Here is a look at the four personal finance-related changes that come into play from October 1.
Auto-debit of recurring payments from debit/credit card may fail: October 1 onwards, as mandated by the Reserve Bank of India (RBI), banks and other financial institutions will have to ask customers to provide additional factor authentication if the auto-debit mandate for the payment is above Rs 5,000.
With effect from October 1, 2021, under the new additional factor authentication rules, a bank is required to send a notification to the customer at least 24 hours before the auto-debit payment is to be deducted and allow the debit only after the customer has confirmed it. The pre-transaction notification will be sent via SMS, email etc. The notification will inform the cardholder about the name of the merchant, transaction amount, date/time of debit, reference number of transaction/e-mandate, reason for debit, i.e., e-mandate registered by the cardholder. The cardholder shall have the facility to opt-out of that particular transaction or e-mandate.
You should ensure that your correct mobile number is linked with your debit/credit cards so that you can receive a notification for approval.
Your auto-debit from debit/credit card may fail from next month if not approved
Submission of life certificate for pensioners: Submission of life certificates for pensioners aged above 80 years will start from October 1, 2021 and can be done till November 30, 2021. Pensioners below the age of 80 years can submit their life certificates from November 1, 2021 to November 30, 2021. You will have to visit your bank or post office to submit your life certificate (Jeevan Pramaan Patra). Some banks have started offering submission of life certificate via their doorstep banking initiative. The government has also provided a platform that enables pensioners to submit the certificate online and do away with a physical visit.
How government pensioners can submit life certificate online
Cheques of these banks will become invalid: Old cheque books of the erstwhile Allahabad Bank, Oriental Bank of Commerce and United Bank of India will become invalid from October 1, 2021. This is because of the mergers announced. These are the banks that have been merged: Oriental Bank of Commerce and United Bank of India have been merged with Punjab National Bank (PNB) and Allahabad Bank with Indian Bank.
According to the Indian Bank website, old cheque books of the erstwhile Allahabad Bank will not be accepted for payment with effect from October 1, 2021.
Customers of these banks should obtain cheque books of the anchor bank.
Suryoday Bank to shut down its ATMs: Suryoday Small Finance Bank has decided to close down its 26 automated teller machines, giving customers the option to use their debit cards on ATMs of other banks, becoming the first domestic lender to completely do away with such machines. According to an Economic Times news report, the small finance bank is now formulating a strategy where it would offer its customers 5-7 transactions free per month when they use the ATM network of other banks to withdraw cash.
Bank holidays: With various festivals falling in October, it would be prudent to know when banks will be closed in October 2021.
Click here to get the full list