From card tokenisation to APY to demat login: Know five key money-related changes coming into effect from today

Several major changes with regard to money matters are coming into effect from today, October 1. These changes are pertaining to tokenisation rules for credit and debit cards, eligibility criteria for investing in Atal Pension Yojana, demat account KYC rules, National Pension System e-nomination rule and Sebi’s rule for MF subscribers.

Card tokenisation

Card tokenisation means the details of your cards such as 16-digit number, names, expiry dates and codes, which you used to save earlier for future payments, will now be replaced by a token. The token is used by the merchant's website for the transaction.

APY rule change

Taxpayers will not be eligible to enroll for this government-backed scheme now. The objective is to better target pension benefits to underserved demographic groups, according to the finance ministry.

“Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY. For the purpose of this clause, the ex-pression “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," the Centre said in a notification.

Changes related to Demat account log-in

Demat account holders will now have to enable two-factor authentication by September 30, 2022. India’s top bourse National Stock Exchange (NSE) issued a circular. It said 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.

NPS e-nomination rule change

As per the PFRDA, after the subscriber initiates e-nomination, the nodal office would have the option to either reject or accept the request. In case no action is initiated by the nodal office within 30 days of the request then it would get accepted in the CRA system.

The revision in the e-nomination process flow shall be effective from today. “The revised process flow shall also be applicable to the existing e-nomination, which are still unauthorised,” PFRDA said.

Sebi has instructed all mutual fund houses to take steps to ensure that the nomination is in place for all mutual fund investments. Investors buying mutual fund units on or after October 1 will have a choice to either furnish their nominations or to opt out of a nomination by submitting a request.