New year, new rules: How banking, credit scores, salaries and household costs change from Jan 1
For Union and state government employees, the new year may bring a pay hike. The 8th Pay Commission is expected to come into force from January 1, 2026, as the tenure of the 7th Pay Commission ends on December 31, 2025.
- Dec 29, 2025,
- Updated Dec 29, 2025 5:16 PM IST
The arrival of 2026 will bring more than just fresh calendars and resolutions. A raft of policy and regulatory changes kicking in from January 1 is set to reshape everyday life for millions of Indians, affecting banking, salaries, farming, digital payments, social media use, taxation and even household expenses.
Here is a closer look at what’s changing — and how it could affect you.
Banking rules get tighter & faster
One of the biggest changes will be in how credit scores are updated. From January, credit bureaus will move to weekly updates, instead of the current 15-day cycle. This means repayments, defaults or improved repayment behaviour will reflect much faster in your credit score, directly influencing loan eligibility and interest rates.
Borrowers could also see some relief on the interest-rate front. Major lenders such as SBI, PNB and HDFC Bank have already announced cuts in loan rates, while revised fixed-deposit rates are expected to take effect from January 2026, potentially impacting savers.
Another key compliance shift involves PAN-Aadhaar linking, which will become mandatory for accessing most banking and government services. Those who fail to link the two risk account restrictions or denial of services.
Digital payments are also coming under closer scrutiny. Banks plan to strengthen checks on UPI transactions, while SIM verification norms for messaging platforms such as WhatsApp, Telegram and Signal are being tightened to curb fraud and misuse.
Salary boost likely for govt employees
For Union and state government employees, the new year may bring a pay hike. The 8th Pay Commission is expected to come into force from January 1, 2026, as the tenure of the 7th Pay Commission ends on December 31, 2025. This is likely to lead to a revision in pay structures.
In addition, dearness allowance (DA) is set to increase from January, offering some cushion against inflation. Several states, including Haryana, are also expected to review minimum wages for part-time and daily-wage workers.
New compliance requirements for farmers
Farmers, particularly in states such as Uttar Pradesh, will need to adapt to new compliance rules. Unique farmer IDs are being introduced and will become mandatory to receive installments under the PM-Kisan scheme. Without the ID, beneficiaries may not receive payments.
There is some relief on the insurance front. 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 qualify for claims.
What changes for taxpayers
Taxpayers can expect a new income tax return (ITR) form in January. The updated form is likely to come pre-filled with banking transactions and spending details, making filing easier but also increasing scrutiny and reducing the scope for errors or omissions.
What it means for household budgets
Household expenses may also feel the impact of January revisions. LPG and commercial gas cylinder prices will be reset on January 1, along with aviation turbine fuel (ATF) rates. Any increase in ATF prices could eventually translate into higher airfares.
As 2026 begins, these changes signal a push toward tighter compliance, faster data updates and greater oversight — alongside some financial relief for employees and farmers. For households and businesses alike, staying informed and prepared will be key to navigating the year ahead.
The arrival of 2026 will bring more than just fresh calendars and resolutions. A raft of policy and regulatory changes kicking in from January 1 is set to reshape everyday life for millions of Indians, affecting banking, salaries, farming, digital payments, social media use, taxation and even household expenses.
Here is a closer look at what’s changing — and how it could affect you.
Banking rules get tighter & faster
One of the biggest changes will be in how credit scores are updated. From January, credit bureaus will move to weekly updates, instead of the current 15-day cycle. This means repayments, defaults or improved repayment behaviour will reflect much faster in your credit score, directly influencing loan eligibility and interest rates.
Borrowers could also see some relief on the interest-rate front. Major lenders such as SBI, PNB and HDFC Bank have already announced cuts in loan rates, while revised fixed-deposit rates are expected to take effect from January 2026, potentially impacting savers.
Another key compliance shift involves PAN-Aadhaar linking, which will become mandatory for accessing most banking and government services. Those who fail to link the two risk account restrictions or denial of services.
Digital payments are also coming under closer scrutiny. Banks plan to strengthen checks on UPI transactions, while SIM verification norms for messaging platforms such as WhatsApp, Telegram and Signal are being tightened to curb fraud and misuse.
Salary boost likely for govt employees
For Union and state government employees, the new year may bring a pay hike. The 8th Pay Commission is expected to come into force from January 1, 2026, as the tenure of the 7th Pay Commission ends on December 31, 2025. This is likely to lead to a revision in pay structures.
In addition, dearness allowance (DA) is set to increase from January, offering some cushion against inflation. Several states, including Haryana, are also expected to review minimum wages for part-time and daily-wage workers.
New compliance requirements for farmers
Farmers, particularly in states such as Uttar Pradesh, will need to adapt to new compliance rules. Unique farmer IDs are being introduced and will become mandatory to receive installments under the PM-Kisan scheme. Without the ID, beneficiaries may not receive payments.
There is some relief on the insurance front. 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 qualify for claims.
What changes for taxpayers
Taxpayers can expect a new income tax return (ITR) form in January. The updated form is likely to come pre-filled with banking transactions and spending details, making filing easier but also increasing scrutiny and reducing the scope for errors or omissions.
What it means for household budgets
Household expenses may also feel the impact of January revisions. LPG and commercial gas cylinder prices will be reset on January 1, along with aviation turbine fuel (ATF) rates. Any increase in ATF prices could eventually translate into higher airfares.
As 2026 begins, these changes signal a push toward tighter compliance, faster data updates and greater oversight — alongside some financial relief for employees and farmers. For households and businesses alike, staying informed and prepared will be key to navigating the year ahead.