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AU Small Finance Bank Unveils Its 2024-25 Sustainability Report, Emphasizing Commitment to Banking that Benefits Both People and the Planet, Driving Inclusive Progress.
AU Small Finance Bank (AU SFB) has released its fourth Sustainability Report, highlighting the bank’s commitment to transparency and accountability across four key pillars: Sustainable Finance, Operations, Communities, and Reporting. The report showcases the bank’s progress in various areas, including climate action, financial inclusion, and governance excellence.
One of the significant achievements of AU SFB is the mobilization of ₹1,178 crore for climate-positive projects through its Green Deposits, with ₹958.81 crore supporting renewable energy projects, ₹90.51 crore financing electric vehicles, and ₹1.48 crore advancing green building initiatives. The bank has also outperformed financial inclusion norms, with 32% of its branches located in unbanked rural centers, exceeding the mandated 25%.
In addition to its financial achievements, AU SFB has invested ₹43 crore in corporate social responsibility (CSR) initiatives, benefiting over 2.72 lakh individuals through flagship programs such as AU Ignite, AU Udyogini, and AU Bano Champion. The bank has also achieved an Employee Happiness Index of 86%, delivered 2.09 million training hours, and maintained an average of 32 training hours per employee per year, reflecting its focus on human capital and well-being.
The report has been prepared in alignment with the Global Reporting Initiative (GRI) Standards and the Securities and Exchange Board of India’s Business Responsibility and Sustainability Reporting (SEBI BRSR) framework. It captures the bank’s performance for the financial year 2024-25 and has been independently assured by Intertek India.
AU SFB has also secured an AA (Leader) ESG rating by MSCI, with a Low-Risk score of 17.1 by Sustainalytics, reinforcing its position as a responsible financial institution. The bank has partnered with IFC on Climate Risk Advisory, integrating physical and transition risks and financed emissions into credit and risk models, aligned with global best practices and RBI guidelines.
The bank’s Chairman, H R Khan, and Founder, MD & CEO, Sanjay Agarwal, have emphasized the importance of sustainability and the bank’s commitment to creating a future that is inclusive, resilient, and enduring. As AU SFB prepares to transition to a Universal Bank, it recognizes that greater scale means greater responsibility to its stakeholders, society, and the planet.
Overall, the report highlights AU SFB’s progress in integrating sustainability into its business strategy and operations, and its commitment to creating long-term value for its stakeholders while contributing to the well-being of the environment and society. With a strong foundation in place, AU SFB is well-positioned to achieve its goal of becoming a Universal Bank while maintaining its focus on sustainability and social responsibility.
The bank’s sustainability report is a testament to its commitment to transparency and accountability, and its efforts to create a positive impact on the environment and society. As the bank continues to grow and expand its operations, it is likely to play an increasingly important role in promoting sustainable development and financial inclusion in India.
In conclusion, AU SFB’s fourth Sustainability Report is a comprehensive document that showcases the bank’s progress in various areas of sustainability, including climate action, financial inclusion, and governance excellence. The report demonstrates the bank’s commitment to creating a sustainable future and its efforts to integrate sustainability into its business strategy and operations.
Kotak Mahindra Bank has been penalized ₹61.95 lakh by the RBI due to non-compliance with regulatory requirements regarding account management and reporting practices.
The Reserve Bank of India (RBI) has imposed a fine of ₹61.95 lakh on Kotak Mahindra Bank for violating key banking regulations. The penalty was issued after an inspection of the bank’s financial position as of March 2024, which revealed lapses in managing Basic Savings Bank Deposit (BSBD) accounts and reporting borrower data to credit information companies. The RBI found that the bank had opened multiple BSBD accounts for individuals who already held such accounts, violating the one-account-per-person rule. Additionally, the bank allowed its business correspondents in rural areas to perform tasks outside their regulated scope, compromising the standardized oversight required to protect vulnerable consumers.
The bank was also found to have provided incorrect data to credit information companies, which can impact borrowers’ credit scores and future loan eligibility. The RBI issued a show-cause notice and finalized the penalty after reviewing the bank’s written and oral submissions. The penalty addresses statutory failures, but does not affect the validity of individual customer transactions or existing agreements. The RBI’s enforcement action highlights a broader regulatory push to ensure that large private lenders prioritize administrative precision and customer data protection.
The Logical Indian, a media outlet, has welcomed the RBI’s decision, stating that trust is the foundation of the relationship between a bank and its patrons. The outlet believes that the penalty is a necessary step towards corporate accountability and that no bank should be allowed to overlook protocols that safeguard the rights of everyday citizens. The RBI’s action is seen as a move towards ensuring that banks prioritize transparency and fairness in their operations, particularly with regards to vulnerable consumers.
The case highlights the importance of financial inclusion and the need for banks to comply with regulations that protect the rights of consumers. The BSBD accounts are designed to help economically weaker sections access formal banking services without the burden of minimum balance requirements. However, the bank’s actions compromised the integrity of these accounts and put vulnerable consumers at risk. The RBI’s penalty is a reminder that banks must prioritize the needs of their customers and comply with regulations that protect their rights.
Kotak Mahindra Bank slapped with Rs 61.95 lakh fine by RBI for non-compliance with regulatory requirements.
The Reserve Bank of India (RBI) has imposed a fine of Rs 61.95 lakh on Kotak Mahindra Bank for regulatory breaches. The fine was imposed due to the bank’s failure to comply with certain regulations, including those related to know-your-customer (KYC) norms and anti-money laundering (AML) standards.
According to a statement released by the RBI, the fine was imposed after an investigation revealed that Kotak Mahindra Bank had failed to maintain sufficient records and had not properly implemented certain regulatory requirements. The bank was found to have violated several provisions of the Banking Regulation Act, 1949, and the RBI’s master circular on KYC/AML/CFT.
The RBI’s investigation also revealed that the bank had failed to properly verify the identity of its customers and had not maintained adequate records of their transactions. This is a serious breach of regulatory requirements, as it can facilitate money laundering and other illicit activities.
The fine imposed on Kotak Mahindra Bank is significant, and it highlights the importance of regulatory compliance in the banking sector. The RBI has been cracking down on banks that fail to comply with regulatory requirements, and this fine is a clear indication of the regulator’s commitment to ensuring that banks operate in a safe and sound manner.
The fine is also a reminder to other banks to ensure that they are in compliance with all regulatory requirements. The RBI has been increasing its scrutiny of banks in recent years, and any non-compliance can result in significant fines and penalties.
It’s worth noting that Kotak Mahindra Bank has not commented on the fine, and it’s not clear whether the bank plans to appeal the decision. However, the fine is a significant development, and it’s likely to have implications for the bank’s reputation and operations.
In conclusion, the RBI’s fine on Kotak Mahindra Bank is a significant development that highlights the importance of regulatory compliance in the banking sector. The fine is a reminder to other banks to ensure that they are in compliance with all regulatory requirements, and it’s a clear indication of the regulator’s commitment to ensuring that banks operate in a safe and sound manner. The fine is also a reminder that non-compliance can result in significant fines and penalties, and it’s likely to have implications for the bank’s reputation and operations.
Kotak Mahindra Bank penalized with Rs 62 lakh fine by RBI
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 61.95 lakh on Kotak Mahindra Bank for non-compliance with certain regulations. The penalty was imposed on December 11, 2025, according to an RBI statement. The fine was levied for non-compliance with directions related to basic savings bank deposit (BSBD) accounts, business correspondents, and credit information companies.
