UPI Payments for Merchants Get an Update
Starting October 15, 2026, a Merchant Discount Rate (MDR) will be introduced on certain Unified Payments Interface (UPI) transactions. This is not a charge for customers. Instead, merchants will pay a 0.4% fee on specific UPI payments they receive that
are above ₹2,000. Person-to-person money transfers remain completely free, as do all merchant payments up to the ₹2,000 threshold. Officials estimate this will not affect over 95% of individual UPI transactions, ensuring that everyday small-value payments continue without any extra cost to the consumer.
New Rules for Demat Account Nominees
To tackle the issue of unclaimed financial assets, the Securities and Exchange Board of India (SEBI) has updated its rules. From September 1, 2026, anyone opening a new single-holder demat account must either name a nominee or formally sign a declaration to opt out. This change aims to ensure that in the event of an investor's demise, their assets can be transferred smoothly to their chosen beneficiary. For joint accounts, providing a nominee remains optional. This move simplifies the succession process and protects the financial interests of families. You can name up to three nominees for your account.
Changes in National Pension System (NPS) Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has revised the fee structure for Points of Presence (PoPs), which are the intermediaries that offer NPS services. Effective October 1, 2026, there will be a revised charge structure. This includes a one-time onboarding fee of ₹200 for new subscribers, which will be recovered in installments rather than as a single deduction. These adjustments are part of a regular review to balance the operational costs of managing the pension system while keeping it accessible for subscribers.
Revised ATM Withdrawal Limits for Some SBI Customers
State Bank of India (SBI) is adjusting its free ATM transaction limits for certain salary account holders from October 1. The number of free transactions permitted at other banks' ATMs is being reduced from ten to five per month. This change includes both financial (cash withdrawal) and non-financial (balance inquiry) transactions. For Basic Savings Bank Deposit (BSBD) accounts, the limit of four free cash withdrawals per month remains unchanged, after which a charge of ₹15 plus GST will apply per transaction. Digital transactions, however, will continue to be free and unlimited.
Greater Transparency in Bulk Fixed Deposit Rates
To ensure fairness and transparency, the Reserve Bank of India (RBI) is implementing new rules for bulk fixed deposits (generally ₹3 crore or more) from October 1. Banks will now be required to disclose the interest rates for these large deposits on their websites daily by 10 AM. The key principle is that similar deposits (same amount, tenure, and date) must receive a uniform interest rate across all branches of a bank. This change is designed to prevent discretionary pricing and provide more consistency for high-value depositors.
Mandatory Aadhaar Authentication for LPG Subsidy
For households receiving subsidised Liquid Petroleum Gas (LPG), a new rule comes into effect on October 1. To continue receiving the subsidy benefit directly in their bank accounts, consumers must complete a biometric Aadhaar authentication. Those who do not complete the authentication will still be able to purchase LPG cylinders, but they will have to pay the full market rate without the subsidy. This measure is intended to ensure that the subsidy reaches the intended beneficiaries accurately.
