India Finance News: 18–24 May 2026
EPFO 3.0 UPI withdrawal is almost ready — here’s what to set up now. SEBI proposes salary-linked SIP deductions. ITR filing is open with a July 31 deadline. Plus: RBI holds rates, markets flat.
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Must Know
EPFO 3.0: PF withdrawal via UPI is almost here — what you need to set up now
The Labour Ministry has confirmed testing is complete for EPFO's UPI and ATM withdrawal feature under the EPFO 3.0 overhaul. A late-May launch is expected.
What changes: You will be able to withdraw up to 50% of your eligible EPF advance balance directly via UPI — no forms, no employer sign-off, no branch visit. Each UPI transaction is capped at ₹25,000. ATM withdrawals will work similarly using a dedicated PF card.
What it means for you: Faster access in emergencies. But the 50% cap and ₹25,000 per-transaction limit mean large withdrawals still need the existing online claim process.
What to check before it launches:
- UAN linked to Aadhaar, PAN, and a verified bank account
- Mobile number registered with EPFO matches your Aadhaar-linked number (needed for Face Authentication)
- Bank account is "digitally approved" in the EPFO portal
Check your UAN status at epfindia.gov.in.
Source: BusinessToday, 22 May 2026 · Republic World, May 2026
SEBI proposes letting your employer deduct SIP directly from your salary
SEBI has released a consultation paper (comments open until 10 June 2026) proposing a framework where employers — specifically listed companies and EPFO-registered firms — can deduct mutual fund SIP amounts from employee salaries and invest them directly, with employee consent.
What changes: If approved, your employer could route a fixed monthly amount into a mutual fund of your choice before your salary hits your bank account — similar to how EPF works today. Participation is fully voluntary.
What it means for you: For those who struggle to invest consistently, an employer-linked SIP removes the friction of manual transfers. The money never touches your account, so you cannot skip the SIP.
What does not change: This is a consultation paper, not a rule yet. SEBI will review public feedback (deadline June 10) before finalising anything. No action needed from you now.
Source: SEBI Circulars · Republic World, 21 May 2026
ITR filing is open — July 31 deadline, and you need Form 16 first
The Income Tax Department has opened ITR filing for FY 2025-26 (AY 2026-27). The deadline for salaried individuals is 31 July 2026.
What changed under the new Income Tax Act 2025: ITR-1 now covers income from up to two house properties — previously only one was allowed. Excel utilities for all ITR forms (1–7) are live at the e-filing portal.
What you need to do — in order:
Missing the July 31 deadline means a ₹5,000 late fee under Section 234F, plus interest under Section 234A, plus loss of the ability to carry forward capital losses.
Source: Income Tax Department · ClearTax ITR deadline guide
Good to Know
RBI holds repo rate at 5.25%. The April MPC decision kept the rate unchanged with a neutral stance. GDP projected at 6.9% for FY 2026-27, CPI at 4.6%. Next MPC meeting is in June. No change to your home loan EMI or FD rates for now. Source: News on AIR
AMFI has proposed Mutual Fund Linked Retirement Schemes (MFLRS) for Budget 2026-27. The proposal asks the government to allow retirement-focused mutual fund schemes with NPS-style tax benefits — a separate deduction of up to ₹50,000, similar to NPS under 80CCD(1B). Not yet approved; worth watching ahead of the Budget. Source: Upstox, May 2026
Markets ended the week flat. Sensex closed at 75,415, up 0.2% for the week. Banking stocks (Axis Bank, ICICI Bank) led; pharma and energy lagged. FIIs continued selling Indian equities. Elevated oil prices remain the key overhang on inflation expectations. Source: Trading Economics
SEBI's new Mutual Fund Regulations 2026 are in force. The Securities and Exchange Board of India (Mutual Funds) Regulations, 2026 — notified in January — replaced the 1996 rules. The changes tighten fund categorisation and scheme-level disclosures. If you hold mutual funds, no action needed; existing investments continue normally. Source: SEBI, January 2026
Number of the Week
₹25,000
The per-transaction UPI limit for PF withdrawals under EPFO 3.0. Faster than the 3–7 day online claim process, but capped. For anything above ₹25,000, the existing advance claim route is still the only option.
From Zero to One
This week on the curriculum: Cluster 1 — Why is my in-hand salary so much less than my CTC? Five lessons covering the CTC-to-in-hand gap, HRA calculation, paying rent to parents, basic salary ratios, and restructuring your salary. If you recently joined a new job or are negotiating an offer, start here. [Read the series →](/zero-to-one)
New on Ek Crore this week
- [What is a mutual fund? A plain-English guide for Indian investors](/investing/what-is-a-mutual-fund-india-plain-english)
- [How HRA exemption is calculated: the new 8-metro rule and rent to parents](/tax/hra-exemption-calculation-metro-cities-2026)
- [How to increase your in-hand salary without changing your CTC](/personal-finance/increase-in-hand-salary-without-changing-ctc)
All figures and regulatory details sourced from official government and regulatory sources: Income Tax Department (incometax.gov.in), EPFO (epfindia.gov.in), SEBI (sebi.gov.in), and RBI (rbi.org.in). Secondary verification from BusinessToday, Upstox, and Republic World. Research window: 18–24 May 2026.
For informational purposes only. Ek Crore does not recommend specific investments, insurance products, tax strategies, or financial decisions. Consult a SEBI-registered investment advisor or practising CA for advice tailored to your situation.
Content on Ek Crore is for educational purposes only. Nothing here is financial advice. Always consult a SEBI-registered advisor, CA, or qualified professional before making investment or tax decisions.