New Rules From October: You will see some big changes as soon as the month of October starts. Actually, many new rules are going to be implemented from October. These also include the new rules of RBI related to credit cards. Also, there are going to be significant changes in the KYC rules related to investment in Atal Pension Yojana, Demat account, which will be applicable from October 1, 2022.
New rules for credit and debit cards
The Reserve Bank of India (RBI) had extended the deadline for implementation of some important instructions regarding issuance and use of credit and debit cards from July 1 this year to October 1. Talking about the provisions to be implemented under the new directive, credit card users will now receive an OTP to activate it. However, if it has to be used within a period of 30 days from the date of issue. Failure to do so will result in the card being blocked. The card issuer should not breach the sanctioned credit limit without obtaining explicit consent from the card holders.
Demat Account Login
According to the National Stock Exchange's (NSE) circular dated June 14, holders of demat accounts will have to activate the 2 factor authentication system for their demat account login to use the trending account from October 1. The circular states that members shall use biometric authentication as one of the authentication factors for logging on to their demat accounts and may use password for other authentication. If you have not done so, you will not be able to use your account.
Atal Pension Yojana closed for income tax payers
The government's Atal Pension Yojana (APY) social security scheme will no longer accept nominations from income tax payers from October 1, 2022. According to the finance ministry, it aims to better target pension benefits to underserved demographic groups. As per the notification, any citizen who is or has been an income tax payer with effect from October 1, 2022 will not be eligible to join APY.
Changes in the process of e-nomination for NPS
According to the Pension Fund Regulatory and Development Authority (PFRDA), there have been some changes in the process of submitting e-nomination in one's National Pension System (NPS). The e-nomination process flow will be effective from October 1, 2022. According to a circular issued on August 25, 2022, PFRDA stated that the enrollment request in the CRA system will be accepted if the nodal office does not take any action against it within the allotted 30 days. The amendment in the e-nomination process flow will be effective from 1 October 2022.
RBI Card Tokenization
The deadline for tokenizing debit and credit cards was extended by the Reserve Bank of India (RBI) on Friday for an additional three months till September 30, 2022. In fact, in the recent past, there have been many incidents of fraud in the transactions done through digital medium. In such a situation, to prevent such fraud cases, the Reserve Bank of India is tokenizing the credit-debit card.