Shift in SBI ATM Withdrawal Rules
State Bank of India (SBI) has revised the rules for some of its account holders. From October 1, certain salary package account customers will see their free transactions at other banks' ATMs reduced from 10 to just five per month. For Basic Savings Bank Deposit
(BSBD) account holders, the first four cash withdrawals in a month remain free. After that, each withdrawal will incur a fee of ₹15 plus GST. This change includes cash withdrawals at bank branches and ATMs, so it’s wise to track your transactions to avoid extra charges.
New KYC Rule for LPG Subsidy
A significant change for households is the mandatory biometric Aadhaar authentication for LPG subsidies. To receive cooking gas cylinders at the subsidised price, consumers must complete this KYC process. If you haven't done it, you can still get a cylinder, but you might have to pay the full market price. The authentication can be done when the delivery person arrives, at your distributor's showroom, or via your oil marketing company's mobile app. This move aims to ensure subsidies reach genuine beneficiaries and prevent misuse.
Price Hike in Commercial LPG
While domestic LPG prices remain unchanged for now, the cost of 19-kg commercial LPG cylinders has increased. Prices went up by around ₹62.50 in Delhi, impacting businesses like restaurants and hotels. In Delhi, the new price is ₹2,810. This is the second consecutive month of price hikes for commercial cylinders, which could lead to increased costs for services like dining out.
Interest Rates on Small Savings Schemes
The government has announced that interest rates on small savings schemes will remain unchanged for the quarter ending December 31, 2026. This marks the tenth straight quarter without a change for many schemes. The Public Provident Fund (PPF) will continue to offer an interest rate of 7.1%, while the Sukanya Samriddhi Yojana holds its rate at 8.2%. The National Savings Certificate (NSC) will provide a return of 7.7%. This stability offers predictable returns for risk-averse investors who rely on these government-backed instruments.
Changes for High-Value UPI Payments
Starting October 15, a Merchant Discount Rate (MDR) will apply to certain UPI transactions. This charge applies to person-to-merchant payments over ₹2,000 and will be paid by the merchant, not the consumer. Person-to-person UPI transfers and transactions up to ₹2,000 remain free. For most everyday users, this change will have no direct impact, but it's an important development for the digital payments ecosystem that supports the UPI infrastructure.
New Rules for Bulk Fixed Deposits
The Reserve Bank of India has introduced new rules for transparency in bulk fixed deposits, which are deposits of ₹3 crore and above. From October 1, banks must publish the interest rates for these large deposits on their websites daily by 10 a.m. This ensures that large depositors have clear, advance information on the rates they will receive. While this doesn't directly affect retail customers with smaller FDs, it signifies a broader regulatory push towards greater transparency in the banking sector.
