From PAN–Aadhaar linking & UPI security updates to 8th pay commission: What changes from January 1, 2026
From PAN–Aadhaar linking and tighter digital payment security to salary revisions under the 8th Pay Commission and higher health insurance premiums, the new year brings several updates citizens need to be prepared for.
From PAN–Aadhaar linking and tighter digital payment security to salary revisions under the 8th Pay Commission and higher health insurance premiums, the new year brings several updates citizens need to be prepared for.
From PAN–Aadhaar linking and tighter digital payment security to salary revisions under the 8th Pay Commission and higher health insurance premiums, the new year brings several updates citizens need to be prepared for.
As the calendar turns to 2026, a series of policy, regulatory and pricing changes that directly affect everyday life will come into force across India and Kerala. From PAN–Aadhaar linking and tighter digital payment security to salary revisions under the 8th Pay Commission and higher health insurance premiums, the new year brings several updates citizens need to be prepared for.
PAN–Aadhaar linking deadline ends
All taxpayers must link their PAN with Aadhaar by December 31, 2025. PAN cards that remain unlinked will become inoperative from January 1, 2026. Those who miss the deadline will have to pay a late fee of ₹1,000 to restore PAN validity, failing which they will be unable to file tax returns or carry out many financial transactions.
Stricter UPI and digital payment security
To curb online fraud, UPI apps such as Google Pay, PhonePe and WhatsApp Pay will introduce additional security layers from January 1. These include tighter KYC checks, enhanced mobile number verification and stricter norms for account linking. Users may be required to complete additional verification steps to continue uninterrupted access to digital payment services.
New co-lending norms for banks and NBFCs
Under revised co-lending rules effective January 1, 2026, banks and non-banking financial companies must each retain at least 10 per cent of every co-lent loan on their books. Lenders will also be required to clearly disclose their respective roles and responsibilities to borrowers, improving transparency in loan agreements.
Changes in banking and credit reporting
Banks will now update individual credit records on a weekly basis instead of once every fortnight, allowing faster reflection of repayments and defaults in credit scores. In addition, PAN–Aadhaar linkage will be mandatory to access the full range of banking services.
Medisep premium hike
Kerala’s government employee health insurance scheme, Medisep, will see a sharp rise in premiums from February 1. The monthly contribution has been increased from ₹500 to ₹810, pushing the annual premium to ₹8,237, excluding GST. The hike will apply to government employees, pensioners and their dependents covered under the scheme. The Kerala government has extended Medisep Phase 1 till January 31 after technical procedures for rolling out Phase 2 were not completed.
8th Pay Commission to take effect
The tenure of the 7th Pay Commission ends on December 31, 2025, paving the way for the implementation of the 8th Pay Commission from January 1, 2026. Central government employees and pensioners can expect revisions in salaries and pensions, although the actual increase may take time to reflect after detailed recommendations and approvals.
Revision in LPG and aviation fuel prices
Prices of household LPG cylinders and Aviation Turbine Fuel will be officially revised on January 1. With crude oil prices showing a downward trend, domestic LPG prices could see some relief. Changes in ATF prices may influence airline operating costs and could have a bearing on airfares.
Natural gas tariff reforms
Major reforms approved by the Petroleum and Natural Gas Regulatory Board will come into force from January 1, 2026. Natural gas pipeline tariffs will be simplified into two zones based on distance, and the lower Zone 1 tariff will be extended nationwide for CNG and domestic PNG consumers. The move, aligned with the ‘One Nation, One Grid, One Tariff’ policy, aims to lower costs and promote cleaner fuel usage.
PM Kisan to require Kisan ID
Farmers seeking benefits under the PM Kisan scheme will now need a unique Kisan ID. The new requirement is aimed at ensuring that benefits reach eligible farmers while eliminating fraudulent claims.
IRCTC booking rules to change
Indian Railways will expand Aadhaar-authenticated ticket booking windows in a phased manner. From January 5, 2026, Aadhaar-verified users can book general reserved train tickets online between 8 am and 4 pm on the opening day of the Advance Reservation Period. From January 12, the booking window will be extended from 8 am to 12 midnight.
India–Australia trade pact expansion
Under the India–Australia Economic Cooperation and Trade Agreement, all Indian exports to Australia will become duty-free from January 1, 2026. The move expands coverage from the earlier 96 to 98 per cent of tariff lines to 100 per cent, benefiting sectors such as engineering goods, metals and manufacturing.