The RBI conducted a Statutory Inspection for Supervisory Evaluation (ISE 2024) of Kotak Mahindra Bank, examining its financial position as on March 31, 2024. During the investigation, the RBI found that the bank had opened additional BSBD accounts for customers who already held such accounts with the bank. This is a violation of RBI regulations, which aim to provide access to banking services for all citizens.
Furthermore, the RBI discovered that Kotak Mahindra Bank had entered into an arrangement with business correspondents to undertake activities that are not covered within the scope of allowed activities. Business correspondents are agents who provide banking services on behalf of banks, particularly in rural and underserved areas. The RBI has strict guidelines governing the activities of business correspondents to ensure that they operate within the bounds of the law.
The RBI also found that Kotak Mahindra Bank had furnished inaccurate information to credit information companies (CICs) regarding certain borrowers. CICs play a crucial role in assessing the creditworthiness of borrowers, and inaccurate information can have serious consequences for both lenders and borrowers.
After considering Kotak Mahindra Bank’s response to the notice and additional submissions, the RBI concluded that the charges against the bank were sustained, warranting the imposition of a monetary penalty. The penalty of Rs 61.95 lakh is intended to deter the bank from non-compliance with RBI regulations in the future. The RBI’s actions demonstrate its commitment to ensuring that banks operate within the bounds of the law and maintain the highest standards of integrity and transparency.
Non-Banking Financial Company Maintains Its Status as Financial Service Provider, Exempt from Lending Ban and Insolvency Proceedings Unless Initiated by RBI: National Company Law Appellate Tribunal
The National Company Law Appellate Tribunal (NCLAT) in New Delhi has made a significant ruling regarding the status of non-banking financial companies (NBFCs) in relation to insolvency proceedings. According to the tribunal, an NBFC does not lose its classification as a financial service provider simply because the Reserve Bank of India (RBI) has prohibited it from engaging in fresh lending activities. This decision implies that such entities remain exempt from creditor-initiated insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
The ruling was made by a bench headed by a prominent judicial member, who emphasized that the RBI’s restriction on an NBFC’s lending activities does not alter its fundamental nature as a financial service provider. The tribunal’s decision was based on the understanding that the IBC provides a distinction between financial service providers and other types of corporate debtors. Financial service providers, including NBFCs, are excluded from the provisions of the IBC that allow creditors to initiate insolvency proceedings against them.
This exemption is intended to prevent disruption to the financial system and to ensure stability in the market. By maintaining that an NBFC retains its status as a financial service provider despite being barred from fresh lending, the NCLAT has reinforced the protection afforded to these entities under the IBC. The ruling suggests that the regulatory actions taken by the RBI, such as prohibiting fresh lending, do not automatically trigger the applicability of the IBC’s creditor-initiated insolvency provisions to NBFCs.
The implications of this decision are significant for the financial sector, as it clarifies the treatment of NBFCs under the IBC. It ensures that these entities are not subjected to insolvency proceedings initiated by creditors solely due to regulatory restrictions on their operations. Instead, the decision underscores the importance of considering the broader financial stability and the role of NBFCs within the financial system. The NCLAT’s ruling provides clarity and consistency in the application of the IBC to financial service providers, which is crucial for maintaining investor confidence and promoting a stable financial environment.
OneCard halts new credit card issuances amid RBI’s request for clarification from its partner banks
OneCard, a popular credit card issuer, has stopped issuing new credit cards due to regulatory issues with the Reserve Bank of India (RBI). The RBI has sought clarifications from partner banks that have collaborated with OneCard, regarding their credit card business model. As a result, OneCard has temporarily halted the issuance of new credit cards until the matter is resolved.
OneCard, which is operated by FPL Technologies, is a mobile-based credit card platform that allows users to apply for and manage their credit cards through a mobile app. The company has gained popularity in recent years due to its ease of use and innovative features. However, the RBI’s move has raised concerns about the company’s business model and its compliance with regulatory requirements.
The RBI has asked partner banks, including State Bank of India, ICICI Bank, and Axis Bank, to provide clarifications on their arrangement with OneCard. The regulator is seeking to understand how OneCard’s credit card business operates and whether it complies with existing regulations. The partner banks have been given a deadline to respond to the RBI’s queries, and until then, OneCard will not be issuing new credit cards.
The development has caused uncertainty among existing OneCard customers, who are concerned about the impact on their credit card services. However, OneCard has assured its customers that the move will not affect their existing credit card services, and they can continue to use their cards as usual.
The RBI’s move is seen as a regulatory crackdown on new-age credit card issuers, which have been growing rapidly in recent years. The regulator is seeking to ensure that these companies comply with existing regulations and do not pose a risk to the financial system. The development highlights the challenges faced by fintech companies in India, which often operate in a gray area between traditional banking regulations and innovative business models.
In conclusion, OneCard’s decision to stop issuing new credit cards is a temporary measure until the regulatory issues are resolved. The company is working with its partner banks to address the RBI’s concerns and ensure that its business model complies with existing regulations. The development highlights the importance of regulatory compliance for fintech companies in India and the need for clear guidelines on innovative business models.
IDFC First Bank’s Gaura Sengupta predicts a potential slowdown in the rupee’s depreciation in the fourth quarter, offering some relief from recent pressure.
The Reserve Bank of India (RBI) is facing a dilemma, known as the “impossible trinity,” where it must choose between maintaining a stable currency or implementing effective monetary policy. According to economist Sengupta, the RBI has wisely chosen to prioritize monetary policy, allowing the rupee to depreciate rather than intervening heavily to prop up its value. This approach has several benefits, including reducing the strain on foreign exchange reserves and maintaining liquidity in the domestic banking system.
When the RBI intervenes to buy rupees, it absorbs liquidity from the system, which can have negative consequences. By not intervening as much, the RBI is able to preserve its freedom to implement monetary policy as needed. This approach is also sustainable in the long term, as the RBI has limited resources and cannot indefinitely support the currency. The pace of depreciation, which has been around 5% year-on-year, suggests that the RBI is allowing the rupee to adjust to market forces.
The RBI’s intervention strategy is also constrained by its limited toolkit. Last year, the rupee was one of the most stable currencies globally, thanks to the RBI’s intervention. However, this came at a cost, as the central bank built up a large short-dollar forward book, which can be used to sterilize intervention in spot markets. This year, the RBI does not have the same level of forward book, limiting its ability to intervene in the currency market.
Overall, the RBI’s approach to managing the rupee’s depreciation is pragmatic and recognizes the limitations of its resources. By prioritizing monetary policy and allowing the currency to adjust to market forces, the RBI is taking a sustainable and long-term view. While the rupee’s depreciation may be a short-term concern, the RBI’s approach is likely to benefit the economy in the long run by preserving its ability to implement effective monetary policy and maintaining stability in the financial system.
Dhanlaxmi Bank and Jana Small Finance Bank Hike Fixed Deposit Rates, Offering Up to 8% Interest for Senior Citizens
The Reserve Bank of India’s (RBI) monetary policy committee (MPC) meeting is set to take place from December 3-5, 2025. Ahead of this meeting, two banks, Dhanlaxmi Bank and Jana Small Finance Bank (SFB), have revised their fixed deposit (FD) rates. As of November 29, 2025, these banks have updated their interest rates to offer higher returns to their customers, particularly senior citizens.
