Five Money-Related Changes You Must Know Before Entering Into 2021; Centre Introduces Some New Rules To Be Effective From January 1

New Delhi, December 28, 2020: Three days to go for the new year. Here are five changes you must know before entering into 2021. The centre has made amendments in many money-handling matters which are effective from January 1, 2021. These include mandating FASTags for four-wheelers, a positive pay system for cheque payments, an increase in the limit of contactless card transactions among others.

FASTags compulsory for four-wheelers: The government has mandated FASTags for four-wheelers sold before December 1, 2017 and to third party vehicle insurance which will be effective from April 2021. With effect from January 2021, FASTag will be mandatory for four-wheelers sold before December 2017 or M and N class motor vehicles. As per the Central Motor Vehicles Rules, 1989, FASTag was already made mandatory for the registration of new four-wheelers since December 1, 2017.

Cheque Payment System to Positive Payment System: The Reserve Bank of India (RBI) has decided to introduce a ‘Positive Pay System’ for cheque payments from January 1, 2021. However, banks may consider making it mandatory in the case of cheques of Rs 5 lakh and above. Under the positive payment system, the issuer of the check must electronically send some minimum information of that check such as beneficiary’s name, payer, amount, payable to the bank via SMS, mobile app, Internet banking, or ATM. These details will be cross-checked before a check is presented for payment.

Increase in contactless card payment limit: RBI has announced to increase the limit of e-mandates on contactless card payment and card (and UPI) from Rs 2,000 to Rs 5,000. To promote digital payments securely, the central bank has decided to make it effective from January 1, 2021.

Car prices hike: The price of the vehicle will increase by the year. MG Motor India recently stated the increase. Mahindra & Mahindra (M&M) also said it would hike prices of its entire range of passenger and commercial vehicles from January 2021 to partially mitigate the impact of rising input costs. 

Goods and Services Tax (GST) Return Filing Facility on Three Months: About 94 lakh small businesses will come under the quarterly Goods and Services Tax (GST) return filing facility. Firms with sales up to Rs 5 crore will have to file only four returns from January 2021 — showing the summary of all transactions in the quarter under the new arrangement.