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) of 0.4% will be applied to specific merchant transactions over ₹2,000. It is crucial for consumers to know that this
charge is to be paid by the merchant, not the customer. Person-to-person UPI transfers remain free, as do all merchant payments up to the ₹2,000 threshold. This move aims to create a sustainable revenue model for payment service providers, ensuring the long-term health of the UPI infrastructure that has become central to India's digital economy. Around 96% of UPI merchant transactions are expected to remain unaffected by this change.
LPG Subsidy and Price Updates
October brings a two-fold update for LPG consumers. First, oil marketing companies have increased the price of 19-kg commercial LPG cylinders. In Delhi, the price has been hiked by ₹62.50 per cylinder. This will likely increase operational costs for businesses like restaurants and hotels. However, the price of the 14.2-kg domestic cylinder, used in household kitchens, remains unchanged for now, providing some relief. Second, to receive subsidies on domestic cylinders, completing biometric Aadhaar authentication is now mandatory from October 1. Consumers who have not completed this authentication will have to buy cylinders at the market rate without the subsidy benefit.
Revised ATM Withdrawal Limits
State Bank of India (SBI) customers with salary package accounts will see a change in their ATM usage habits. From October 1, the number of free transactions permitted at other banks' ATMs has been reduced from ten to five per month. This revised limit includes both financial (cash withdrawal) and non-financial (balance enquiry, mini statement) transactions. For customers with Basic Savings Bank Deposit (BSBD) accounts, the limit of four free cash withdrawals per month remains. Beyond this free limit, a charge of ₹15 plus GST will be levied for each transaction. This change encourages customers to use digital transaction methods, which remain free and unlimited.
Transparency in Bulk Deposit Rates
To bring more transparency and uniformity to how banks handle large deposits, the Reserve Bank of India (RBI) has introduced new rules effective October 1. Banks are now required to disclose the interest rates they offer on bulk deposits (generally ₹3 crore or more) on their websites daily by 10:00 AM. This ensures that rates are consistent across all branches and for all customers making similar deposits on the same day. The move is primarily aimed at improving clarity and consistency for large corporate and institutional depositors.
Changes for Pension and Investment Accounts
There are also updates for investors and pensioners. The Pension Fund Regulatory and Development Authority (PFRDA) has revised the service charges under the National Pension System (NPS), which come into effect on October 1. Additionally, while a major deadline for adding a nominee to demat and mutual fund accounts has passed, SEBI's new framework effective from September 1, 2026, mandates that all new single-holder accounts must either add a nominee or formally opt out. For existing account holders, there is no threat of accounts being frozen, but they will receive regular reminders to update their nomination details to ensure a smooth transfer of assets to their heirs.
