The Real Story on UPI Charges
Starting October 15, 2026, some UPI transactions will attract a fee, but it's crucial to understand who pays. Customers will NOT be charged for making UPI payments. Person-to-person (P2P) transfers remain completely free. The new rule introduces a 0.4%
Merchant Discount Rate (MDR) for certain person-to-merchant (P2M) payments above ₹2,000. This charge is to be borne by the merchant, not the consumer. For example, on a merchant payment of ₹5,000, the merchant will pay an MDR of ₹20. The charge is capped at ₹300 for transactions of ₹75,000 or more. According to the National Payments Corporation of India (NPCI), this change is designed to support the payments ecosystem, but it will not affect about 96% of all merchant transactions, which are either below the ₹2,000 threshold or made to small merchants who are exempt.
Interest Rates on Small Savings Schemes Unchanged
For savers, there is stability. The government has decided to keep the interest rates on small savings schemes unchanged for the October to December 2026 quarter. This marks the 11th consecutive quarter without a change. The Public Provident Fund (PPF) will continue to offer an interest rate of 7.1%, while the Sukanya Samriddhi Yojana (SSY) and the Senior Citizen Savings Scheme (SCSS) will both provide 8.2%. Other popular schemes like the National Savings Certificate (NSC) will earn 7.7%, and the 5-year Post Office Time Deposit remains at 7.5%. While savers might have hoped for a hike, the decision provides certainty for financial planning in the coming months.
Demat Account Nomination Rules
While deadlines for existing accounts have been a source of confusion in the past, SEBI has clarified the rules moving forward. From September 1, 2026, anyone opening a new single-holder demat account or mutual fund folio must either add a nominee or formally opt out by signing a declaration. Existing accounts without a nominee will not be frozen. Instead, investors will receive bi-annual reminders to add a nominee. This 'nudge' approach is designed to encourage investors to secure the succession of their assets without causing disruption. Adding a nominee is a simple process that prevents the lengthy and complex legal procedures your family might otherwise face to claim your investments.
Changes for SBI Account Holders
State Bank of India (SBI) has introduced changes for some of its customers, effective October 1, 2026. For those with Basic Savings Bank Deposit (BSBD) accounts, the limit of four free cash withdrawals per month remains. However, any additional withdrawal will now cost ₹15 plus GST. For salary package account holders, the number of free transactions at other banks' ATMs has been reduced from ten to five per month. This new limit includes both financial and non-financial transactions. It’s a good time for affected customers to review their banking habits and leverage digital transactions, which remain free and unlimited.
New Regulations for NPS and LPG
There are also updates for National Pension System (NPS) subscribers and LPG consumers. From October 1, the Pension Fund Regulatory and Development Development Authority (PFRDA) has set a one-time onboarding fee of ₹200 for new NPS accounts opened via a Point of Presence (PoP). Additionally, an annual fee of 0.20% of the assets under management will apply. In another change, completing Biometric Aadhaar Authentication (BAA) has become mandatory for domestic LPG consumers to receive subsidies on refills booked at the regulated price. Those who have already completed the process do not need to do it again.
