HDFC hikes rates
Housing Development Finance Corp (HDFC), a mortgage financier, has raised its benchmark retail prime lending rates (RPLR) by 10 basis points to 16.45 per cent, effective June 2. HDFC’s home loans under the adjustable rate are linked to its RPLR. If there is a change in RPLR, the interest rate on your loan will be revised once in three months depending on the date of your first disbursement. After the revision, the rate of interest on loans for new homes of up to ₹30 lakh will be 8.55 per cent.
Gratuity ceiling from March 29
The government has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972, from ₹10 lakh to ₹20 lakh, with effect from March 29, for private-sector employees. The Labour Ministry had received a large number of representations requesting that the effective date for the increased ceiling limit be made January 1, 2016, instead of March 29, 2018, at par with Central government employees. However, the Ministry has clarified that the new ceiling will be implemented from March 29, 2018. The Ministry said that implementation with retrospective effect will be administratively difficult and that employers may not have sufficient liquidity to meet arrear liabilities.