UPI Payments See a Change for Merchants
Starting from October 15, a new rule will apply to some Unified Payments Interface (UPI) transactions. A Merchant Discount Rate (MDR) of 0.4% will be charged on payments above ₹2,000 made to eligible merchants. The most important thing for young users
to know is that this charge is paid by the merchant, not the customer. Person-to-person (P2P) money transfers remain completely free, as do merchant payments up to ₹2,000. This change primarily impacts businesses, but it signals a shift in the UPI ecosystem that’s good to be aware of.
Revised ATM Withdrawal Limits at SBI
State Bank of India (SBI) has revised its free ATM transaction limits, a change that took effect on October 1. For customers with SBI Salary Package accounts, the number of free transactions permitted at other banks' ATMs has been reduced from ten to five per month. This limit includes both financial (cash withdrawal) and non-financial (balance enquiry) transactions. For holders of Basic Savings Bank Deposit (BSBD) accounts, the limit remains four free cash withdrawals per month across all channels, after which a fee of ₹15 plus GST applies per transaction. It’s a good time to check your account type and be mindful of your ATM usage to avoid extra charges.
New Charges for National Pension System (NPS)
For those investing in their retirement via the National Pension System (NPS), the fee structure has been updated from October 1. The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a revised fee structure for subscribers who onboard through a Point of Presence (PoP), which includes banks and other financial institutions. This includes a one-time onboarding fee of ₹200. Additionally, an annual fee of 0.20% of the assets under management (AUM) will be charged. This doesn't apply to subscribers who onboard directly through the e-NPS platform, making the digital route potentially more cost-effective for new investors.
Mandatory Aadhaar Linking for LPG Subsidy
A key household finance update this month is the new rule for LPG subsidies. From October 1, completing Biometric Aadhaar Authentication has become mandatory for domestic consumers who wish to receive government subsidies on LPG cylinder refills. This step is designed to ensure that the subsidy is transferred directly and accurately. Those who haven't completed the process will still be able to get cylinders, but they will be charged the full market price. To continue availing the subsidised rate, consumers need to ensure their Aadhaar details are authenticated with their LPG provider.
Key Income Tax Deadlines Get Extended
For young professionals who are freelancers, consultants, or run a small business, October brings important news on tax compliance. The Central Board of Direct Taxes (CBDT) has extended crucial deadlines for Assessment Year 2026-27. The due date for furnishing the tax audit report, originally September 30, has been pushed to October 21, 2026. Consequently, the deadline for filing the income tax return (ITR) for taxpayers who require an audit has been extended from October 31 to November 21, 2026. This provides much-needed extra time but shouldn't be a reason to delay tax preparations.
More Transparency in Fixed Deposit Rates
In a move to increase transparency, the Reserve Bank of India (RBI) has implemented new rules for how banks price and disclose interest rates on fixed deposits, effective October 1. While the rules primarily target bulk deposits (typically ₹3 crore and above), they establish a principle of greater uniformity. Banks are now required to publish their bulk deposit interest rates on their websites daily by 10 AM. This ensures that rates for similar deposits accepted on the same day are consistent across all branches of a bank. For young investors, this change is a step towards a more transparent and fair banking environment.
