Every month we see some rules pertaining to cheque clearing, UPI payment, GST, FasTags, WhatsApp among others change. These changes impact a common man’s life and his/her finances. This time, it is not only a new month in the offing but also a new year.
Let us take a look at and become aware of the changes that are going to come into effect from January 1, 2021:
Positive Pay mechanism for cheques
The Reserve Bank of India (RBI) had in August 2020 announced that a Positive Pay System for cheque clearing would be launched from January 1, 2021. As per the new cheque clearing rules, re-confirmation of key details may be needed for payments beyond Rs 50,000 to keep a check on frauds and abuse cases emerging from cheque payments.
FASTag will be mandatory for all vehicles
FASTag will be mandatory for vehicles from January 1, 2021. For the uninitiated, FASTags facilitate electronic payment of fee at toll plazas. Introduced in 2016, the compulsory use of these tags will help vehicles pass without any hitch through the toll plazas, preventing long queues.
The Ministry of Road Transport and Highways said in a statement that FASTag is being made mandatory for all vehicles in the country from the new year.
Increase in contactless card transaction limit
The RBI had earlier announced an increase in the limit of contactless card transactions from Rs 2,000 to Rs 5,000 in order to boost the adoption of digital payments. This will be effective from January 1, 2021.
WhatsApp to stop working on some devices
There is bad news for some iOS and Android phone users because come 2021 WhatsApp will end support for some of the devices. WhatsApp will primarily end support for smartphones that are using outdated operating systems like those below iOS 9 or Android 4.0.3 operating systems. According to reports, the iPhones that do not run on iOS 9 will not able use to WhatsApp on their phones from 2021. The iPhone models include all iPhone 4 and earlier models. However, if you have iPhone 4S, iPhone 5, iPhone 5S, iPhone 5C, iPhone 6, and iPhone 6S, you will have to update your phone to iOS 9 or later if you want to continue using WhatsApp. The iPhone 6S, 6 Plus, and iPhone SE first generation can be updated to iOS 14.
Similarly, Android phones that do not have at least Android 4.0.3 will lose access to WhatsApp. This includes models like HTC Desire, LG Optimus Black, Motorola Droid Razr, the Samsung Galaxy S2. There could be many other Android phones that could lose support for WhatsApp in 2021.
Car prices set to rise
Buying a new car could become a costly affair in 2021 as car manufacturers such as Maruti Suzuki India and Mahindra & Mahindra have announced to hike the prices of their products to offset higher input costs.
GST rule change for small businesses
From January 1, 2021, businesses with up to Rs 5 crore turnover will have to file only four GST sales returns, or GSTR-3B, instead of 12 at present. This means with effect from January 1, small businesses are required to file only eight returns (four GSTR-3B and four GSTR-1 returns) in a year. This new scheme will impact almost 92 per cent of the total tax base.
