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Six important changes in money matters from January 2022

The customers will have to pay Rs 21 per transaction at their own banks' ATMs to withdraw money once the limit is exceeded

January 01, 2022 / 02:10 PM IST

Once you have your resolutions in place in January, you will have to revisit your spending behaviour, investments, insurance policies, credit reports, etc. and rework on them for a better financial life amid the pandemic. Here are some key regulatory and operational changes that are likely to affect your financial life.

Add your nominees on EPF website

In case you are working in an organisation and hold an Employees’ Provident Fund (EPF) account, then complete the EPF nomination by December 31, 2021. Failure to do so will result in losing on several benefits from January 1. The EPFO body has asked for nominations, so that in case of the untimely demise of the EPF subscriber, the nominee can easily file the claim online. On the EPF website, you can nominate more than one person and mention the percentage share. To complete the nomination process online, you need to have active your Universal Account Number (UAN) and Aadhaar details should have been linked to your EPF account.

ATM cash withdrawals to become expensive

Cash withdrawal from ATMs will get costlier from January after cash withdrawal limit is exhausted. According to a RBI notification in June 2020, customers are eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities effective from January 1. The customers will have to pay Rs 21 per transaction at their own banks' ATMs to withdraw money once the limit is exceeded. Presently, the charges are Rs 20.

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India post payment bank to levy charges on deposits and withdrawals

If you hold an account in India Post Payments Bank (IPPB), then you will have to bear charges for depositing and withdrawing cash from your account, if you exceed the prescribed limit. These charges are effective from January 1. In the savings (other than basic savings account) and current accounts, the cash deposits will be free up to Rs 10,000 per month and, thereafter, a charge of 0.50 percent of the value subject to minimum Rs 25 per transaction will be levied. Similarly, the cash withdrawal will be free up to Rs 25,000 per month and thereafter, a charge of 0.50 percent of the value subject to minimum 25 per transaction will be levied.

File your belated income tax return

The extended deadline to file ITR for AY 2021-22 by individuals ends on December 31. The original deadline was July 31, 2021, but it got extended because of the COVID-19 pandemic and glitches on the new income tax filing portal. From January 1, you can file a belated return till March 31, 2022. However, a belated return will attract late-filing fees of Rs 5,000 under section 234F. If your income is less than Rs 5 lakh, the penalty is restricted to Rs 1,000, if the income tax return (ITR) is filed after December 31 but before March 31, 2022.

SEBI revises risk management framework for mutual funds

To protect the interests of investors and to ensure that mutual funds render a high standard of service, SEBI has revised the risk management framework (RMF), which is effective from January 1. SEBI’s new RMF terms risk management as an independent and specific function of the asset management company. For each risk, such as investment risk, compliance risk, operational risk and cyber security, the asset management company (AMC) should appoint a dedicated risk officer. Besides these, there should be a chief risk officer (CRO) in each asset management company. The RMF specifies the policies, procedures, roles and risk management functions of the management, board of the AMC and board of the trustees. SEBI's revised RMF also expressed the need for monitoring risks associated with managing distribution channels and processes around commission payouts.

Simplified norms for processing investors’ service requests

SEBI has simplified norms for processing investor's service requests. The new framework will come into effect from January 1. These requests include change in or updation of PAN, nominee, signature, contact and bank details; issue of duplicate securities certificate, consolidation of securities certificate, change in status from minor to major and resident to NRI and vice versa and services through depository participants for demat.



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Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Dec 31, 2021 09:54 am
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