NPS, Passbook, Bank Locker, Tax Declaration: 5 Financial Changes to Impact Common Man in January 2023

From this month onwards, bank statements or passbook copies will not be accepted as proof of address for completing the KYC process for individual mutual fund investors.

New Delhi: Apart from resolutions, New Year has brought many new changes related to financial matters which are going to impact the common man in January 2023. Here are five new changes related to money and financial matters that have come into effect in January 2023.

NPS Withdrawal New Rule

Starting from January 2023, the Central government employees will have to submit an application to their associated nodal officers for request of partial withdrawal of NPS funds. They also need to submit valid documents to support the reasons for making the request of partial withdrawal.

Passbook Rule Change For Mutual Fund

Starting from January 2023, bank statement or passbook copy will not be accepted as proof of address for completing the KYC process for individual mutual fund investors. For the KYC process of mutual fund schemes, the valid documents include passport, voter ID, driving licence, NREGA job card, National Population Register Letter.

Bank locker New Rules

Several bank locker holders for the last few days have received messages from their banks to renew their safe deposit lockers agreements. In a message, the SBI said: “Dear Customer, as advised by RBI, please visit your branch and execute the revised locker agreement by January 1. Please ignore if already done”.

The Reserve Bank of India (RBI) has made it mandatory for the banks to renew locker agreements with customers by January 1, 2023.

Tax Declaration New Rule

Almost all employers ask their employees to submit tax declarations in the month of January. Even as the deadline is often gets extended to February or even March, it is better to finish filing tax declaration as soon as possible.

Tax declaration forms include proof of investments, insurance policies purchased, or home loan taken by the employee to get tax deductions under sections 80C, 80D and 24 of the Income Tax Act.

New KYC Rule For Insurance

As per the Insurance Regulatory and Development Authority of India’s (IRDAI’s) new rules, from January 1, 2023, insurance buyers will have to complete the know your customer (KYC) process for insurance.

According to new guidelines, those buying health, travel, and car insurance policies will have to submit ID and address proof documents such as PAN card, Aadhaar, Voter’s ID, driving licence and passport. Previously, they were required to submit PAN and Aadhar only at the time of filing a claim.