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.
Here are five changes related to money and financial matters that will come into effect in January 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.
Bank statements or passbook will not pass off as proof of address for investments for the KYC process for investing in mutual fund schemes from January 1, 2023. However, Hindu United Family (HUFs) entities an exception has been made.
For the KYC process of mutual fund schemes, passport, voter ID, driving licence, NREGA job card, National Population Register Letter and proof of possession of Aadhar for KYC process are the valid documents
Bank locker rule change 2023
Over the last few days, several bank locker holders have received messages from their banks to renew their safe deposit lockers agreements.
SBI in a message to one such safe deposit locker holder wrote: “Dear Customer, as advised by RBI, please visit your branch and execute the revised locker agreement by January 1. Please ignore if already done”.
Reserve Bank of India (RBI) has mandated the banks to renew locker agreements with customers by January 1, 2023. RBI’s August 2021 circular to banks followed a Supreme Court directive in February 2021, which asked the banking regulator to finalise rules for locker management in banks within 6 months from the date of order.
“Banks may adopt the model locker agreement to be framed by Indian Banks’ Association (IBA). This agreement shall be in conformity with these revised instructions and the directions of the Hon’ble Supreme Court in this regard,” said RBI in a notification, issued in compliance of the SC order.
The new rule came into force from January 1, 2022 for new customers, but banks were given time till January 23 to comply with the directive.
The agreement between the bank and the holder of the safe deposit locker should be on a stamp paper. A duplicate copy of the agreement duly signed by both parties is then given to the customer for record. The bank will retain the original copy.
The RBI in its notification said: “At the time of allotment of the locker to a customer, the bank shall enter into an agreement with the customer to whom the locker facility is provided, on a paper duly stamped. A copy of the locker agreement in duplicate signed by both the parties shall be furnished to the locker-hirer to know his/her rights and responsibilities. The original agreement shall be retained with the bank’s branch where the locker is situated”.
Tax declaration rule change 2023
Most employers ask employees to submit their tax declarations in the month of January. While the deadline is often extended to February or even March, it is better to finish filing tax declaration as soon as possible.
Tax declarations include proof of investments, insurance policies purchased, or home loan taken by the employee to get tax deductions under sections 80C, 80D and 24 of the Income Tax Act. Failure to submit tax declaration on time means more tax is deducted from your salary. Although, the same can be claimed while filing ITR.
IRDAI’s new KYC rule for insurance
According to Insurance Regulatory and Development Authority of India’s (Irdai’s) new rules, from January 1, 2023, insurance buyers will need to complete the know your customer (KYC) process.
As per new rule, those buying health, travel, and car insurance policies will need to submit ID and address proof documents such as PAN card, Aadhaar, Voter’s ID, driving licence and passport.
Earlier, customers were required to submit PAN and Aadhar only at the time of filing a claim.
