New ATM Withdrawal Limits for Some SBI Customers
If you are a State Bank of India (SBI) Salary Package account holder, be mindful of your ATM usage at other banks. Starting October 1, 2026, the number of free transactions permitted each month at non-SBI ATMs has been reduced from ten to five. This revised
limit includes both financial transactions like cash withdrawals and non-financial ones such as balance inquiries or mini-statements. Once you cross this free limit, standard charges will apply. For Basic Savings Bank Deposit (BSBD) account holders with SBI, the rule remains four free cash withdrawals per month. Any withdrawal beyond this limit will incur a charge of ₹15 plus GST. This change is designed to manage ATM network costs, but for consumers, it means a greater need to plan cash withdrawals or rely more on digital transactions, which remain free and unlimited.
Aadhaar Authentication for LPG Subsidy
To continue receiving government subsidies on domestic LPG cylinders, consumers must complete their biometric Aadhaar authentication. This rule becomes mandatory from October 1, 2026, and is intended to ensure that subsidy benefits are accurately targeted to eligible households. If you haven't completed this process, you can still purchase LPG cylinders, but you may have to pay the full market price without the subsidy applied. Authentication can be done easily during your next cylinder delivery, at your distributor’s showroom, or via the mobile apps of oil marketing companies like IndianOil ONE or HelloBPCL. Officials have clarified that this is a crucial step to prevent the misuse of subsidised domestic gas.
UPI Payments for Merchants See a Shift
There has been much discussion about charges on Unified Payments Interface (UPI) transactions, but it's important to understand who is affected. For regular consumers, person-to-person UPI payments remain completely free. The change, effective October 15, 2026, involves a Merchant Discount Rate (MDR) on certain business transactions. This is a fee that merchants will pay to their bank for processing UPI payments above ₹2,000. This does not mean customers will be charged extra. Since transactions below ₹2,000 make up the vast majority of UPI volume, most everyday payments at local shops will not be impacted by this rule. This move ends the zero-MDR policy that has been in place for merchants and aims to create a more sustainable financial model for payment service providers.
Greater Transparency in Bulk Fixed Deposits
The Reserve Bank of India (RBI) has introduced new rules from October 1 to enhance transparency in how banks handle bulk fixed deposits. These are typically large FDs of ₹3 crore or more, primarily used by corporations and high-net-worth individuals, not regular retail customers. Under the new framework, banks must now publish their interest rates for these bulk deposits on their websites daily by 10:00 AM. They are also required to offer a uniform rate for similar deposits accepted on the same day, preventing rate discrepancies between different branches. While this change doesn't directly alter the interest rate on your personal FD, it signifies a broader regulatory push towards greater transparency and consistency in the banking sector.
