New Financial Rules Impact UPI, SBI ATMs, NPS, and LPG from October 2026

From October 1, 2026, several significant financial rules and changes have come into effect, impacting everyday payments, savings, retirement planning, and household budgets. These include revised charges for the National Pension System (NPS), mandatory Know Your Customer (KYC) requirements for LPG consumers, and updated State Bank of India (SBI) ATM withdrawal fees, alongside new bulk deposit norms. Additionally, UPI MDR charges are set to begin from October 15.

Specifically, UPI MDR charges will apply from October 15, with a 0.4% fee on person-to-merchant payments exceeding ₹2,000. This charge will be borne by merchants, not consumers, and is capped at ₹300 for transactions of ₹75,000 or more. Payments between individuals and the majority of daily merchant transactions will remain free. Essential services like railways, telecom, fuel, and insurance will incur a flat ₹5 fee for transactions above ₹2,000, while capital markets transactions (mutual funds, stockbroking) will see a lower 0.02% rate, also capped at ₹300.

For SBI customers, new service charges for Basic Savings Bank Deposit (BSBD) accounts took effect on October 1, 2026. Account holders will continue to receive four free cash withdrawals per month across SBI and other bank ATMs or branch channels. Subsequent cash withdrawals will be charged at ₹15 plus GST, though digital transactions will remain entirely free. Furthermore, KYC has become mandatory for all LPG consumers from October 1 to book efills at the regulated retail selling price; without KYC, LPG can still be obtained but at the market price, without subsidy.

National Pension System subscribers will also see a revised Point of Presence (PoP) charge structure from October 1, 2026. The PFRDA has introduced a one-time onboarding fee of ₹200 for every Permanent Retirement Account Number (PRAN) opened through a PoP. Subscribers will also be charged an annual fee of 0.20% of their assets under management (AUM), excluding dormant accounts. Lastly, new Reserve Bank of India rules for bulk deposits, defined as ₹3 crore or more, also began on October 1, requiring banks to publish interest rates daily and maintain fixed rates for given deposit amounts across all branches, though this does not affect retail investors.

What to watch: Monitor how these new charges and requirements integrate into daily financial transactions.

Editor's note: The draft comprehensively covers all financial changes mentioned in the source material with accurate dates and figures.