New retirement rules, debit / credit card transactions: big changes from October 1
Here is a list of changes on the finance and commerce front that will have a direct impact on the common man.
October is poised to usher in a series of changes on the finance and trade front – from revising the price of LPG to changes in retirement rules to alcohol policy adjustments – that would directly affect humans common. Here’s a look at what will change:
New retirement rules
In accordance with the rules in effect from October 1, retirees over the age of 80 will be required to submit their digital life certificate or life certificate to their Jeevan Pramaan center at main post offices.
According to the details provided by the Department of Pensions and Retiree Welfare, for those not living in India, the retiree or family retiree can apply to their authorized agent to obtain a certificate of life signed by a magistrate, a notary, banker or diplomatic representative of India and submit it to the Jeevan Pramaan Center or online (https://jeevanpramaan.gov.in/).
Change of checkbook
Account holders of Allahabad Bank, Oriental Bank of Commerce and United Bank of India – which recently merged with two nationalized banks – will need to update their check books as they will be invalid from October 1.
While Allahabad Bank merged with Indian Bank on April 1 of last year, Oriental Bank of Commerce and United Bank merged with Punjab National Bank on April 1, 2019.
Read also : The digital skills gap is widening, but India can be a hub for talent supply
In recent notifications on Twitter, the Indian Bank and the Punjab National Bank asked account holders of the three merged banks to withdraw their new check books, as the old ones will only be valid until September 30, 2021. Indian Bank also informed the account holders. that pre-existing MICR codes and Allahabad Bank IFSC codes will become invalid after October 1.
Customers were advised to request the new checkbook via the internet or mobile banking and collect it at the nearest branch.
RBI AFA Mandate
The Reserve Bank of India (RBI) has required all banks to perform “Additional Factor Authentication” (AFA) from October 1. As part of the process, monthly invoices, including automatically paid invoices, must be verified by the customer and approved prior to the transaction. For the same, a customer will receive a notification by SMS or e-mail and once verified, the amount will be deducted from his account.
Revision of the LPG price
The price of liquefied petroleum gas (LPG) is expected to increase in October in line with the monthly tariff revision. In September, the price of LPG in all categories of bottles was raised by 25 yen per bottle, making it the third price increase in two months. A 14.2 kg bottle now costs 884.5 in Delhi.
Likewise, in August, the tariff was increased by 25 yen, which brought the cost of a 14.2 kg bottle to 859.5 yen in Delhi.
Private liquor stores to close for 45 days in Delhi
Under the new excise policy introduced by the Arvind Kejriwal government, private liquor stores in Delhi will remain closed for 45 days from October 1. Government liquor distributors will, however, remain operational.
Delhi has around 260 private liquor stores that are closing for the 45-day break.
Read also : between borrowing ₹ 5.03 lakh crore to jumpstart the economy affected by COVID
New players who acquired a liquor license through open tendering will open around 850 liquor stores in Delhi from November 17.
Invest 10% in mutual funds, says SEBI to junior employees
Under a new rule introduced by the Securities and Exchange Board of India (SEBI), junior employees of asset management companies have been asked to invest 10% of their gross salary in mutual fund shares of the fund house, from October 1.
From October 1, 2022, these employees will be required to set aside 15% of their salary in the mutual insurance scheme, in accordance with the new SEBI directive. The share will increase to 20% in October 2023.
The SEBI circular specifies that any employee under 35 will be considered a junior employee.
The same rule, however, is not applicable to CEOs, department heads and fund managers of companies. Instead, these officials were asked to invest 20 percent of their compensation in the mutual fund system with a three-year lock-in period, starting October 1.