New rules for ATMs, UPI, NPS, and LPG: 5 big October 2026 money changes to impact your finances and banking

From October 1, several financial rules and changes—including NPS charges, LPG KYC requirements, SBI ATM withdrawal fees and bulk deposit norms—have come into effect, while UPI MDR charges will kick in from October 15. These changes could affect your everyday payments, savings, retirement planning and household budget. Here’s a look at what’s changing this month.

UPI MDR charges come into effect from 15 October

From 15 October, a 0.4 per cent MDR will apply to person-to-merchant UPI payments above ₹2,000. The charge will be paid by merchants, not consumers, and will be capped at ₹300 for transactions of ₹75,000 or more. Payments between individuals, as well as the vast majority of everyday merchant payments, will remain free.

Essential services, such as railways, telecom, fuel and insurance, will attract a flat ₹5 fee per transaction above ₹2,000. Capital markets transactions (mutual funds, stockbroking) get a lower 0.02 per cent rate, also capped at ₹300.

SBI ATM rule changes

State Bank of India (SBI) has revised its service charges for customers who hold Basic Savings Bank Deposit (BSBD) accounts. The new rules will apply from October 1, 2026.

Under the new rules, BSBD account holders will continue to have a total of four free cash withdrawals per month. Following this, the bank will charge ₹15 plus GST for each additional cash withdrawal. However, digital transactions are completely free.

The four free withdrawals cover cash withdrawals through SBI and other bank ATMs, branch channels, etc.

LPG KYC becomes mandatory

KYC becomes mandatory for all LPG consumers from 1 October for booking efills at the regulated retail selling price

However, if you haven’t completed your KYC yet, that doesn’t mean you will be left without LPG. You will still be able to obtain LPG but at the applicable market price, without the subsidy, subject to the conditions set by oil marketing companies (OMCs).

NPS charges for subscribers

National Pension System (NPS) subscribers will see a revised Point of Presence (PoP) charge structure from 1 October 2026.

PFRDA has set a one-time onboarding fee of ₹200 for every Permanent Retirement Account Number (PRAN) opened through a Point of Presence (PoP). Subscribers will also be charged an annual fee of 0.20% of their assets under management (AUM), except for accounts classified as dormant.

Bulk FD deposits rule changes from 1 October

The Reserve Bank of India’s revised framework for bulk deposits will come into effect on 1 October.

The new rules specify that from October 1, all banks will have to publish the interest rates applicable to bulk deposits of ₹3 crore or more on their websites every business day. Also, they will have to maintain a fixed interest rate for a given deposit amount across all branches

However, they can continue to set different rates for different bulk-deposit slabs.

The new rule does not impact retail investors.