October Brings Major Financial Rule Changes
Banking, LPG, UPI, tax, NPS and monetary-policy developments are set to affect consumers and taxpayers during October 2026.
October 2026 brings several changes across banking, digital payments, taxation, pensions and household expenses. The changes include revised SBI ATM transaction limits for certain salary-account customers, new disclosure requirements for bulk fixed deposits, mandatory Aadhaar authentication for subsidised LPG and changes to UPI merchant transactions.
The Reserve Bank of India's Monetary Policy Committee is scheduled to meet from October 5 to October 7, with the repo-rate decision due on October 7. The repo rate stood at 5.25% after the August policy review. Any change in the policy rate could eventually affect lending and deposit rates, depending on how banks transmit the change.
RBI POLICY WATCH
The RBI MPC will meet from October 5-7, with the monetary-policy decision scheduled for October 7. The repo rate was 5.25% after the August review.
From October 1, SBI salary-package customers using other banks' ATMs will have five free transactions a month, down from 10. Financial and non-financial transactions count toward the limit. SBI's own ATMs continue to offer unlimited free transactions to eligible salary-package customers under the revised arrangement.
The Reserve Bank of India's revised deposit directions will also take effect on October 1. Banks must disclose deposit interest rates in advance on their websites, while rates for bulk deposits must be published by 10 am on each business day, with a 10-minute grace period. The revised framework also permits differential rates on certain bulk deposits based on applicable liquidity requirements.
UPI CHANGE
From October 15, an MDR framework will apply to specified UPI merchant transactions above Rs 2,000. Person-to-person UPI payments and merchant payments up to Rs 2,000 remain free.
The government has clarified that the new UPI MDR is an ecosystem charge rather than a fee imposed directly on customers. According to the Finance Ministry, MDR will apply to specified merchant transactions above Rs 2,000, while around 96% of merchant transactions are expected to remain unaffected. Banks have been advised to prevent merchants from passing the MDR on to customers.
For subsidised LPG consumers, Aadhaar biometric authentication will become mandatory from October 1. Customers can complete the verification through their LPG distributor, supported digital channels or during delivery, subject to the available process. The change is intended to strengthen authentication of beneficiaries and reduce duplicate or incorrect subsidy claims.
Other October changes include revised National Pension System charges for customers joining through Points of Presence, changes concerning tax compliance when purchasing property from non-resident Indians and an October 31 income-tax return deadline for specified taxpayers whose accounts are subject to tax audit. Small-savings interest rates for the October-December quarter are also due for review.