From SBI ATM charges and LPG subsidy authentication to UPI merchant fees, revised EPF coverage and tax deadlines, several financial changes will affect households and businesses in October
October 2026 brings a series of changes across banking, household expenses, retirement savings, digital payments and taxation. Some changes take effect from October 1, while others will come into force later in the month.
For consumers, the key areas to watch include SBI's revised free ATM transaction limit for certain salary account holders, biometric Aadhaar authentication for subsidised domestic LPG, revised disclosure requirements for bulk-deposit interest rates and changes to National Pension System (NPS) charges.
The month will also see a new merchant discount rate (MDR) framework for specified UPI transactions above ₹2,000, while the Employees' Provident Fund (EPF) wage ceiling has already been raised from ₹15,000 to ₹25,000 with effect from September 17. Taxpayers covered by the government's latest extension will also get additional time to file audit reports and income-tax returns.
SBI ATM Rules: Free Other-Bank Transactions Reduced
From October 1, SBI salary package account holders using their SBI debit cards at other banks' ATMs will get five free transactions a month, compared with the earlier limit of 10.
The limit covers both financial and non-financial transactions. Once the free monthly quota is exhausted, SBI will charge ₹23 plus GST for a financial transaction and ₹11 plus GST for a non-financial transaction, according to the changes reported for October.
For Basic Savings Bank Deposit (BSBD) account holders, four cash withdrawals a month will continue to be free, after which a ₹15 plus GST charge applies to each additional cash withdrawal.
The change is particularly relevant for customers who frequently withdraw cash from non-SBI ATMs. Customers who primarily use SBI ATMs or digital payment channels may see limited impact.
LPG Subsidy: Biometric Aadhaar Authentication Becomes Important
Domestic LPG consumers who want to book subsidised refills at the regulated retail selling price will need to have completed Biometric Aadhaar Authentication (BAA) from October 1.
The Petroleum and Natural Gas Ministry said 27.43 crore active domestic LPG consumers, or 89.9% of the total, had completed authentication as of September 19. Customers who have already completed the process do not need to repeat it.
Consumers who have not completed BAA can authenticate during cylinder delivery, at their distributor's showroom or through the mobile applications of their respective oil marketing companies. These include IndianOil ONE, HelloBPCL and HP PAY.
The government has clarified that the authentication requirement is aimed at ensuring that subsidised LPG reaches eligible consumers and at reducing duplicate or ineligible connections.
Consumers unwilling or unable to complete BAA can still obtain LPG, but the government says they must register their choice through the available OMC channels and will receive cylinders at the applicable market price without subsidy, subject to availability.
Bulk FD Rules: Daily Interest-Rate Disclosure
A revised framework for bulk deposits takes effect from October 1. The change is mainly relevant to large depositors rather than ordinary retail fixed-deposit customers.
Banks will have to disclose applicable bulk-deposit interest rates on their websites on each working day around 10 am, with a 10-minute grace period, meaning the rates should be published by 10:10 am.
The framework also provides for greater transparency in the rates offered on bulk deposits. Banks are generally required to follow their disclosed schedules and offer uniform rates for similar deposits accepted on the same day, subject to applicable regulatory provisions.
For an individual holding a conventional retail FD below the bulk-deposit threshold, this change does not automatically alter the interest rate on an existing deposit.
However, customers comparing large deposits can benefit from greater visibility into the rates banks are offering on a particular business day.
NPS Charges: New PoP Fee Structure
Changes to the fee structure applicable to Points of Presence (PoPs) under NPS are also relevant from October.
Under the applicable framework, onboarding of a new NPS account through the PoP channel carries a charge of ₹200 plus applicable taxes. PFRDA's revised charge framework covers NPS and NPS Lite and sets out the charges applicable to PoPs and different account-related services.
Subscribers should distinguish between the one-time account-opening or onboarding charge and other transaction-related charges. The actual cost can depend on the channel and type of NPS service being used.
For existing NPS investors, the revision should not be interpreted as a direct change to their investment returns. The impact is primarily related to charges levied for specified services.
UPI MDR: 0.4% Charge for Certain Merchant Transactions Above ₹2,000
One of the most closely watched changes will come into effect on October 15.
Under the new framework, a 0.4% MDR will apply to specified UPI person-to-merchant transactions above ₹2,000. The charge is capped at ₹300 for transactions of ₹75,000 or more.
Person-to-person UPI transfers will remain outside the framework, while P2M transactions up to ₹2,000 will also remain free of MDR.
Importantly, MDR is a fee within the merchant-payment ecosystem and is not a direct consumer charge for making a UPI payment. UPI users therefore should not assume that a payment above ₹2,000 will automatically result in an additional debit from their bank account.
The change is more significant for merchants, payment service providers and the broader digital-payments ecosystem because it alters the economics of certain higher-value merchant transactions.
