Many new rules will come into effect from October 2022. These include the new rules of the Reserve Bank of India (RBI) regarding credit cards, which can no longer invest in Atal Pension Yojana, the KYC rules for demat account and more. Here are five important changes that will take effect on October 1, 2022.
New rules for credit and debit cards
The Reserve Bank of India (RBI) had extended the deadline for implementing certain provisions of the Master Address, including the issuance and use of credit and debit cards, to October 1 this year from July 1.
Provisions to be implemented under the new directive include:
Credit issuers will receive a one-time OTP to activate the card. However, if the issuer does not do so within a specified period of 30 days (from the date of issue), the card will be blocked within seven days from the date of the customer's request for confirmation.
The card issuer must not breach the approved credit limit without requesting the express consent of the cardholder.
There will be no capitalization of unpaid charges/ levies/ taxes for charging/ compounding of interest.
Demat account log in
According to the June 14 circular from the National Stock Exchange (NSE), demo account holders may not be able to access their account if they do not use two-factor authentication by September 30, 2022.
The circular states that "members are encouraged to use biometric authentication" as one of the authentication factors for logging into their demat accounts. The other can be a "knowledge factor", something that only the user knows, such as a password or PIN; or an "possession factor": something only the user can access, such as a one-time password (OTP), security token, or authenticator apps on smartphones or desktops. Customers must obtain the OTP via email and SMS. In cases where biometric authentication is not possible, periodic authorizations, members must use the knowledge factor (password/PIN), possession factor (OTP/security token) and user identification
Atal Pension Yojana scheme to close for income tax payers
The state social security system Atal Pension Yojana (APY) will not accept the registration of income tax payers from October 1, 2022. The objective is to better target pension benefits to disadvantaged population groups, according to the Ministry of Finance.
According to the notice, "provided that as of October 1, 2022, no income taxpayer is or has been eligible to join the APY."
According to the notification of August 10, 2022, “For the purposes of this clause, the term 'income taxpayer' means a person who is responsible for paying income tax in accordance with the Tax Law on the Income of 1961, as amended from time to time."
Changes in process flow of e-nomination for NPS subscribers
The process for submitting e-nominations to the National Pension System (SNP) has undergone some modifications in accordance with the Pension Funds Regulation and Development Authority (PFRDA). The updated electronic nomination process will go into effect on October 1, 2022.
According to a circular issued on August 25, 2022, the authority indicated that the application request will be admitted in the CRA system if the Contracting Office does not take any action against it within a period of 30 days. The revision is effective in the in the e Nomination process flow from October 1, 2022.
RBI Card tokenisation
The deadline for tokenization of debit and credit cards by the Reserve Bank of India (RBI) on Friday has been extended for another three months, until September 30, 2022. Regardless of the card networks and the card issuer to delete all previously stored (CoF) data by October 1, 2022