6 Important changes happening in January 2023. Check revised rules on bank lockers, tax declaration and more

Six money changes in January 2023

Six money changes in January 2023

The financial markets and their rules are dynamic. They keep changing to keep pace with the changing economic landscape and consumer preferences. As the New Year begins, important changes are lined up for January 2023 that might impact your finances and portfolio. Six changes are happening in the first month of 2023. Here’s a look at them.

1. Revised agreements for bank lockers

If you have a bank locker, new rules have come into effect regarding locker agreements. The agreements have changed, and customers are requested to sign the new agreements with their banks to maintain their lockers.

As per RBI rules, locker agreements will have to be drafted on stamp papers and signed by the bank and the customer. The customer will receive a copy of this agreement to know his rights and responsibilities.

Many banks ask customers to renew their agreements by 1st January 2023, while others have not specified any deadline. Thus, you should find out and update the locker agreement with your bank if you hold a locker.

2. Investment declaration for tax benefits

Salaried employees must file investment declarations with their employers to claim tax benefits on their eligible investments and expenses. This declaration is to be filed by January, while some employers might extend the time till February or March.

So, if you are salaried, file the investment declaration by January to minimize TDS on salary income.

3. KYC a must for insurance plans

Starting January 1, 2023, buying any insurance plan will require you to submit your KYC documents like your Aadhaar Card, PAN Card, and other ID and address proof documents like your passport, driving license, etc.

4. The passbook is no longer valid for mutual fund investments.

KYC is also required when you invest in mutual funds. Earlier, a copy of your bank passbook was accepted as valid proof of address when completing the KYC process. However, the rules have now changed. Starting from January 2023, individual investors must submit another address proof to complete their KYC. For Hindu Undivided Families (HUFs), however, the bank statement will continue to be considered valid address proof.

Related - Find out how mutual funds are taxed

5. The face value of debt securities reduced

The Securities and Exchange Board of India (SEBI) has reduced the face value of debt securities from January 2023. The new value stands at Rs.1 lakh compared to the earlier value of Rs.10 lakhs. This reduction in the face value is expected to drive liquidity in the corporate debt market. It will be applicable for non-convertible redeemable preference shares that are issued on a placement basis.

6. Changes in partial withdrawal rules for NPS government subscribers

Government subscribers seeking partial withdrawals from the National Pension System (NPS) scheme will have to get authorisation from their respective nodal offices. Only when the withdrawal request is authorised will the withdrawal be allowed.

These changes will affect your investments and finances. So, know about them and stay updated.

Related - Find out the important money changes in 2022

Check out the video to learn the changed banking rules from January 2023

The financial markets and their rules are dynamic. They keep changing to keep pace with the changing economic landscape and consumer preferences. As the New Year begins, important changes are lined up for January 2023 that might impact your finances and portfolio. Six changes are happening in the first month of 2023. Here’s a look at them.

1. Revised agreements for bank lockers

If you have a bank locker, new rules have come into effect regarding locker agreements. The agreements have changed, and customers are requested to sign the new agreements with their banks to maintain their lockers.

As per RBI rules, locker agreements will have to be drafted on stamp papers and signed by the bank and the customer. The customer will receive a copy of this agreement to know his rights and responsibilities.

Many banks ask customers to renew their agreements by 1st January 2023, while others have not specified any deadline. Thus, you should find out and update the locker agreement with your bank if you hold a locker.

2. Investment declaration for tax benefits

Salaried employees must file investment declarations with their employers to claim tax benefits on their eligible investments and expenses. This declaration is to be filed by January, while some employers might extend the time till February or March.

So, if you are salaried, file the investment declaration by January to minimize TDS on salary income.

3. KYC a must for insurance plans

Starting January 1, 2023, buying any insurance plan will require you to submit your KYC documents like your Aadhaar Card, PAN Card, and other ID and address proof documents like your passport, driving license, etc.

4. The passbook is no longer valid for mutual fund investments.

KYC is also required when you invest in mutual funds. Earlier, a copy of your bank passbook was accepted as valid proof of address when completing the KYC process. However, the rules have now changed. Starting from January 2023, individual investors must submit another address proof to complete their KYC. For Hindu Undivided Families (HUFs), however, the bank statement will continue to be considered valid address proof.

Related - Find out how mutual funds are taxed

5. The face value of debt securities reduced

The Securities and Exchange Board of India (SEBI) has reduced the face value of debt securities from January 2023. The new value stands at Rs.1 lakh compared to the earlier value of Rs.10 lakhs. This reduction in the face value is expected to drive liquidity in the corporate debt market. It will be applicable for non-convertible redeemable preference shares that are issued on a placement basis.

6. Changes in partial withdrawal rules for NPS government subscribers

Government subscribers seeking partial withdrawals from the National Pension System (NPS) scheme will have to get authorisation from their respective nodal offices. Only when the withdrawal request is authorised will the withdrawal be allowed.

These changes will affect your investments and finances. So, know about them and stay updated.

Related - Find out the important money changes in 2022

Check out the video to learn the changed banking rules from January 2023

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