New UPI Charges for Merchants
Starting October 15, a significant change is coming to the Unified Payments Interface (UPI) ecosystem. A Merchant Discount Rate (MDR) will be applied to certain person-to-merchant (P2M) transactions. Specifically, a 0.4% charge will apply to transactions above
₹2,000. It's crucial to understand that this charge is to be paid by the merchant, not the customer. Person-to-person (P2P) transfers remain free. The new framework is designed to ensure the long-term sustainability of the UPI infrastructure while keeping the majority of transactions free for both users and small merchants. Officials estimate that around 96% of all merchant transactions will not be affected, as they are either below the ₹2,000 threshold or fall under the zero-MDR framework for small traders.
Revised ATM Withdrawal Limits for SBI Customers
State Bank of India (SBI) has revised its rules for ATM usage, effective October 1. For salary package account holders, the number of free transactions permitted at other banks' ATMs has been reduced from ten to five per month. This new limit includes both financial (cash withdrawal) and non-financial (balance enquiry, mini statement) transactions. For customers with Basic Savings Bank Deposit (BSBD) accounts, the first four cash withdrawals each month remain free. Any withdrawal beyond this limit will incur a charge of ₹15 plus GST. The bank has emphasized that all digital transactions will continue to be free and unlimited.
Greater Transparency in Bulk Fixed Deposit Rates
In a move to enhance transparency, the Reserve Bank of India (RBI) has introduced new rules for how banks disclose interest rates on bulk fixed deposits, effective October 1. Banks are now required to announce and publish the interest rates for their bulk deposits (typically defined as ₹2 crore or ₹3 crore and above) on their websites daily by 10 a.m. Under this framework, banks are generally expected to offer a uniform rate for similar bulk deposits. However, they retain some flexibility to offer different rates based on factors related to their Liquidity Coverage Ratio (LCR) needs. This change primarily affects high-net-worth individuals and corporate depositors by providing clearer, pre-disclosed rates.
Changes to NPS Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has updated the charge structure for the National Pension System (NPS), which also takes effect on October 1. New subscribers who register through a Point of Presence (PoP) will face a one-time onboarding charge of ₹200 for their Permanent Retirement Account Number (PRAN). This fee will be recovered in quarterly instalments. A lower onboarding charge might be applicable for accounts opened through a fully digital process. These revised charges are part of an effort to streamline the cost structure for NPS subscribers.
Mandatory Aadhaar Authentication for LPG Subsidy
For households receiving subsidised Liquefied Petroleum Gas (LPG), a new compliance step becomes mandatory from October 1. Eligible consumers must complete a biometric Aadhaar authentication to continue receiving the subsidy benefit directly in their bank accounts. Those who do not complete the authentication process will still be able to purchase LPG cylinders, but they will have to pay the full market price without the subsidy until the verification is done. This move aims to ensure that subsidies are accurately targeted and reach the intended beneficiaries.
