A New Rule for UPI, But You Won't Pay More
A significant change is coming to the Unified Payments Interface (UPI) ecosystem from October 15. A Merchant Discount Rate (MDR) of 0.4% will now apply to person-to-merchant transactions over ₹2,000. However, it is crucial to understand that this charge
is to be paid by the merchant to their bank and payment service provider, not by the customer making the payment. Person-to-person transfers remain free, and merchant payments up to ₹2,000 are also exempt. The move ends the zero-MDR regime for UPI that has been in place for years, aiming to create a sustainable revenue model for payment providers. For most everyday users, your UPI experience remains unchanged and free of cost.
Revised ATM Withdrawal Limits for SBI Customers
State Bank of India (SBI) has adjusted the free ATM transaction limits for certain account holders, effective October 1. Customers with Basic Savings Bank Deposit (BSBD) accounts will continue to receive four free cash withdrawals per month across all channels, including ATMs and branches. After these four free transactions, a fee of ₹15 plus GST will be charged for each additional withdrawal. For holders of SBI salary package accounts, the number of free transactions permitted at other banks' ATMs has been reduced from ten to five per month. It's a good time to review your account type and transaction habits to avoid unexpected charges. Digital transactions, however, remain completely free and unlimited.
Mandatory Biometric KYC for LPG Subsidy
If you are a beneficiary of the government's subsidised LPG cylinder scheme, a new compliance step is now mandatory. From October 1, consumers must complete biometric Aadhaar authentication to continue receiving LPG refills at the subsidised price. This move is aimed at ensuring that the benefits reach the intended recipients and to plug leakages in the subsidy distribution system. Consumers who have not yet completed this process should contact their gas distributor to understand the procedure and ensure their subsidy is not disrupted. This change only impacts those who avail of the subsidy; it does not affect commercial or non-subsidised cylinder purchases.
Changes to National Pension System (NPS) Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a revised fee structure for the National Pension System (NPS) from October 1. Under the new rules, Points of Presence (PoPs), which are intermediaries that handle NPS subscriptions, will levy a one-time onboarding fee of ₹200 for each new Permanent Retirement Account Number (PRAN) opened. Additionally, an annual charge of 0.20% of the assets under management (AUM) will be applicable for non-dormant accounts. These changes are part of an effort to standardise the charges across the system and ensure the viability of the PoP model for distributing the pension scheme.
Greater Transparency in Bulk Fixed Deposits
The Reserve Bank of India (RBI) has implemented new regulations to enhance transparency in the interest rates offered on bulk deposits. Effective October 1, banks are required to disclose the interest rates for bulk deposits of ₹3 crore and above on their websites every business day. The new framework also mandates that banks should offer a uniform interest rate for deposits of the same value and tenure, regardless of the branch where the deposit is made. While this change primarily impacts high-net-worth individuals, corporations, and other large depositors, it signals a broader push by the regulator for greater consistency and transparency in banking practices.
Extended Deadlines for Tax Filers
For certain taxpayers, there is some relief regarding compliance deadlines. The Central Board of Direct Taxes (CBDT) has extended the due date for furnishing tax audit reports for the Assessment Year 2026-27 from September 30 to October 21, 2026. Consequently, the deadline for filing income tax returns for these taxpayers, which includes companies and individuals whose accounts require auditing, has been pushed from October 31 to November 21, 2026. This extension provides auditors and taxpayers additional time to ensure accurate and timely compliance.
