India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-18
Major mutual fund houses including HDFC, ICICI Prudential, and Tata have suspended fresh investments in Gold and Silver ETF Fund-of-Funds (FoFs) starting October 16, citing rupee pressure and import curbs. Meanwhile, September SIP inflows hit a record high of ₹32,490 crore, and small savings interest rates for PPF and SSY remain unchanged for the October–December quarter. <!-- /headline --> <!-- headline --> Mutual Funds Halt Gold FoF Investments Amid Rupee Pressure<!-- /headline -->
India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-18
Top developments
Mutual Funds Freeze Fresh Gold FoF Investments
Starting October 16, 2026, leading asset managers such as Kotak, Tata, ICICI Prudential, and HDFC Mutual Fund suspended fresh lump-sum purchases, new SIP registrations, and systematic transfer plans (STPs) in Gold and Silver ETF Fund-of-Funds. The move is aimed at curbing incremental demand for gold imports amid a historic slide in the Indian rupee, which has been trading near ₹97 per USD despite significant RBI intervention. Existing SIPs and redemptions in these funds continue uninterrupted, and direct investments in Gold ETFs remain open.
September SIP Inflows Hit Record High
Monthly SIP contributions reached an all-time record high of ₹32,490 crore in September 2026, reflecting an 11% year-over-year growth. This surge in systematic investment plans occurred even as the broader mutual fund industry recorded net outflows of ₹1.33 lakh crore in September, indicating a shift in investor preference towards disciplined, long-term SIPs over lump-sum equity investments.
Small Savings Rates Unchanged for Q3
The government has kept interest rates on small savings schemes unchanged for the October–December 2026 quarter. The Public Provident Fund (PPF) continues to offer 7.1% interest, while the Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) remain at 8.2%. This stability provides predictability for conservative savers in an environment of fluctuating market returns.
UPI Credit Line and MDR Rules Clarified
New UPI rules effective from October 15, 2026, clarify that the 0.4% Merchant Discount Rate (MDR) applies only to specific transaction types and not to regular UPI payments between users. Payments made via RuPay credit cards linked to UPI or pre-sanctioned credit lines are exempt from this new MDR regime, following existing card network rules. NPCI has emphasized that banks must not pass these merchant-specific costs on to retail customers.
Local view
Hindi media outlets like Moneycontrol Hindi and ET Now Swadesh are focusing heavily on the implications of the gold investment freeze for retail investors planning festive purchases. Reports highlight that while FoF investments are paused, direct Gold ETFs remain accessible, a distinction many local investors are struggling to navigate. Additionally, Zee Business Hindi is reminding buyers about Section 269ST tax rules, warning that cash transactions for gold exceeding ₹2 lakh can attract a 100% penalty, urging digital payments during the Dhanteras season.
Context & numbers
- SIP Inflows (Sept 2026): ₹32,490 crore (Record High, +11% YoY).
- Rupee Status: Trading near ₹97 per USD, under significant pressure.
- Gold Price (Aug 2026): Domestic prices rose 12% to ₹1,58,854 per 10 grams.
- PPF Interest Rate: 7.1% (Unchanged for Oct-Dec 2026).
- SSY/SCSS Interest Rate: 8.2% (Unchanged for Oct-Dec 2026).
- Income Tax Slabs (New Regime FY26-27): Nil up to ₹4L; 5% up to ₹8L; 10% up to ₹12L; 15% up to ₹16L; 20% up to ₹20L; 25% up to ₹24L; 30% above ₹24L. No changes announced in Budget 2026-27 for these slabs.
On the radar
- Dhanteras & Diwali Season: Festive gold demand typically peaks in late October/November. The current freeze on FoF investments may push retail buyers towards physical gold or direct ETFs, impacting import bills and rupee stability.
- EPFO Withdrawal Rules: Local media is reporting on new EPFO guidelines allowing up to 75% withdrawal from PF accounts under specific conditions like unemployment, marriage, or education, which may increase liquidity in household savings.
- UPI Tap & Pay: NPCI is rolling out UPI Tap & Pay on PoS machines, potentially simplifying offline credit line usage for RuPay credit card users linked to UPI.
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.
Powered by
