These five rules will change from October 1 related to banking and the stock market.

With the implementation of the new rules, the way you work related to finance, banking and the stock market will also change. In order to continue with the pension, pensioners who are 80 years and above will have to submit proof of survival.
 | 
There will be changes in five rules from October 1, 2021. - Photo: AU

Expansion

  • After two days i.e. from October 1, 2021, five rules are going to change. This will have a direct impact on your everyday life. With the implementation of the new rules, the way you work related to finance, banking, and the stock market will also change. In order to continue with the pension, pensioners who are 80 years and above will have to submit proof of survival. At the same time, banks and other financial institutions will now have to take the approval of customers for auto-debit. 

1. Pension: Life certificate to be submitted

  • From October 1, pensioners who are 80 years and above will get the facility to submit digital life certificates. For this, the time has been given till November 30, 2021. The certificate will have to be submitted at the Jeevan Pramaan Kendras of the respective post offices in the country. The life certificate is proof of the pensioner being alive. In order to continue with the pension, it has to be deposited every year in the bank or financial institution where the pension is drawn.

2. Auto Debit: Requires Customer Approval

  • The new rule is applicable for auto-debit through debit/credit cards. According to the RBI order, with effect from October 1, 2021, banks and other financial institutions will be required to demand additional factor authentication from customers for auto-debits of more than Rs 5,000 on debit/credit cards or mobile wallets. Under this, auto-debits from debit/credit cards or mobile wallets will not take place unless the customer gives his approval. For approval, banks or financial institutions will have to send the message of auto-debit to the customers 24 hours in advance. If the auto-debit is done directly from the bank account, then the new rule will not have any effect.

3. Chequebook closed: Impact on customers of three banks

  • After two days, the old checkbook, MICR (Magnetic Ink Character Recognition) and IFS (Indian Financial System) codes of three banks Oriental Bank of Commerce, United Bank of India, and Allahabad Bank will become invalid. Allahabad Bank has been merged with Indian Bank with effect from April 1, 2020. Oriental Bank of Commerce and United Bank of India have merged into Punjab National Bank. The customers of these three erstwhile banks have been asked to get fresh checkbooks by September 30.

4. Investment of 10% of salary required

  • Junior employees working in asset management companies will have to invest 10 percent of their gross salary in a mutual fund unit. The new rule in this regard of the Exchange and Securities Board of India (SEBI) is coming into force from October 1, 2021. The quantum of investment will be increased from 10 percent to 20 percent with effect from October 2023.
  • In order to open a Demat and trading account, the investor will now have to provide nomination information from October 1. If someone does not want to give this information, then he will have to tell in this regard by filing the declaration form.
  • The market regulator has given time till September 30, 2021, to the Demat and trading account holders to update the information related to KYC. If not updated, the account will become inactive from 1st October and the account holder will not be able to trade in the stock market.

5. Delhi: Private Liquor Shops Will Not Open

  • Private liquor shops will not open in Delhi from October 1 to November 16, 2021. The new rule is going to be implemented under the excise policy of the union territories. Only government liquor shops will remain open during this period. Private liquor shops will start reopening from November 17, 2021.