Indian banking is gearing up for significant shifts in 2026, from easier provident fund access to stricter security measures and PAN rules. These updates aim to make services faster and safer while protecting customers from fraud.
EPFO 3.0 Upgrade
EPFO plans to roll out version 3.0 by early 2026, enabling instant provident fund withdrawals through ATMs and UPI apps. Members can access up to certain limits without lengthy claims, keeping at least 25% in the account for security. This upgrade includes auto-claim processing and OTP-based updates, making PF management quicker for millions of subscribers.
PAN-Aadhaar Linking Deadline
PAN cards not linked to Aadhaar by December 31, 2025, turn inoperative from January 1, 2026. This blocks tax filings, refunds, new bank accounts, and large deposits, with a ₹1,000 penalty for delays. Link via the e-filing portal or SMS to avoid disruptions in banking and investments.
RBI Cyber Fraud Protections
RBI introduced a robust security framework in 2026, featuring biometric verification for high-value transfers and real-time anomaly detection. Customers reporting cyber fraud within three days face zero liability, shifting responsibility to banks. Risk-based authentication replaces rigid OTPs, using biometrics and AI for smoother, secure digital payments by April 2026.
Digital Banking Consent Rules
Banks must secure explicit, documented customer consent before offering digital services starting in 2026. No forcing digital channels for debit cards or loans, enhancing choice and transparency.
Bank Merger Updates
No immediate mergers of public sector banks are underway, despite past consolidations like Canara-Syndicate. The government focuses on strengthening existing lenders without fresh plans announced.
ATM Transaction Charges
From May 2025 onward, exceeding free limits costs ₹23 per transaction, continuing into 2026. Customers still get five free withdrawals at own-bank ATMs monthly.
