5 Rule Changes From October 1, 2026: SBI ATM Charges, UPI MDR, Bulk FD Rates, LPG KYC and More

1. SBI ATM Free Transaction Limit Changes

State Bank of India (SBI) is revising the number of free monthly transactions available to salary package account holders using SBI debit cards at other banks' ATMs and Automated Deposit cum Withdrawal Machines (ADWMs).

From October 1, 2026, the number of free transactions at other banks' ATMs will be reduced from 10 to five per month across SBI salary package account variants. The revised limit covers both financial and non-financial transactions.

For Basic Savings Bank Deposit (BSBD) accounts, four cash withdrawals per month will continue to be free. Transactions beyond this limit will attract a charge of Rs 15 plus GST. Digital transactions will continue to remain free without a transaction limit.

2. Bulk Fixed Deposit Rate Disclosure Rules

The Reserve Bank of India (RBI) is changing the framework governing interest-rate disclosure for bulk fixed deposits.

From October 1, 2026, banks will have to disclose bulk deposit rates in advance and publish the applicable rates every day at 10 am. Banks will generally be required to offer the same rate for similar bulk deposits, although rates may differ depending on the Liquidity Coverage Ratio (LCR) treatment applicable to the deposits.

The change is aimed at making bulk deposit pricing more transparent for depositors and market participants.

3. UPI MDR on Select Merchant Transactions

A new Merchant Discount Rate (MDR) framework for certain UPI merchant transactions will take effect from October 15, 2026.

The MDR will apply to specified merchant transactions above Rs 2,000. Payments up to Rs 2,000 and transactions covered under the existing zero-MDR framework for small traders will remain free.

According to the Economic Times report, around 96% of all person-to-merchant (P2M) transactions are expected to remain unaffected. The applicable MDR can vary depending on the industry or merchant category.

The Supreme Court has also declined to grant an interim stay on the Centre's decision concerning the 0.4% MDR for specified UPI P2M transactions above Rs 2,000 and issued notices to the government, RBI, NPCI and other respondents.

4. NPS Charges Revised

The Pension Fund Regulatory and Development Authority (PFRDA) is revising the charges that Points of Presence (PoPs) can collect from subscribers under the National Pension System (NPS) and NPS Lite.

The revised structure will apply from October 1, 2026. Subscribers registering through a PoP will have to pay a one-time onboarding charge of Rs 200 for each Permanent Retirement Account Number (PRAN).

The Rs 200 charge will not be deducted as a single amount from the subscriber's account, according to the reported framework.

5. Biometric Aadhaar Authentication for LPG Subsidy

Domestic LPG consumers who have not completed Biometric Aadhaar Authentication (BAA) will need to complete the process before October 1, 2026, to continue booking eligible domestic LPG refills at the regulated selling price with the applicable subsidy.

Once authentication is completed, eligible consumers can continue to access subsidised refills. Consumers can complete the authentication through available LPG service channels, including options provided during cylinder delivery and through distributor outlets or digital applications.

Those who do not complete the required authentication may still have access to LPG at the applicable market price, subject to the prevailing rules and availability.

When Do These Changes Take Effect?

Most of the changes come into effect from October 1, 2026. However, the UPI MDR change for specified merchant transactions above Rs 2,000 begins on October 15, 2026.

Consumers, bank customers, investors and LPG users should check the applicable terms with their respective service providers before the new rules take effect.

Key Takeaways

• SBI salary account holders will get five free transactions per month at other banks' ATMs, down from 10.

• SBI BSBD account holders will continue to get four free cash withdrawals per month.

• RBI's new bulk FD rate disclosure rules take effect from October 1.

• Select UPI merchant transactions above Rs 2,000 will attract MDR from October 15.

• NPS subscribers registering through a PoP will face a Rs 200 one-time onboarding charge per PRAN.

• Biometric Aadhaar Authentication will be required for eligible subsidised LPG refills.

• Most changes begin October 1, while the UPI MDR change starts October 15.