Some banking rules that will change from next month (October)
Several new banking and other rules will come into effect from October 1. It is imperative to be aware of them to avoid issues in your bank payments and investment decisions, among others. From a change in pension rules to the validity of your cheque book, here are four such changes that kick in from the next month.
Pension rules set to change
Starting October 1, pensioners who are aged 80 years or above, will have the option to submit their digital life certificates at "Jeevan Pramaan Centers" of respective head post offices across the country. The deadline to complete this task is November 30, 2021. The Indian Postal Department has been directed to reactivate the IDs of Jeevan Pramaan Centers in case they have been deactivated.
These cheque books will become invalid
The old cheque books and Magnetic Ink Character Recognition (MICR) codes of three banks will become invalid from next month on account of their recent mergers with other banks. They are the Oriental Bank of Commerce, United Bank of India, and Allahabad Bank. The banks said their old cheque books and MICR codes will be suspended next month if not updated by that time.
Change in auto debit rules
According to the Reserve Bank of India (RBI), the facility of auto-debit from your debit/credit cards will require further authentication from October 1. This means that auto deduction facility for services that exceed Rs. 5,000 in value will not go through without a final approval from you. A notification in this regard will be sent to the subscriber 24 hours before payment is scheduled.
Rules for employees working in Mutual Fund houses
The Securities and Exchange Board of India (SEBI) has announced that junior employees working in Asset Under Management (AMC) or Mutual Fund houses will be required to invest 10 percent of their gross salary in units of that mutual fund from October 1. From October 2023, that requirement will rise to 20 percent of their gross salary. This investment will have a lock-in period.