From Banking To FASTag: Key Financial Changes From February 1

February 2026: As we enter the second month of 2026, here are some finance-related and regulatory changes that would impact a large number of customers, and every taxpayer must know them. The key changes affect various sectors, including banking and FASTag.

Banking Changes

SBI, HDFC Bank, ICICI Bank, and PNB are revising charges and card benefits, including changes to IMPS transactions, reward points, and KYC updates. When it comes to SBI, the service charge will be Rs 2 plus GST for online SBI IMPS transactions above Rs 25,000 and up to Rs 1 lakh - applied from February 15. A fee of Rs 6 plus GST will be applied on transactions between Rs 1 lakh and Rs 2 lakh. And Rs 10 plus GST will be applied on online IMPS transactions from Rs 2 lakh and up to Rs 5 lakh.

HDFC Bank has announced to revise the credit card reward points criteria for its Infinia metal credit card. On its website, it noted, "With effect from February 1, 2026, reward points on your Infinia credit card can be redeemed up to a maximum of five times per month."

On the other hand, Punjab National Bank (PNB) has asked the customers to update their KYC information in accordance with RBI guidelines by February 2.

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Tax Changes

Finance Minister Nirmala Sitharaman will present the Union Budget, potentially impacting taxation, fuel prices, and economic sectors. Tobacco products, including cigarettes and pan masala, are expected to become more expensive due to higher taxation. However, the official announcement will provide clarity. 

FASTag rules

FASTag KYC verification will be removed; banks will verify vehicle details at activation, making it easier for four-wheelers to get a FASTag. The National Highways Authority of India (NHAI) has discontinued the Know Your Vehicle process for the new FASTag issuances from February 1. Now, only the banks are responsible for verifying vehicle details during issuance.

"This reform will bring significant relief to lakhs of common road users who were facing inconvenience and delays after FASTag activation due to post-issuance KYV requirements, despite having valid vehicle documents," the official government release noted. 

"For existing FASTags already issued to cars, KYV will no longer be mandatory as a routine requirement. KYV will be required only in specific cases where complaints are received, such as issues related to loose FASTags, incorrect issuance, or misuse. In the absence of any complaint, no KYV will be required for existing car FASTags."

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Fuel prices

LPG, CNG, PNG, and aviation fuel prices may be revised, impacting household expenses and airfares. However, only an official announcement will confirm it.   

Union Budget 2026-27

February is also the month when the pace for the new financial year is set, with the finance minister presenting the budget in the parliament. This year is unique as the annual budget is being delivered on a Sunday. Sitharaman will also be delivering her ninth consecutive Budget, making her the first woman finance minister to achieve this feat, and the 15th Budget of the Narendra Modi-led government. A report by the news agency IANS mentioned that economists expect this year's Budget to focus on defence, infrastructure, capital expenditure, power and affordable housing, while carefully balancing social welfare priorities with fiscal prudence. They said that the emphasis will be on sustaining growth momentum without compromising the government's commitment to fiscal consolidation.