6 Money & Banking Rule Changes in October 2026: Full Guide

October marks the start of the second half of the financial year in India, and with it comes a series of significant regulatory, banking, and payment updates. Whether you manage household fixed deposits, transfer money through UPI, contribute to the National Pension System (NPS), hold an SBI salary account, or receive cooking gas subsidies, multiple new rules took effect on 1 October 2026 or will roll out mid-month.

Understanding these updates ensures you avoid unexpected bank charges, optimize your fixed deposit returns, safeguard your household subsidies, and keep your tax and retirement filings completely compliant.

Quick Summary of Key October 2026 Money Changes

1. RBI Bulk Deposit Reclassification: Threshold Raised to ₹3 Crore

Under the Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, 2026, the Reserve Bank of India officially increased the definition threshold for single "bulk deposits" from ₹2 crore to ₹3 crore for Scheduled Commercial Banks and Small Finance Banks (with ₹1 crore applicable to Regional Rural Banks).

• Retail depositor shield: Previously, deposits between ₹2 crore and ₹3 crore were treated as wholesale funds, allowing banks to offer discretionary or non-callable terms. Now, any deposit under ₹3 crore is categorized as a retail deposit, guaranteeing published card interest rates and standard premature withdrawal rights.
• Mandatory daily disclosure window: Scheduled commercial banks are now mandated to publish their daily bulk deposit interest rate schedules on their official public websites between 10:00 am and 10:10 am every business day, eliminating opaque closed-door rate negotiations.
• Why this matters for your savings: High-net-worth individuals, trusts, and family offices depositing between ₹2 crore and ₹2.99 crore gain greater regulatory transparency. For ordinary savers, retail deposit rates remain closely anchored to the prevailing monetary policy; check our RBI Repo Rate October 2026 Analysis to see where borrowing and savings yields stand.

If you are planning to park lump-sum capital in fixed deposits across varied tenures, model your post-tax maturity returns using the iCalcDesk FD Maturity Calculator Guide.

2. UPI MDR Rollout from 15 October 2026: Myths vs. Reality

Few financial announcements have sparked as much consumer anxiety as the National Payments Corporation of India (NPCI) guidelines on Merchant Discount Rate (MDR) for UPI transactions. Widespread viral rumors claimed that users would be charged for scanning QR codes or sending money to friends. Here is the legal and technical reality:

• Peer-to-Peer (P2P) transfers remain 100% free: Sending money to friends, family members, paying rent via account number, or splitting dinner bills carries zero charge, regardless of the transfer amount.
• Small merchant transactions (under ₹2,000) remain free: Routine daily payments to local vegetable vendors, neighborhood grocery stores, and small merchants incur zero fee for either party.
• Targeted 0.4% MDR on large commercial transactions: Starting 15 October 2026, an acquiring charge of 0.4% (capped at ₹60 per transaction) applies strictly to large merchant acquiring on transactions exceeding ₹2,000 in specified commercial categories (such as luxury retail, institutional services, and wholesale distributors).
• Strict ban on consumer surcharges: Under RBI and NPCI guidelines, merchants are legally prohibited from passing this fee onto consumers. Any merchant attempting to add a "convenience fee" for UPI payments violates merchant acquiring agreements.

3. PFRDA Revises NPS Point of Presence (PoP) Charges

The Pension Fund Regulatory and Development Authority (PFRDA) has notified a revised service charge architecture for Point of Presence (PoP) entities—such as commercial banks and financial intermediaries—effective from 1 October 2026.

• Initial subscriber registration fee: A flat onboarding charge of ₹200 applies when opening an NPS Tier-I or Tier-II account through a physical PoP branch.
• Contribution collection charges: For offline physical contributions through bank branches, PoPs can deduct 0.30% of the contribution amount (subject to a minimum of ₹30 and maximum of ₹25,000). For contributions made through a PoP's online banking portal, the charge is 0.20% (minimum ₹15, maximum ₹10,000).
• Annual service fee based on AUM: Intermediaries will receive an annual servicing fee of 0.20% p.a. of the subscriber's assets under management (AUM) maintained with that PoP, capped at a maximum of ₹10,000 per year.
• How to save these charges (The Direct eNPS Route): Subscribers who open and manage their NPS accounts directly via the official eNPS Portal without selecting a bank intermediary completely bypass PoP charges, saving significant compounding drag over a 25-year career.

