SBI cuts free ATM visits to 5 today. UPI fee still waits till 15 October

Change: State Bank of India cuts free ATM visits at other banks from 10 to 5 a month for salary accounts, from today. After that, cash withdrawal costs Rs 23 plus tax; a balance check costs Rs 11 plus tax.

Impact: Salary account holders who use other banks' ATMs often will pay more this month once they cross 5 visits.

Action: Branch staff: tell salary account customers about the new limit before they get charged.

Change: Some reports say the UPI fee on shop payments starts today. This is wrong. The 0.4 percent fee on shop payments above Rs 2,000 still starts on 15 October, not today.

Impact: No extra UPI charge applies today. Person to person UPI transfers stay free always, whatever the amount.

Action: Payments and customer service staff: correct any customer who says UPI got costly today. Nothing changes for UPI until 15 October.

Change: South Indian Bank's new Managing Director and Chief Executive Officer, Mahesh Muralidhar Pai, takes charge today. He was a senior Canara Bank banker.

Impact: A new top boss can bring changes in strategy, branch targets and staff postings over time.

Action: South Indian Bank staff should watch for the new chief's early messages and priorities.

Change: HDFC Bank has named V. N. Srivatsan, from ICICI Bank, as its new Chief Compliance Officer for three years.

Impact: A new Chief Compliance Officer often means a fresh look at how the bank follows Reserve Bank of India rules.

Action: HDFC Bank compliance staff should expect a review of current compliance steps under the new officer.

Change: Reserve Bank of India's own data shows bank credit grew 18.8 percent in August, up from 10.2 percent a year ago. Services businesses and personal loans grew fastest.

Impact: Banks are lending much faster than last year, mainly to services businesses and to individual borrowers.

Action: Credit and branch staff should expect more loan applications and faster targets this festive season.

What changed: Reserve Bank of India issued this rule on 18 September 2026. It lets banks accept a certified copy of identity documents from Foreign Portfolio Investors, the same way banks already do for Non-Resident Indians. It covers commercial banks, small finance banks, regional rural banks, local area banks, and urban and rural co-operative banks.

Who is affected: Foreign Portfolio Investors opening or running bank accounts in India, and staff at every bank type named above.

What to do: Compliance and account-opening staff: accept a certified copy of a Foreign Portfolio Investor's document the same way you already accept one for a Non-Resident Indian.

Last date: The rule took effect immediately on 18 September 2026. There is no deadline; apply it now if you have not already.

Source: Reserve Bank of India notification, opened directly 1 October 2026 ↗

Branch and retail: State Bank of India cuts free other-bank ATM visits from 10 to 5 a month for salary accounts, from today.

Compliance and risk: Reserve Bank of India now lets banks accept a certified ID copy from Foreign Portfolio Investors, same as for Non-Resident Indians, since 18 September.

Payments and technology: UPI's 0.4 percent shop fee does not start today. It still starts on 15 October. Person to person transfers stay free always.

Credit and lending: Reserve Bank of India's no-collateral rule for small business loans up to Rs 20 lakh has applied since 1 April 2026. Many customers still do not know.

NBFC and co-operative: Tata Sons has asked Reserve Bank of India to approve a plan to stay outside the strict NBFC listing rule. Reserve Bank of India has not ruled yet.

People and industry: South Indian Bank's new chief Mahesh Muralidhar Pai, from Canara Bank, takes charge today. HDFC Bank named V. N. Srivatsan, from ICICI, its new compliance chief.

Careers and learning: This week's free tool: Simplilearn's 'AI in Finance' course, free certificate.

Treasury: Reserve Bank of India holds a 4-day Variable Rate Reverse Repo auction today, taking extra cash out of the banking system for four days.

A customer says they heard UPI got costly from today. What do you tell them?

Several reports this week wrongly grouped the UPI shop fee with today's other money rules, so customers are asking.

1. Tell the customer person to person UPI transfers are always free, whatever the amount.
2. Tell them the 0.4 percent shop fee above Rs 2,000 has not started. It starts 15 October.
3. If a shopkeeper asks, say the fee is paid by the shop, not the customer, from 15 October.

Source: SCC Online, reporting NPCI's own FAQ, checked 1 October 2026 ↗

Small business loans: remind customers no collateral is needed up to Rs 20 lakh

Reserve Bank of India does not let banks ask for collateral on small business loans up to Rs 20 lakh, and banks may raise this to Rs 25 lakh on their own, since 1 April 2026. Many customers still do not know. Check if one was wrongly asked for collateral. Source: TaxGuru summary of RBI circular RBI/2025-26/206, taxguru.in.

Free tool of the week: a course on AI in banking and finance

Simplilearn's free 'AI in Finance' course explains how banks use artificial intelligence for fraud checks, credit scoring and loan decisions. About 1 hour, 90 days access, free certificate.

Source: Simplilearn, checked 1 October 2026 ↗

18.8 percent

How much bank credit grew in India in August, against 10.2 percent a year ago. Services businesses and personal loans grew fastest.

Source: Reserve Bank of India press release, opened directly 1 October 2026 ↗

15 October 2026 — The 0.4 percent UPI fee on shop payments above Rs 2,000 begins. Today is not the start date, despite some reports.

26 October 2026 — HDFC Bank CEO Sashidhar Jagdishan's term ends. Reserve Bank of India has still not approved a successor.

Which of today's changes affects your work the most? ["State Bank of India's ATM limit", "South Indian Bank's new chief", 'The small business loan reminder', 'None, same as any day']