Page 44 - Banking Finance January 2020

FEATURE

ATMS, DEBIT CARDS, NEFT

TRANSFERS, OTHER RULES

THAT CAME INTO FORCE

FROM JAN 1

J anuary 1 not only marks the beginning of the new year now from January 1, banks have been instructed to waive

2020 but is also a reminder of several new rules in
off online NEFT charges for savings bank account holders.
Several banks had made NEFT free already earlier. NEFT
the financial world that came into force from January
1. The new rules affect anyone with a debit card, PAN
chargeable as before.
card and even those who are trying to withdraw cash transfers made at bank branches will continue to be
from ATMs or make online transfers.
RuPay, UPI charges:
Debit and ATM cards: Merchant Discount Rate (MDR) charges will not be
All old debit and ATM cards with a magstripe or magnetic applicable on transactions through homegrown RuPay and
stripe will cease to work from January 1. You can get it UPI platforms from 2020. All companies with a turnover of
replaced with a new EMV chip debit card from your bank ?50 crore or more will be mandated to provide the facility
free of cost. According to guidelines issued by the Reserve of payment through RuPay Debit card and UPI QR code to
Bank of India (RBI), all banks have been asked to convert their customers.
old debit cards into the new EMV-based cards.
SBI ATM withdrawals:
"You need to get a new ATM card If your card is a magstripe If you have a State Bank of India (SBI) ATM card you might
card, as it will get blocked due to RBI directives to require an OTP (one-time password) to withdraw cash. With
discontinue the operation of magstripe cards. If your card
effect from January 1, SBI has introduced OTP-based ATM
is an EMV Chip card, please get in touch with your branch
withdrawal for transactions above ?10,000 between 8 pm
and ascertain that," SBI said on Facebook.
to 8 am. However, if you are withdrawing cash from a non-
SBI ATM then OTP will not be required.
If you can see a chip on the face of your debit/ATM card,
then you already have an EMV chip card which doesn't
require replacement. In case it is missing then you need to Income tax return (ITR) filing:
replace it with a new one. If you had missed the August 31 deadline to file income tax
return (ITR) you can do so by the end of this financial year.
EMV cards come with a small microchip that protects buyers However, for all belated ITRs filed from January 1, a penalty
against fraudulent transactions. It creates dynamic data of Rs. 10,000 will be imposed.
every time you make a transaction which makes it impossible
for cloning the card. PAN card:
If your PAN card is not yet linked to Aadhaar, then it will
NEFT charges waived off: not be declared inoperative or not in use from January 1 as
The Reserve Bank of India (RBI) has made NEFT online the income tax department has extended the 31 December
transfers a 24x7 process with effect from December 16. And deadline to 31 March. (Source: Live mint)

44 | 2020 | JANUARY | BANKING FINANCE