What changes from Oct 1? New rules on SBI ATM charges, UPI, LPG subsidy and more

Several banking and household financial rules are set to change from October 1, 2026. The changes cover SBI ATM transactions, bulk fixed deposits, Aadhaar authentication for subsidised LPG, NPS charges and merchant UPI payments.

However, one widely circulated claim needs clarification: UPI is not becoming chargeable for ordinary users. Person-to-person UPI payments will remain free, while the new merchant discount rate (MDR) framework will apply only to specified merchant transactions above Rs 2,000.

Here is what consumers need to know.

SBI ATM charges: Fewer free transactions for salary accounts

State Bank of India (SBI) is changing the free ATM transaction limit for Salary Package Account holders from October 1.

At other banks’ ATMs, the monthly free transaction limit will be reduced from 10 to five transactions. Both cash withdrawals and non-financial transactions, such as balance enquiries and mini statements, are counted.

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Once the free limit is exhausted, the applicable charge will be Rs 23 plus GST for a cash withdrawal and Rs 11 plus GST for a non-financial transaction.

The change does not apply uniformly to every SBI customer. SBI’s other account categories have separate rules.

For Basic Savings Bank Deposit (BSBD) accounts, four cash withdrawals a month will continue to be free. After that, a charge of Rs 15 plus GST will apply to additional cash withdrawals. Digital transactions are not included in the four-withdrawal limit.

Bulk FD rates: Greater disclosure by banks

The Reserve Bank of India is introducing new disclosure requirements for bulk deposits from October 1.

For commercial banks, a bulk deposit generally refers to a single rupee term deposit of Rs 3 crore or more.

Banks will have to disclose their bulk-deposit interest rates on their websites. The applicable rates are to be displayed each business day by 10 am, with a 10-minute grace period.

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The change is primarily relevant to customers placing very large deposits, such as companies and institutions.

It does not mean that interest rates on ordinary retail fixed deposits will automatically change from October 1. Retail FD rates will continue to depend on the respective bank’s rate structure.

UPI: MDR to take effect but no blanket fee

A new MDR framework for certain merchant UPI transactions will take effect, but it does not mean that consumers will be charged for every UPI payment.

Person-to-person UPI transfers will remain free, regardless of the amount.

Merchant payments of up to Rs 2,000 will also remain free under the applicable framework. Transactions covered by the zero-MDR provisions for small merchants will continue to be free.

For specified merchant transactions above Rs 2,000, an MDR of 0.4 per cent will apply. For transactions of Rs 75,000 or more, the MDR is capped at Rs 300 per transaction. Certain sectors have separate MDR provisions.

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Importantly, MDR is an ecosystem charge and not a government tax directly imposed on customers. The customer does not pay the MDR separately when making a qualifying UPI payment.

Therefore, the statement that “UPI will now be chargeable” is misleading if it is understood to mean that ordinary users will have to pay a fee for making UPI transfers.

LPG subsidy: Aadhaar biometric authentication

Domestic LPG consumers receiving subsidy will need to complete Biometric Aadhaar Authentication (BAA) from October 1 to continue booking refills at the regulated selling price with applicable subsidy.

Consumers who have already completed the authentication do not need to repeat the process.

Those who have not completed it can authenticate their Aadhaar through their LPG distributor, during cylinder delivery or through the relevant oil company’s mobile application.

The applications are IndianOil ONE for Indane customers, HelloBPCL for Bharatgas customers, and HP PAY for HP Gas customers.

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According to the government, 27.43 crore active domestic LPG consumers, or 89.9 per cent of the total, had completed biometric authentication as of September 19.

Consumers who do not complete the authentication will not be completely denied LPG. However, the government has said that such consumers may receive LPG at the applicable market price without subsidy, subject to the applicable arrangements and availability.

NPS charges revised

The Pension Fund Regulatory and Development Authority has revised the charges payable to Points of Presence (PoPs) under the National Pension System and NPS Lite.

From October 1, the revised structure includes a one-time onboarding charge of Rs 200 per PRAN.

An annual charge of 0.20 per cent of assets under management will also apply, adjusted through the NAV and payable quarterly. Dormant accounts are not subject to the annual PoP fee.

A lower onboarding charge may apply to fully digital, non-face-to-face onboarding where applicable under the PFRDA framework.

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For most households, the changes requiring the most attention are the reduction in free other-bank ATM transactions for SBI Salary Package Account holders and Aadhaar biometric authentication for subsidised LPG consumers.

The UPI change, meanwhile, should not be interpreted as a blanket fee on UPI payments. Person-to-person transfers remain free, while MDR applies to specified merchant transactions under the new framework.