Dhanlaxmi Bank and Jana Small Finance Bank have increased their FD rates to provide senior citizens with interest rates of up to 8% on their deposits. This move is expected to attract more customers, especially seniors, to invest in fixed deposits. The revised rates are competitive and aim to provide higher returns to depositors.
The revision in FD rates by these two banks may be a precursor to other banks following suit. With the RBI’s MPC meeting scheduled to take place soon, there is anticipation about potential changes in interest rates. The MPC meeting will discuss and decide on key policy rates, which can impact the overall interest rate environment in the country.
The increase in FD rates by Dhanlaxmi Bank and Jana Small Finance Bank is a strategic move to stay competitive in the market. Other banks may also consider revising their FD rates to remain attractive to customers. The revised rates offered by these two banks are likely to benefit senior citizens, who often rely on fixed deposits as a safe and stable investment option.
In the current economic scenario, the revision in FD rates is a significant development. With the RBI’s MPC meeting approaching, market participants are eagerly awaiting the decision on interest rates. The outcome of the meeting will have a significant impact on the economy, and the revision in FD rates by Dhanlaxmi Bank and Jana Small Finance Bank may be an indication of the direction in which the interest rates are headed. Overall, the increase in FD rates is a positive development for customers, particularly senior citizens, who can now earn higher returns on their deposits.
Financial strain and deteriorating loan portfolios threaten the stability of small microfinance institutions
India’s microfinance sector is facing a severe crisis, with at least half a dozen companies defaulting on bank loans due to asset quality stress and funding crunch. These companies, including VFS Capital, Navachetana Microfin Services, and Arth Finance, are struggling to survive due to a liquidity crunch and difficulties in operating without institutional funding support. The sector’s stress began building in April last year, after a brief revival from the pandemic, and has resulted in a significant increase in late-stage portfolios at risk, with a surge to 15.32% at the end of the September quarter.
The micro-loan market has contracted to ₹3.46 lakh crore, registering a 17% year-on-year drop, with a near 20% fall in the number of active loans to 132 million. Listed microfinance firms, such as Fusion Finance and Spandana Sphoorty Financial, have suffered net losses in the second quarter, extending the run of negative earnings they reported over the past several quarters. Mainstream lenders, including Bandhan Bank, IndusInd Bank, IDFC First Bank, and RBL Bank, have also encountered profitability hits due to the stress in their microfinance portfolios.
VFS Capital, which has a cumulative exposure of ₹143 crore toward five lenders, failed to meet its repayment commitments, with a total overdue amount of ₹82 crore. The company had applied for a small finance bank licence from the Reserve Bank of India (RBI) in January but withdrew it last month after its financial condition worsened. Other affected lenders, including Bank of Maharashtra and IDBI Bank, have told VFS to submit financial statements and a certified book debt statement for the quarters ended June and September.
The situation is similar for Navachetana Microfin Services, which has delayed debt servicing since April and submitted a debt restructuring plan to lenders with the proposal to repay the dues in the next seven years. Some of the company’s loans from banks have already turned into non-performing assets (NPAs) by legal definition. Lenders to these entities have suggested forensic audits to determine the cause of the default and to consider restructuring of bank accounts.
Sectoral leaders are calling for financial institutions to become more lenient while lending to smaller microfinance entities and are expecting the government to consider a proposal to provide a guarantee fund for the microfinance sector. Without institutional funding, several other small lenders are likely to be on the brink of default very soon. The government guarantee programme can facilitate lending to these entities and help them overcome the current liquidity crisis.
Autonomy, Increased Foreign Investment, and Mergers Under Consideration
The Indian government is set to review proposals to reform public sector banks (PSBs) ahead of the 2026-27 Budget. The Department of Financial Services has crafted a reform blueprint that includes a fresh round of consolidation, enhanced board autonomy, and a phased increase in the foreign direct investment (FDI) cap. The government may also consider privatizing select PSBs, a plan that was first announced in the 2021-22 Budget. The goal is to create globally competitive Indian banks that can rank among the world’s top 20.
The proposed reforms aim to build on the consolidation wave of 2017 and 2019-20, which reduced the number of PSBs from 27 to 12. The government is expected to revive its push for PSB reforms, with inter-ministerial consultations nearing completion. The Prime Minister’s Office (PMO) will review the proposals, and key political decisions are expected to be made closer to the Budget.
The reform agenda includes a phased plan to raise the FDI limit to 49% from the current 20%. This move is expected to attract more foreign investment and help Indian banks compete globally. The government may also consider privatizing two PSBs, as announced in the 2021-22 Budget. Analysts believe that larger, consolidated banks will benefit from economies of scale, stronger risk management, and greater capacity to meet India’s growing credit demand.
The reform agenda has received cautious backing from both the government and the Reserve Bank of India (RBI). The vision for PSBs aligns with discussions during the finance ministry’s recent “Manthan” strategy exercise. The government aims to create two Indian lenders that can rank among the world’s top 20, and the proposed reforms are seen as a step towards achieving this goal. Overall, the reform proposals are expected to have a significant impact on the Indian banking sector and help create globally competitive banks that can support the country’s growing economy.
Ndi RBI eme ihe ndi mere ka ego ha aga n’ihu na Tamilnad Mercantile Bank Limited.
Reserve Bank of India (RBI) amachibidola ntaramahụhụ ego nke Rs 39.60 lakh na Tamilnad Mercantile Bank Limited maka mmebi iwu nke ngalaba 10A nke Payment and Settlement Systems Act, 2007 (PSS Act) na ngalaba 26A nke iwu ụlọ akụ. Ntaramahụhụ a bụ n’ihi na ụlọ akụ ahụ etinyela ụgwọ n’ụzọ na-edoghị anya na ndị na-ejide akaụntụ ego nke Basic Savings Bank Deposit (BSBD) maka ịkwụ ụgwọ site na iji Unified Payments Interface (UPI), na ebufebeghị ego tozuru oke na ego mmụta na nkuzi nkwụnye ego n’ime oge enyere.
RBI chọpụtara na ebubo ndị a megide ụlọ akụ ahụ kwụgidere, na-enye ikike itinye ntaramahụhụ ego. Ntaramahụhụ ego a bụ enweghị ajọ mbunobi maka ihe ọ bụla ọzọ RBI nwere ike ịmalite megide ụlọ akụ ahụ. Omume a gbadoro ụkwụ na erughị eru na nnabata nke iwu na ebughị n’obi kwupụta izi ezi nke azụmahịa ma ọ bụ nkwekọrịta ọ bụla ụlọ akụ na ndị ahịa ya banye.
Ntaramahụhụ ego a bụ akụkụ nke mmelite RBI na-amalite megide ụlọ akụ ndị na-eme ihe na-edoghị anya na ndị na-ejide akaụntụ ego. RBI na-achọ ime ka ụlọ akụ ndị na-eme ihe na-edoghị anya na ndị na-ejide akaụntụ ego kwụsị omume ha na-edoghị anya na kwado iwu na ụkpụrụ ndị dị.
Na mgbakwunye, RBI na-achọ kwalite uru na nchebe nke ndị na-ejide akaụntụ ego na ụlọ akụ. Ntaramahụhụ ego a bụ akụkụ nke mmelite RBI na-amalite megide ụlọ akụ ndị na-eme ihe na-edoghị anya na ndị na-ejide akaụntụ ego, na-achọ ime ka ụlọ akụ ndị na-eme ihe na-edoghị anya na ndị na-ejide akaụntụ ego kwụsị omume ha na-edoghị anya na kwado iwu na ụkpụrụ ndị dị.
