Here are the significant regulation changes that will take effect on September 1st, ranging from the extension of the deadline for mandatory Aadhaar-PAN linking to Aadhaar-PF linkage.
Linking of PAN with Aadhaar
The deadline for citizens to link their Permanent Account Number (PAN) with Aadhaar has been extended until September 30 by the government. Originally, the deadline was set for June 30, 2021, however it was later pushed back three months. Citizens are now compelled to link their PAN with Aadhaar until the deadline.
Employers can only credit their provident fund (PF) contribution from September 1 if the employee’s Aadhaar number is linked to their Universal Account Number (UAN). The Employees’ Provident Fund Organisation (EPFO) revised Section 142 of the Code of Social Security, 2020, to make Aadhaar-PF linking essential for a variety of activities, including receiving payments and applying for benefits.
Changes in cheque clearing system
Positive Pay System would be used for transactions involving Rs 50,000 or more in RBI checks. The bank would be required to provide details regarding transactions of Rs 50,000 or more checks via net banking, mobile banking, or in person at a bank branch. The check may be refused if this is not done. Customers who want to issue checks will have to inform their banks about the check specifics via net/mobile banking or a physical visit to the branch under the new rule. Cheques will bounce if the issuer fails to notify the bank prior to the cheque being issued. Similarly, for senior folks or those who are unfamiliar with online/net banking, this could be a barrier.