NPS contributions continue to offer powerful tax deductions under Section 80CCD(1B) and Section 80CCD(2). Review how these deductions compare across tax brackets in our New vs Old Tax Regime Break-Even Guide.

4. SBI ATM Free Withdrawal Limits for Salary Package Accounts

State Bank of India (SBI) has standardized monthly free ATM transaction allowances across its Corporate and Government Salary Package accounts (including DSP, SGSP, CGSP, and PMSP).

• Reduction in other-bank ATM transactions: The quota of free monthly withdrawals at other bank ATMs has been reduced from 10 to 5 transactions per calendar month.
• Home ATM access: Eligible salary account holders maintaining designated average monthly balances continue to enjoy unlimited free cash withdrawals at SBI's own extensive network of ATMs.
• Post-limit charges: Once you exhaust your 5 free monthly attempts at non-SBI ATMs, SBI levies standard charges:
  • Financial transactions (cash withdrawals): ₹21 plus applicable GST per transaction.
  • Non-financial transactions (mini-statements, balance inquiries): ₹10 plus applicable GST per attempt.
• Practical takeaway: To avoid recurring micro-fees, consolidate cash withdrawals into fewer monthly visits and utilize SBI's proprietary ATM network or digital payment alternatives whenever possible.

5. Direct Tax Deadlines & Property Purchase TDS (Form 26QB)

October brings two critical compliance developments under the Central Board of Direct Taxes (CBDT):

• Tax Audit Report deadline extended to 21 October 2026: In relief to chartered accountants, business owners, and audited professionals, the CBDT extended the statutory deadline for submitting Tax Audit Reports (Forms 3CA/3CB and 3CD) for Assessment Year 2026–27 from 30 September to 21 October 2026. Corresponding income tax returns for audited entities are due by 21 November 2026.
• Streamlined TDS on property purchases (Section 194-IA): Starting 1 October 2026, revised procedural instructions apply to Form 26QB for real estate transactions. When purchasing immovable property valued at ₹50 lakh or more:
  • The 1% TDS deduction must be computed on the gross consideration value, inclusive of all ancillary charges (such as car parking, clubhouse access, advance maintenance, and electricity infrastructure charges).
  • New PAN-based compliance rules enable buyers purchasing property from Non-Resident Indian (NRI) sellers to deposit withholding taxes directly without mandatorily obtaining a separate Tax Deduction and Collection Account Number (TAN).

If you are currently servicing a home loan or planning prepayments, explore our Home Loan Prepayment Guide: One Extra EMI a Year and our overview of Home Loan Tax Deductions under Section 24 and 80C.

6. Mandatory Biometric Aadhaar-eKYC for Domestic LPG Cylinder Subsidies

Effective 1 October 2026, major public sector Oil Marketing Companies (OMCs)—including Indian Oil (Indane), Bharat Petroleum (Bharatgas), and Hindustan Petroleum (HP Gas)—under directives from the Ministry of Petroleum and Natural Gas (MoPNG), have strictly enforced mandatory Aadhaar biometric e-KYC verification for domestic LPG cylinder connections.

• Primary objective: To weed out duplicate, commercial diversion, and ghost accounts while guaranteeing that Direct Benefit Transfer (PAHAL/DBTL) subsidies reach genuine domestic consumers, particularly under the Pradhan Mantri Ujjwala Yojana (PMUY).
• Impact on gas supply vs. subsidies:
  • Gas deliveries will not stop: Crucially, your cooking gas cylinder bookings and home deliveries will not be blocked even if your e-KYC remains pending.
  • Subsidies placed on hold: However, direct cash subsidy transfers into your bank account will be temporarily held until biometric or face authentication is completed.
• How to complete your LPG Aadhaar-eKYC:
  1. Mobile App Facial Authentication (At Home): Download your distributor's official application (Indane Oil One, Hello BPCL, or HP Pay) alongside the UIDAI AadhaarFaceRD app. Complete instant facial scan verification using your registered mobile number without visiting an agency.
  2. Delivery Personnel Point-of-Sale (PoS): Authorized delivery personnel carry handheld PoS biometric scanners. You can request authentication at your doorstep during regular cylinder delivery.
  3. Local Gas Agency Visit: Visit your designated LPG distributorship with your Aadhaar card and domestic gas consumer passbook (SV) to complete fingerprint or iris verification.

