Auto Debit, Cheque Book, Pension Rules Will Change From October 1st

Highlights:

• Banking rules for Auto Debit, Pension, Cheque Book will change from October 1^st
• Following the directives from RBI, banks will have to carry out additional factor authentication before auto debits

A lot of new rules related to the daily lives of people will be changed from the 1^st of October. These rules are related to auto debits, cheque books, pension and mutual fund investments. Specific to Delhi, the private liquor shops will be closed in the national capital until the mid of November under the new excise policy.

Considering the impact these rule changes will have on the daily affairs of most of us, let us take a look at what will change from October 1^st.

Also Read: 7 Personal Loan Rejection Reasons You Should Know

Auto Debit Facility

Following the directives from the Reserve Bank of India (RBI), the Indian banks will have to make changes to their auto debit facility on credit and debit cards from the 1^st of October. The apex bank has asked the banks to carry out an additional factor authentication.

This means that the amount cannot be deducted without the subscriber’s approval.

Banks will have to send a notification to the subscriber 24 hours before deducting the amount and the payment will only be made after the subscriber’s go ahead.

Cheque Book

Old cheque books and the Magnetic Ink Character Recognition (MICR) code of three banks will become invalid from the 1^st of October. These banks include:

1. Oriental Bank of Commerce
2. United Bank of India
3. Allahabad Bank

Oriental Bank and United Bank, which merged with the Punjab National Bank (PNB), informed that old cheque books and pre-existing MICR and Indian Financial System (IFS) codes will be discontinued if not updated.

Pension

Pensioners in India who are aged 80 years and above will have the option to submit their digital life certificates at Jeevan Pramaan Centres from the 1^st of October. These centres are located in head post offices across the country.

The digital life certificates can be submitted until the 30^th of November.

Indian Postal Department has been directed to reactivate IDs of Jeevan Pramaan Centres in case they were closed due to some reason.

Mutual Fund Investments

Junior employees working with an asset management company will have to invest 10% of their gross salary in the funds they are managing. According to the SEBI rules, this arrangement will come into effect from the 1^st of October.

This limit will be further raised to 20% from October 2023.

If the employees already hold units of mutual fund they are managing, then they will be allowed to used it to offset the impact on salary, subject to certain conditions.

Private Liquor Shops In Delhi

Private liquor shops will not be allowed to operate in the national capital for the entirety of October as well as until November 16^th.

This is in accordance with the new excise policy of the Delhi government.

Only government liquor shops will be allowed to operate during this time and private shops will be allowed to reopen from the 17^th of November.