New UPI Charges for Merchants
A significant change is coming to the Unified Payments Interface (UPI) ecosystem. From October 15, 2026, a Merchant Discount Rate (MDR) of 0.4% will apply to certain person-to-merchant transactions above ₹2,000. Crucially, this charge is paid by the merchant,
not the customer, so your personal UPI payments remain free. Person-to-person transfers are unaffected, and payments under ₹2,000 also continue to be free of charge for merchants. For high-value transactions of ₹75,000 or more, the MDR will be capped at a maximum of ₹300. Essential services like railways, fuel, and insurance will have a separate, flat fee structure of ₹5 for payments over ₹2,000.
SBI ATM Withdrawal Limits Revised
State Bank of India (SBI) has updated its rules for ATM withdrawals, effective October 1, 2026. For SBI Salary Package account holders, the number of free transactions at other banks' ATMs is being reduced from ten to five per month. This limit includes both financial (cash withdrawal) and non-financial (balance enquiry) transactions. Separately, for Basic Savings Bank Deposit (BSBD) account holders, the bank will continue to offer four free cash withdrawals per month across all channels, including ATMs and branches. After these free transactions are used, each subsequent cash withdrawal will be charged at ₹15 plus GST. Digital transactions, however, remain unlimited and free of charge.
Mandatory Aadhaar for LPG Subsidy
To streamline the distribution of subsidies, the government has made Biometric Aadhaar Authentication mandatory for all domestic LPG customers from October 1. This rule is designed to ensure that the subsidy amount is correctly transferred to the beneficiary's bank account. Customers who have not yet completed this authentication process will still be able to purchase cylinders, but they will receive them at the market rate without the subsidy until the authentication is complete. If you have already completed the Aadhaar authentication for your LPG connection, no further action is needed on your part.
Changes in NPS Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new fee structure for the National Pension System (NPS) from October 1. Subscribers who onboard through a Point of Presence (PoP) will now pay a one-time onboarding fee of ₹200. Additionally, an annual fee of 0.20% of the assets under management (AUM) will be charged. However, subscribers who have joined directly through the e-NPS platform and make contributions via e-NPS or D-Remit will not be subject to these PoP charges. These changes aim to standardise costs and bring more transparency to the NPS subscription process.
New Investor Awareness Rules
The Securities and Exchange Board of India (SEBI) is rolling out new requirements for stock brokers to enhance investor education. Starting from October 5, brokers must display specific investor awareness messages on their websites. This requirement will become mandatory for trading apps from November 1, 2026. This initiative, part of 'Project Jagrook', aims to better inform investors about the risks and rewards of the market, especially ahead of World Investor Week 2026.
More Transparency in Bulk Deposits
The Reserve Bank of India (RBI) has implemented new rules from October 1 to increase transparency in interest rates for bulk fixed deposits, which are typically ₹3 crore and above. Banks are now required to publish their interest rates for these deposits on their websites by 10 AM every working day. Furthermore, they must offer the same rate for similar deposits made on the same day across all their branches, ending the practice of negotiated or branch-level pricing. While this change primarily affects high-net-worth individuals and institutions, it signals a move towards greater uniformity and transparency in the banking sector.
