Demat account nomination to bank locker agreement: Top five personal finance tasks to complete by December 31
Changes coming into effect from January 1, 2024 include providing a choice of nomination for Demat account holders, deactivating inactive UPI IDs, signing a new agreement for bank lockers, and eliminating paper-based KYC for SIM cards
It's just a matter of a few days, and we will be bidding adieu to the year 2023, and welcoming New Year 2024. With the onset of 2024, several changes will come into effect. Changes coming into effect from January 1, 2024, include providing a choice of nomination for Demat account holders, deactivating inactive UPI IDs, signing a new agreement for bank lockers, and eliminating paper-based KYC for SIM cards.
A checklist of financial tasks to complete by December 31
1) Demat account holders, MF nominations
The Securities and Exchange Board of India (SEBI) on September 26, extended the deadline for existing demat account holders to provide a choice of nomination by another three months to December 31, 2023. Further, SEBI has given time till December 31, for physical security holders for submission of PAN, nomination, contact details, bank account details, and specimen signature for their corresponding folio numbers.
2) Inactive UPI IDs
The National Payments Corporation of India (NPCI) in a circular dated 7 November, has asked payment apps and banks to deactivate the UPI IDs and numbers that have not been active for more than one year. Every bank and third-party app has to follow these till 31st December.
3) Bank locker agreement
According to the Reserve Bank of India (RBI), new rules for safe deposit lockers require customers to sign a new agreement with their banks. Customers are only allowed to use the locker as long as they pay the rent. The deadline for the agreement is December 31, 2023.
4) Belated ITR filing deadline
The last date to file Income Tax Returns with penalty fees for the fiscal year 2022-23 is also approaching on December 31, 2023. Under Section 234F of the Income Tax Act, individuals who fail to file their returns before the due date will be subject to a late filing fee. For those who missed the deadline, the penalty is ₹5,000. However, taxpayers whose total income remains below ₹5 lakh will only have to pay a reduced penalty of ₹1,000.
4) No paper-based KYC for SIM cards
Mobile phone users will be able to get new SIM cards without filling out the paper forms on the first day of 2024. According to a notification by Department of Telecommunications (DoT), the paper-based know-your-customer (KYC) process will be done away with from January 1. "Considering various amendments/changes made in the existing KYC framework from time to time, it has been decided by the competent authority that the use of Paper-based KYC process, as envisaged in instructions dated 09.08.2012, shall be discontinued effect from 01.01.2024," the notification read.
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First Published:20 Dec 2023, 01:26 PM IST
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