From Rs 2000 Note Deposit To Free Aadhaar Update: Personal Financial Deadlines In September

Last date to deposit/exchange Rs 2,000 notes, Aadhaar number submission for small saving schemes, and more, we have listed a number of changes coming in the financial landscape of September 2023. 

The Reserve Bank of India (RBI) on May 19 announced the withdrawal of Rs 2,000 denomination banknotes from circulation while clarifying that existing Rs 2,000 notes will remain legal tender.

Source : Getty

September is set to bring a number of important personal finance deadlines, including the last date to deposit/exchange Rs 2,000 notes, Aadhaar number submission for small saving schemes, and free Aadhaar updates. Most of these deadlines have been previously extended and are set to expire this month. We have listed a number of imported changes coming in the financial landscape of September 2023 that you should keep an eye on. 

Last Date To Deposit/Exchange Rs 2,000 Banknotes

The Reserve Bank of India (RBI) on May 19 announced the withdrawal of Rs 2,000 denomination banknotes from circulation while clarifying that existing Rs 2,000 notes will remain legal tender.

"The facility for depositing into accounts and exchanging Rs 2000 banknotes will be available at all banks until September 30, 2023," the central bank had said in its releases. In a written response to Lok Sabha in late July, Minister of State for Finance Pankaj Chaudhary indicated that the government may not extend the deadline for exchanging Rs 2,000 notes in banks beyond September 30.

Aadhaar And PAN Number Mandatory For Small Saving Schemes

As per a notification dated March 31, the Finance Ministry granted a six-month duration until September 30 for submitting the Aadhaar number to update Know Your Customer (KYC) information for depositors of small saving schemes like PPF, Sukanya Samriddhi Yojana (SSY), National Savings Certificate, and others. For current subscribers, failing to provide their Aadhaar number for their small savings account by the given deadline will result in the freezing of their account from October 1.

Earlier, individuals were able to invest in small saving schemes without the requirement of providing their Aadhaar number. Additionally, the notification also specified that for investments surpassing a certain threshold, individuals need to furnish their PAN card details. The notification said that during the process of opening a small savings account, individuals are required to submit their PAN. If, for any reason, PAN details are not provided during account opening, they must be provided within two months under the following circumstances:

1. If the account's balance exceeds Rs 50,000 at any given point in time.
2. If the total credits to the account within a financial year exceed Rs 1 lakh.
3. If the total withdrawals and transfers from the account in a single month exceed Rs 10,000. 

Deadline For Nomination In Demat, Trading Accounts

The Securities and Exchange Board of India (SEBI) in March extended the deadline for existing eligible trading and demat account holders to nominate beneficiaries for their accounts to September 30, 2023. Initially, this rule was set to take effect on March 31, 2022, but it was extended to March 31, 2023. For those opening new trading and demat accounts from October 1, 2021, the option to nominate beneficiaries or opt out of nomination is available through a declaration form. To add a nominee to a demat account, account holders need to log in, go to the 'My nominees' section under the profile segment, and follow the instructions to add a nominee or opt-out.

Free Aadhaar Update

The Unique Identification Authority of India (UIDAI), the nodal authority for Aadhar issuance in June extended the deadline for free Aadhaar card update by three months till September 14.

“The service of uploading documents PoI/PoA as mentioned in the list of acceptable documents to revalidate your credentials through my Aadhaar portal (SSUP) is now free of cost till 14.09.2023,” UIDAI said in a tweet.

@joydeep316 Dear Resident,
The service of uploading documents PoI/PoA as mentioned in the list of acceptable documents to revalidate your credentials through my Aadhaar portal (SSUP) is now free of cost till 14.09.2023. @UIDAI @GoI_MeitY @ceo_uidai @PIB_India @_DigitalIndia 1/2

— Aadhaar (@UIDAI) June 16, 2023

Deadline For Second Advance Tax

The second advance tax installment for the financial year 2023-2024 is due on September 15, 2023. This applies to all taxpayers whose estimated tax liability for the year is Rs 10,000 or more, after taking into account tax deducted and collected at source (TDS and TCS), as per section 208 of the Income Tax Act 1961. The advance tax liability may arise for salaried individuals as well if they have other sources of income such as interest from deposits, rental income, or capital gains. Taxpayers are required to pay 45 per cent of their annual estimated advance tax liability on or before September 15. If they miss or delay these payments, they will be liable to pay interest at the rate of 1 per cent per month or part of a month on the amount due, under section 234C of the Income Tax Act.

Taxpayers can pay their advance tax in four installments. The due dates for the installments are:

• September 15, 2023: 45% of the estimated tax liability

• December 15, 2023: 30% of the estimated tax liability

• March 15, 2024: 25% of the estimated tax liability

• June 15, 2024: Balance amount of the estimated tax liability

Additionally, September will also mark the last opportunity to invest in some special schemes offered by certain banks.

SBI WeCare FD For Senior Citizens

The State Bank of India (SBI) has extended the deadline for its special fixed deposit scheme for senior citizens, SBI WeCare. The scheme offers higher interest rates to senior citizens on tenures between 5 years and 10 years. The deadline for the scheme has been extended to September 30, 2023. The scheme is available on fresh deposits and renewal of maturing deposits.

IDBI Amrit Mahotsav FD

IDBI Bank has extended the validity period for its special fixed deposit scheme, Amrit Mahotsav FD. The scheme offers interest rates in the range of 7.10 per cent to 7.65 per cent for two tenures. The scheme has been extended till September 30, 2023. In this scheme, senior citizens earn higher interest rates than general individuals.

Revision of Axis Bank Magnus Credit Card Terms And Conditions

Axis Bank has revised the terms and conditions of its Magnus Credit Card. The annual fee will be increased from Rs 10,000 + GST to Rs 12,500 + GST for customers who are onboarded from September 1, 2023. The annual benefit of a voucher worth Rs 10,000 will also be discontinued. Additionally, the monthly milestone benefit of 25,000 EDGE Reward Points on monthly spending of Rs 1,00,000 will be discontinued from September 1, 2023.