RBI’s new auto-debit rule, pension norms: 9 changes that will set in from October 1

NEW DELHI: From pension guidelines to the brand new auto-debit pointers and discontinuation of cheque books of sure banks, a slew of modifications are set to come back into impact from Friday.
Most modifications could have a direct impression on the day-to-day lives of the folks.

New auto-debit guidelines will come into impact from at the moment because the Reserve Financial institution of India’s (RBI) prolonged deadline to implement the rules involves an finish.
There might be no computerized recurring funds for companies like recharge, utility invoice as the extra issue of authentication (AFA) has now turn into necessary.
To make sure security and safety of card transactions, the central financial institution had, in December final yr, directed all banks that processing of recurring transactions (home or cross-border) utilizing playing cards or Pay as you go Cost Devices (PPIs) or Unified Funds Interface (UPI) beneath preparations/practices not compliant with AFA wouldn’t be continued past March 31, 2021.
Nonetheless, non-readiness of among the gamers had compelled the RBI to increase the deadline on recurring cost until September 30.
The rule is relevant to all sorts of recurring funds like utility payments, cellphone recharge, DTH and OTT, amongst others.
As per the rules, banks will ship a one-time password (OTP) to clients for funds above Rs 5,000.

* Pension guidelines

To maintain receiving their pension quantity on time, all pensioners must submit a life certificates yearly to the authorised pension disbursing companies like banks, submit places of work and the like or else they will not obtain the cash.
The brand new rule that comes into impact from at the moment permits each eligible particular person above the age of 80 years to submit their digital life certificates at Jeevan Praman Centres of their respective submit places of work.
Final date to submit these digital certificates is November 30.
Digital life certificates for pensioners scheme — also referred to as Jeevan Pramaan — has been initiated by the federal government of India to digitise the entire means of securing a life certificates.
In contrast to earlier than, pensioners should not required to be bodily current in entrance of the pension disbursing company or the certification authority.
It makes use of the Aadhaar platform for biometric authentication of the pensioners.

* Cheque books of three PSU banks will turn into invalid

Clients of Allahabad Financial institution, Oriental Financial institution of Commerce (OBC) and Union Financial institution of India (UBI) should apply for brand new cheque books as the prevailing ones will turn into invalid from at the moment.
As the federal government introduced its mega financial institution merger drive in August 2019, ten public sector undertakings (PSUs) had been merged into 4 massive entities.
As a part of the plan, Allahabad Financial institution was merged with Indian Financial institution; Oriental Financial institution of Commerce and Union Financial institution of India had been merged into Punjab Nationwide Financial institution (PNB).
Each Indian Financial institution and PNB have been urging clients of the banks that merged into them to problem new cheque books.

In addition, customers also need to update their pre-existing MICR magnetic ink character recognition (MICR) and Indian financial system codes (IFSC) as they will be halted if not updated.

* Private liquor shops in Delhi to be shut for a month

Around 40 per cent liquor vends in the national capital that are run privately will shut down from today due to the new excise policy of the Delhi government.
Under the new policy, all the 850 liquor vends, including the 260-odd outlets that are run privately, have been given to private firms through open tender.
The new licence holders will start retail sale of liquor in the city from November 17.
In the transition period of nearly one-and-half month, only government-run liquor vends will remain open. The government vends will close down on November 16.

* Sebi rules for new trading accounts

Investors who open a new trading and demat account from October 1 now have the choice of providing nomination or opting out nomination.
The existing holders of such accounts will need to provide choice of nomination by March 31, 2022. In case they fail to do so, their demat accounts will be frozen.
As per the new guidelines issued by Securities and Exchange Board of India (Sebi), from October 1, all buying and selling members and depository members will activate new buying and selling and demat accounts solely upon receipt of the requisite kinds.
The market regulator has issued a format for nomination kind and opting out of nomination by means of a declaration kind.

* Nationwide clear India marketing campaign

The federal government’s month-long Clear India Drive will start from at the moment. The programme focuses primarily on eradicating single use plastic and different waste.
Asserting the drive, Union minister Anurag Thakur stated that will probably be the biggest cleanliness drive with greater than 75 lakh tonnes of waste, primarily plastic waste from completely different components of the nation might be collected and additional processed in a ‘waste to wealth’ mannequin.

* New Sebi rule for Mutual Fund investments

Apart from this, Sebi has mandated that all designated employees of asset management companies (AMC) be paid up to 20 per cent of their monthly compensation in units of the mutual fund schemes in which they have a role or oversight.
All junior employees below the age of 35 years will have to invest 10 per cent of their salary in the first year and 15 per cent in the second year of implementation in schemes which they manage in a phased manner.
Other employees will be required to invest 20 per cent of their monthly compensation in MF schemes they manage from the current year itself.
In other words, 10 per cent of salary will be invested from October 1, 2021 to September 30, 2022 and 15 per cent from October 1, 2022 to September 30, 2023. They will also need to increase such investment to 20 per cent from October 1, 2023 onwards.

* Ordnance Factory board to be dissolved

The Ordnance Factory Board (OFB) will be dissolved with effect from today and split into 7 PSUs.
On June 16, the Union Cabinet had approved splitting of the OFB into 7 fully government-owned corporate entities to improve its functioning as the main supplier of arms, ammunition and clothing to the armed forces.
The OFB was an entity of the defence ministry and supplied critical arms and ammunition to the three armed forces and the paramilitary.
All 41 factories, assets, employees and management are being transferred to these 7 new PSUs.
The new defence PSUs will be known as Munitions India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd.

* FBOs need to declare FSSAI license number on all invoices

The Food Safety and Standards Authority of India (FSSAI) has urged food business operators (FBO) to print their 14-digit registration and license numbers from today on all bills and invoices.
FSSAI number is available on all packed foods. But, mentioning the licence and registration number will ensure that FBOs get themselves registered with FSSAI in case they haven’t done it yet.
This will also help consumers to raise complaints with the food security department if they are not happy with quality of food.
Consumers can access information about a particular food business as it will be publically available at FSSAI’s portal.
It will also help the regulators to trace the origin of the complaint and attend to it promptly.