Can Rising Interest Rates Erode Tamilnad Mercantile Bank Limited’s Profitability? – Expert Analysis and Insights for Wealth Creation – earlytimes.in
The article from Early Times discusses the potential impact of rising interest rates on Tamilnad Mercantile Bank Limited’s profit margins. The bank, a prominent private sector lender in India, has been experiencing a surge in volume and profitability in recent times. However, with the Reserve Bank of India (RBI) increasing interest rates to combat inflation, there are concerns about the potential effects on the bank’s profit margins.
Rising interest rates can have both positive and negative impacts on banks. On the one hand, higher interest rates can lead to increased net interest income (NII) for banks, as they can charge higher interest rates on loans and investments. On the other hand, higher interest rates can also lead to a decrease in demand for loans, as borrowing becomes more expensive for customers. This can result in a decrease in the bank’s loan book and, consequently, its NII.
The article highlights that Tamilnad Mercantile Bank Limited has been able to maintain its profit margins despite the challenging economic environment. The bank’s focus on retail lending and its strong presence in the southern region of India have helped it to navigate the challenges posed by rising interest rates. Additionally, the bank’s efforts to diversify its loan portfolio and reduce its dependence on wholesale lending have also contributed to its resilience.
However, the article also notes that the bank’s profit margins may come under pressure if interest rates continue to rise. The bank’s net interest margin (NIM) has been under pressure in recent quarters, and a further increase in interest rates could exacerbate this trend. Moreover, the bank’s provisioning requirements may also increase if the economic slowdown leads to an increase in non-performing assets (NPAs).
To navigate these challenges, the article suggests that investors should keep a close eye on the bank’s volume growth and asset quality. The bank’s ability to maintain its loan growth momentum and control its NPAs will be crucial in determining its profitability in the coming quarters. Additionally, investors should also monitor the bank’s efforts to diversify its revenue streams and reduce its dependence on interest income.
In conclusion, while rising interest rates pose a challenge to Tamilnad Mercantile Bank Limited’s profit margins, the bank’s strong fundamentals and diversified loan portfolio position it well to navigate these challenges. Investors should closely monitor the bank’s volume growth, asset quality, and efforts to diversify its revenue streams to make informed investment decisions. With the right strategy, the bank can continue to deliver strong profitability and growth, making it an attractive investment opportunity for those looking to build wealth rapidly.
Ujjivan needs to undergo a transformation to become eligible for a universal banking licence
Ujjivan Financial Services, a leading microfinance institution in India, is on the cusp of a significant transformation. To obtain a universal banking licence, the company must undergo a radical change in its DNA. This transformation is crucial for Ujjivan to expand its services and stay competitive in the rapidly evolving Indian banking landscape.
Currently, Ujjivan operates as a microfinance institution, providing small loans to low-income individuals and groups. However, with a universal banking licence, the company can offer a broader range of financial services, including savings accounts, credit cards, and other banking products. This expansion will enable Ujjivan to tap into the vast and growing Indian banking market, which is expected to reach $1.2 trillion by 2025.
To achieve this transformation, Ujjivan must make significant changes to its business model, operations, and culture. The company will need to invest heavily in technology, talent, and infrastructure to support its expanded services. This will require a substantial increase in capital expenditure, which may put pressure on the company’s bottom line in the short term.
Moreover, Ujjivan will need to adapt to a more complex regulatory environment, as universal banks are subject to stricter regulations and guidelines. The company will need to ensure that its systems, processes, and risk management practices are robust and compliant with the Reserve Bank of India’s (RBI) guidelines.
The transformation will also require a cultural shift within the organization. Ujjivan’s employees will need to develop new skills and expertise to support the expanded services, and the company’s leadership will need to adopt a more nuanced approach to risk management and customer engagement.
Despite the challenges, the potential benefits of obtaining a universal banking licence are significant. Ujjivan can increase its customer base, improve its revenue streams, and enhance its brand reputation. The company can also leverage its existing network and customer relationships to cross-sell and upsell its new services, driving growth and profitability.
In conclusion, Ujjivan’s transformation into a universal bank is a bold and ambitious move that requires significant changes to its DNA. While the journey will be challenging, the potential rewards are substantial. With careful planning, investment, and execution, Ujjivan can successfully navigate this transformation and emerge as a major player in the Indian banking sector. The company’s ability to adapt and evolve will be crucial in determining its success in this new chapter of its journey.
Kotak Mahindra Bank Confirms the Reappointment of its Part-Time Chairman
The Reserve Bank of India (RBI) has approved the reappointment of C S Rajan as Part-Time Chairman of Kotak Mahindra Bank Limited for a further period from January 1, 2026, to October 21, 2027. This decision ensures continuity in leadership and governance as the bank continues on its strategic growth path. Mr. Rajan has been serving as Part-Time Chairman since January 1, 2024, and has been an Independent Director on the Board of the Bank since October 22, 2022.
Ashok Vaswani, Managing Director & CEO of Kotak Mahindra Bank, welcomed the decision, stating that the bank is at an exciting juncture of growth and transformation, and looks forward to Mr. Rajan’s continued leadership and strategic vision to deliver sustainable value to stakeholders. Mr. Rajan expressed his honor to continue serving as Chairman and looks forward to working closely with the Board and management to strengthen the bank’s position and deliver value to all stakeholders.
Mr. Rajan is an accomplished leader with 46 years of experience in public life. He is a Post Graduate in History and an IAS officer of the 1978 batch, who retired as the Chief Secretary of the Government of Rajasthan in 2016. He has served in leadership roles for 12 years in key infrastructure sectors, including energy, highways, water resources, and industry. He has also served on inter-disciplinary teams for review of World Bank agriculture projects and as a consultant to the World Bank.
After his retirement, Mr. Rajan served as Deputy Chairman in the Chief Minister of Rajasthan’s Advisory Council and was appointed by the Government of India on the Board of Infrastructure Leasing and Financial Services Limited (IL&FS). He has also been an Independent Director on the Board of Kotak Mahindra Life Insurance Company Limited, a wholly-owned subsidiary of the bank. With his rich experience and expertise, Mr. Rajan’s reappointment is expected to bring stability and guidance to the bank as it navigates its next phase of growth and transformation.
C S Rajan’s reappointment as part-time Chairman of Kotak Mahindra Bank gets RBI nod
The Reserve Bank of India (RBI) has approved the reappointment of C S Rajan as Part-Time Chairman of Kotak Mahindra Bank Limited for a term starting January 1, 2026, and ending October 21, 2027. Rajan has been serving as Part-Time Chairman since January 1, 2024, and was initially appointed as an Independent Director on the Bank’s Board in October 2022.
Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank, welcomed the RBI’s approval, stating that the bank is at an exciting juncture of growth and transformation, and that Rajan’s continued leadership and strategic vision will be valuable in delivering sustainable value to stakeholders. Rajan expressed gratitude for the continued trust placed in him and looks forward to working closely with the Board and management to strengthen the Bank’s position and deliver value to all stakeholders.
