A new year brings new opportunities to make new resolutions and to follow them. Money matters are important and even more important is to keep updated with any new financial changes. These changes would include revised bank locker agreements, credit card reward points, KYC processes for insurance policies, and mutual fund schemes, among others. All of these changes will become effective on January 1, 2023.
Here’s a close look at the changes:
NPS Withdrawal Rule Change 2023
Central government employees will need to submit an application to their associated nodal officers for request of partial withdrawal of NPS funds. Also, applicants will need to submit valid documents to support the reasons for making the request of partial withdrawal.
Partial withdrawal is only allowed for specific reasons like marriage of children, higher education of children, purchase of construction of house, and treatment of illness.
Passbook Copies no Longer Valid Proof for Investing in Mutual Funds
Effective January 1, 2023, bank statement or passbook copy will not be accepted as proof of address for completing the KYC process for individual mutual fund investors. For Hindu-undivided family (HUF) entities, bank statements, however, can be accepted for completing the KYC process.
Investors can continue to use passport, voter ID, driving licence, NREGA job card, National Population Register letter and proof of possession of Aadhar for completion of their KYC along with other permissible documents.
New Bank Locker Rules from January 1
The Reserve Bank of India has said that all leading banks should issue the locker agreement to its holders before January 1, 2023, as the new locker rules will be implemented from that date. The central bank said all banks need to circulate a new locker agreement to their safe deposit locker holders under the new rules. Banks can use the IBA-drafted model locker agreement, which should comply with the updated instructions and Supreme Court’s directives. The new rule was adopted on January 1, 2022, for new locker facilities. But all existing customers will have to complete the updation process by January 1, 2023.
As per RBI’s revised guidelines, “Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements. Further, the terms of the contract shall not be more onerous than required in the ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing locker customers by January 1, 2023”.
Credit Card Rules
State Bank of India Cards & Payment Services has tweaked two of its rules about the redemption of vouchers and Reward Points that are effective from January 2023. The SBI-backed card will have new rules regarding Reward Points on online spends on Amazon.in with SimplyCLICK/SimplyCLICK from January 1. Users will get 5X Reward Points instead of 10X Reward Points on online spends on Amazon.in.
“Accrual of 10X Reward Points on online spends at Amazon.in with SimplyCLICK/SimplyCLICK Advantage SBI Card will be revised to 5X Reward Points w.e.f 01 Jan’23. But the card will continue to accrue 10X Reward Points on online spends at Apollo 24X7, BookMyShow, Cleartrip, EazyDiner, Lenskart & Netmeds.”
Another rule is for Cleartrip vouchers. “From 6 Jan 2023, the Cleartrip voucher issued to SimplyCLICK Cardholders on reaching the online spend milestone should be redeemed in a single transaction only and cannot be clubbed with any other offer or voucher. For more details,” SBI Cards & Payment Services said on its website.
HDFC Credit Card Rules
HDFC credit card reward points for flights and hotel bookings will be capped per calendar month on the HDFC Bank SmartBuy online portal. The limit has been set at 150,000 reward points for Infinia, 75,000 reward points for Diners Black, and 50,000 reward points for all other cards, the bank said in a notification.
Similarly, reward points earned on grocery transactions will be also capped. Like it will be 2,000 reward points for Infinia, Diners Black, Regalia, Regalia Gold, Regalia First, Business Regalia, Business Regalia First, Diners Privilege, Diners Premium, Diners Clubmiles, and Tata Neu Infinity cards.
For the rest, the cap has been set at 1,000 reward points.
KYC Mandatory for Insurance Policies
The Insurance Regulatory and Development Authority of India (IRDAI) has said that all insurance policyholders will have to submit KYC (know your customer) details before signing in for new policies. The insurer has said it will closely monitor KYC documents from the policyholders before selling the policies, including life, health, motor, home, and travel insurance policies.
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