October brings a series of practical changes that will affect how people save, withdraw cash, make digital payments and track large deposits. Several banking and payment rules take effect from the start of the month or mid-month, while the Reserve Bank’s policy meeting will set the tone for interest rates. Here are the key shifts that households, salary account holders, merchants and large depositors should note.
1. SBI Salary Accounts: Fewer Free ATM Transactions
From 1 October, State Bank of India is reducing the number of free monthly transactions available to salary package account holders at other banks’ ATMs and Automated Deposit cum Withdrawal Machines. The free limit falls from ten to five transactions per month. The cap applies across all centres and covers both financial transactions (such as cash withdrawals) and non-financial ones (such as balance enquiries).
Charges after the free limit remain unchanged: ₹23 plus GST for each additional cash withdrawal and ₹11 plus GST for each additional non-financial transaction. Transactions at SBI’s own ATMs continue under the existing free limits. Customers who frequently use other banks’ machines may want to plan withdrawals or switch to UPI and card payments to stay within the new allowance.
2. New Transparency Rules for Bulk Fixed Deposits
Also from 1 October, revised Reserve Bank of India directions change how banks set and disclose interest rates on bulk deposits. For scheduled commercial banks, bulk deposits generally mean single term deposits of ₹3 crore and above.
Banks must publish the applicable bulk-deposit interest rates on their websites by 10 am on every working day (with a short grace period). Rates for similar deposits accepted on the same day should be consistent across branches. Limited differentiation is permitted based on the Liquidity Coverage Ratio treatment of the deposit. The rules improve transparency for institutions and high-value depositors; ordinary retail fixed-deposit rates are not automatically altered by this framework.
3. UPI Merchant Discount Rate from Mid-October
A significant change for the payments ecosystem arrives on 15 October. Merchant Discount Rate will apply to specified person-to-merchant UPI transactions above ₹2,000. Person-to-person transfers remain free regardless of amount. Small-value merchant transactions (up to ₹2,000) and many small merchants continue to enjoy zero-MDR treatment under the prescribed framework.
The charge is borne within the merchant-acquiring side of the ecosystem and is not a fee that customers pay separately when scanning a QR code or paying a merchant. The structure includes caps and special rates for certain essential categories. The aim is to support the long-term sustainability of the UPI infrastructure while protecting everyday low-value payments.
4. RBI Monetary Policy Decision on Repo Rate
The Monetary Policy Committee meets from 5 to 7 October, with the policy announcement due on 7 October. The repo rate currently stands at 5.25 per cent following the previous review. Any change—or a decision to hold steady—will influence the broader interest-rate environment over time.
Banks do not always adjust lending or deposit rates immediately or by the exact same margin as a repo-rate move. Still, the outcome shapes expectations for home loans, personal loans, fixed-deposit rates and overall liquidity conditions in the weeks that follow.
5. Small Savings Schemes Interest Rates
The government periodically reviews interest rates on small savings instruments such as the Public Provident Fund, National Savings Certificate and post-office schemes. The rates applicable for the relevant quarter are typically announced around the beginning of the period. Savers who use these instruments should check the notified rates once they are published, as they determine the return locked in for new investments or for the next quarter on existing accounts where applicable.
6. LPG Subsidy and Aadhaar Authentication
Households receiving subsidised domestic LPG may face tighter verification requirements. Mandatory Aadhaar-based authentication for subsidy-linked refills is being reinforced in phases. Consumers who have not completed the necessary linkage or authentication steps should do so promptly to avoid disruption in subsidy credit. Keeping Aadhaar details updated with the LPG distributor remains essential.
7. Other Banking and Compliance Updates
Additional operational changes may affect specific customer segments. These include refinements in National Pension System charge structures for certain intermediaries and ongoing emphasis on updated Know Your Customer norms across banking and financial services. Taxpayers should also note any extended or revised deadlines for income-tax return filing that fall in or around October, as compliance calendars occasionally shift.
What Customers Should Do
Salary account holders of SBI should review their monthly ATM usage patterns and consider consolidating withdrawals or shifting routine transactions to digital modes. High-value depositors planning bulk fixed deposits should monitor bank websites daily for the published rates rather than relying solely on branch quotations. Merchants accepting UPI should familiarise themselves with the MDR framework that begins mid-month and assess its impact on higher-value transactions.
Ordinary retail fixed-deposit customers and people making small everyday UPI payments will see little direct change. The broader message of the October updates is greater transparency in large-deposit pricing, a recalibration of free ATM access for one major bank’s salary customers, and a measured introduction of charges into parts of the UPI merchant ecosystem to support system sustainability.
Staying informed about these specific dates and limits will help households and businesses avoid surprises and make full use of the free or preferential treatments that continue to apply. As always, checking the latest circulars or notifications from one’s own bank and the relevant authorities remains the most reliable way to confirm how each rule applies to an individual account or business.
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