Major changes from October 1: From pension rule, cheque books to MF investments, these 5 notable changes taking place from today
New rules from October 2021: Several changes will come into effect from October 1, 2021, and you must keep yourself abreast of these notable changes to avoid any inconvenience confusion or difficulty in the future. The new rules that will come in place from 1st October will affect everyone’s lives in some way or another. From pension rule changes to chequebooks to debit card payments to the new mutual funds' rule, there are five rule changes that will come in October. Here’s a look at what will change from 1 October 2021.
Pension Rule Change
From October 1, 2021, the rules related to digital life certificates are going to change. This is for anyone above the age of 80. In October, pensioners above the age of 80 years will have the facility to submit their digital life certificate at the Jeevan Pramaan Center of all the Head Post Offices of the country. The deadline to carry out this task has been set as November 30, 2021. As a result of the widespread nature of this task, the Indian Postal Department had been asked to ensure that the ID of these Jeevan Pramaan Centers are activated in the event that they are already closed.
Automatic withdrawals from debit/credit cards
The additional factor authentication (AFA) rules of the Reserve Bank of India (RBI) will be now implemented from October 1. After the implementation, utility bills, OTT subscriptions and other service payments will not be automatically debited. The AFA rules will be applicable on auto payments linked to debit cards, credit cards, prepaid cards. The new rules are also necessary for all auto-debits below Rs 5,000. Auto debit payment will be done only after the customer’s approval, as per the AFA rules. Banks are required to send a notification 24 hours before the payment due date. Customers will have the opportunity to modify or cancel the payment.
As per the AFA rules, it requires customer approval on the notification. OTP is required for payment above Rs 5,000. These guidelines are in view of banking fraud and the protection of customers. Banks inform customers about the changes in the rules. The payments that are likely to be affected are OTT subscription, utility bill payment, News website subscription. However, payments linked to bank accounts will not be affected, home loan, auto loan EMI, SIP of Mutual Funds, and insurance premium payments.
MF investments to Undergo Rule Change
The Securities and Exchange Board of India (SEBI) has brought in a new rule keeping in mind the interests of mutual fund investors. This rule will apply to employees below 35 years, who work in Asset Under Management (AMC) ie Mutual Fund House. These employees of asset under management companies will have to invest 10 per cent of their gross salary in units of that mutual fund with effect from October 1, 2021. Following the phase-wise format, in October 2023, the same will require these employees to invest 20 per cent of their salary. This investment will have a lock-in period.
Chequebook
Cheque books of Allahabad Bank, Oriental Bank and United Bank of India will become invalid from 1st October 2021.
Suryoday Small Finance Bank closes ATM services
Suryoday Small Finance Bank notified its customers that it will shut down its automated teller machines (ATMs). The bank on its website said that it will discontinue its ATM services from October 1. However, customers can continue to use their Suryoday Bank ATM/Debit Card at any other Bank’s ATM for your cash withdrawal requirements. The Bank mentioned this on its website.