Revised ATM Withdrawal Limits for SBI Customers
One of the most significant changes affects certain customers of the State Bank of India (SBI). Starting October 1, 2026, SBI salary package account holders will see their free monthly transaction limit at other banks' ATMs reduced. The previous limit of ten
free transactions has been halved to five. This new limit includes both financial transactions like cash withdrawals and non-financial ones such as balance inquiries. Once the five free transactions are used up, a charge of ₹23 plus GST will apply for each cash withdrawal, and ₹11 plus GST for non-financial transactions. It's important to note that this change specifically applies to salary package account holders using other banks' ATMs. For SBI's Basic Savings Bank Deposit (BSBD) accounts, the rule remains four free cash withdrawals per month, after which a fee of ₹15 plus GST is levied.
Understanding New UPI Merchant Charges
Unified Payments Interface (UPI) is also seeing an update, though it's crucial to understand who is affected. Contrary to some fears, UPI is not becoming chargeable for regular person-to-person (P2P) transfers. The change, effective October 15, 2026, introduces a Merchant Discount Rate (MDR) on specific person-to-merchant (P2M) transactions. This MDR of 0.4% will be paid by the merchant, not the customer, for UPI payments they receive that are above ₹2,000. Transactions up to ₹2,000 will remain free from this charge. The government has clarified that this move is designed to create a sustainable revenue model for the payments ecosystem without burdening consumers. This change will not affect an estimated 96% of all merchant transactions on the UPI platform.
Mandatory Aadhaar Authentication for LPG Subsidy
For households receiving subsidised LPG cylinders, a key compliance step becomes mandatory from October 1. To continue receiving the government subsidy on LPG refills, consumers must complete their biometric Aadhaar authentication. Those who have not completed this process will still be able to purchase cylinders, but they may have to pay the full market price without the subsidy benefit. The goal of this rule is to ensure that the subsidy reaches its intended beneficiaries and to eliminate misuse or diversion of subsidised cylinders. By mid-September 2026, a vast majority, nearly 90% of active domestic LPG consumers, had already completed this authentication process. Those yet to do so can complete the process during their next refill delivery or by visiting their distributor.
Greater Transparency in Fixed Deposit Rates
The Reserve Bank of India (RBI) is implementing new rules from October 1 to bring more transparency to interest rates on bulk fixed deposits. A single term deposit of ₹3 crore or more will now be classified as a bulk deposit. Under the new framework, banks must disclose the interest rates for these bulk deposits on their websites every working day by 10 AM. This ensures that large depositors have clear, advance information about the rates they will receive. Furthermore, the rules mandate that banks must offer a uniform interest rate for similar bulk deposits made on the same day, regardless of the branch or channel used. This change primarily impacts high-net-worth individuals and corporations, aiming to make the process more consistent and fair.
