Sunday, July 14, 2024
HomeBusinessKey Money Rule Changes From October

Key Money Rule Changes From October


Financial Rule Changes From October 1: Starting October 2022, a lot of developments relating to our personal finances will occur. Personal finance is essential to regulating your daily expenses and planning for the future, therefore if any changes are announced, care should be made to avoid having a negative influence on your budget or financial planning in the future. Several regulations will take effect on October 1st. Here are the changes that may affect your personal finances starting the following month.

RBI Tokenisation to Come Into Effect

The deadline to tokenise your credit cards and debit cards is fast approaching, and if you do not follow this new mandate by the Reserve Bank of India, you may have to give more time while making online payments. After a host of delays in implementation, the credit card and debit card tokenisation rules will come into effect from October 1. Under these rules, domestic merchants cannot store your card information like its number and CVV when you make an online payment. The RBI has notified these tokenisation guidelines to make the online payment system more secured and safe, whereby consumers will have the ultimate authority before anyone can access their sensitive information.

Mandatory Two-Factor Authentication for Demat Account Login

Demat account holders have to compel the use of two-factor authentication by September 30, 2022. on any applications made available to consumers through Internet-based trading (IBT) and securities trading using wireless technology (STWT).

On June 14, 2022, NSE said in a circular that “In joint consultation with SEBI and Exchanges, it is hereby clarified that, in addition to user ID, Members shall preferably use biometric authentication as one of the authentication factors, along with any one of the below-mentioned factors: 1. Knowledge factor (something only the user knows): – for e.g., Password, PIN. 2. Possession factor (something only the user has): – for e.g., OTP, security token, authenticator apps on smartphones, etc. In the case of OTP, the same should be sent to clients through both email and SMS on their registered email ID and Mobile number. In cases, where biometric authentication is not possible, Members shall use both the aforementioned factors (Knowledge factor and Possession factor), in addition to the user ID, for 2-factor authentication (2FA). It is to be noted that the abovementioned authentication shall be implemented on every login session by the client to IBT and STWT. The above guidelines shall be implemented latest by September 30, 2022.”

Atal Pension Yojana Scheme to Close for Income Tax Payers

From October 1, income taxpayers will not be eligible to enroll for this government-backed scheme. The objective is to better target pension benefits to underserved demographic groups, according to the finance ministry.

“Provided that from 1st October 2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY. For the purpose of this clause, the expression “income-tax payer” shall mean a person who is liable to pay income tax in accordance with the Income Tax Act, 1961, as amended from time to time,” the Centre said in a notification dated August 10, 2022.

New Credit and Debit Card Rules

The Reserve Bank of India (RBI) had extended the deadline for implementation of a few Master Direction provisions, including the issuing and use of credit and debit cards, to October 1 of this year from July 1.

Under the new norms, the credit-issuers will receive an OTP to activate the card. However, if the issuer fails to do that within a specified period of 30 days (from the date of issuance), the card will be blocked within seven days from the date of seeking confirmation from the customer.

Moreover, the card-issuer should refrain from breaching the sanctioned credit limit without seeking explicit consent from the cardholder. There will be no capitalisation of unpaid charges/levies/taxes for charging/ compounding of interest.

E-nomination Process for NPS Subscribers

According to the Pension Fund Regulatory and Development Authority, changes have been made to the National Pension System (NPS) e-nominations process flow for subscribers in the government and corporate sectors (PFRDA). Existing NPS subscribers can amend their nomination in their PRAN by utilising “e Nomination” and their login credentials. The request for changes to the nomination may also be physically submitted by the subscribers to the appropriate Nodal Officers, Corporate, or Points of Presence (POPs).

On August 25, 2022, PFRDA said in a release that “In case of e Nomination of the Subscribers associated with the Government/ Identified Corporate, the e nomination requests need to be authorized by the associated Nodal Office/Identified Corporate for changing the nomination in the PRAN of Subscribers as maintained by the respective CRA. There are a large number of pendency of e Nomination requests of Subscribers, which are attributed to the non-authorization by the associated Nodal Office/Corporate. In the interest of Subscribers, it has been decided that once the subscriber initiates the nomination request, the Nodal Office would be given an option of either Accept or Reject the nomination request. In case, the Nodal Office has not initiated any action against the request within the 30 days period, the request would get accepted in CRA system. The revised process flow shall also be applicable to the existing e nomination, which are still unauthorized.”

In the e Nomination, the Subscribers will also need to submit an online declaration stating that “I understand and consent to that nomination being made by me now shall be invalid ab initio if it is not consistent with Regulation 32 of the PFRDA (Exits and Withdrawals) Regulations, 2015 and amendments”. The revision in the e Nomination process flow shall be effective from 1st Oct 2022, as per PFRDA.

Read all the Latest Business News and Breaking News here


Source link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments