From Card Tokenization To Demat Login, These New Rules Will Come Into Effect From October 1

Every month, every year, some changes must be kept up with in terms of personal finances. Regulatory bodies such as RBI, NSE, SEBI, PFRDA and various other bodies are responsible to bring changes from time to time. Personal Finance is a crucial part of managing your everyday spending and making plans according to your needs. The upcoming month of October also brings some new rules and changes with it. These rules somehow will impact our daily life and spending, also investing. From Card Tokenization To Demat Login, these 5 new rules will come into effect from October 1, 2022. These rules are as follows:

Card Tokenisation

All consumers' online debit and credit card transaction rules will change beginning from October 1. The Reserve Bank of India (RBI) has directed all operational banks to develop tokens for card details in an effort to make all electronic payments safe, secure, simple, quick, and economical.

Credit card tokenization is a mechanism where all the private information of the customer is replaced with a one-time alphanumeric ID that is not related to the account owner and has no value. To safely access, receive, pass, and recover consumer credit card information, a randomly generated token is used.

According to RBI, "Tokenisation refers to replacement of actual card details with an alternate code called the "token", which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as "identified device")."

Beginning September 30, 2022, all credit and debit card information used for online, in-person, and in-app transactions must be replaced with tokens under the new regulation.

New Credit and debit card rules

The credit issuers will get an OTP to activate the card under the new rules. When a cardholder hasn't activated their card for more than 30 days after it was issued, credit card issuers must first get their cardholder's One Time Password (OTP)-based consent. There won't be any capitalization of unpaid levies, taxes, or charges for charging interest or compounding.

With effect from October 1, 2022, the card issuer will not be allowed to increase the credit limit without written permission/consent from the respective cardholder.

Demat Account Login

According to a June 14 Circular from the NSE, holders of Demat accounts may not be able to access their accounts if they do not employ two-factor authentication by September 30, 2022, 

According to the circular Ref. No: 36/2022, "In joint consultation with SEBI and Exchanges, it is hereby clarified that, in addition to user ID, Members shall preferably use biometric authentication as one of the authentication factors, along with any one of the below-mentioned factors: 1. Knowledge factor (something only the user knows): - for e.g., Password, PIN. 2. Possession factor (something only the user has): - for e.g., OTP, security token, authenticator apps on smartphones etc. In case of OTP, the same should be sent to clients through both email and SMS on their registered email ID and Mobile number."

It added, "In cases, where biometric authentication is not possible, Members shall use both the aforementioned factors (Knowledge factor and Possession factor), in addition to the user ID, for 2-factor authentication (2FA). It is to be noted that the abovementioned authentication shall be implemented on every login session by the client to IBT and STWT. The above guidelines shall be implemented latest by September 30, 2022."

Atal Pension Yojana (APY) is not for Income Tax Payers

The Atal Pension Yojana (APY) will undergo significant change starting October 1, 2022. A person paying income tax or taxpayer won't be able to join this plan. Anyone can currently benefit from this scheme. The number of people joining this scheme has crossed 4 crores.

Changes in the process flow of e-nomination for NPS

The PFRDA, the pension regulator, has changed the e-nomination process flow for subscribers in the Government / Corporate Sector Subscribers.

According to a circular issued on August 25, 2022, PFRDA stated, "once the subscriber initiates the nomination request, the Nodal Office would be given an option of either Accept or Reject the nomination request. In case, the Nodal Office has not initiated any action against the request within the 30 days period, the request would get accepted in CRA system. The revised process flow shall also be applicable to the existing e nomination, which are still unauthorized."

According to this notification, the nodal office will have the choice to approve or reject the e-nomination request after it is begun, in accordance with the new process flow. The Central Recordkeeping Agencies (CRA) system will approve the request if the nodal office does not take any action against it within 30 days of its allocation. The updated e-nomination process flow will go into force on October 1st, 2022.