Rajan’s career spans over four decades in public service and corporate leadership. He is an accomplished leader with 46 years of experience in public life, having retired as the Chief Secretary of the Government of Rajasthan in 2016. During his career, he served in leadership roles for 12 years in key infrastructure sectors and 14 years in agriculture and rural development.
After retirement, Rajan continued to play key roles in governance and corporate restructuring, serving as Deputy Chairman of the Chief Minister of Rajasthan’s Advisory Council and later joining the Government of India-appointed Board of Infrastructure Leasing and Financial Services Limited (IL&FS). He also serves as an Independent Director on the Board of Kotak Mahindra Life Insurance Company Limited, a wholly-owned subsidiary of the Bank.
Rajan’s reappointment as Part-Time Chairman is expected to bring stability and continuity to the Bank’s leadership, allowing it to navigate its next phase of growth and transformation. With his extensive experience in public service and corporate leadership, Rajan is well-equipped to guide the Bank in delivering sustainable value to its stakeholders. The Bank’s management and Board look forward to his continued leadership and strategic vision, which will be crucial in shaping the Bank’s future growth and success.
The Reserve Bank of India has given its nod to reappoint C S Rajan as the part-time Chairman of Kotak Mahindra Bank.
The Reserve Bank of India (RBI) has approved the reappointment of C S Rajan as Part-Time Chairman of Kotak Mahindra Bank Limited for another term, starting from January 1, 2026, until October 21, 2027. Rajan has been serving as Part-Time Chairman since January 1, 2024, and was initially appointed as an Independent Director on the Bank’s Board in October 2022. The announcement was made by Kotak Mahindra Bank in an official press release, marking a continuation of Rajan’s leadership at the private lender.
Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank, expressed his appreciation for Rajan’s continued leadership, stating that the bank is at an exciting juncture of growth and transformation. Vaswani added that Rajan’s strategic vision will help the bank deliver sustainable value to its stakeholders. Rajan, in turn, expressed his gratitude for the continued trust placed in him and looks forward to working closely with the Board and management to further strengthen the bank’s position.
Rajan’s reappointment extends a career that spans over four decades in public service and corporate leadership. He is a postgraduate in History and has 46 years of experience in public life, including 12 years in key infrastructure sectors and 14 years in agriculture and rural development. After retiring as the Chief Secretary of the Government of Rajasthan in 2016, Rajan continued to play key roles in governance and corporate restructuring, including serving as Deputy Chairman of the Chief Minister of Rajasthan’s Advisory Council and holding senior positions at Infrastructure Leasing and Financial Services Limited (IL&FS).
In addition to his role at Kotak Mahindra Bank, Rajan also serves as an Independent Director on the Board of Kotak Mahindra Life Insurance Company Limited, a wholly-owned subsidiary of the bank. With his extensive experience and leadership skills, Rajan is well-positioned to guide Kotak Mahindra Bank through its next phase of growth and transformation. The bank’s management and stakeholders are likely to benefit from his continued leadership and strategic vision, as the bank navigates the evolving landscape of the Indian banking industry.
The Reserve Bank of India has released a draft circular proposing the implementation of a Unique Transaction Identifier for over-the-counter derivative transactions within the country.
The Reserve Bank of India (RBI) has introduced a draft circular proposing the implementation of a Unique Transaction Identifier (UTI) framework for over-the-counter (OTC) derivative transactions in India. The UTI is a globally recognized data element that will provide a uniform identification system for all transactions, enhancing transparency and regulatory oversight in the OTC derivatives market. The UTI will be used in addition to the Legal Entity Identifier (LEI), which identifies counterparties to a transaction, and will contain a maximum of 52 characters, starting with the LEI of the entity responsible for creating it.
The governing directions for OTC derivative transactions, as listed in the draft circular, include the Foreign Exchange Management Regulations, the Master Direction on Risk Management and Inter-Bank Dealings, the Rupee Interest Rate Derivatives Directions, the Forward Contracts in Government Securities Directions, and the Credit Derivatives Directions. The UTI will be generated by the Central Counterparty, Electronic Trading Platform, or Clearing Member, depending on the nature of the transaction, and will be mandatory for all OTC derivative transactions in India, including rupee interest rate derivatives, forward contracts in government securities, foreign currency derivatives, and credit derivatives.
The RBI has proposed that each OTC derivative transaction must have a UTI generated and reported in accordance with the CPMI-IOSCO Technical Guidance of February 2017. Modifications to derivative contract information will be treated as updates and will not require a new UTI, but lifecycle events such as novation will result in the generation of a new UTI. The RBI has invited comments and suggestions on the draft circular from banks, market participants, and other stakeholders by November 14, 2025, and the framework is set to take effect from April 1, 2026.
The introduction of the UTI framework is a significant step towards enhancing transparency and regulatory oversight in the OTC derivatives market in India. It will provide regulators with an aggregated view of global OTC derivatives exposures and enable more effective monitoring and supervision of the market. The RBI’s move is in line with global best practices and is expected to bring India’s OTC derivatives market in line with international standards. The draft circular is open for feedback, and stakeholders are encouraged to provide their comments and suggestions to help shape the final framework. Overall, the implementation of the UTI framework is a positive development for the Indian financial markets and is expected to promote greater transparency and stability in the OTC derivatives market.
Riding the Storm: A Review of Indian Fixed Income Performance Amidst Market Volatility This Year
The Indian fixed income market has delivered modest positive returns in 2025, driven by low inflation and robust growth. The Reserve Bank of India’s (RBI) accommodative policy has supported the market, with the central bank pausing its repo rate at 5.50% in October 2025. This pause is seen as a signal for potential easing ahead, as the RBI awaits clarity on global trade headwinds.
Government bond yields have been volatile, initially declining sharply to 6.24% following the RBI’s aggressive easing cycle, but subsequently climbing back to 6.58% by end-September due to elevated government borrowing pressures and supply concerns. The RBI’s front-loaded rate cuts were intended to reduce borrowing costs amid easing inflation, but the bond market’s response was complicated by heavy government borrowing schedules.
Despite the market turbulence, foreign portfolio investors (FPIs) remained net buyers of Indian debt, with cumulative inflows exceeding ₹50,000 crore through September 2025. The consistent FPI appetite for Indian debt helped provide some stability to the market, even as domestic factors created upward pressure on yields.
The key drivers of performance in the Indian fixed income market include monetary easing, low inflation, robust growth outlook, and index inclusions. The RBI cut the policy repo rate from 6.50% in January to 5.50% by August, implementing a cumulative 100 basis points reduction. Headline CPI inflation eased to 2.07% in August, near the lower tolerance band, driven by favourable food and fuel prices.
The macroeconomic backdrop of India exhibits strength, with strong domestic demand, investment activity, and government spending sustaining above-trend GDP expansion. Inflation is stable around 2% despite base effects and supply shocks, granting the RBI policy flexibility. The current account deficit is manageable, supported by moderate oil prices and FPI debt inflows.
However, there are risk factors in the fixed income market, including supply-demand dynamics, global policy uncertainty, and inflation spikes. To navigate these risks, investors can consider dynamic bond funds, duration funds, and corporate bond funds. These funds can tactically adjust portfolio maturity exposure to capitalize on shifting supply-demand conditions driven by government borrowing schedules and index inclusions.
