read on to find out which services would require you to pay more.

Private cars with engines ranging from 1,000cc to 1,500cc would attract Rs.3,416 people, up from 3,221

According to reports, a few services will become more expensive starting today, i.e. June 1, impacting the lives of millions of people in the country. The announcement comes at a time when inflation has risen sharply due to rising input costs.

What impact will these developments have on us? If you own a car or are going to buy one, your insurance premiums will go up on June 1. A few banks have also announced changes to certain service categories.

Here is an overview of the changes and their impact on you:

Insurance premiums

The Ministry of Road Transport and Highways (MoRTH) announced last week that the price of motor third party liability insurance for several types of vehicles has increased. The increase in charges will take effect on June 1, according to the statement.

The modified prices will be as follows:

  • Private cars with a 1,000cc engine will be attracted by Rs. 2,094 instead of 2,072.

  • Private cars with engines ranging from 1,000 cc to 1,500 cc would attract Rs. 3,416 people, up from 3,221.

  • Premiums for cars with engines over 1,500cc will be reduced from Rs.7,897 to Rs.7,890.

  • The new premium for two-wheelers with engines over 350cc will be Rs.2,804.

  • However, insurance prices for hybrid electric vehicles will be reduced by 7.5%.

  • Private electric vehicles with less than 30 KW of power output will be charged Rs.1,780.

  • Liability insurance will cost Rs 2,904 for those with a power of 30 KW to 65 KW.

Banking services

  • SBI’s home loan rate rose 40 basis points to 7.05%.

  • Since June 1, Axis Bank has increased service fees for salary and savings accounts. The average monthly balance required has also been increased from 15,000 to 25,000.

Following the RBI’s hike in key rates to contain inflation in early May, some banking rules were changed. More rate hikes are expected this month, according to financial experts.

India Post Payments Bank Charges for Aadhaar Enabled Payments

India Post Payments Bank has launched Aadhaar Enabled Payment System (AePS) service fee. The first 3 transactions of the AePS issuer each month (cash withdrawal, cash deposit and mini statement) will be free. But if you exceed the free transaction limit, cash withdrawals and cash deposits from the AePS issuer will be charged at Rs.20+GST/transaction.

First published: June 01, 2022, 11:32 IST


About Author

Comments are closed.