Each month has something new in terms of regulations and changes in rules which affect the way people work, spend money and use services in India, and this is true for August too. New rules will be effective from August 1, 2026, on account of banks, fuel, ITR, and much more. The users of UPI can now look forward to new security features such as masked mobile numbers and username-based UPI ID. Moreover, the government is also gearing up to roll out the upgraded Central KYC (CKYC) 2.0 framework to make identity verification faster and more seamless across financial services. Follow along with the article to check the major changes that will come into effect starting August 1.
UPI users may begin noticing privacy-focused changes as the payment apps roll out updates under NPCI’s new guidelines aligned with the Digital Personal Data Protection (DPDP) framework. NPCI previously instructed all the banks to mask mobile numbers across the customer-facing interfaces for security purposes.
The apps have been asked to only display the last four digits of the mobile number. Furthermore, the username-based UPI IDs will also become the default instead of phone number-based IDs to better protect user privacy. Keep in mind that, while payment apps can start implementing these changes from August 1, NPCI has set September 9 as the deadline for all banks and UPI apps to fully comply with the new rules.
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Financial onboarding in India will become seamless as the govt will launch the upgraded Central KYC (CKYC) 2.0 framework. Under the new update the identity checks for financial things will get faster. You will be required to submit your ID proofs to a financial company. Once done, you’ll receive a unique 14-digit identification number which can later be used to open a new bank account, buy insurance, or invest elsewhere.
The new CKYC 2.0 framework uses real-time APIs and secure OTP-based customer consent, allowing financial institutions to instantly verify your identity using just your mobile number or PAN. However, this will only happen after you give explicit permission using a secure mobile OTP. The framework is developed jointly by RBI, SEBI, and IRDAI under its ‘One Nation, One KYC’ initiative.
The oil marketing companies revise domestic and commercial LPG prices on the first day of every month. The new prices for the month of August will be driven by the global crude oil costs, exchange rate movements and other market factors that shift throughout the month. As a result of that, the LPG rates are expected to fluctuate. The households using domestic cylinders are advised to check the new rates on the official Indian Oil, Bharat Petroleum or Hindustan Petroleum portals before their next booking, since prices could go up, come down, or stay the same depending on how these external factors play out.
Not only that, but if there is a rise in commercial cylinder prices, then this could push up operating costs for restaurants, hotels and food businesses, which may eventually reach customers through slightly higher menu prices.
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The official last date for regular taxpayers to file their income tax returns without penalty is July 31. Any individual who missed the July 31 cutoff and files from August 1 onwards will face late filing fees up to Rs 5,000 under Section 234F, accumulated monthly interest on unpaid taxes, and the forfeiture of the right to carry forward current-year financial losses.
Do note that while the deadline for the salaried employees ends, the current window remains actively open for freelancers, partners, and small business owners filing Form ITR-3 or ITR-4 without an audit requirement, whose deadline is August 31.