What changes from January 1: Key policy and regulatory updates

Come January 1, 2026, and a range of policy and regulatory changes are set to take effect, directly affecting farmers, salaried employees, and the wider public.

Banking norms, social media regulations, fuel prices and government schemes are all slated for changes.

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The government’s renewed emphasis on data protection and social media oversight, coupled with revisions in banking regulations, is likely to influence how people transact, spend and access essential services.

Banking rules overhaul

One of the key changes will relate to the updating of credit scores. Credit bureaus will now be required to refresh customer data every week, instead of once every 15 days, making credit histories more current and responsive.

Several major banks, including the SBI, PNB and HDFC, have already cut loan interest rates, a move expected to benefit borrowers in the new year. Revised fixed deposit (FD) interest rates will also come into effect from the first year of 2026.

Banks have further tightened norms governing UPI and digital payments, along with stricter enforcement of PAN-Aadhaar linking.

From January 1, PAN-Aadhaar linkage will be mandatory to access most banking and government services. Failure to comply could result in the denial of services.

SIM verification rules have also been made more stringent, particularly for messaging platforms such as WhatsApp, Telegram and Signal, as part of efforts to curb fraud and misuse.

Social media regulations

The Centre is considering tighter regulations for social media use by children below the age of 16, drawing on measures introduced in countries such as Australia and Malaysia.

Discussions are ongoing on age-based restrictions and enhanced parental controls.

Steps to curb pollution

Several cities are preparing to introduce fresh curbs on diesel and petrol commercial vehicles to address rising pollution levels.

Authorities in parts of Delhi and Noida are considering restrictions on petrol and diesel commercial vehicles as part of efforts to improve air quality.

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Plans are also being discussed to limit the use of petrol-powered delivery vehicles in certain areas of Delhi and Noida.

Hike for government employees

The 8th Pay Commission is expected to come into effect from January 1, 2026, following the conclusion of the 7th Pay Commission the day before.

This is likely to result in revised pay structures for central and state government employees.

In addition, dearness allowance (DA) is set to increase from January, offering a salary boost amid persistent inflation.

Some states, including Haryana, are also expected to review and raise minimum wages for part-time and daily-wage workers.

Key changes for farmers

In states such as Uttar Pradesh, farmers are being issued unique IDs that will be mandatory to receive instalments under the PM-KISAN scheme. Without the ID, beneficiaries may not receive the credited amounts.

Under the PM Kisan Crop Insurance Scheme, farmers will now be eligible for compensation if crops are damaged by wild animals.

However, losses must be reported within 72 hours to be eligible for insurance claims.

New ITR form, LPG price revision

A new income tax return (ITR) form is also likely to be introduced in January, pre-filled with details of banking transactions and expenditure. While this is expected to simplify filing, it may also increase scrutiny.

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Prices of LPG and commercial gas cylinders will be revised from January 1, while aviation turbine fuel prices will also be updated the same day—changes that could have a knock-on effect on household budgets and airfares.