Changes in ATM Withdrawal Rules
State Bank of India (SBI) has revised the free transaction limits for some of its customers starting October 1. For certain 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, mini statement) transactions. Once the free limit is used up, a charge of ₹23 plus GST for cash withdrawals and ₹11 plus GST for non-financial transactions will apply. For customers with Basic Savings Bank Deposit (BSBD) accounts, the first four cash withdrawals in a month remain free. Subsequent withdrawals will incur a charge of ₹15 plus GST.
New Disclosure Norms for Fixed Deposits
The Reserve Bank of India (RBI) has introduced new rules for bulk fixed deposits, effective October 1, to enhance transparency. These rules primarily affect large deposits of ₹3 crore or more and are not expected to impact most retail FD customers. Under the new guidelines, banks must now publish their interest rates for bulk deposits on their websites daily by 10 a.m. This ensures that large depositors have clear, advance information about the rates they will receive. The rules also mandate that banks offer uniform rates for similar deposits accepted on the same day.
UPI Payments for Merchants Get an Update
Starting October 15, a new framework for Unified Payments Interface (UPI) transactions will come into effect. It's important to note that this does not mean UPI is becoming chargeable for all users. Person-to-person (P2P) transfers remain free, and merchant payments up to ₹2,000 also carry no charge for the customer. The change introduces a Merchant Discount Rate (MDR) of 0.4% that merchants will have to pay on specified transactions above ₹2,000. This charge is paid by the merchant, not the customer. According to the National Payments Corporation of India (NPCI), over 95% of UPI merchant transactions are below this threshold and will remain unaffected.
LPG Cylinder Price Revision
Oil marketing companies have revised the prices of LPG cylinders from October 1. The price of the 19-kg commercial LPG cylinder has been increased. In Delhi, for example, the price has gone up by ₹62.50. This hike will primarily affect businesses like hotels and restaurants. However, there is some relief for households, as the price of the 14.2-kg domestic LPG cylinder remains unchanged. Additionally, a new rule makes biometric Aadhaar authentication mandatory for consumers who wish to receive the government subsidy on domestic LPG cylinders.
Other Key Financial Updates
Beyond the headline changes, a few other updates are noteworthy. The Pension Fund Regulatory and Development Authority (PFRDA) has revised the fee structure for Points of Presence (PoPs) under the National Pension System (NPS), which also takes effect from October 1. Furthermore, new RBI regulations concerning international credit card transactions are also effective from October 1, which may require users to report details of overseas service purchases to their banks. While the exact mechanism for individual reporting is still being clarified, it's a development for those who make international digital payments to keep an eye on.
