Many new rules will come into effect from October 2022. These include RBI new rules related to credit cards, who can no longer invest in Atal Pension Yojana, demat account KYC rules and more. Here are five important changes which will come into effect from October 1, 2022.

New credit and debit card rules

The Reserve Bank of India (RBI) had extended the deadline for implementation of a few Master Direction provisions, including the issuing and use of credit and debit cards, to October 1 of this year from July 1.

The provisions to be implemented under the new directive includes:

The credit-issuers will receive an OTP to activate the card. However, if the issuer fails to do that within a specified period of 30 days (from the date of issuance), the card will be blocked within seven days from the date of seeking confirmation from the customer.

The card-issuer must not breach the sanctioned credit limit without seeking explicit consent from the cardholder.

There will be no capitalization of unpaid charges/levies/taxes for charging/ compounding of interest.

Demat account log in

According to a June 14 circular from the National Stock Exchange(NSE), holders of demat accounts may not be able to access their accounts if they do not use two-factor authentication by September 30, 2022.

The circular says that “members shall preferably use biometric authentication” as one of the authentication factors to log on to their demat accounts. The other can be a “knowledge factor” – something only the user knows, like a password or PIN; or a “possession factor” – something only the user has access to, like a one-time password (OTP), security token or authenticator apps on smartphones or desktops. Clients should get the OTP through both email and SMS. In cases where biometric authentication is not possible, the circular mandates, members would have to use a knowledge factor (password/PIN), a possession factor (OTP/security token) and the user ID

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Demat account log in will not work without this from October 1, 2022

Atal Pension Yojana scheme to close for income tax payers

The government’s Atal Pension Yojana (APY) social security scheme will no longer accept enrollments from income tax payers from October 1, 2022. The objective is to better target pension benefits to underserved demographic groups, according to the finance ministry.

According to the notification, “Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.”

According to the notification dated August 10, 2022, “For the purpose of this clause, the expression “income-tax payer” shall mean a person who is liable to pay income-tax in accordance with the Income Tax Act, 1961, as amended from time to time.”

Changes in process flow of e-nomination for NPS subscribers

The procedure flow for submitting e-nominations to one’s National Pension System (NPS) has undergone certain alterations according to the Pension Fund Regulatory and Development Authority (PFRDA). The updated e Nomination process flow will go into effect on October 1st, 2022.

According to a circular issued on August 25, 2022, PFRDA stated that the nomination request would be accepted in the CRA system if the Nodal Office did not take any action against it within the allotted 30 days. The revision in the e Nomination process flow shall be effective from 1st Oct 2022.

RBI Card tokenisation

The deadline for tokenizing debit and credit cards was extended by the Reserve Bank of India (RBI) on Friday by an additional three months, until September 30, 2022. Apart from card networks and card issuer to delete all previously stored Card-on-File (CoF) data by October 1, 2022