Financial changes from January 1

GST Rules to be made stringent:

The indirect tax regime which was overhauled in 2017 with the introduction of GST will be made more stringent. As per a Mint report, a number of changes will be brought into effect into CGST beginning the new year. Some of the changes include what will make a taxable supply, eligibility for tax credits as well as norms in relation to filing appeals in respect of some of the cases.

Cash withdrawal to be made expensive:

revised service charges on usage of other Bank ATMs beyond free limit shall be Rs 21+GST (Cash) & Rs 10+GST (Non-Cash).

New ruling as per which you need to complete the EPF nomination by December 31, 2021. 

Updated 24 December 2021 03:39 PM IST

As the world of digital payment is increasing, the incidents of cyber fraud are increasing with its speed. Cyber criminals are engaged in using new technologies and apps to steal people’s data and steal their money.

After the order of RBI, merchants and payment gateways will have to delete all the information of users stored on their servers. This means that you will now have to enter complete card details to make payments on the websites.

Banks have started telling their customers about the new rules. HDFC, one of the leading private banks, is sending a message to its customers that they will either have to enter full card details or opt for tokenisation.

The Reserve Bank of India (RBI) on extended the card-on-file (CoF) tokenisation deadline by six months to June 30, 2022, in view of various representations received from industry bodies.

Card-on-file, or CoF, refers to card information stored by payment gateway and merchants to process future transactions.

The earlier deadline was December 31, 2021.

What is tokenization

At present, 16 digit number of debit or credit card, expiry date of card, CVV and one-time password have to be entered for online payment or transaction. Your card number is stored on the payment app or online shopping platform and you can make payment by just entering CVV and OTP. But now it will not happen.

Tokenization assigns an alternate code to the actual card number, which is called a “token”. With the help of tokenization, the cardholder does not have to share all the details of his debit or credit card. Tokenization is the replacement of the original card number through an alternate code. This code itself is called token.

Tokenization will be unique for each card, token requester and merchant. Once the token is created, the tokenized card details can be used in place of the original card number. It is being said that this system is considered more secure for online payment.