- Follow On:
- [email protected]
- +918655715397
- Thane west, Maharashtra - 400604
October 2026 brings several changes across digital payments, banking, deposits, pensions and compliance that businesses and finance teams should keep on their radar.
Some changes affect individuals directly, while others are particularly relevant to businesses that receive UPI payments, maintain large bank deposits, manage employee financial benefits or handle recurring operational payments.
The most important change for merchants is the upcoming UPI Merchant Discount Rate (MDR) framework from October 15, 2026. At the same time, revised ATM rules, new bulk-deposit disclosure requirements and changes to NPS charges are also coming into effect.
Here are the key October financial changes businesses should review.
One of the biggest payment-related changes this month is the introduction of MDR on specified person-to-merchant (P2M) UPI transactions above ₹2,000 from October 15, 2026.
The government has clarified that P2P UPI transactions will remain free, while P2M payments up to ₹2,000 and transactions covered under the zero-MDR framework for eligible small merchants will also remain free. The government says around 96% of P2M transactions are expected to remain unaffected.
For specified merchant transactions above ₹2,000:
Finance teams should analyse their UPI collections before October 15.
Check:
For example, a 0.4% MDR on an eligible ₹10,000 transaction would be ₹40.
Businesses should not treat MDR as a customer tax. The government has clarified that MDR is part of the payment ecosystem and is not a government tax.
The Supreme Court recently issued notices to the Centre, RBI and NPCI regarding a challenge to the MDR framework but did not grant an interim stay, leaving the October 15 rollout in place as of the latest reported development.
From October 1, SBI salary package account holders using SBI debit cards at other banks’ ATMs and ADWMs will have a revised free transaction limit.
The number of free transactions is being reduced from 10 to 5 per month, with the limit covering both financial and non-financial transactions.
This can matter for companies that manage salary accounts or reimburse employees for banking-related expenses.
HR and finance teams should:
Businesses should also distinguish between company-controlled banking arrangements and employees’ personal banking charges.
Businesses that maintain significant cash reserves or large fixed deposits should pay attention to revised bulk deposit rate disclosure requirements from October 1.
Under the revised framework, banks will disclose applicable bulk-deposit interest rates in advance and publish the applicable rates daily by 10 AM. Similar bulk deposits will generally receive the same rate, although differentiation can apply depending on their treatment under the Liquidity Coverage Ratio (LCR).
Companies with large surplus funds should review how they compare FD opportunities across banks.
Finance teams should maintain a process for comparing:
Available cash → liquidity requirement → FD tenure → interest rate → maturity date → reinvestment plan
This is particularly relevant for:
The change does not mean every retail FD rate is changing. It primarily affects the framework for bulk deposits and how banks disclose applicable rates.
The Pension Fund Regulatory and Development Authority (PFRDA) has revised the charge structure applicable to Points of Presence (PoPs) for NPS and NPS Lite. PFRDA published the revised charge framework in August 2026.
The updated structure includes a ₹200 one-time onboarding charge per PRAN for applicable PoP registrations, with the charge structure depending on the applicable onboarding route and scheme. PFRDA’s published framework also contains provisions for digital onboarding and other PoP charges.
For organisations offering NPS as part of employee benefits, HR and payroll teams should review:
The key point is that NPS charges and employer contributions are not the same thing. Businesses should ensure they are separately identified in payroll and employee-benefit records.
Another October change concerns domestic LPG subsidy eligibility.
Consumers who have not completed Biometric Aadhaar Authentication (BAA) may need to complete the authentication to access refills at the regulated selling price with applicable subsidy. Consumers who have already completed the authentication do not need to repeat it.
This is mainly a household-level change, but it can become relevant for businesses where LPG is part of operating expenses, particularly:
Businesses should distinguish between domestic LPG subsidy rules and commercial LPG arrangements, rather than assuming that the same subsidy treatment applies to both.
Another financial update businesses and business owners may want to track is the government’s quarterly small-savings review.
For October–December 2026, the government has retained existing interest rates on small-savings schemes, including PPF, NSC, KVP and Sukanya Samriddhi.
For business owners, this is more relevant to personal financial planning than corporate accounting, but it can still be useful when reviewing overall financial planning and liquidity outside the business.
Rather than looking at these changes individually, businesses can use October as an opportunity to review their finance and compliance processes.
Review:
Check:
Review:
October 2026 brings several financial and banking changes, but not every change applies to every business.
For merchants, the upcoming UPI MDR framework from October 15 deserves particular attention because it can affect the cost of eligible higher-value UPI collections. Businesses should also monitor bulk-deposit disclosures if they maintain substantial bank deposits and review HR processes where NPS is part of employee benefits.
The practical priority for finance teams is simple:
Identify what applies → quantify the financial impact → update accounting/reconciliation → communicate internally → monitor further regulatory updates.
Note: This article reflects information available as of October 1, 2026. Regulatory, banking or judicial updates can change implementation details, so businesses should verify the latest notification applicable to their specific transaction, account or industry before taking action.
Subscribe to our newsletter and stay updated.