EPF Wage Ceiling: ₹25,000 Becomes the New Reference Point
The EPF wage ceiling has already changed from September 17, but October will be the first full month in which the new ₹25,000 ceiling operates.
The government has raised the statutory wage ceiling for mandatory EPF coverage from ₹15,000 to ₹25,000 per month. The change is expected to bring more than 51 lakh additional employees into the formal social-security framework.
Employees earning between ₹15,000 and ₹25,000 who were previously outside mandatory coverage could therefore be brought under EPF, EPS and EDLI, subject to the applicable eligibility rules.
For existing employees, the impact on salary deductions depends on how their employer calculates PF contributions and whether they already contribute on actual wages. The increase can raise retirement contributions, but it can also affect monthly take-home pay where employee contributions rise.
The employer-side contribution also needs to be considered. EPFO has indicated that the higher ceiling increases the maximum pension contribution under EPS from ₹1,250 to ₹2,083 per month.
Income-Tax Deadlines Extended for Specified Taxpayers
Taxpayers covered by the specified category under the latest CBDT extension have received additional time for AY 2026-27 compliance.
According to the Income Tax Department, the deadline for furnishing tax-audit reports has been extended from September 30 to October 21, 2026. The corresponding ITR filing deadline has been extended from October 31 to November 21, 2026.
The extension is not applicable to every taxpayer. Individuals and businesses should therefore establish which filing category they fall under before relying on the revised dates.
The extension is particularly relevant to taxpayers whose returns require audit reports and related compliance documentation.
NRI Property Transactions: TDS Compliance Simplified
Another tax-related development concerns residents purchasing immovable property from non-resident sellers.
From October 1, eligible resident individual and Hindu Undivided Family buyers will be able to use PAN-based compliance without obtaining a separate TAN for the prescribed TDS process.
However, the simplification does not eliminate the underlying TDS responsibility. Buyers must continue to deduct, deposit and report tax wherever the law requires.
Anyone purchasing property from an NRI should therefore verify the applicable TDS rate, documentation and filing requirements before completing the transaction.
RBI Policy Decision Could Influence Loans and Deposits
October will also be important for borrowers and savers because the RBI Monetary Policy Committee is scheduled to meet from October 5 to 7, with the policy announcement expected on October 7.
A change in the repo rate can eventually influence lending and deposit rates, although banks do not necessarily transmit policy changes immediately or to the same extent across every product.
Borrowers with floating-rate loans should monitor the policy outcome and subsequent changes in their lending rates. Depositors, meanwhile, should compare FD rates because changes in the interest-rate cycle can influence the returns available on fresh deposits.
Small-Savings Interest Rates Also in Focus
The government is due to review interest rates on small-savings schemes for the October-December quarter.
The review covers instruments such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens' Savings Scheme (SCSS) and Sukanya Samriddhi Account.
For long-term savers, even a small change in administered interest rates can affect projected returns over several years. Existing investments generally continue under their applicable rules, while new investments may be affected by the rates notified for the relevant quarter.
What Consumers Should Check in October
The October changes have different implications depending on an individual's financial profile.
Bank customers: Check the number of free non-SBI ATM transactions available under the relevant SBI account and avoid unnecessary cash withdrawals after the free limit.
LPG consumers: Verify whether biometric Aadhaar authentication has already been completed. Those seeking the applicable subsidy should complete the process through the authorised OMC channels.
FD investors: Large depositors should compare the daily bulk-deposit rates published by banks rather than relying on older rate information.
NPS subscribers: Check the applicable PoP charges before opening a new account or using chargeable services.
UPI users: Remember that the October 15 MDR applies to specified merchant transactions and is not a general consumer fee on UPI payments.
Employees: Review salary slips and EPF passbooks following the increase in the statutory wage ceiling to ₹25,000.
Taxpayers: Check whether the extended AY 2026-27 deadlines apply to their particular filing category before relying on the October 21 or November 21 dates.
Personal Finance Outlook
October's changes are spread across everyday banking, household energy costs, retirement savings, digital payments and tax compliance rather than being concentrated in one area.
For most households, the most immediate action points are LPG biometric authentication, awareness of SBI's revised ATM limits and understanding how the EPF wage-ceiling increase affects salary deductions. Investors and savers should separately monitor the RBI policy decision, small-savings rates and bank deposit rates.
The important distinction is between changes that require direct action and those that simply alter the financial environment. LPG authentication and applicable tax deadlines may require action from eligible consumers, while UPI MDR and bulk-deposit disclosure rules primarily affect merchants and large depositors.
Keeping track of the effective dates and checking the rules applicable to one's specific account, employment and tax category can help households avoid unnecessary charges, missed deadlines or disruption of eligible benefits.