UPI Payments: A New Charge for Merchants
Unified Payments Interface (UPI) will see a significant change, but it's crucial to note that it does not affect average consumers directly. Starting October 15, a Merchant Discount Rate (MDR) of 0.4% will be applied to certain merchant transactions above
₹2,000. This charge is to be paid by the merchant, not the customer. Person-to-person (P2P) transfers remain completely free, as do all merchant payments up to the ₹2,000 threshold. The National Payments Corporation of India (NPCI) has clarified that merchants are prohibited from passing this cost on to consumers. The introduction of MDR is aimed at sustaining the UPI ecosystem's infrastructure. For most everyday transactions, consumers will experience no change and can continue to use UPI for free.
ATM Withdrawals: Revised Limits for SBI Customers
State Bank of India (SBI) is implementing changes to its ATM withdrawal rules for certain account holders from October 1. For customers with Salary Package Accounts, the number of free transactions at other banks' ATMs will be reduced from ten to five per month. This new limit of five includes both financial (cash withdrawal) and non-financial (balance enquiry, mini statement) transactions. Once this limit is crossed, each cash withdrawal will incur a charge of ₹23 plus GST, while non-financial transactions will cost ₹11 plus GST. For holders of Basic Savings Bank Deposit (BSBD) accounts, the rule of four free cash withdrawals per month remains in place. Any subsequent cash withdrawal will be charged at ₹15 plus GST. It is important to note these changes are specific to SBI and customers of other banks should check their individual policies.
Fixed Deposits: More Transparency for Bulk Investors
The Reserve Bank of India (RBI) has introduced new rules for fixed deposits (FDs), effective October 1, aimed at increasing transparency. These changes primarily affect 'bulk deposits,' which are now defined as single term deposits of ₹3 crore or more. The new regulations do not alter the interest rates for regular retail FDs below this amount. Under the new framework, banks must publish the interest rates for bulk deposits on their websites by 10 a.m. every business day. They are also required to offer a uniform interest rate for similar bulk deposits accepted on the same day across all their branches. This move is designed to ensure that large depositors have clear and consistent information before investing, preventing differential rates being quoted at different branches for the same product.
LPG Cylinders: Price Hike and New Subsidy Rules
There are two key updates concerning Liquefied Petroleum Gas (LPG) cylinders. Firstly, oil marketing companies have increased the price of 19-kg commercial LPG cylinders from October 1. In Delhi, for instance, the price has gone up by ₹62.50. This hike affects businesses like hotels and restaurants but does not apply to domestic cylinders. Prices for the 14.2-kg domestic LPG cylinder remain unchanged for the fifth straight month, providing relief for household budgets. Secondly, a new rule for obtaining subsidised domestic cylinders has been introduced. From October 1, consumers who wish to receive LPG refills at the subsidised price must complete Biometric Aadhaar Authentication. This can be done via the delivery person's mobile app, at the distributor's showroom, or through the oil marketing company's own mobile app. This measure aims to ensure subsidies reach genuine beneficiaries.
