Summary of this article
SBI customers face revised ATM and cash withdrawal charges.
New FD, NPS and LPG rules start October 1.
UPI merchant payments above Rs 2,000 face MDR.
Several banking, tax, pension and Liquefied Petroleum Gas (LPG)-related rules are scheduled to change from October 1, 2026, with Unified Payments Interface (UPI) Merchant Discount Rate (MDR) coming into effect later in the month.
For individuals, the changes cover cash withdrawals, ATM usage, National Pension System (NPS) charges, LPG subsidy verification and Tax Deducted at Source (TDS) compliance when buying property from a Non-Resident Indian (NRI). A UPI merchant payment charge is also scheduled from October 15.
SBI Cash Withdrawal And ATM Rules
State Bank of India (SBI) is changing certain transaction rules for customers from October 1. Holders of eligible Basic Savings Bank Deposit (BSBD) accounts will get four free cash withdrawals in a month. Each withdrawal beyond the fourth will attract a charge of Rs 15 plus Goods and Services Tax (GST).
For SBI salary package account holders using other banks' ATMs or Automated Deposit and Withdrawal Machines (ADWMs), the monthly free transaction limit will fall from 10 to five. The limit covers financial and non-financial transactions. The post-limit charge for cash withdrawals will be Rs 23 plus GST.
NRI Property TDS And NPS Charges
From October 1, resident individuals and Hindu Undivided Family (HUF) buyers purchasing property from an NRI can use their Permanent Account Number (PAN) for the specified TDS compliance through Form 141, instead of obtaining a separate Tax Deduction and Collection Account Number (TAN) for this purpose. The TDS rate itself is not changed by this provision.
NPS subscribers will also see a revised onboarding charge. The one-time fee for opening a Permanent Retirement Account Number (PRAN) through a Point of Presence (PoP) will be Rs 200 from October 1, under the Pension Fund Regulatory and Development Authority (PFRDA) revised charge structure.
LPG Subsidy To Require Aadhaar Authentication
Biometric Aadhaar authentication will become mandatory from October 1 for domestic LPG consumers seeking refills at the regulated retail selling price with applicable subsidy.
The Petroleum Ministry has stated that authentication can be completed during delivery, at the distributor's showroom or through Oil Marketing Company (OMC) mobile applications.
UPI MDR Change Scheduled For October 15
The UPI change comes later than the other measures. A 0.4 per cent Merchant Discount Rate (MDR) is scheduled for specified person-to-merchant UPI transactions above Rs 2,000 from October 15.
The Supreme Court on September 28 declined to grant an interim stay and sought responses from the Centre, RBI and National Payments Corporation of India (NPCI) within four weeks. Therefore, the October 15 implementation date is currently scheduled to go ahead unless there is a subsequent court order or regulatory change
