FINANCE UPDATES
UNION BUDGET 2026
BANKING & CARDS
Financial rule changes from Feb 1: Credit cards, FASTag, banks, tobacco & LPG — what gets costlier and what you should do
Region: India
Category: Money / Daily Expenses
Several updates kicked in from February 1, 2026, aligning with Budget-day activity — from easier FASTag issuance to higher tobacco prices, a revised commercial LPG rate, and fresh banking/credit-card changes. Here’s a clean, practical breakdown.
Feb 1, 2026: Exchanges remained open for a special Sunday Budget session; FASTag KYV step removed for new private-vehicle tags; commercial LPG increased; tobacco duties revised. (Sources: PIB/NHAI, Indian Express, ET/TOI, exchange coverage)
What changed on Feb 1, 2026 — in simple terms
February started with a cluster of “wallet-impacting” changes: highway commuters get a smoother FASTag process, tobacco users face higher prices, restaurants and businesses pay more for commercial LPG, and some premium card benefits/redemptions are tighter. Also, markets saw a rare Budget-day Sunday trading session.
Fact Box: Quick impact checklist
Updated: Feb 1, 2026
| Area | What’s new | Who feels it | Practical next step |
|---|---|---|---|
| FASTag | KYV (“Know Your Vehicle”) step removed for new private-vehicle FASTags; validation shifts upfront at issuance/through issuer. (PIB/NHAI) | Car/jeep/van owners | New tag? Issuer will verify vehicle details at issue; existing users need no fresh action unless flagged. |
| Tobacco | Revised duty structure for cigarettes/tobacco; longer/filtered products see sharper impact, raising retail prices. (ET/TOI/DH) | Smokers & retailers | Expect higher MRP; avoid grey-market products and check packaging/MRP. |
| Commercial LPG | 19-kg commercial cylinder price revised upward from Feb 1 (reported +₹49 in multiple cities). (TOI/Mint/IE/HT) | Restaurants, SMEs | Review monthly fuel overheads; adjust procurement cycles if needed. |
| Markets | NSE/BSE (and commodities like MCX/NCDEX) remained open for a special Sunday Budget session. (coverage) | Investors & traders | Check broker/exchange circulars; confirm timings before placing orders. |
| Banks & Cards | ICICI movie-ticket benefit ended on select cards; HDFC Infinia redemptions capped at 5/month; PNB KYC deadline reminders; SBI IMPS charges from Feb 15 for higher-value transfers. (ET/NDTV Profit/SBI doc) | Cardholders & bank customers | Review bank SMS/email; update KYC on official channels; consider NEFT/RTGS alternatives for transfers if needed. |
FASTag process eased for private vehicle owners
If you’re getting a new FASTag for a car, jeep, or van, the process is now simpler. From Feb 1, 2026, the KYV (Know Your Vehicle) verification step has been discontinued for new private-vehicle FASTags. The intent is to reduce activation delays and paperwork, while ensuring validation happens at the issuer side before or during issuance/activation.
- New tag applicants: less friction; vehicle details are validated upfront by the issuer.
- Existing users: no fresh verification unless there’s a complaint (misuse/wrong issuance).
- Outcome: fewer activation delays for frequent highway users.
Cigarettes and tobacco products cost more from Feb 1
A revised duty structure on cigarettes and other tobacco products kicked in from February 1. The updated framework links duties to the product type and size — with filtered and longer cigarettes typically seeing a stronger effect. For consumers, this translates to higher retail prices, and for retailers, billing and MRP updates can shift quickly in the first weeks of implementation.
- Prices can move up across segments; premium categories may feel a bigger jump.
- Policy intent: revenue + discouraging tobacco consumption.
- Tip: Avoid grey-market packs; always check MRP and packaging authenticity.
Commercial LPG cylinder prices revised (19-kg)
Oil marketing companies revised the price of 19-kg commercial LPG cylinders from Feb 1. Reports indicate an increase (commonly cited as around ₹49 in several major cities), impacting commercial users such as restaurants, catering units, and small businesses. Domestic household LPG rates were reported unchanged at the time of this revision.
Month-beginning revisions can also influence items like aviation turbine fuel (ATF), and in some cities CNG/PNG — meaning transport-linked costs may see small shifts depending on your location and usage patterns.
Markets open on Sunday for Budget day
Even though Feb 1, 2026 fell on a Sunday, Indian markets saw a special Budget-day trading session. Coverage reported that NSE and BSE were open, and commodities exchanges (like MCX/NCDEX) also operated for trading.
- Always confirm session timings via your broker/exchange circulars before placing orders.
- Budget days can bring high volatility — use position sizing and stop-loss discipline.
Bank and card rule changes in February 2026
If you receive “urgent KYC” links on SMS/WhatsApp/email, treat them as suspicious. Use only official banking apps, netbanking, or branch channels. Never share OTPs, PINs, or card CVV.
Timeline: Dates that matter
What you should do right now (practical checklist)
- FASTag: If buying a new tag, ensure vehicle details match VAHAN records; keep RC details handy.
- Credit cards: Re-check your card’s latest benefits and reward caps; shift spends to categories that still earn well.
- Bank alerts: Read official SMS/email updates; verify on the bank app/website before acting.
- KYC: Update only via official channels (bank app/netbanking/branch). Never click random links.
- IMPS vs alternatives: If you frequently send >₹25,000 via IMPS, compare NEFT/RTGS options depending on urgency and cost.
- Business owners: If you use commercial LPG, plan for monthly volatility in fuel overheads.
Safety: Avoid common fraud patterns during rule changes
- “KYC pending — click here” messages are often scams. Use official apps only.
- No legitimate bank asks for OTP/PIN/CVV on calls or WhatsApp.
- For FASTag, avoid unofficial sellers; purchase via authorized bank channels/official partners.
FAQ (Finance changes from Feb 1, 2026)
Do existing FASTag users need to do KYV again?
Why did cigarette prices rise from February 2026?
Are domestic LPG cylinder prices also increased?
What changed in February 2026 for ICICI and HDFC credit cards?
When do SBI IMPS charges start and for which amounts?
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