New UPI fee begins 15 October - what to tell your merchant customers now
Every fact links to its official source.
60-second morning update
Change: The Supreme Court did not stop the new fee on UPI payments. From 15 October, any UPI payment above Rs 2,000 made to a shop will carry a 0.4 percent fee, capped at Rs 300.
Impact: The court only asked the government, RBI and NPCI to explain the fee in writing and called the question technical, not a ban. About 96 percent of everyday UPI payments stay free.
Action: Payments and branch staff: tell shopkeeper customers now, before 15 October, so nobody is surprised by the first fee.
Change: RBI has told Tata Trusts that splitting Tata Sons into smaller companies to dodge the stock market listing rule for large NBFCs will be seen as an attempt to avoid the rule, not accepted.
Impact: Tata Sons missed its listing deadline in September 2025 and holds Rs 2.01 lakh crore in assets, twice the Rs 1 lakh crore limit that triggers RBI's toughest NBFC rule.
Action: NBFC compliance staff: a restructuring built only to duck a listing rule invites the same RBI response.
Change: Personal loan rates this month range from 9.99 percent at HDFC Bank, ICICI Bank and Axis Bank to 10.15 percent or more at Bank of Baroda and Punjab National Bank.
Impact: A customer comparing banks can find a full 1 percentage point gap, plus different fees.
Action: Credit staff: check your own bank's current rate and fee before you quote, especially against private banks' 9.99 percent offers.
Change: Bank employees' Dearness Allowance has gone up to 25.70 percent for the May to July 2026 quarter, from 25 percent.
Impact: A Scale I officer gains roughly Rs 435 to Rs 965 a month, depending on their pay stage, on top of basic pay.
Action: Check your own payslip once the new rate is applied, and ask HR if you are unsure which stage you are on.
Change: RBI still has not named HDFC Bank's next Managing Director and CEO. Reports say a decision could come within days, between insider Kaizad Bharucha and outsider Anup Bagchi.
Impact: Current CEO Sashidhar Jagdishan's term ends 26 October. HDFC Bank wants its new chief confirmed before then.
Action: HDFC Bank staff: wait for the official RBI and bank announcement, not another report.
Reserve Bank of India action board
What changed: RBI rejected Tata Sons' request to give up its Core Investment Company registration, and is now refusing a newer plan to split the company into smaller units so it falls below the Rs 1 lakh crore asset limit for Upper Layer NBFCs. An RBI official said such restructuring 'will be seen as an effort of avoidance and will not go down well.'
Who is affected: Tata Sons directly, and any large NBFC or group holding company near the Rs 1 lakh crore asset mark that RBI classifies as an Upper Layer NBFC.
What to do: Compliance and NBFC teams: RBI wants Tata Sons to list, not restructure around the rule. This is RBI general position on avoidance, not only a Tata Sons matter.
Last date: Tata Sons' original 3-year listing deadline expired in September 2025. RBI has not set a new public deadline; it is waiting for Tata Sons' formal response.
What it means for your job
Branch and retail: The new UPI fee starts 15 October, only on payments above Rs 2,000 to a shop, not between people. Tell walk-in customers now so nobody is caught off guard.
Credit and lending: Personal loan rates run from 9.99 percent at HDFC Bank, ICICI Bank and Axis Bank to above 10.15 percent at some public sector banks. Check today's rate before you quote.
Compliance and risk: RBI has openly called a listing-avoidance plan unacceptable, for Tata Sons and by extension any large NBFC. Review your own group's NBFC classification and listing status.
Payments and technology: From 15 October, UPI payments above Rs 2,000 to a merchant carry a 0.4 percent fee, capped at Rs 300.
NBFC and co-operative: RBI Rs 1 lakh crore asset line for Upper Layer NBFCs is the rule Tata Sons is fighting. If your NBFC is near that size, expect the same scrutiny.
Careers and learning: Dearness Allowance for bank employees rose to 25.70 percent this quarter. Ask HR when the new rate reaches your payslip.
People and industry: RBI could name HDFC Bank's next CEO any day. Jagdishan's term ends 26 October, so a decision is expected before then.
Treasury: RBI ran an overnight Variable Rate Reverse Repo auction on 29 September to absorb extra cash sitting in the banking system.
Banker problem solver
A customer says another bank quoted a lower personal loan rate. What do you check before you match it?
Personal loan rates now range a full percentage point across banks, from 9.99 percent to above 10.25 percent, so this conversation is happening at branches this week.
- Check your own bank current rate card first. Rates change month to month; do not quote from memory.
- Ask the processing fee and tenure the other bank is offering, not just the rate. HDFC Bank caps its fee near Rs 6,500; ICICI Bank and Axis Bank charge up to 2 percent of the loan.
- Never promise a rate over the phone before checking today internal circular. Rates and offers change without notice.
Career and technology help
Your Dearness Allowance just went up
Bank employees Dearness Allowance rose to 25.70 percent for the May to July 2026 quarter, up from 25 percent. A Scale I officer gains roughly Rs 435 to Rs 965 more a month, depending on pay stage, on top of basic pay. DA is recalculated every quarter using inflation data. It is not a bonus; it is part of your regular salary.
One important number
Rs 2.01 lakh crore
Tata Sons total assets as of March 2026, more than double the Rs 1 lakh crore mark that makes RBI classify a company as a large, closely watched NBFC. It is why RBI is refusing to let Tata Sons restructure its way out of listing.
Important dates
5 October 2026 — Last date to apply for Bank of India's 205 Specialist Officer posts, deadline already extended once.
15 October 2026 — New 0.4 percent UPI merchant fee begins on payments above Rs 2,000.
26 October 2026 — HDFC Bank CEO Sashidhar Jagdishan's current term ends.
One question
Which of today's changes affects your work the most? ['The new UPI fee from 15 October', 'Personal loan rate competition', "RBI's tougher line on NBFCs", 'None of these, same as any day']