October 2026 Financial Changes: SBI ATM Limits, UPI MDR and Tax Deadlines to Track

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Introduction

India’s October financial changes affect bank customers, LPG households, merchants and taxpayers. SBI’s official ATM notice cuts the salary-account allowance at other banks’ machines from 10 transactions to 5. Frequent users could reach the paid limit sooner.

The Finance Ministry says UPI customers will not bear merchant discount rate, or MDR, charges. Eligible merchants face processing costs instead. LPG consumers with authentication pending must complete it for subsidy-linked refills, while CBDT’s tax extension gives covered businesses more time to check records before filing. 

How Will SBI Customers And LPG Households Be Affected?

SBI counts financial and non-financial transactions together under the revised salary-account allowance. After the free limit, cash withdrawals cost ₹23 plus GST and non-financial transactions cost ₹11 plus GST. Those charges have not increased under this notice. SBI also leaves its own ATM rules unchanged, so the ATM used and the account category decide the treatment.

The Petroleum Ministry’s 19 September 2026 announcement, Release ID 2312532, allows LPG authentication during delivery, at the distributor or through the oil company’s app. Consumers who are already authenticated need not repeat it. Those unable or unwilling to authenticate can register that choice and obtain unsubsidised 5 kg or 10 kg cylinders at market price, subject to local availability. 

What Do Tax Experts Say About The Extra Filing Time?

Sumeet Hemkar, Partner at Deloitte, said businesses needed time to reconcile income-tax data, GST records and accounting information. In comments published on 28 September 2026, Hemkar welcomed the extension for audit cases outside transfer pricing. He also pointed to overlapping deadlines and festival holidays that had added to the workload.

Amit Agarwal, Senior Partner at Nangia & Co LLP, said the additional time would help businesses finish audits and support the figures in their returns. Their published comments focus on completing checks. The extension gives eligible taxpayers time to resolve differences between records before submitting the audit report and return. 

Which October Dates Should Customers Track?

The changes have separate start dates and eligibility rules. SBI’s basic-savings withdrawal charges also differ from its salary-account ATM allowance. The notices below show which date applies to each change.

SBI includes cash withdrawals across branches, ATMs and other specified channels in the basic-savings allowance. Digital transfers remain free. CBDT’s extension covers the category identified in its announcement, rather than every taxpayer.

Who Will Pay UPI MDR From 15 October?

The Department of Financial Services’ FAQs, published on 15 September 2026, set MDR at 0.4% for eligible merchant payments above ₹2,000, capped at ₹300. Specified essential and thin-margin sectors attract ₹5 per eligible transaction. Capital-market payments carry 0.02%, capped at ₹300.

The Finance Ministry’s 15 September 2026 statement, Release ID 2310586, protects person-to-person transfers, merchant payments up to ₹2,000 and qualifying small merchants. Banks have been advised to prevent merchants from passing MDR to customers. 

In its 25 September 2026 coverage, LoansJagat placed the direct impact on merchant settlement costs rather than the customer’s payment screen. That distinction also helps households assess October’s changes: SBI’s reduced allowance can affect an account holder’s cash-withdrawal bill, whereas eligible UPI MDR belongs to the merchant payment system. 

Why Is The Government Introducing Merchant Charges?

The Finance Ministry says MDR revenue supports banks, payment providers and UPI applications that operate and expand the network. It estimates that about 96% of merchant transactions will remain unaffected.

For businesses, the practical issue is the applicable merchant category and exemption. For customers, the official protection is explicit: MDR cannot be passed on as a customer UPI charge. Payment applications are also prohibited from adding platform fees or hidden charges under the framework. 

What Happened Before The October Changes?

CBDT’s 28 September 2026 announcement, Release ID 2316050, moved the covered audit-report deadline from 30 September to 21 October 2026. The corresponding AY 2026-27 ITR deadline shifted from 31 October to 21 November 2026.

LPG authentication followed an earlier verification drive. The Petroleum Ministry records an initial deadline of 30 June 2026, followed by extensions through 14 September 2026. SBI’s salary-account notice separately replaces the previous 10-transaction allowance at other banks.

What Should Customers Check Next?

SBI customers need to check their account category and ATM usage. LPG households with verification pending have several authentication channels available. Covered taxpayers must track the audit and return dates separately. UPI customers retain protection from MDR, while merchants must apply the relevant rates and exemptions.

FAQs

1. Is SBI Charging For ATM Withdrawals?

Yes, charges apply beyond the relevant free allowance. From 1 October 2026, salary-package customers get 5 free monthly transactions at other banks’ ATMs. The answer to this community question depends on the account and ATM used.

2. Will UPI Payments Above ₹2,000 Attract Charges?

Eligible merchant payments attract MDR from 15 October 2026, but customers do not pay it. Person-to-person transfers stay free. A payment above ₹2,000 does not automatically create a customer fee.

3. Does Every Taxpayer Get Until 21 November 2026 To File?

No. CBDT’s extension applies to the specified category covered by its 28 September 2026 announcement. The change is not a general extension for all ITR filers.

4. Must LPG Consumers Repeat Aadhaar Authentication?

No. The Petroleum Ministry says consumers who have completed biometric Aadhaar authentication need not repeat the process for the October requirement.

5. Are SBI Basic-Savings Digital Transfers Chargeable?

No. SBI’s notice keeps digital transfers free. The ₹15 plus GST charge applies to cash withdrawals beyond the monthly free allowance.