From bulk FDs, UPI payments, repo rate to SBI ATMs: 7 money rules changing in October

October is set to bring a number of changes for bank customers, savers, taxpayers and households. From fewer free ATM transactions for some SBI salary account holders to new rules for large fixed deposits and UPI merchant payments, several financial rules are changing in the new month.

There are also changes involving LPG subsidy, NPS charges and tax compliance when buying property from a non-resident. Here is a look at the key changes and dates to keep in mind.advertisement❮❯ Read Full StoryRBI MPC MEETING IN OCTOBER: REPO RATE DECISIONThe Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will meet from October 5 to October 7, with the repo rate decision due on October 7.

The repo rate stood at 5.25% after the RBI’s August policy review. The October meeting will decide whether the central bank keeps the rate unchanged or makes a fresh change.

Any change in the repo rate can eventually affect borrowing and deposit rates. However, banks do not always change their loan or fixed deposit rates immediately or by the same amount.BULK DEPOSIT INTEREST RATE RULES

The RBI is changing the way commercial banks determine and disclose interest rates on bulk deposits from October 1.

Under the revised framework, banks will have to disclose their bulk deposit rates in advance. They will also have to disclose the applicable rates every day at 10 am.

Banks will generally have to offer the same interest rate for similar bulk deposits. However, they can offer different rates depending on the Liquidity Coverage Ratio (LCR) treatment applicable to the deposits.

The changes mainly concern bulk deposits and are aimed at making the rate-setting process more transparent.UPI MDR FROM OCTOBER 15

The UPI payment system is set for a change from October 15, with MDR being introduced on specified merchant transactions above Rs 2,000. Transactions up to Rs 2,000, along with those covered by the zero-MDR framework for small traders, will remain free. The applicable MDR will depend on the merchant’s business category.

The new framework is currently being challenged in the Supreme Court. The court has refused to put the policy on hold and has sought responses from the Centre, RBI, NPCI and other parties on the decision to allow a 0.4% MDR on specified transactions above Rs 2,000.

The petitioner has questioned the legal safeguards, transparency and consultation behind the levy. Unless the court orders otherwise, the new MDR regime is scheduled to take effect from October 15.LPG AADHAAR AUTHENTICATION

LPG consumers who want to continue receiving subsidised refills will need to complete their Biometric Aadhaar Authentication (BAA).

Consumers who have not completed the authentication need to do so before October 1 to book a refill at the regulated selling price (RSP) with the applicable subsidy.

Once the authentication is completed, refill booking at the RSP along with the eligible government subsidy will be enabled.

Consumers who depend on subsidised LPG refills should therefore check whether their Aadhaar authentication has been completed.SMALL-SAVINGS INTEREST RATES TO BE REVIEWED

The government is due to announce the interest rates for small-savings schemes for the October-December 2026 quarter around the end of September.

The review covers popular schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens’ Savings Scheme (SCSS), Sukanya Samriddhi Account, Kisan Vikas Patra and Post Office deposits.

For the July-September quarter, the government kept the interest rates on all small-savings schemes unchanged.

The next announcement will determine whether investors see any change in the rates for the October-December quarter.PROPERTY PURCHASE FROM NRI GETS SIMPLER

Buying property from a non-resident will become simpler for some resident buyers from October 1.

Resident individuals and Hindu Undivided Families (HUFs) buying an immovable property from a non-resident will no longer need to obtain a separate Tax Deduction and Collection Account Number (TAN) for deducting tax at source (TDS).

Instead, buyers will be able to use their Permanent Account Number (PAN) for deducting, depositing and reporting the TDS.

The buyer will also be able to report the transaction through the PAN-based challan-cum-statement mechanism instead of obtaining a separate TAN.

The change is part of the transition to the new income-tax law and is aimed at reducing the compliance burden for resident individuals and HUFs buying property from non-resident sellers.SBI ATM RULES

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

From October 1, 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 limit will cover both financial and non-financial transactions.

For Basic Savings Bank Deposit (BSBD) accounts, four cash withdrawals a month will continue to be free. Beyond this limit, each transaction will attract a charge of Rs 15 plus GST.

SBI has also said digital transactions will remain free without any restriction.

For customers who regularly use other banks’ ATMs, the revised limit means it will be important to keep track of the number of free transactions used each month.- Ends