India implements new banking and digital payment rules in October

Several significant regulatory changes in India are set to take effect in October 2026, impacting banking, digital payments, and subsidies.

The Reserve Bank of India (RBI) has introduced new rules for bulk fixed deposits (FDs) of ₹3 crore or more. Banks must now disclose these interest rates on their websites by 10:00 am each business day and apply the same rate to similar deposits across all branches to ensure transparency.

In the digital payments sector, a new Merchant Discount Rate (MDR) framework will be implemented for select UPI merchant transactions exceeding ₹2,000 starting October 15. Person-to-person transactions and smaller merchants remain unaffected.

Other notable changes include: - State Bank of India (SBI) is reducing free monthly ATM transactions at other banks for salary package account holders from 10 to 5. - Biometric Aadhaar authentication will become mandatory for domestic LPG consumers to receive subsidies. - The National Pension System (NPS) will implement a new fee structure, including a ₹200 onboarding charge per PRAN. - Taxpayers benefit from extended deadlines for tax audit reports and income tax return filings.