Actionable Money Checklist for October 2026

• Check your banking ATM habits: If you hold an SBI salary account, verify that your other-bank ATM usage does not exceed 5 visits this month to prevent avoidable ₹21 debit fees.
• Audit your NPS account mode: Verify whether your PRAN is attached to a commercial bank PoP or registered directly via eNPS to eliminate the new 0.20% annual servicing charge.
• Verify retail FD quotes: If investing corporate or family funds between ₹2 crore and ₹3 crore, compare published retail card rates rather than relying on custom negotiated quotes.
• Stay confident with UPI payments: Pay local merchants and send money to contacts without hesitation; consumer UPI payments remain completely surcharge-free.
• Meet tax audit deadlines: If your business or profession requires statutory audit under Section 44AB, ensure your tax professional submits all compliance forms by 21 October 2026.
• Complete LPG biometric e-KYC: Use the official OMC mobile app or request your delivery agent to authenticate your connection so your direct bank cooking gas subsidies remain uninterrupted.

Frequently Asked Questions

• Will ordinary consumers pay charges on UPI transactions above ₹2,000 from October 15, 2026?
  No. The 0.4% Merchant Discount Rate (MDR) applies strictly to commercial merchant acquiring for transactions above ₹2,000. Peer-to-peer (P2P) transfers to friends, family, or domestic contacts remain completely free, and merchants are legally prohibited from passing surcharges to customers.
• What happens if I haven't completed my LPG Aadhaar-eKYC by October 2026?
  Your cylinder supply and deliveries will continue as normal; they will not be stopped. However, government cash subsidy transfers credited to your linked bank account will be paused until you complete biometric or facial authentication through your distributor's app or agency.
• What is the new RBI threshold for bulk fixed deposits from October 1, 2026?
  The RBI raised the bulk fixed deposit threshold from ₹2 crore to ₹3 crore for Scheduled Commercial Banks and Small Finance Banks. Deposits below ₹3 crore now fall under the retail bracket and must be offered standard scheduled card rates without differential institutional negotiation.
• How do the revised PFRDA charges affect NPS subscribers?
  From 1 October 2026, Point of Presence (PoP) charges include a flat ₹200 onboarding fee, up to 0.30% transaction charges, and a 0.20% annual AUM servicing fee. Subscribers who register and contribute directly via the official eNPS online portal completely bypass these PoP charges.
• How have SBI ATM free withdrawal limits changed for salary accounts?
  SBI has revised the monthly free ATM withdrawal quota at other bank ATMs from 10 to 5 transactions for salary package holders. Transactions beyond this limit attract standard charges of ₹21 plus GST per financial withdrawal.
• What is the extended deadline for Tax Audit Reports in October 2026?
  The Central Board of Direct Taxes (CBDT) extended the statutory deadline for filing Tax Audit Reports (Forms 3CA/3CB-3CD) for AY 2026–27 to 21 October 2026, with the corresponding corporate/audit ITR deadline set for 21 November 2026.

Related Guides & Calculators

• RBI Repo Rate October 2026: Impact on Loan EMI & FDs
• FD Maturity Calculator Guide: How Interest Compounds
• New vs Old Tax Regime Break-Even Analysis
• Home Loan Prepayment Strategy: One Extra EMI Each Year
• EPF Wage Ceiling Revision: Full Impact Guide

Official Sources & Regulatory References

Disclaimer: This article is prepared strictly for educational and informational purposes and does not constitute financial, legal, or investment advice. Banking charges and regulatory guidelines are subject to periodic revisions by respective regulatory authorities.