Aslew of money-related changes including card tokenisation and new debit and credit card rules are set to come into effect October 2022. Apart from these, changes pertaining to eligibility for investing in Atal Pension Yojana and demat account KYC rules will also need your attention.
So, here’s a look at five key financial changes which will come into effect from October 1.
RBI Card tokenisation
Tokenisation means the details of your cards such as 16-digit number, names, expiry dates and codes, which you used to save earlier for future payments, will now be replaced by a token. The token is used by the merchant’s website for the transaction.
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The deadline for tokenising debit and credit cards was extended by the Reserve Bank of India (RBI) in late June by an additional three months, until September 30, 2022. These rules were earlier set to come into effect from July 1. Later in July, the central bank said it would not extend the timeline for storing card data and directed all stakeholders, except for card issuers and card networks, to purge the customer data before October 1, 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.
Atal Pension Yojana rule change
From October 1, income tax payers 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.
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“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
National Pension Scheme e-nomination rule change
For the ease of millions of NPS subscribers, Pension Fund Regulatory and Development Authority (PFRDA) stated that after the subscriber initiates e-nomination, the nodal office would have the option to either reject or accept the request. In case, no action is initiated by the nodal office within 30 days of the request then it would get accepted in the CRA system.
The revision in the e-nomination process flow shall be effective from October 1, 2022. “The revised process flow shall also be applicable to the existing e-nomination, which are still unauthorised,” PFRDA clarified.
Demat account log in
Demat account holders might face difficulties in logging in to their accounts if they do not enable two-factor authentication by September 30, 2022. India’s top bourse National Stock Exchange (NSE) issued a circular in this regard on June 14 this year.
The circular said that “members shall preferably use biometric authentication” as one of the authentication factors to log on to their demat accounts. The other can be a “knowledge factor” – something only the user knows, like a password or PIN; or a “possession factor” – something only the user has access to, like a one-time password (OTP), security token or authenticator apps on smartphones or desktops.
Clients should get the OTP through both email and SMS. In cases where biometric authentication is not possible, the circular mandates, members would have to use a knowledge factor (password/PIN), a possession factor (OTP/security token) and the user ID.