The RBI’s October 1, 2025, policy decision to keep the repo rate unchanged at 5.50% with a neutral stance marks the second consecutive pause after three cuts totalling 100 basis points earlier this year. The governor cited the need to assess the impact of previous policy actions and await greater clarity on trade-related uncertainties before charting the next course. Despite the pause, market expectations suggest the RBI may resume rate cuts in December if downside growth risks materialize and trade uncertainties subside.
City Union Bank invites applications from qualified candidates for the position of Managing Director and Chief Executive Officer.
City Union Bank (CUB), a private sector lender, has announced that it is seeking applications for the position of Managing Director and Chief Executive Officer (MD & CEO). The current MD & CEO, N Kamakodi, is set to retire in May 2026 after completing 15 years in the role. The Reserve Bank of India (RBI) has capped the tenure of MD & CEOs of private banks at 15 years.
To be eligible for the position, candidates must have at least 25 years of experience in the banking industry, with expertise in key areas such as risk management, digital banking, compliance, and technology. Additionally, applicants must be currently working as a whole-time director in a scheduled commercial bank and possess good industry knowledge and people skills.
The appointment will be on a contract basis for a period of three years, subject to approval from the RBI. The candidate’s final remuneration will also be subject to RBI approval. The bank has stated that proficiency in Tamil is highly desirable, as 60% of its operations are conducted from Tamil Nadu.
The last date for submission of applications is November 7, 2025. The bank is looking for an experienced banking professional who can lead the organization and drive its growth and success. The ideal candidate will have a deep understanding of the banking industry, excellent leadership skills, and the ability to navigate the complexities of the financial sector.
The appointment of a new MD & CEO is a significant development for City Union Bank, and the bank is expected to attract a number of talented and experienced candidates for the role. The RBI’s approval will be crucial in the selection process, and the bank will need to ensure that the candidate meets all the necessary criteria and regulations. Overall, the search for a new MD & CEO is an important step for City Union Bank as it looks to the future and continues to grow and evolve as a major player in the Indian banking sector.
City Union Bank Opens Applications for Managing Director and Chief Executive Officer Position, Deadline Set for November 7.
City Union Bank, a private sector bank in India, has announced a recruitment drive for the position of Managing Director (MD) and Chief Executive Officer (CEO). The bank has invited applications for the top role, and the deadline for submission is November 7. This move comes as the bank looks to fill the vacancy created by the retirement of its current MD and CEO.
The recruitment process is expected to be rigorous, with the bank seeking a candidate with a strong track record of leadership and experience in the banking sector. The ideal candidate should have a deep understanding of the Indian banking industry, as well as the ability to drive growth and innovation in a rapidly changing environment.
City Union Bank is one of the oldest private sector banks in India, with a history dating back to 1904. The bank has a strong presence in the southern region of the country, with a network of over 700 branches and more than 1,800 ATMs. The bank offers a range of financial products and services, including savings accounts, loans, credit cards, and investment products.
The MD and CEO role is a critical position, responsible for overseeing the overall strategy and direction of the bank. The successful candidate will be expected to drive business growth, improve operational efficiency, and enhance the bank’s reputation and customer satisfaction. The candidate should also have a strong understanding of risk management, regulatory compliance, and financial reporting.
The bank has not disclosed the qualifications and experience required for the role, but it is likely that the candidate should have a degree in a relevant field, such as finance, accounting, or business administration. The candidate should also have a minimum of 10-15 years of experience in the banking sector, with a proven track record of leadership and achievement.
The recruitment process is expected to be transparent and merit-based, with a panel of experts evaluating the applications and conducting interviews. The bank may also consider internal candidates, as well as external applicants. The successful candidate will be appointed for a fixed term, subject to the approval of the Reserve Bank of India (RBI) and the bank’s board of directors.
Overall, the recruitment of a new MD and CEO is an important development for City Union Bank, and the bank is expected to attract a strong field of candidates. The successful candidate will play a critical role in shaping the bank’s future strategy and direction, and will be responsible for driving growth and success in a highly competitive banking landscape.
To maintain the stability of the provident fund, its managers should take the RBI’s guidance on board and ensure that the fund’s earnings are in sync with its payout obligations.
The Employees’ Provident Fund Organisation (EPFO) has introduced reforms to make it easier for subscribers to access their retirement funds early. The changes allow individuals to withdraw up to 75% of their provident fund (PF) for essential needs, such as illness, education, and marriage, as well as for housing and special circumstances. Additionally, members can now tap their PFs more frequently, with up to 10 withdrawals for education and five withdrawals for marriage-related expenses. The EPFO has also reduced the waiting period for partial PF withdrawals to 12 months of membership.
These reforms aim to provide liquidity to the retirement scheme, acknowledging that individuals may need access to their funds for unforeseen financial needs. The EPFO has clarified that in cases of unemployment, the 25% of the fund held back can be withdrawn after a year of being without pay. This move demonstrates the trust the EPFO has in the judgment of its account holders, allowing them to make decisions about their own money.
The EPFO’s PF scheme offers a higher interest rate than fixed deposits and government bonds, and the returns are tax-free up to a certain limit. However, the fund’s safety and stability depend on sound management, and the EPFO must ensure that its earnings cover its payouts. The Reserve Bank of India (RBI) has flagged concerns about the gap between the EPFO’s high payouts and low debt earnings, which are being funded by sales of capital assets such as equities.
To address this issue, the RBI has suggested an actuarial assessment of liabilities and the use of sophisticated expertise for asset management. The EPFO’s allocation cap on equity may need to be increased to maintain payouts above 8%, but this must be balanced with a focus on safety and transparency. As the EPFO’s reforms aim to provide more flexibility to subscribers, it is essential to ensure that the fund’s management is calibrated to prioritize safety and stability.
The EPFO’s reforms recognize that the primary purpose of the PF scheme is to save for old-age expenses, but also acknowledges that individuals may need access to their funds for other essential needs. By providing more flexibility and liquidity, the EPFO is demonstrating trust in its account holders and allowing them to make informed decisions about their own money. However, it is crucial to ensure that the fund’s management is sound and stable to maintain the trust of its subscribers. With the right management and governance, the EPFO’s reforms can provide a valuable benefit to its subscribers while ensuring the long-term sustainability of the fund.
Reserve Bank of India (RBI) and State Bank of India (SBI) launch awareness drive in Dimapur to reunite citizens with their unclaimed bank deposits.
A district-level awareness campaign was held in Dimapur on Monday to promote the settlement of unclaimed deposits. The event, themed “Your money, your right,” was organized by the Reserve Bank of India (RBI) and the State Bank of India (SBI) as part of a nationwide campaign. The campaign aims to ensure that unclaimed deposits and investments are returned to their rightful owners. Imtijungla Lemtur, EAC Dimapur, chaired the meeting and encouraged participants to spread awareness in their communities to facilitate the process and ensure financial transparency.
The District Lead Manager, Rongsenyangla, highlighted the growing concern of unclaimed deposits and stressed the importance of financial awareness among the public. She explained that many individuals are unaware of dormant or forgotten accounts, matured fixed deposits, unclaimed insurance proceeds, or dividends left unattended due to lack of knowledge or documentation. The ongoing campaign is structured around the three pillars of Awareness, Accessibility, and Action (3 A’s) to make the process of tracing and reclaiming unclaimed funds simple, transparent, and citizen-friendly.
