New Delhi: The new year has come will a lot of changes in financial transactions.
Magnetic Stripe ATM cards
All ATM cards with a magstripe or magnetic stripe will cease to work from January 1. You can get it replaced with a new EMV chip debit card from your bank free of cost. According to guidelines issued by the Reserve Bank of India (RBI), all banks have been asked to convert old debit cards into the new EMV-based cards.
EMV cards come with a small microchip that protects buyers against fraudulent transactions. It creates dynamic data every time you make a transaction which makes it impossible for cloning the card.
NEFT charges waived
The Reserve Bank of India (RBI) has made NEFT online transfers a 24×7 process with effect from December 16. And now from January 1, banks have been instructed to waive online NEFT charges for savings bank account holders.
No more RuPay, UPI charges
Merchant Discount Rate (MDR) charges will not be applicable on transactions through RuPay and UPI platforms from 2020.
OTP for SBI Withdrawal
If you have a State Bank of India (SBI) ATM card, you might require an OTP (one-time-password) to withdraw cash. With effect from January 1, SBI has introduced OTP-based ATM withdrawal for transactions above ₹10,000 between 8 pm to 8 am. This is only when you are withdrawing money from SBI ATM.
Income tax return (ITR) filing
If you had missed the August 31 deadline to file an income tax return (ITR), then you can do so by the end of this financial year. However, for all belated ITRs filed from January 1, a penalty of ₹10,000 will be imposed.
If your PAN card is not yet linked to Aadhaar, then it will not be declared inoperative or not in use from January 1 as the income tax department has extended the 31 December deadline to 31 March. This is the second time that the government os extending this deadline.