January 1st Rule Changes: NPS, Bank lockers, And Other Rules Changes Coming Into Effect In New Year

Rules like partial withdrawal for NPS, mandatory KYC documents for insurance policies, updated bank locker agreement, and other changes from January 1 which can impact your personal finances

Online partial withdrawal facility from NPS will no longer be available for government sector subscribers, starting from January 1, 2023.

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New Year 2023 is just around the corner. Rules like partial withdrawal for National Pension System (NPS), mandatory KYC documents for purchasing insurance policies, updated bank locker agreement, and several other changes are taking place starting from January 1, 2023, that can impact your personal finances. 

Here is a list of rules which are going to change from New Year 2023

National Pension System (NPS) Partial Withdrawal Rule

The Pension Fund Regulatory and Development Authority (PFRDA) has said that the online partial withdrawal facility from NPS through self-declaration will no longer be available for government sector subscribers, starting from January 1, 2023. This change will impact subscribers from the central government, state government, and central autonomous bodies.

PFRDA said, "With the abating of the pandemic-related difficulties & relaxation of lockdown restrictions, the issue examined after taking into consideration of the prevalent practices, circumstances and law, it has been decided to make it mandatory for all the Government sector subscribers (central/state govt & central/state autonomous bodies) to submit their requests through their associated nodal offices."

Now, government sector subscribers will have to submit their application for NPS Partial Withdrawal to the nodal officer. In the application, they will have to substantiate the reason for partial withdrawal and add supporting documents. 

KYC Mandatory For Insurance Policies

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated KYC (know your customer) submission for purchasing insurance policies from next month. If you wish to buy a health, travel, or motor insurance policy post-January 1, you will have to mandatorily complete the know-your-customer (KYC) process. 

Earlier, PAN and Aadhar were required only if the claim value was greater than Rs 1 lakh. Now, new customers buying health, travel, and motor insurance policies need to submit their ID and address proof documents such as PAN card, Aadhaar, Voter’s ID, driving license and passport. 

Bank Locker Agreement 

RBI has mandated banks to provide updated locker agreements to its Bank locker customers. Reserve Bank of India (RBI) in an August 2021 notification said, “Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements. Further, the terms of the contract shall not be more onerous than required in ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing locker customers by January 1, 2023.”

The rules will take effect from January 1, 2023. Banks such as SBI and Central Bank of India, among others, have asked their customers to get these agreements signed by December 31, 2022.

Changes In Credit Card Rules

For credit card payments, several banks are likely to change their reward point scheme, in the New Year. In this case, you must redeem the credit card reward points by December 31. 

“Accrual of 10X Reward Points on online spends at Amazon. in with SimplyCLICK/SimplyCLICK Advantage SBI Card will be revised to 5X Reward Points w.e.f 01 Jan’23. Your card will continue to accrue 10X Reward Points on online spending at Apollo 24X7, BookMyShow, Cleartrip, EazyDiner, Lenskart & Netmeds. T&C,” SBI said according to the Economics Times (ET).

High-Security Registration Plates

For vehicles registered before April 1, 2019, it has been made mandatory to install high-security registration plates (HSRP) and color-coded stickers. In several states, the deadline for installing high security number plates is December 31, 2022.

As per the Motor Vehicles Act and the Central Motor Vehicle Rules, any vehicle caught without HSRP and color-coded stickers are liable to a hefty fine, ranging from Rs 5,000 to Rs 10,000. The cost of a high-security number plate for a two-wheeler has been fixed at Rs 365 and for four-wheelers, it ranges from Rs 600 to Rs 1,100.