India Money: SIPs, Gold, PPF and Tax Slabs — 2026-09-20

Top developments

NPCI Introduces 0.4% MDR on UPI Transactions Above ₹2,000

Effective October 15, 2026, merchants will be charged a 0.4% fee on UPI transactions exceeding ₹2,000 per transaction. This rule, announced by the National Payments Corporation of India (NPCI), exempts small merchants, person-to-person (P2P) transfers, and RuPay debit card payments, which remain free regardless of value. The move aims to sustain the payment infrastructure after six years of zero-cost merchant transactions, though it raises concerns about cost pass-throughs for consumers in high-value retail and service sectors

Gold’s Share in Household Assets Jumps to 24.2%

Data reveals that gold’s share in Indian household financial assets surged from 15.4% in March 2023 to 24.2% in March 2026, while equity’s share remained stagnant at approximately 5.7%. This shift indicates that despite mutual fund booms, households are prioritizing tangible assets and safe havens amidst global volatility. The trend suggests that for many Indian families, gold remains the primary hedge against inflation and market uncertainty, outpacing traditional equity investments in portfolio weight

SIP Investors Embrace Long-Term Holding: 31% Assets Held >5 Years

Business Today reports that the share of Systematic Investment Plan (SIP) assets held for more than five years has more than doubled to 31% as of March 2026. This data, derived from AMFI statistics, highlights a behavioral shift where retail investors are moving away from short-term trading towards long-term wealth creation. With total SIP AUM reaching ₹16.85 lakh crore, the stability of inflows—even during market corrections—demonstrates increased resilience among Indian mutual fund investors

RBI and SEBI Propose Regulation for Digital Gold

Regulators are moving to bring digital gold platforms under stricter oversight, with proposals suggesting mandatory physical gold backing for all digital gold products. This follows earlier warnings from SEBI that unregulated digital gold products were neither securities nor commodity derivatives. The potential regulatory framework aims to protect investors from fraud and ensure liquidity parity with physical gold, impacting how millions of users access gold via fintech apps

Local view

Hindi-language media outlets are heavily focusing on the impact of the new UPI MDR rules on daily expenses. NDTV India published a detailed Q&A explaining that while merchants will bear the 0.4% charge on transactions above ₹2,000, consumers at local shops and street vendors will not see direct fee increases due to exemptions for small merchants. Goodreturns Hindi specifically addressed whether SIP auto-payments would incur extra charges, clarifying that mutual fund SIP payments via UPI remain exempt from the new MDR rules, reassuring retail investors that their recurring investments will not become costlier

AajTak reported that the government plans to monitor transactions closely to prevent merchants from passing the MDR cost onto customers, emphasizing that the burden is strictly on the merchant side for selected transactions. Local stakeholders express mixed reactions; while small vendors welcome the exemption, larger retailers worry about margin compression on high-ticket items like electronics and jewelry

Context & numbers

• Small Savings Rates (Jul-Sep 2026): PPF interest rate remains unchanged at 7.1%, NSC at 7.7%, and KVP at 7.5%. SCSS and Sukanya Samriddhi Yojana offer the highest rates at 8.2%
• Tax Slabs: No changes were made to income tax slabs in Budget 2026-27. The new regime continues with nil tax up to ₹4 lakh, followed by slabs of 5%, 10%, 15%, 20%, 25%, and 30% for income above ₹24 lakh
• Gold Prices: Gold prices have corrected by approximately 20% from their record highs, prompting analysts to suggest buying on dips for long-term portfolios
• UPI Exemptions: RuPay debit card payments and P2P transfers remain completely free under the new NPCI circulars effective October 15, 2026

On the radar

• October 15, 2026: Effective date for NPCI’s 0.4% MDR charge on UPI transactions above ₹2,000. Consumers and merchants should review their payment setups before this date.
• Digital Gold Regulation: Watch for final guidelines from RBI and SEBI regarding physical backing requirements for digital gold platforms, which could alter the liquidity and tax treatment of digital gold holdings.
• Q3 Small Savings Rates: The government is expected to announce interest rates for the October-December 2026 quarter soon, which may adjust PPF and SCSS rates based on bond yields.