These changes may impact your financial life from October 1
Money9 gives you a brief description of the changes that are coming into effect from October 1 and could impact your financial life
Your money matters are going to change from October 1. With just a few days in your hand to comply, you must take a note of the following changes. All of these tasks must be completed by September 30. Money9 gives you a brief description of these changes that could impact your financial life:
Auto debit
According to RBI guidelines customers need to give nod for credit card or debt card auto debit transactions from October 1 onward. You have to give a nod every month for payment of loan EMI, mobile bill payment, electricity bill payment, SIP payment, OTT and even credit card payment etc. from October 1, 2021.
According to a RBI directive, banks are required to send notification to customers five days before the payments are scheduled against his/her credit or debit card. The debit would be allowed once it is confirmed by the customer. If the amount is more than Rs 5,000, the payment has to be authenticated via OTP every time by the customer.
This two-factor authentication was supposed to come into effect from April 1, 2021. However, big banks like State Bank of India, HDFC Bank etc. could not make arrangements to comply with it. Therefore, RBI extended the timeline by six months to September 30, 2021.
Update mobile number
To facilitate the new auto debit rule for credit and debit cards you should update your phone number with the bank. If the bank has the wrong mobile number, then your auto-debits will not get validated and payments would not be completed.
Missing an auto-debit payment can have penal consequences and others.
So if your bank is not updated with your latest mobile number then go to the branch and update the latest phone number with them.
KYC for demat account
Securities and Exchange Board of India (SEBI) has already announced that the deadline to update KYC details in investors’ demat and trading accounts has been extended to September 30, 2021. The earlier deadline was July 31, 2021.
According to the order, an individual must update the following details like full name, address, PAN, mobile number, email ID and income range while opening an trading account or update if he/she has an existing demat or trading account.
If the KYC details are not updated, an individual will not be able to trade and the demat account will be deactivated. Even if shares are bought, then the transfer of such shares will not be completed till the time the demat account becomes fully KYC compliant.