November changes to the money regulations for Indians

From stricter regulations against insider trading in mutual funds to revised KYC requirements for money transfers, these updates aim to enhance investor protection and improve financial security

Nov 1, 2024 - 21:45 Updated: Nov 1, 2024 - 21:49

November changes to the money regulations for Indians

Significant financial changes are expected to affect Indians in a number of areas as November 2024 approaches. These changes, which range from tighter laws against insider trading in mutual funds to updated KYC standards for money transfers, are intended to strengthen investor protection and financial stability. Pensioners also need to be aware of the life certificate submission deadlines, and credit card holders will have to deal with updated conditions and new interest rates.

1. Tighter regulations against insider trading in mutual funds

The Securities and Exchange Board of India (Sebi) will enforce more stringent rules to prevent insider trading in mutual funds as of November 1, 2024. Senior staff members at fund houses who have access to sensitive information about possible problems within the company or its investment schemes will not be allowed to sell their mutual fund interests under the new Prohibition of Insider Trading Regulations. A Moneycontrol report states that by restricting insider trading, stabilizing net asset values (NAV), and defending unitholder interests, this program aims to strengthen investor protection.

2. Revised KYC requirements for money transfers

The Reserve Bank of India (RBI) has introduced significant changes to domestic money transfer regulations, also effective November 1, 2024. These changes enhance Know Your Customer (KYC) requirements, mandating payment system operators to maintain detailed records of beneficiaries including names and addresses. Additionally, every transaction initiated by a remitter will require validation through an additional factor of authentication (AFA). These measures aim to bolster security and improve the integrity of cash payout services, particularly for recipients without bank accounts.

3. Changes in P2P lending regulations

New guidelines from the RBI will also impact peer-to-peer (P2P) lending platforms operated by non-banking financial companies (NBFCs). While the two-account structure for managing funds will remain, the updated regulations mandate that funds be transferred within one day of a transaction. This change is designed to enhance fund segregation and ensure timely processing of transactions, thereby increasing trust in the P2P lending system.

4. Deadline for Jeevan Pramaan Life Certificate

Pensioners must submit their Jeevan Pramaan life certificate by the end of November to prevent interruptions in their pension payments. This certificate serves as proof of life and is essential for ensuring continued eligibility for pension disbursements. Timely submission is critical as failing to meet the deadline will result in an immediate halt of pension payments.

5. Credit card interest rate increases

HSBC and SBI Card will increase their monthly credit card interest rates as of November 1, 2024. In contrast to SBI Card, which will change its rate from 3.50 percent to 3.75 percent, HSBC will raise its rate from 3.49 percent to 3.75 percent. Cardholders will pay more as a result of this hike, which will make them reevaluate their spending patterns and repayment plans in order to lessen any potential financial effects.