Card tokenisation, higher EMIs: 8 things that change from October 1
Eight significant changes take place in India’s financial system starting October 1, 2022. These changes will have an immediate impact on the common man, in one way or the other.
For instance, from October 1, citizens filing income-tax returns would no longer be able to benefit from the Atal Pension Yojana. Tokens will be utilised for online purchases rather than cards and the guidelines for investing in mutual funds will change.
Also read: Cabinet approves 4% DA hike for Central govt employees, pensioners
The Federal lists eight changes coming into effect from October 1-
- Taxpayers no longer eligible for Atal pensions
From October 1, those who have an income exceeding ₹2.50 lakh per annum will no longer be eligible to enrol themselves in the Atal Pension Yojana. The scheme offers a pension of ₹5,000 per month.
In other words, those who file income tax returns can no longer be a part of the monthly pension scheme.
- Token system for card payment
To stop frauds in internet banking, the RBI has directed that the token system for card payment be used from October 1. With this, merchants, payment aggregators and payment gateways can no longer store customers’ credit card information.
Card details are replaced with an alternate code called the “token” which shall be unique for each card, and token requestor.
- Higher interest on savings, but higher EMIs
Following the RBI’s hike in repo rate, banks in India are set to further raise interest rates on savings accounts and fixed deposits (FDs). As a result, post offices may increase interest rates on RD, KCC, PPF and other small savings plans.
Thus, citizens may be able to get higher interests on small savings.
However, the repo rate hike also translates into higher EMIs, since the interest rate on loans will also go up.
- Mutual funds will need nominations
People investing in mutual funds will need to provide nomination information following new regulations from market regulator SEBI. Those who fail to comply must fill a declaration form stating that they will not use the nomination facility.
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- Gas cylinders may get cheaper
It is expected that both home and commercial gas cylinder prices will fall starting next month due to a fall in the prices of crude oil and natural gas.
- Natural gas prices may increase
The government sets the price of gas every six months. The prices are set on April 1 and October 1 each year. Thus, the government will update the price of gas on October 1. After this week’s review, it is expected that natural gas prices could reach an all-time-high.
- Double verification for demat accounts
Market regulator SEBI has announced the implementation of double verification for demat accounts to protect owners of these accounts. From October 1, Demat account holders will only be able to log in after following a double verification procedure.
Also Read: Active demat accounts on CDSL cross 7-crore mark
- Mandatory NPS e-enrollment
The Pension Fund Regulatory and Development Authority (PFRDA) has modified the e-nomination procedure for both public and private sector personnel. Starting October 1, 2022, the Nodal Office will have the choice to accept or reject the National Pension Scheme (NPS) account holder’s e-nomination request following the new NPS e-nomination procedure.
