5 rule changes from October 1: SBI ATM charges, MDR on UPI, bulk FD rates, KYC for LPG subsidy and more

Several banking, payment and personal finance rules are set to change from October 2026. These include revised free Automated Teller Machine (ATM) transaction limits for some State Bank of India (SBI) salary account holders, new disclosure requirements for bulk fixed deposit (FD) interest rates, changes in National Pension System (NPS) charges and a mandatory Aadhaar authentication to get Liquified Petroleum Gas (LPG) subsidy. Rules for Unified Payments Interface (UPI) merchant transactions above Rs 2,000 are also about to change in October. .

SBI ATM rules change: How many free transactions are allowed at other bank ATMs?

SBI is revising the number of free monthly transactions available to salary package account holders who use their SBI debit cards at ATMs and Automated Deposit cum Withdrawal Machines (ADWMs) of other banks.

The revised rules will come into effect from October 1, 2026.


Across all SBI salary package account variants, the number of free transactions at other banks' ATMs will be reduced from 10 to five per month at all centres. The limit will include both financial and non-financial transactions.

For Basic Savings Bank Deposit (BSBD) accounts, four cash withdrawals in a month will continue to be free, after which, every transaction will attract a charge of Rs 15 + GST. Customers are requested to take note that all digital transactions will continue to be free without any restriction.

Bulk deposit interest rate rules set to change from October 1

The Reserve Bank of India (RBI) is changing the way commercial banks determine and disclose interest rates on bulk fixed deposits.

The new rules will come into effect from October 1, 2026.

Under the revised framework, banks will have to disclose their bulk deposit rates in advance. They will also be required to disclose the applicable bulk deposit rates every day at 10 am.

Banks will generally have to offer the same interest rate for similar bulk deposits. However, they can differentiate rates depending on the Liquidity Coverage Ratio (LCR) treatment applicable to the deposits.

UPI MDR from October 15: What changes for merchants

From October 15, 2026, UPI transactions made by merchants will attract the Merchant Discount Rate (MDR) on select transactions. The MDR will apply to specific merchant transactions above Rs 2,000.

Payments up to Rs 2,000 and transactions under the zero-MDR framework for small traders would remain free. As a result, about 96% of all P2M transactions will remain unaffected. The MDR will not be the same for every merchant, as the applicable rate will depend on the industry or the category in which the merchant operates.

The Supreme Court on Monday also refused to grant an interim stay on the Centre’s decision to impose a 0.4% MDR on specified UPI P2M transactions above Rs 2,000 and issued notices to the government, the RBI, the National Payments Corporation of India (NPCI) and other respondents.

A Public Interest Litigation (PIL) was filed in the Supreme Court, seeking to quash the government’s decision to permit MDR on UPI merchant payments above Rs 2,000. The petitioner had alleged that the levy was introduced without adequate statutory safeguards, transparency and public consultation.

NPS charges

The Pension Fund Regulatory and Development Authority (PFRDA) has revised the charges that Points of Presence (PoPs) can collect from subscribers under the NPS and the NPS Lite.

The revised charges will apply from October 1, 2026.

Under the new structure, a subscriber registering through a PoP will have to pay a one-time onboarding charge of Rs 200 for each Permanent Retirement Account Number (PRAN).

The Rs 200 fee will not be deducted as a single amount from the subscriber's account.

LPG Aadhaar authentication

Domestic LPG consumers who have not completed their Biometric Aadhaar Authentication (BAA) need to complete it before October 1, 2026, to book a refill at the regulated selling price (RSP) with subsidy.

Once the authentication is completed, refill booking at the RSP, along with the applicable government subsidy, will be enabled.

LPG consumers are therefore advised to complete their Biometric Aadhaar Authentication at the earliest if they want to continue receiving subsidised refills from October 1, 2026, onwards.