October to bring fresh squeeze on household budgets: From AC and TV price hikes to new banking rules

A series of changes is set to affect the common man in October, with consumer durables likely to become costlier, LPG prices potentially changing, and new banking rules coming into effect.

These changes could put additional pressure on household budgets already strained by rising prices and fuel costs.

Here are some of the key changes coming into effect in October:

Consumer durables to get costlier
Prices of household appliances such as televisions, air conditioners, refrigerators and washing machines are set to rise from October 1.

Appliance manufacturers are planning to increase prices by 5% to 8%, just ahead of the Navratri-Diwali festive sales season.

The increase is being attributed to higher input costs, including those of copper, aluminium and steel, amid geopolitical uncertainties and the depreciation of the rupee.

For instance, a 5% increase would mean an additional ₹2,500 on a television priced at ₹50,000. If prices rise by 8%, the additional cost would be ₹4,000.

LPG prices may rise
Public sector oil marketing companies revise LPG cylinder prices on the first of every month based on crude oil prices.

With crude oil prices remaining elevated, LPG prices could be revised upwards from October 1. On September 1, the price of commercial LPG cylinders was increased by ₹10, while there was no change in the price of domestic cylinders.

In Kochi, a commercial LPG cylinder currently costs ₹2,753, while a domestic cylinder costs ₹949.

Meanwhile, September 30 is the deadline for beneficiaries receiving LPG subsidies to complete biometric Aadhaar authentication (BAA). Those who fail to complete the process may lose their subsidy benefits from October 1.

Borrowers may face higher interest burden
The Reserve Bank of India is scheduled to announce its monetary policy decision on October 7.

Economists expect the RBI to potentially raise the repo rate by 25 basis points to 5.50%. If the central bank increases the benchmark rate, borrowers with home, vehicle and personal loans could face a higher interest burden. New borrowers may also have to pay more.

High inflation and the weakening rupee are among the factors that could influence the interest-rate decision.

UPI transaction charges
A new charge structure for certain UPI transactions is scheduled to take effect from October 15.

Under the proposed system, when a customer makes a payment of more than ₹2,000 to a merchant, the merchant will be charged a Merchant Discount Rate (MDR) of 0.4%.

The charge will be collected from the merchant and not from the customer.

SBI to reduce free ATM transactions
SBI salary account holders will see a reduction in the number of free transactions they can make at other banks' ATMs from October 1.

The number of free transactions will be reduced from 10 to five per month.

For Basic Savings Bank Deposit (BSBD) account holders, four cash withdrawals will remain free every month. Transactions beyond the permitted limit will attract a charge of ₹15 plus GST per transaction.

New rules for bulk fixed deposits
New RBI rules governing bulk fixed deposits will also come into effect on October 1.

A fixed deposit of ₹3 crore or more is classified as a bulk FD under the new framework.

Banks will have to disclose the applicable interest rate for bulk deposits every day between 10 am and 10.10 am. The same interest rate will have to be offered for similar bulk FDs across all branches, meaning banks cannot charge different rates for similar deposits at different branches.

The new rules will also apply to bulk non-resident Indian (NRI) rupee fixed deposits.