Financial Rule Changes – October 2026: The start of every new month brings changes to various rules concerning banking, taxes, savings, and daily expenses across the country. Several major changes affecting ordinary citizens, investors, taxpayers, and bank customers are coming into effect from October 1, 2026.

From the Reserve Bank of India's (RBI) monetary policy review to SBI's ATM rules, UPI MDR, LPG biometric authentication, and Income Tax Return (ITR) deadlines—here are the full details of all major financial changes taking effect in October.

1. RBI MPC Meeting: Decision on Repo Rate Due on October 7

The Reserve Bank of India's Monetary Policy Committee (MPC) is holding a three-day review meeting from October 5 to October 7, 2026. The RBI's repo rate has remained at 5.25% since the August 2026 review. The decision on interest rates, expected on October 7, will directly impact loan EMIs (home loans, car loans) and interest rates on bank fixed deposits (FDs).

2. Changes to SBI ATM Rules: Free Transaction Limit Reduced

The State Bank of India (SBI) is revising the rules regarding the use of other banks' ATMs and ADWMs (Automated Deposit-cum-Withdrawal Machines) for its salary package account holders:

Under the new rule, effective October 1, 2026, salary account customers will be allowed only 5 free transactions (combined financial and non-financial) per month at other banks' ATMs. Previously, this limit was 10 transactions.

For Basic Savings Bank Deposit (BSBD) accounts, 4 cash withdrawals per month will remain free. Beyond this, a charge of ₹15 plus GST will apply to each transaction. 

3. Relief for Income Taxpayers: Tax Audit and ITR Filing Deadlines Extended

The Central Board of Direct Taxes (CBDT) has granted significant relief to taxpayers subject to tax audits for the Assessment Year 2026-27:

Tax Audit Report: The deadline for submitting the tax audit report has been extended from September 30 to October 21, 2026.

ITR Filing Date: The deadline for filing Income Tax Returns for businesses and professionals subject to tax audits has been extended from October 31 to November 21, 2026.

4. UPI Payments & MDR Rules: New Framework for Merchant Payments Above ₹2,000

A new UPI Merchant Discount Rate (MDR) framework is being implemented from October 15 for select merchant transactions exceeding ₹2,000. This charge concerns the arrangement between the merchant payment ecosystem and banks; general customers will not incur any additional charges when making UPI payments. All person-to-person transfers and purchases up to ₹2,000 will remain completely free of charge, just as before.

5. LPG Aadhaar Biometric Authentication: Biometrics Mandatory for Subsidy

A new rule regarding biometric authentication is coming into effect for domestic LPG customers availing government subsidies. Completing Aadhaar-based biometric authentication will be mandatory to book cylinders at the regulated retail selling price (RSP) and to receive the government subsidy. Customers who do not complete the biometric authentication process will still receive gas cylinders but will be required to pay the unsubsidized market price. 

6. New 10 AM rule for bulk deposit rates

The Reserve Bank's new rule regarding the disclosure of bulk deposit interest rates came into effect on October 1. All banks, including Regional Rural Banks (RRBs), are required to publish their bulk deposit rates on their official websites according to a set schedule. To ensure transparency, banks must make their bulk deposit interest rates public by 10:00 AM on every working day (with a grace period of up to 10:10 AM).

7. Buying property from NRIs made easier: TAN requirement removed

Effective October 1, 2026, the tax compliance process has been simplified for Indian residents and Hindu Undivided Families (HUFs) purchasing property from Non-Resident Indians (NRIs). There is no longer a requirement to obtain a separate Tax Deduction Account Number (TAN) to deduct TDS when purchasing immovable property from an NRI.

Buyers can now complete the mandatory TDS deduction, deposit, and reporting formalities using only their PAN. (Note: The rule regarding TDS deduction remains in force; only the process has been simplified).

8. New fee structure in NPS: Changes to PoP charges

The Pension Fund Regulatory and Development Authority (PFRDA) has revised the fee structure for Points of Presence (PoP) under the National Pension System (NPS) and NPS Lite. New subscribers registering through PoPs...

PC Social Media