As of August 31, 2025, unclaimed assets in India amounted to INR 1.82 lakh crore. Rongsenyangla urged citizens to take proactive steps in identifying their unclaimed assets and encouraged stakeholders such as village councils, GBs, and community leaders to assist in spreading this vital information. The RBI has launched an online portal, udgam.rbi.org.in, where individuals can check the status of unclaimed deposits.
The campaign is part of the Government of India’s broader efforts to strengthen financial inclusion and literacy through schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), National Strategy for Financial Education (NSFE), National Centre for Financial Education (NCFE), and Financial Literacy Centres (FLCs). The programme was attended by representatives from various sectors, and the organizers hope that it will help raise awareness and facilitate the settlement of unclaimed deposits in the region.
The event emphasized the importance of financial awareness and the need for citizens to take an active role in identifying and reclaiming their unclaimed assets. By providing a platform for awareness and education, the campaign aims to promote financial inclusion and literacy, ultimately benefiting the citizens of Dimapur and the wider community. The success of the campaign will depend on the active participation of stakeholders, including citizens, community leaders, and financial institutions, in spreading awareness and facilitating the settlement of unclaimed deposits.
By 2028, India is projected to rank among the top three global economies, according to Shaktikanta Das.
Former Reserve Bank of India (RBI) governor Shaktikanta Das has predicted that India will become the world’s third-largest economy by 2028. Das made this statement while delivering a lecture on “Indian Economy in a Changing Global Order” at the 31st Annual Convocation of the Gokhale Institute of Politics and Economics (GIPE). He attributed this growth to India’s structural reforms, fiscal discipline, and robust macroeconomic fundamentals.
Das noted that India’s resilience and policy reforms over the past decade have positioned it as a key global growth driver. He highlighted the country’s expanding manufacturing base, driven by initiatives such as Atmanirbhar Bharat and the Production-Linked Incentive (PLI) scheme. Emerging sectors like semiconductors, renewable energy, biotechnology, and green hydrogen are also expected to drive growth. Traditional industries like electronics, auto components, and pharmaceuticals are projected to grow steadily as well.
The services sector, which employs nearly 30% of India’s workforce, remains a key driver of growth and exports. Das credited India’s knowledge-led advantage and large pool of STEM graduates for strengthening the country’s position in technology and digital innovation. He also noted that major infrastructure achievements, such as the expansion of national highways, ports, and inland cargo traffic, have contributed to the country’s growth.
Das praised the Flexible Inflation Targeting (FIT) framework, adopted in 2016, for anchoring inflation expectations, strengthening monetary credibility, and enhancing macroeconomic stability. He also lauded India’s corporate sector for its resilience and balance sheet improvement, supported by reforms such as the Insolvency and Bankruptcy Code (IBC) and RERA.
Das concluded that India is well-positioned to achieve its aspiration of Viksit Bharat by 2047, driven by reform, innovation, and fiscal prudence. He was conferred the Doctor Honoris Causa (Honorary Doctorate) by the GIPE for his contributions to public service and economic policy. The convocation ceremony, which included degree and award distribution, was presided over by GIPE chancellor Sanjeev Sanyal and vice-chancellor Prof Umakant Das. Overall, Das’s prediction suggests that India is on track to become a major economic power in the near future.
DBS Bank India receives approval to act as an Agency Bank for facilitating GST transactions
DBS Bank India has been authorized by the Reserve Bank of India (RBI) to collect Goods and Services Tax (GST) payments as an Agency Bank. This makes it the only wholly-owned subsidiary in India to receive this approval. With this authorization, DBS Bank India will enable customers to make GST payments through its digital banking platform, DBS IDEAL, as well as through NEFT/RTGS or over-the-counter at its branches.
The DBS IDEAL platform will provide customers with instant GST payment advice, real-time transaction status updates, and dedicated client service support. This will help businesses consolidate all commercial and statutory payments and streamline GST compliance. Since the launch of GST in 2017, India’s economy has formalized significantly, with the number of registered taxpayers increasing from 60 lakh to around 1.51 crore in 2025. However, many businesses still face operational challenges, including fragmented approval workflows and manual challan uploads.
DBS Bank India is addressing these pain points by offering a seamless, convenient, and secure payment experience for enterprises. The bank’s digital banking platform will provide businesses with a secure and intuitive platform that delivers real-time visibility, seamless integration, and greater operational efficiency. Customers will benefit from instant payment acknowledgments, real-time transaction tracking, and a consolidated view of all GST payments, enabling proactive monitoring and reducing the risk of missed deadlines and penalties.
Divyesh Dalal, Managing Director and Country Head of Global Transaction Services at DBS Bank India, stated that the bank is focused on making GST compliance seamless and efficient for enterprises. The bank’s commitment to providing intelligent, contextual solutions has earned it recognition as Asia’s Safest Bank by Global Finance for 16 consecutive years. DBS Bank India has also received accolades for its digital leadership, including being named Best Digital Bank for SMEs in India by Euromoney in 2025.
The bank’s authorization to collect GST payments is expected to streamline the process for businesses, providing them with greater accuracy, transparency, visibility, and control. With its robust digital banking platform, DBS Bank India is empowering businesses to meet their GST obligations efficiently and effectively. The bank’s efforts to simplify GST compliance are in line with its commitment to providing innovative and customer-centric solutions to its clients. Overall, DBS Bank India’s authorization to collect GST payments is a significant development that is expected to benefit businesses and contribute to the country’s economic growth.
Over Rs 1.84 lakh crore remains unreclaimed in banks, the RBI, and the IEPF, prompting the government to initiate a large-scale recovery effort
Union Finance Minister Nirmala Sitharaman has launched a campaign to help citizens reclaim their unclaimed financial assets, which amount to a staggering Rs 1.84 lakh crore. The ‘Apki Poonji, Apka Adhikar’ (Your Money, Your Right) campaign aims to create awareness, improve accessibility, and facilitate action to help people regain access to their savings. The unclaimed assets include dormant deposits, insurance proceeds, dividends, mutual fund balances, and pensions, which are currently lying with Indian banks, the Reserve Bank of India (RBI), and the Investor Education and Protection Fund (IEPF).
Sitharaman emphasized that these assets are not just numbers on paper, but represent the hard-earned savings of ordinary families that can support education, healthcare, and financial security. She reassured the public that the assets are safe and that the government is committed to helping citizens reclaim them. The campaign is guided by the “3 A’s” – Awareness, Accessibility, and Action – which will help bridge the gap between citizens and financial institutions, promoting community awareness and ensuring that every individual can reclaim their rightful savings with dignity and ease.
To facilitate the claims, the government has introduced digital tools, including the RBI’s UDGAM portal, which allows citizens to access information and claim their unclaimed deposits. Sitharaman urged citizens not to ignore even small entitlements and to come forward to claim their assets. She also acknowledged the support of Prime Minister Narendra Modi and commended the efforts of Gujarat Gramin Bank, which has committed to visiting every village in the state to locate and inform rightful owners of unclaimed deposits.
The campaign is part of the government’s drive towards financial inclusion and asset recovery, and it is expected to benefit thousands of citizens who have unclaimed assets lying with financial institutions. Sitharaman emphasized the importance of spreading awareness about the campaign and encouraging citizens to come forward to claim their assets. With the help of this campaign, the government hopes to ensure that every rupee saved by Indian citizens returns to them or their families, and that no one is left behind in accessing their rightful savings.
