October brings a series of changes across digital payments, banking, retirement savings and household expenses. While several rules have already taken effect from 1 October, one major UPI-related change is scheduled to begin later this month. The changes cover National Pension System (NPS) charges, LPG KYC requirements, State Bank of India (SBI) ATM withdrawal fees and revised norms for bulk fixed deposits. From 15 October, a new merchant discount rate (MDR) structure will also apply to certain high-value UPI transactions.
For consumers, the impact will vary depending on how they use banking services, LPG connections, UPI and retirement products.
UPI MDR Effective From October 15
A new MDR structure for selected UPI transactions will come into force from 15 October. A 0.4 per cent charge will apply to person-to-merchant UPI payments above Rs 2,000.
The fee will be borne by merchants rather than customers. For transactions of Rs 75,000 or more, the MDR will be capped at Rs 300.
Person-to-person UPI transfers will continue to remain outside this charge. Most routine merchant payments will also remain free.
Certain essential services will have a separate fee structure. Transactions above Rs 2,000 involving railways, telecom, fuel and insurance will attract a flat Rs 5 charge per transaction.
For capital-market related payments, including mutual funds and stockbroking, the MDR has been set at 0.02 per cent, subject to a maximum charge of Rs 300.
SBI Changes Withdrawal Charges For BSBD Accounts
SBI has revised the cash withdrawal rules applicable to customers with Basic Savings Bank Deposit (BSBD) accounts from 1 October.
Under the revised structure, account holders will continue to receive four free cash withdrawals every month. Once this monthly limit is exhausted, each additional cash withdrawal will attract a charge of Rs 15 plus GST.
The free withdrawal limit covers cash transactions through SBI ATMs, other bank ATMs and branch channels.
Digital transactions, however, will continue to be available without these cash-withdrawal charges.
LPG KYC Requirement Takes Effect
LPG consumers also face a new compliance requirement from October. KYC is now mandatory for consumers seeking to book refills at the regulated retail selling price.
Customers who have not completed the KYC process will not necessarily lose access to LPG. They can continue to purchase cylinders, but the applicable market price will be charged and the subsidy will not be available, subject to the conditions prescribed by oil marketing companies.
NPS Subscribers To Face revised PoP Charges
NPS subscribers will see a new fee structure for Point of Presence (PoP) services from 1 October 2026.
Under the revised framework, a one-time onboarding fee of Rs 200 will be charged for every Permanent Retirement Account Number (PRAN) opened through a PoP.
Subscribers will also face an annual charge equivalent to 0.20 per cent of their assets under management (AUM). Accounts classified as dormant will be excluded from this annual charge.
The revised structure changes the cost associated with opening and maintaining an NPS account through a PoP, making the fee component relevant for both new and existing subscribers.
Bulk Deposit Rules Change For Banks
The Reserve Bank of India’s revised framework for bulk deposits also comes into effect on 1 October.
Banks will now be required to disclose on their websites the interest rates applicable to bulk deposits of Rs 3 crore and above. The rates have to be published every business day.
Banks will also have to offer a uniform interest rate for a particular deposit amount across their branches.
However, lenders can continue to maintain separate interest rates for different bulk-deposit slabs.
