October 1 rule changes: LPG Aadhaar, UPI MDR, SBI ATM limits explained
Synopsis
From 1 October, Indians face a simultaneous reset across five financial fronts: LPG subsidies now require Aadhaar biometrics, UPI gets a merchant MDR framework for transactions above ₹2,000, SBI halves free ATM transactions for salary accounts, NPS onboarding gets a fee, and CBDT extends audit-linked tax deadlines. It is one of the broadest single-day regulatory shifts in recent memory.
Key Takeaways
LPG consumers must complete Aadhaar biometric authentication from 1 October to access subsidised cylinder prices; non-compliant buyers pay market rate.
A new UPI MDR applies to specified merchant transactions above ₹2,000 ; customers are not charged, and person-to-person transfers remain free.
SBI cuts free other-bank ATM transactions for salary account holders from 10 to 5 per month; BSBD holders face ₹15 plus GST beyond four free withdrawals.
CBDT extends the tax audit report deadline to 21 October and the ITR deadline to 21 November for assessment year 2026-27 audit cases.
Revised NPS PoP fees include a one-time ₹200 per PRAN onboarding charge; property buyers can now use PAN instead of TAN for TDS on non-resident sellers.
RBI MPC meets 5–7 October ; repo rate was last held at 5.25% .
Starting 1 October 2025, a clutch of regulatory and financial changes will reshape everyday expenses and compliance obligations for millions of Indians — covering LPG subsidy access, UPI merchant transactions, SBI ATM withdrawal limits, National Pension System (NPS) fees, and key income tax deadlines. Here is a breakdown of what changes, who is affected, and what action is required.
LPG Aadhaar Authentication Now Mandatory for Subsidised Refills
From 1 October, domestic LPG consumers must complete biometric Aadhaar authentication to book cylinder refills at the regulated retail selling price with the applicable subsidy. Consumers who skip this step can still procure LPG, but only at the prevailing market price — without any subsidy benefit — subject to oil marketing company guidelines. The move is aimed at tightening subsidy targeting and curbing leakages in the distribution chain.
UPI MDR Framework for Large Merchant Transactions
A revised UPI Merchant Discount Rate (MDR) framework will apply to specified merchant transactions above ₹2,000 from 1 October. Critically, the MDR burden will fall on merchants, not customers — end users will face no new charges. Person-to-person UPI transfers will continue to be completely free. This is a notable structural shift in how digital payment costs are distributed, and could affect small and mid-sized merchants who process high-value transactions at volume.
SBI Cuts Free ATM Transactions for Salary Account Holders
State Bank of India (SBI), the country's largest lender, will reduce the number of free monthly transactions at other banks' ATMs for salary package account holders from 10 to five starting this month. The revised limit covers both financial and non-financial transactions. For Basic Savings Bank Deposit (BSBD) account holders, four free cash withdrawals per month will continue; beyond that, a charge of ₹15 plus GST per transaction will apply.
Income Tax Deadlines Extended by CBDT
The Central Board of Direct Taxes (CBDT) has extended key filing deadlines for taxpayers covered under tax audit provisions for assessment year 2026-27. The deadline for submitting the tax audit report has been pushed from 30 September to 21 October, while the income tax return (ITR) filing deadline has been extended from 31 October to 21 November. Affected taxpayers should note that these extensions apply specifically to those covered by audit provisions — not all filers.
NPS Fees, TDS Rule Change, RBI Bulk Deposit Disclosures
The revised NPS Point of Presence (PoP) fee structure also takes effect from 1 October, including a one-time onboarding charge of ₹200 per PRAN (Permanent Retirement Account Number). Separately, resident individuals and Hindu Undivided Families (HUFs) purchasing property from non-resident sellers will no longer need a separate Tax Deduction Account Number (TAN) for TDS compliance — their PAN will suffice, simplifying the process considerably. Meanwhile, Reserve Bank of India (RBI) rules will require regional rural banks to publish applicable bulk deposit rates on their websites by 10 am on each business day, improving rate transparency for depositors. The RBI Monetary Policy Committee (MPC) is also scheduled to meet from 5 to 7 October, with the policy decision due on 7 October; the central bank held the repo rate at 5.25% in its last review. All these changes together represent one of the more consequential regulatory resets in recent months, touching household budgets, retirement savings, digital payments, and tax compliance simultaneously.
Point of View
Raising access questions for elderly or rural consumers without smartphones. The UPI MDR shift is structurally significant for small merchants, even if customers are shielded for now. What mainstream coverage often misses is that these changes collectively shift more administrative burden onto individuals — whether it is biometric enrolment, ATM planning, or NPS paperwork — at a time when digital literacy gaps remain wide.
NationPress
30 Sept 2026
Frequently Asked Questions
What is the LPG Aadhaar authentication rule from October 1?
From 1 October, domestic LPG consumers must complete biometric Aadhaar authentication to book cylinder refills at the subsidised regulated retail selling price. Those who do not complete the process can still buy LPG but will pay the higher market price without any subsidy, as per oil marketing company rules.
Will UPI payments become costlier from October 1?
Not for customers. A new UPI MDR framework applies to specified merchant transactions above ₹2,000, but the cost falls on merchants, not end users. Person-to-person UPI transfers remain completely free.
How does the SBI ATM transaction limit change affect account holders?
SBI salary package account holders will get only five free transactions per month at other banks' ATMs from October, down from ten. The limit covers both financial and non-financial transactions. Basic Savings Bank Deposit account holders retain four free cash withdrawals monthly, with a charge of ₹15 plus GST applying thereafter.
Who benefits from the CBDT tax deadline extension?
Taxpayers covered under tax audit provisions for assessment year 2026-27 get extra time: the tax audit report deadline moves to 21 October and the income tax return deadline to 21 November. The extension does not apply to all taxpayers — only those subject to audit requirements.
What changes in NPS and property TDS rules from October 1?
The revised NPS Point of Presence fee structure introduces a one-time onboarding charge of ₹200 per PRAN. On property purchases from non-resident sellers, resident individuals and Hindu Undivided Families can now use their PAN for TDS compliance instead of obtaining a separate TAN, simplifying the process.
