Last month to deposit Rs 2000 and other money deadlines in September

There are several important money-related deadlines that will impact the way you transact this month, so be sure to read on. 

Last month to deposit Rs 2000 notes

The Reserve Bank of India had given four months to deposit or exchange notes worth Rs 2000 to deposit or exchange. Banknotes of Rs 2000 must be exchanged or deposited by September 30, 2023. If you still intend to deposit in the coming months, be sure to check bank holidays in your state before visiting a bank.

Banks will remain closed for a total of 16 days on different occasions in September. This includes every Sunday, as well as the holiday on every second and fourth Saturday. The month will observe holidays on Ganesh Chaturthi, Eid-e-Milad and Janmashtami. There are numerous national holidays as well. On that day, all banking operations across the nation will be closed. Some holidays, however, are only observed locally or regionally. Only banks in selected states will be closed on local holidays.

For example: On September 6, banks will remain closed in Bhubaneswar, Chennai, Hyderabad and Patna, due to Shri Krishna Janmashtami. On September 7, due to Shri Krishna Janmashtami, there will be a bank holiday in Ahmedabad, Chandigarh, Dehradun, Gangtok, Telangana, Jaipur, Jammu, Kanpur, Lucknow, Raipur, Ranchi, Shillong, Shimla and Srinagar.

On September 18, banks will remain closed in Bengaluru and Telangana due to Vinayak Chaturthi. Banks will remain closed in Ahmedabad, Belapur, Bhubaneswar, Mumbai, Nagpur, and Panaji on account of Ganesh Chaturthi on September 19.Banks will remain closed in Kochi and Bhubaneswar due to Ganesh Chaturthi and Nuakhai on September 20.

Banks will remain closed in Kochi, Panaji and Trivandrum on September 22 on the occasion of Sree Narayana Guru Samadhi Day.

On September 25, due to the birth anniversary of Shrimant Sankardeva, there will be a holiday in banks in Guwahati.

Banks in Jammu, Kochi, Srinagar and Trivandrum will remain closed on September 27 due to Milad-e-Sharif.

Banks will remain closed in Gangtok, Jammu and Srinagar on account of Eid-e-Milad Un Nabi on September 29.

Second instalment of advance tax

The second instalment of advance tax for the assessment year 2024-25 should be paid by 15 September.

Execution-only platforms for investing in direct MF schemes

Market regulator Securities and Exchange Board of India (SEBI) has introduced a regulatory framework for an execution-only platforms for direct plans of mutual fund schemes. The execution-only platform allows transactions in direct plans of mutual funds without the help of distributors.

 The new framework would be applicable from September 1.

Over the past few years, direct plans of mutual fund schemes have gained traction among investors as such schemes are cheaper compared to regular plans, which include a commission paid to distributors. This resulted in the mushrooming of several online platforms that provide the facility of investing in direct plans.

Under the mechanism, an entity desirous of providing execution-only services in direct plans of mutual funds can obtain registration under either of the two categories -- category 1 EOP as an agent of asset management companies registered with the industry body Association of Mutual Funds in India (AMFI) or category 2 EOP as an agent of investor, registered as a stock broker. The move would make it convenient for investors to put investments through EOPs and would help in ease of doing business for the platforms by mandating only such appropriate regulatory compliances as is required for the EOP activity.

Demat and mutual fund nomination

The Securities and Exchange Board of India has extended the time for trading and demat account holders to make nominations or opt out of a nomination. The revised deadline is September 30, 2023.

Nomination is the process of designating someone to manage your assets in the event of your passing. For new funds, making a nomination is mandatory. If an investor chooses not to nominate, they can skip the process while filling out the form. Nomination registration simplifies fund transfer to nominees upon the investor's demise.

Nominations can be completed through various methods. Websites of Registrar and Transfer Agents (RTAs) like CAMS and KFintech offer this feature, requiring a one-time password (OTP). Alternatively, MF Central—an investment management platform by CAMS and KFintech—allows updating nominations using your PAN. After logging in, select your mutual funds, update nominee details, and verify with an OTP.

 

PAN -Aadhaar link for small savings scheme

The accounts of current customers will be suspended on October 1, 2023, if their Aadhaar numbers are not submitted by September 30, 2023. Within six months of starting their account, new users who want to invest or start a small savings plan must submit their Aadhaar information.

Free Aadhaar update on myAadhaar portal

UIDAI has extended the free Aadhaar update of documents till 14 September 2023. Earlier, the free service was available till 14 June 2023 only. This service is free only on the myAadhaar portal and attracts a fee of Rs 50 at physical Aadhaar centres.

Last month to lock in these FD rates

State Bank of India's special fixed deposit scheme for senior citizens called SBI WeCare, offers higher interest rates to the elderly on tenures between 5 years to 10 years. This scheme, which offers 7.5 per cent interest, will end on September 30, 2023. The scheme is available on fresh deposits and renewal of maturing deposits. S

Similarly, IDBI Bank offers an interest rate of 7.10% for the general public and 7.60% for senior citizens. IDBI's Amrit Mahotsav FD" for 375 Days and 444 Days is valid till September 30.

Axis Bank revises benefits in Magnus Credit Card from 1 September

 Axis Bank has revised the terms and conditions of its Magnus Credit Cards for customers. From 1 September 2023, the bank will start charging an annual fee of Rs 12,500 for its Magnus Credit Card. This is a change from the current policy, which waives the annual fee for the card if the customer spends Rs 25 lakh in the preceding card anniversary year. Moreover,  removal of the Monthly milestone benefit is the major hit for most.

Here are the changes

1. The monthly milestone benefit of 25,000 bonus points is removed.
2. Accelerated Rewards of 35/200 INR (14% beyond 1.5L spend a month)
3. Transfer ratio to partners drops from 5:4 to 5:2
4. The annual fee hiked to 12,500 INR and the renewal fee waiver only on Rs 25 lakh worth spend
5. No renewal benefit