3 Financial Tasks To Complete Before 31 December 2023

Proactive steps now can prevent disruptions and safeguard your assets in the financial arena.
Financial Planning, Demat account, Mutual Fund, safe deposit locker, Unified Payments Interface (UPI)
Financial Planning, Demat account, Mutual Fund, safe deposit locker, Unified Payments Interface (UPI)

With just a week left in the year, it's time to focus on essential tasks that can impact the security of your financial assets. Whether you're an investor in Mutual Funds (MFs) or hold a Demat account, the regulatory landscape demands attention before the year comes to a close.

Demat And Mutual Fund Accounts: Adding A Nominee: 

The Securities and Exchange Board of India (Sebi) has issued a crucial directive for all Demat and MF account holders – add a nominee or opt out. Sebi has set a firm deadline of December 31, 2023, for compliance. This means, if you haven't added a nominee or chosen to opt out by the end of this year, your account could face freezing.

Adding a nominee is not just a regulatory requirement; it's a strategic move to ensure the seamless transfer of assets to your family in case of unforeseen events. The process can be conveniently completed online from the comfort of your home, making it easier than ever to fulfil this important obligation.

Failure to meet this deadline could lead to the freezing of your Demat or MF account, prohibiting any withdrawals. If you've already added nominee details recently, there's no need to repeat the process. Act promptly to secure your financial accounts and protect your family's financial future.

Unified Payments Interface (UPI) IDs: Reactivation Is Key: 

The National Payments Corporation of India (NPCI) has taken a proactive step to secure the UPI ecosystem. In a release on November 16, 2023, coinciding with the Reserve Bank of India's (RBI) announcement of UPI transactions crossing 11 billion, NPCI outlined guidelines for deactivating inactive UPI IDs and associated numbers.

With the UPI witnessing an unprecedented surge in transactions, reaching 11 billion, NPCI has mandated that all banks and third-party apps deactivate and shut down inactive UPI IDs by December 31, 2023. Users must ensure the activation of their UPI IDs before this date to avoid the cancellation of dormant IDs.

Banks will notify users through email or messages before deactivating their UPI IDs. Staying vigilant and reactivating your UPI ID before the deadline is crucial to ensuring uninterrupted digital transactions.

Safe Deposit Locker Agreements: A Deadline Extension: 

According to the guidelines issued by the RBI in August 2021, both banks and their customers are required to sign revised locker agreements by December 31, 2023. This extension comes as a relief, given the challenges faced by banks in completing the task within the initially stipulated timeframe of January 1, 2023.

The RBI's guidelines, communicated through the Indian Bank Association (IBA), apply to both existing and new customers. The implementation is staggered, with banks expected to reach 50 per cent compliance by June 30; 75 per cent by September 30; and 100 per cent by the end of this year.

Customers are urged not to wait until the last day to sign the revised agreement. Stay informed about these regulatory changes, and if you haven't already, ensure that your safe deposit locker agreement is updated by the RBI guidelines.

As the year comes to an end, it's crucial for individuals to proactively address these financial tasks. These are essential steps towards safeguarding your financial well-being. Stay informed, stay compliant, and start the New Year with peace of mind.

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