October 2026 Banking & Finance Updates: Key Changes in India
As we move into the 2nd half of the financial year, we are faced with an onslaught of changes in policy both beneficial and detrimental. Individuals will see certain relaxations in procedure while potentially having to contend with higher interest rates. This makes it necessary to re-evaluate financial plans for the latter half of the year.
Relaxation of TAN requirement for resident individuals
One significant benefit to resident Individuals and HUFs is the relaxation of the requirement of a Tax Deduction and Collection Account Number (TAN) while purchasing property from Non residents. Residents will no longer have to obtain a TAN in order to deduct tax while purchasing property from non-residents. This however, does not take away the buyer’s obligation to deduct tax at source and deposit the same. Residents purchasing property from Non-residents can now declare the tax deducted in Schedule B of Form-141 - Challan-cum-statement of TDS on Transfer of property, using just their PAN. This change will be effective from the 1st of October. This change is also applicable in case a non-resident individual wishes to apply for a lower tax deduction certificate to be issued to the buyer.
Revised limit for Bulk Deposits Rules and uniformity in interest rates across branches
The Reserve Bank of India has increased the threshold of Bulk Deposits limits from Rs. 2 crores to Rs. 3 crores.
Bulk deposits are large single rupee term deposits made with banks. The Reserve Bank of India's definition determines whether a deposit is classified as a bulk deposit. The limit has been increased from Rs.2 crores to Rs.3 crores, effective from 1st October, 2026.
The revised rules also make it mandatory for banks to display the rates applicable to deposits by 10 am everyday. This deadline comes with a grace period of 10 minutes.
A notable change includes the uniformity of interest rates across branches, on the same day, for similar deposits. Different interest rates cannot be charged across different branches, for similar deposits.
Premature redemption of Sovereign Gold Bonds
The Reserve Bank of India has released a timetable for the premature redemption of Sovereign Gold Bonds starting from October 2026 to March 2027. Premature redemption of Sovereign Gold Bonds is permissible after 5 years from the date of issuance of the bonds.
| SGB Tranche | Issue Date | Premature Redemption date | Request Submission Period |
|---|---|---|---|
| 2019-20 Series V | 15/10/2019 | 15/10/2026 | 14/09/2026 to 05/10/2026 |
| 2019-20 Series VI | 30/10/2019 | 30/10/2026 | 29/09/2026 to 21/10/2026 |
| 2020-21 Series I | 28/04/2020 | 28/10/2026 | 26/09/2026 to 19/10/2026 |
| 2020-21 Series VII | 20/10/2026 | 19/10/2026 | 19/09/2026 to 09/10/2026 |
RBI Repo Rates and Loan Interest Rates
The repo rate, the rate at which the RBI lends to banks, has stayed at 5.25% since December 2025, but rising oil prices from the Iran war have pushed up inflation worries, so some experts expect a small increase. If the repo rate goes up, home loans linked to it get more expensive.
Thus, October 2026 brings changes that will prompt changes in the financial plans of multiple parties - right from individuals to banking institutions across the country. As financial and tax regulations continue to evolve, it is important to understand how these changes may apply to your specific circumstances and transactions. At KDP, we assist individuals, businesses and NRIs with taxation, regulatory compliance, and financial advisory services matters. For professional assistance, connect with us at enquire@kdpaccountants.com.
FAQs
What are the major changes on banking and finance in October 2026?
The changes relate to TDS procedures, bulk deposits, Sovereign Gold Bonds redemption, and the RBI’s monetary policy review.
What is the revised limit of bulk deposits from October 2026?
The RBI has increased the bulk deposit threshold to ₹3 crore and above from October 2026.
Will a change in the RBI repo rate affect home loan EMI?
A change in the repo rate can affect loans linked to the external benchmark, depending on the terms of the loan and how the change is transmitted by the lender.
Will banks have to offer the same interest rate to all branches?
Banks are required to maintain uniform interest rates across their branches, subject to the applicable regulatory requirements.