New debit, credit card, TCS rules, special FD deadlines, LIC campaign late date: 7 big money changes in October 2023

Like September, the month of October also has many financial deadlines and changes that can impact your money matters. This includes the new TCS (tax collected at source) rule, FD deadlines, new debit card rule, and more. Here is a list of 7 money changes in October 2023.

1. TCS rule from October 1, 2023

The new Tax Collection at Source (TCS) rates will come into effect from 1 October 2023. You must pay TCS if your spending exceeds a specified threshold in a fiscal year, regardless of whether you are traveling abroad, investing in foreign equities, mutual funds, or cryptocurrencies, or going abroad for further education.

The Reserve Bank of India (RBI)'s Liberalized Remittance Scheme (LRS) allows you to send up to USD 250,000 in one fiscal year. Beginning on October 1, 2023, a 20% TCS would be applied to all international remittances exceeding the INR 7 lakh limit made during a fiscal year, excluding those made for medical and educational expenses.

2. Debit card and credit card rule

The Reserve Bank of India (RBI) has proposed that you be given the option of selecting your network provider for your debit card, credit card, or prepaid card. Currently, when you apply for a debit or credit card, the network provider is normally determined by the card issuer.

From October 1, 2023, the regulator wants the bank to offer cards on multiple networks and give customers the option to select their preferred card network. "Card issuers will offer their eligible customers the option to choose any of several card networks. Customers may exercise this option at the time of issue or at any subsequent time," the draft proposal mentioned.

3. Indian Bank special FD deadline

According to the bank's website, Indian Bank, a public sector bank, has extended its 'Ind Super 400' and 'Ind Supreme 300 Days' fixed deposits with higher interest rates. The deadline has been extended to October 31, 2023.

4. SBI WeCare Deadline

Senior citizens will no longer be able to invest in SBI from October 1, 2023, as the date to invest is September 30, 2023. However, there is a possibility that the bank will extend the deadline.

5. IDBI Amrit Mahotsav FD deadline

IDBI has launched a new FD scheme called Amrit Mahotsav FD with terms of 375 and 444 days. The deadline to invest in these special FD is October 31, 2023.

6. LIC revival campaign

The Life Insurance Corporation (LIC) has launched a special campaign for the reactivation of expired policies in order to continue providing risk cover in these unsettling times. For individual lapsed insurance, a special revival campaign is starting on September 1 to October 31, 2023.

7. Changes to perpetual SIPs- The time limit on SIP

The National Automated Clearing House (NACH) released a circular on August 18, 2023, requiring investors to designate a time period for their mutual fund contributions. The longest permitted time range for investment mandates will be set at 30 years beginning 1 October 2023, rendering the perpetual SIP option obsolete.

It is important to remember that existing standing SIPs, as well as those started before October 1, 2023, will not be affected. These modifications only apply to SIPs that begin after October 1, 2023.

Also Read: GST Council meet on Oct 7, review likely on implementation of SGST law amendments by states