New Rules From October 1, 2026: SBI ATM Fee, LPG Biometric KYC, NPS Charges and More That Could Impact Your Wallet
Five rule changes will hit personal finances from October: a 0.4% MDR on UPI payments above INR 2,000 from October 15, an INR 15 SBI ATM fee beyond four free withdrawals, daily bulk FD rate disclosure by banks, an INR 200 NPS onboarding fee and mandatory biometric KYC for LPG subsidy.
Five changes across banking, pensions, cooking gas subsidies and digital payments will begin affecting household finances in India from October. The biggest shift is on the Unified Payments Interface (UPI), where a Merchant Discount Rate (MDR) of 0.4% will apply to transactions above INR 2,000 from October 15, ending a zero-MDR policy that has been in place for six years. Alongside this, the State Bank of India (SBI) is revising its ATM withdrawal charges, the Reserve Bank of India (RBI) is tightening disclosure norms for bulk deposits, the Pension Fund Regulatory and Development Authority (PFRDA) has reworked National Pension System (NPS) onboarding fees, and LPG subsidy beneficiaries must complete biometric Aadhaar authentication by October 1.
Here is a closer look at each change.
UPI MDR From October 15
The 0.4% MDR will apply to merchant payments above INR 2,000 made through UPI. Person-to-person (P2P) transfers are not covered.
The National Payments Corporation of India (NPCI) and authorities have maintained that the charge is meant to be absorbed by merchant acquirers and issuing banks, and not by ordinary customers. Merchant associations, however, have raised concerns that the cost could be passed on to buyers.
The policy is also under judicial scrutiny. The Supreme Court declined to grant an interim stay but issued notices to the relevant stakeholders. Bank Holidays in October 2026: Full State-Wise RBI Holiday List & Closed Dates.
SBI ATM Withdrawal Charges
Customers holding Basic Savings Bank Deposit (BSBD) accounts will continue to get four free cash withdrawals every month. Each withdrawal beyond that limit will cost INR 15 plus applicable Goods and Services Tax (GST).
Digital transactions through net banking, UPI and mobile apps will stay free, with no cap on usage. LPG Cylinder Booking From October 1: How Aadhaar Authentication Will Affect Subsidy.
Biometric KYC for LPG Subsidy
Beneficiaries of subsidised LPG cylinders need to complete biometric Aadhaar authentication by October 1 to keep their Direct Benefit Transfer (DBT) uninterrupted.
Oil marketing companies (OMCs) have asked consumers to complete verification through their designated distributor agencies or affiliated mobile verification utilities. Cylinder bookings will continue as usual, but the subsidy amount could be temporarily withheld for unverified accounts.
RBI Norms on Bulk FD Rates
From October 1, banks must publish their bulk deposit rates on their websites every day at 10:00 AM.
Lenders will generally have to offer uniform rates for deposits in the same size and tenure bucket. Differentiation will still be allowed based on how a deposit is treated under the Liquidity Coverage Ratio (LCR) framework.
NPS Onboarding Fee
Subscribers who register through Points of Presence (PoPs) will pay a one-time onboarding fee of INR 200 for every Permanent Retirement Account Number (PRAN).
PFRDA says the revised framework will standardise fee disclosures across intermediaries. The amount will also be deducted on a set schedule and not in one go from the initial contribution.
(The above story first appeared on LatestLY on Sep 28, 2026 09:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
