Key Financial Rule Changes Effective October 2026
October brings significant changes to banking, payments, and personal finance in India, set to take effect from October 2026. Key adjustments include a reduction in free ATM transactions for certain State Bank of India (SBI) customers, new disclosure requirements for bulk fixed deposit interest rates, revised charges under the National Pension System (NPS), and mandatory Aadhaar authentication for LPG subsidies. Additionally, rules governing Unified Payments Interface (UPI) transactions above Rs 2,000 will also be updated.
SBI ATM Rules Change
Starting October 1, 2026, SBI will reduce the monthly limit of free ATM transactions for salary package account holders. Customers using SBI debit cards at ATMs and Automated Deposit cum Withdrawal Machines (ADWMs) operated by other banks will see their free transactions cut from ten to five per month. This change applies to both financial and non-financial transactions.
For Basic Savings Bank Deposit (BSBD) accounts, customers will still be allowed four free cash withdrawals each month. After reaching this limit, additional transactions will incur a charge of Rs 15 plus GST. Digital transactions will remain free and unlimited.
New Bulk Deposit or Fixed Deposit Interest Rate Rules
The Reserve Bank of India (RBI) is set to implement new rules regarding how commercial banks disclose interest rates on bulk fixed deposits, effective October 1, 2026. Banks will be required to announce their bulk deposit interest rates in advance and disclose the applicable rates daily at 10 am.
Under the new framework, banks are expected to offer the same interest rate for similar bulk deposits. However, variations may occur based on the Liquidity Coverage Ratio (LCR) treatment applicable to those deposits.
UPI MDR from October 15
From October 15, 2026, merchants will be required to pay the Merchant Discount Rate (MDR) on certain UPI transactions exceeding Rs 2,000. Person-to-person transactions will remain free, and transactions up to Rs 2,000 will continue to incur no charges. Payments under the zero-MDR framework for small traders will also remain unaffected, meaning approximately 96% of person-to-merchant transactions will not see any changes.
New NPS Charges
The Pension Fund Regulatory and Development Authority (PFRDA) will implement a revised fee structure for the National Pension System (NPS) and NPS Lite, effective October 1, 2026. Subscribers opening an NPS account through a Point of Presence (PoP) will incur a one-time onboarding fee of Rs 200 for each Permanent Retirement Account Number (PRAN). This fee will not be deducted from the subscriber’s account as a single charge.
LPG Aadhaar Authentication
Domestic LPG consumers must complete their Biometric Aadhaar Authentication (BAA) by October 1, 2026, to continue booking refills at the regulated selling price (RSP) while receiving applicable subsidies. Once the authentication is completed, consumers will be able to book refills at the RSP along with their government subsidy.
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