India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-24
India’s monthly SIP inflows hit a record ₹32,490 crore in September 2026, even as mutual funds suspended fresh investments in Gold FoFs to ease pressure on the rupee. While PPF interest rates remained unchanged at 7.1%, new UPI MDR rules effective October 15 have introduced a 0.4% charge on merchant transactions above ₹2,000, impacting small businesses.
India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-24
Top developments
SIP Inflows Hit All-Time High
Monthly SIP inflows into mutual funds reached a record high of ₹32,490 crore in September 2026, marking an 11% year-on-year growth. This surge reflects sustained retail investor confidence despite global market volatility and rising folios.
Gold FoF Suspensions Continue
Major fund houses, including Kotak, Tata, and ICICI Prudential, have suspended fresh investments in Gold Fund-of-Funds (FoFs) starting October 16. This move aims to curb incremental gold import demand amid a weakening rupee and high oil prices. Existing SIPs remain unaffected, but new registrations are paused.
UPI MDR Changes Impact Small Merchants
From October 15, 2026, a 0.4% Merchant Discount Rate (MDR) applies to UPI Person-to-Merchant transactions above ₹2,000. Banks are instructed not to pass this cost to customers. However, transactions via RuPay credit cards linked to UPI are exempt from this new regime.
Local view
PPF Rates Unchanged, Investors Advised to Continue
Economic Times Hindi reports that the government has kept the PPF interest rate unchanged at 7.1% for the October–December 2026 quarter, a rate that has remained constant since April 2020. Local financial advisors suggest that despite the static rate, PPF remains a stable long-term tax-saving option for risk-averse investors.
Income Tax Notices on UPI Transactions
ABP Live highlights that while UPI transactions themselves do not automatically trigger income tax notices, large cash deposits and unexplained bank credits can. The Income Tax Department is increasingly using data analytics to flag discrepancies between declared income and bank inflows, urging taxpayers to maintain clear records.
Context & numbers
- SIP Inflows: ₹32,490 crore in Sept 2026 (0.6% MoM increase).
- PPF Interest Rate: 7.1% (unchanged for Q3 FY27).
- Small Savings Rates: Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) remain at 8.2%.
- New Tax Regime Slabs (FY 2025-26): Nil up to ₹4 lakh; 5% for ₹4–8 lakh; 10% for ₹8–12 lakh; 15% for ₹12–16 lakh; 20% for ₹16–20 lakh; 25% for ₹20–24 lakh; 30% above ₹24 lakh.
- UPI Transaction Volume: 86% of P2M UPI transactions are below ₹500, meaning the new MDR charge affects only ~4% of transaction volume.
On the radar
- Diwali Gold Buying Season: Dhanteras is on November 6, 2026. Analysts expect a shift from jewelry to bullion investment due to the 15% import duty and rupee weakness.
- Tax Deadline Preparation: With 5 months left in FY 2026-27, investors are advised to check NPS (Section 80CCD) and ELSS/PPF (Section 80C) contributions before March 31, 2027.
- PF Withdrawal via UPI: The government is expected to enable PF withdrawals via UPI by December 2026, streamlining access for employees.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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