New UPI Charges for Merchants
Starting October 15, a Merchant Discount Rate (MDR) will apply to certain UPI transactions. This 0.4% charge is for person-to-merchant payments over ₹2,000 and will be paid by the merchant, not the customer. Person-to-person UPI transfers and payments under
the ₹2,000 threshold will remain free, which covers the vast majority of daily transactions. For specific essential services like railways and insurance, a flat fee of ₹5 will apply for transactions above the threshold, while capital markets transactions will see a lower rate.
Revised ATM Withdrawal Rules
Some bank customers may see changes in their free ATM transaction limits. State Bank of India (SBI) has revised its rules effective October 1. For salary package account holders, the number of free transactions at other banks' ATMs has been reduced from ten to five. For Basic Savings Bank Deposit (BSBD) account holders, the first four cash withdrawals in a month are still free, but any subsequent withdrawal will incur a charge of ₹15 plus GST. These four free transactions include withdrawals from ATMs and branch channels.
LPG Subsidy Linked to Aadhaar Authentication
From October 1, receiving a subsidy on domestic LPG cylinders requires mandatory biometric Aadhaar authentication. The move is designed to ensure subsidies are transferred directly and correctly to the intended beneficiaries. Consumers who have not completed the authentication process will still be able to purchase LPG cylinders, but they will have to pay the full market price without the subsidy.
Extended Deadlines for Income Tax Filing
The Central Board of Direct Taxes (CBDT) has provided some relief by extending deadlines for certain taxpayers. The due date for submitting tax audit reports for the Assessment Year 2026-27 has been pushed to October 21, 2026. Correspondingly, the deadline for filing Income Tax Returns (ITR) for these audit cases has been extended to November 21, 2026. It is important for taxpayers to confirm if these extended deadlines apply to their specific filing category.
Changes in NPS Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has implemented a revised charge structure for the National Pension System (NPS) from October 1. The new rules include a one-time onboarding fee of ₹200 for each Permanent Retirement Account Number (PRAN) and an annual charge of 0.20% of the assets under management (AUM) for non-dormant accounts. These changes aim to standardise the costs associated with managing NPS accounts.
New Rules for Bank Bulk Deposits
The Reserve Bank of India has introduced a new framework for bulk deposits of ₹3 crore and above, which also took effect on October 1. Under these rules, banks are now required to disclose the interest rates for these large deposits on their websites daily. They must also maintain uniform interest rates for deposits of the same amount and tenure across all their branches, promoting transparency and consistency for high-value depositors.
