A number of key financial and banking rule changes will come into force from 1 April 2026, marking the beginning of the financial year 2026-27 (FY27), while a few will take effect later in the year.
The new rules are expected to impact a wide range of users, including , bank customers, debit card holders, and digital payment users. These changes could also affect how individuals manage their finances and transactions.
One of the most significant changes from 1 April is the implementation of the new Income Tax Act, 2025. The new Act, passed by the government, will replace the decades-old 1961 Income Tax Act.
From tax-related updates to changes in banking and payment systems, here are some of the major financial rule changes that will apply from the new financial year onwards.
Two-factor authentication mandate
Starting 1 April 2026, all transactions in India are required to meet the norms of two-factor authentication (2FA), as per the Reserve Bank of India’s 2025 directions.
While no specific factor has been mandated for authentication, the digital payment ecosystem has primarily adopted SMS-based One Time Password (OTP) as an additional factor. The rule applies to all entities in the payment ecosystem, including banks and non-bank players.
ATM cash withdrawal charge
In one such change, HDFC Bank will treat UPI withdrawals at ATMs as regular ATM withdrawals when calculating the monthly free transaction limit. Once the free limit is exhausted, customers will be charged ₹23 plus applicable taxes per transaction.
Currently, savings and salary account holders get five free cash withdrawals at HDFC Bank ATMs. At other bank ATMs, customers are allowed three free cash withdrawals in metro cities and five in non-metro cities.
Meanwhile, the Punjab National Bank (PNB) has also reduced the daily cash withdrawal limit for select debit cards. The new revised limits will also come into effect from 1 April.
For Platinum, Gold and Business cards, the daily cash withdrawal limit has been cut from ₹1,00,000 to ₹50,000. Meanwhile, for Select and Signature debit cards, the withdrawal limit has been reduced to ₹75,000 from ₹1.5 lakh.
Bandhan Bank has announced revisions to the number of free transactions at ATMs using debit cards linked to the lender’s account. These changes will also come into effect on 1 April.
The number of free monthly transactions at Bandhan Bank ATMs will be 5 for financial transactions and unlimited free transactions for non-financial ones. Meanwhile, for other bank ATMs, the number of free transactions per month (both financial and non-financial combined) will be three in metro cities, and five in non-metros.
FASTag annual pass fee hike
The National Highways Authority of India (NHAI) announced earlier in March that it has revised the FASTag annual pass fee for the financial year 2026–27. The increased fee will be applicable from 1 April 2026.
Under the revised fee structure, the cost of the annual pass will increase by ₹75, bringing the total from the current ₹3,000 to ₹3,075 from the start of the new financial year.
The new rate applies specifically to non-commercial vehicles such as cars, vans and jeeps equipped with a valid FASTag. The FASTag annual pass can be used at approximately 1,150 fee plazas on National Highways and National Expressways nationwide.
Higher tax-free limit on meal cards
The tax exemption on employer-provided meal cards has been increased to ₹200 per meal, up from ₹50 earlier.
The updated rules allow individuals who get meal coupons, meal vouchers, meal cards (Pluxee/Sodexo/Zaggle), or subsidised food from office cafeterias to claim tax deductions of up to ₹1 lakh annually, according to experts.
This benefit covers food and non-alcoholic beverages provided by companies and is available under the old tax regime.
New PAN card rules
From 1 April, applying for a PAN using only Aadhaar will no longer be permitted. Applicants will be required to use category-specific forms — Form 93 for individuals, Form 94 for companies, Form 95 for foreign individuals, and Form 96 for foreign entities to make an application for PAN.
This change is important because PAN is compulsory for several high-value transactions, including cash deposits of ₹10 lakh or more in a financial year, purchase of vehicles exceeding ₹5 lakh, among others. It is also a key document for filing taxes and business registration.
Applicants can apply for a new PAN through the portals of Protean (formerly NSDL eGov), UTI Infrastructure Technology and Services Limited (UTIITSL), or via the Income Tax Department’s e-filing portal.