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From APY to Demat account login: 5 changes that may impact you from October


Developments relating to our personal finances occur on a regular basis from month to month and must be followed. Personal finance is essential to regulating your daily expenses and planning for the future, therefore if any changes are announced, care should be made to avoid having a negative influence on your budget or financial planning in the future. Several regulations will take effect on October 1st. Here are the regulations that may affect your personal finances starting the following month.

Mandatory two-factor authentication for demat account login

Demat account holders have to compel the use of two-factor authentication by September 30, 2022. on any applications made available to consumers through Internet-based trading (IBT) and securities trading using wireless technology (STWT).

On June 14, 2022, NSE said in a circular that “In joint consultation with SEBI and Exchanges, it is hereby clarified that, in addition to user ID, Members shall preferably use biometric authentication as one of the authentication factors, along with any one of the below-mentioned factors: 1. Knowledge factor (something only the user knows): – for e.g., Password, PIN. 2. Possession factor (something only the user has): – for e.g., OTP, security token, authenticator apps on smartphones etc. In case of OTP, the same should be sent to clients through both email and SMS on their registered email ID and Mobile number. In cases, where biometric authentication is not possible, Members shall use both the aforementioned factors (Knowledge factor and Possession factor), in addition to the user ID, for 2-factor authentication (2FA). It is to be noted that the abovementioned authentication shall be implemented on every login session by the client to IBT and STWT. The above guidelines shall be implemented latest by September 30, 2022.”

Master Direction provisions for credit and debit card

On June 21, 2022 RBI extended the timeline for implementation of certain provisions of Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. According to RBI, it has been determined to postpone until October 1st, 2022, the deadline for implementing the following Master Direction clauses:

1. Card-issuers shall seek One Time Password (OTP) based consent from the cardholder for activating a credit card if the same has not been activated by the customer for more than 30 days from the date of issuance. If no consent is received for activating the card, card issuers shall close the credit card account without any cost to the customer within seven working days from date of seeking confirmation from the customer.

2. Card-issuers shall ensure that the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder.

3. No capitalization of unpaid charges/levies/taxes for charging/ compounding of interest.

Income-tax payers shall not be eligible to join APY

According to the Finance Ministry’s regulations, income taxpayers will no longer be permitted to enrol in the Atal Pension Yojana (APY) initiative as of October 1, 2022. Taxpayers who want to join APY now have just three days left to sign up as the deadline of October 1 draws near. A person who must pay income tax in line with the Income Tax Act of 1961, as revised from time to time, is referred to as a taxpayer. Further, in the notification, the ministry said, “In case a subscriber, who joined on or after 1st October 2022, is subsequently found to have been an income-tax payer on or before the date of application, the APY account shall be closed and the accumulated pension wealth till date would be given to the subscriber.”

RBI Card tokenization

The RBI has extended the deadline to September for the tokenization of cards for use in online transactions. According to the RBI, all previously saved Card-on-File (CoF) data should be deleted by card networks and card issuers by October 1, 2022. Cardholders must tokenize their cards by September 30, 2022, or earlier. After that, they will have to manually enter card information when making purchases.

E-nomination process for NPS subscribers

According to the Pension Fund Regulatory and Development Authority, changes have been made to the National Pension System (NPS) e-nominations process flow for subscribers in the government and corporate sectors (PFRDA). Existing NPS subscribers can amend their nomination in their PRAN by utilising “e Nomination” and their login credentials. The request for changes to the nomination may also be physically submitted by the subscribers to the appropriate Nodal Officers, Corporate, or Points of Presence (POPs).

On August 25, 2022, PFRDA said in a release that “In case of e Nomination of the Subscribers associated with the Government/ Identified Corporate, the e nomination requests need to be authorized by the associated Nodal Office/Identified Corporate for changing the nomination in the PRAN of Subscribers as maintained by the respective CRA. There are a large number of pendency of e Nomination requests of Subscribers, which are attributed to the non-authorization by the associated Nodal Office/Corporate. In the interest of Subscribers, it has been decided that once the subscriber initiates the nomination request, the Nodal Office would be given an option of either Accept or Reject the nomination request. In case, the Nodal Office has not initiated any action against the request within the 30 days period, the request would get accepted in CRA system. The revised process flow shall also be applicable to the existing e nomination, which are still unauthorized.”

In the e Nomination, the Subscribers will also need to submit an online declaration stating that “I understand and consent to that nomination being made by me now shall be invalid ab initio if it is not consistent with Regulation 32 of the PFRDA (Exits and Withdrawals) Regulations, 2015 and amendments”. The revision in the e Nomination process flow shall be effective from 1st Oct 2022, as per PFRDA.

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