Companies in the Services and Infrastructure Sector Express Cautious Optimism Despite Challenges
The Reserve Bank of India (RBI) has released the results of its 46th Services and Infrastructure Outlook Survey (SIOS) for the second quarter of the financial year 2025-26. The survey aims to gauge the mood and outlook of companies operating in the services and infrastructure sectors, which are vital to India’s economy. Despite ongoing cost pressures, companies in both sectors remain cautiously optimistic about the business environment, anticipating steady demand growth in the near term.
The survey covers key sectors such as IT, hospitality, retail, and transport in the services sector, and construction, power, telecom, and other critical facilities in the infrastructure sector. While rising input costs and inflationary challenges are putting pressure on profit margins, firms are confident that they can manage these challenges without hindering overall growth prospects.
The survey reveals that a majority of firms expect moderate to strong demand in the coming months, which is expected to support increased output and potential hiring. Both sectors have shown positive signs of investment activity plans, indicating confidence in long-term growth and expansion despite short-term challenges.
The optimistic outlook of services and infrastructure firms is a positive indicator for the broader economic recovery and stability in India, given that these sectors are key drivers of the country’s GDP and employment. While cost pressures remain a concern, the resilience and positive expectations among firms in these sectors highlight a promising path forward.
The survey’s findings suggest that India’s economy is poised for growth, driven by the services and infrastructure sectors. The RBI’s survey provides valuable insights into the mood and outlook of companies operating in these sectors, which can inform policy decisions and investment strategies. Overall, the survey’s results are a positive sign for India’s economic prospects, and businesses and investors can take note of the opportunities and challenges that lie ahead.
DBS Bank India has been officially designated as an approved Agency Bank, enabling it to facilitate GST payments.
DBS Bank India has been authorized by the Reserve Bank of India (RBI) to collect Goods and Services Tax (GST) payments, making it the only wholly-owned subsidiary in India to receive this approval. This authorization enables DBS Bank India to provide a seamless and secure payment experience for enterprises through its digital banking platform, DBS IDEAL. With this platform, customers can instantly effect GST payments, download GST payment advice, and receive real-time transaction status updates.
In addition to IDEAL-based payments, customers can also make GST payments through NEFT/RTGS or over the counter at the bank’s branches. This offering allows customers to consolidate all commercial and statutory payments, streamlining GST compliance through a robust digital banking platform. Since the launch of GST in 2017, India’s economy has become more formalized, with a significant increase in registered taxpayers. However, many businesses still face operational challenges, such as fragmented approval workflows, manual challan uploads, and time-intensive reconciliations.
DBS Bank India is addressing these pain points by offering a convenient and secure payment experience for enterprises. The bank’s digital banking platform provides real-time visibility, seamless integration, and greater operational efficiency, enabling businesses to manage their statutory obligations effectively. With instant payment acknowledgements, real-time transaction tracking, and a consolidated view of all GST payments, customers can proactively monitor their payments and reduce the risk of missed deadlines and penalties.
The bank’s Managing Director and Country Head, Divyesh Dalal, stated that GST compliance is a key priority for enterprises, and DBS Bank India is committed to making the process seamless and efficient. By integrating GST payments within DBS IDEAL, the bank provides businesses with a secure and intuitive platform that delivers greater accuracy, transparency, and control. This offering reflects the bank’s commitment to providing intelligent, contextual solutions that help enterprises manage their statutory obligations effectively.
Overall, DBS Bank India’s authorization to collect GST payments and its digital banking platform have streamlined the payment process for businesses, providing a secure, convenient, and efficient way to manage their GST obligations. With its robust platform and commitment to providing intelligent solutions, DBS Bank India is empowering businesses to meet their GST obligations and reduce the risk of operational challenges.
India’s March Towards Global Monetary Relevance: The Rupee Story
The concept of a global Rupee refers to the increasing internationalization of the Indian currency, allowing it to be used as a medium of exchange, unit of account, and store of value across the globe. This idea is closely tied to the India Narrative, which encompasses the country’s economic growth, geopolitical influence, and cultural prominence on the world stage.
India’s economy has been growing rapidly, with the country expected to become the third-largest economy by 2030. This growth, coupled with the government’s efforts to promote the Rupee as a global currency, has led to increased interest in the internationalization of the Rupee. The Reserve Bank of India (RBI) has taken steps to facilitate the use of the Rupee in international transactions, such as allowing foreign central banks to hold Rupee reserves and permitting Indian banks to open foreign currency accounts.
The internationalization of the Rupee has several benefits, including reduced dependence on the US dollar, increased trade and investment, and enhanced economic stability. It also reflects India’s growing geopolitical influence, as the country seeks to play a more significant role in global affairs. The use of the Rupee as a global currency can also promote Indian culture and values, as it becomes more integrated into the global economy.
However, there are also challenges to the internationalization of the Rupee, such as the need for a more developed financial system, improved regulatory frameworks, and increased liquidity in the foreign exchange market. Additionally, the Rupee’s volatility and inflation concerns may deter foreign investors and hinder its adoption as a global currency.
Despite these challenges, the Indian government and the RBI are working to promote the Rupee as a global currency. They are exploring new avenues, such as the use of digital currencies and blockchain technology, to increase the Rupee’s appeal and usability. The government is also engaging with foreign governments and institutions to promote the use of the Rupee in international transactions.
In conclusion, the road to a global Rupee is a complex and challenging journey, but one that has the potential to enhance India’s economic and geopolitical influence. As the Indian economy continues to grow and the government promotes the Rupee as a global currency, it is likely that the Rupee will play a more significant role in international transactions in the coming years. The India Narrative, which encompasses the country’s economic, cultural, and geopolitical aspirations, is closely tied to the internationalization of the Rupee, and its success will depend on the government’s ability to address the challenges and opportunities that lie ahead.
Kotak811 surpasses SBI Yono, securing the 3rd spot globally in terms of banking app downloads for the first half of 2025, according to a report by Firstpost.
Kotak811, a digital banking brand launched by Kotak Mahindra Bank in 2017, has achieved significant success, ranking third globally in banking app downloads in the first half of 2025, according to Sensor Tower. With over 16 million downloads, Kotak811 has experienced a 250% year-on-year surge, the fastest growth for any banking app globally during the period. This growth is notable, given the RBI’s restrictions that barred the bank from onboarding new digital customers until February 12.
Kotak811’s success can be attributed to its low-cost airline-style model, offering zero-balance accounts with optional paid add-ons like debit cards and cheque books. The platform serves 2.6 crore fully KYC-compliant savings account holders, who enjoy access to all branch-level facilities. Kotak811 functions as a digital financial marketplace, offering savings, UPI and IMPS payments, mutual funds, insurance, and credit cards within the Kotak ecosystem.
While SBI’s Yono app leads in overall install base and usage, backed by its 50 crore-strong customer base, Kotak811 has broadened its reach to upper-middle-class and affluent customers. The bank offers 811 Super for the mass-affluent segment, which already serves over 10 lakh customers. Kotak811’s success highlights the contrast with fintech models, as only banks like Kotak can deliver end-to-end digital banking under a regulated framework.
The global digital banking surge, as noted by Sensor Tower, reflects a shift toward mobile-first banking in markets where many still lack access to traditional branches. Neobanking apps are helping expand financial inclusion in countries like Brazil, India, Mexico, and Colombia by offering low-cost, branchless services. Consumer banking apps surpassed 2 billion global downloads in the 12 months to June 2025, a 5.1% annual rise, with roughly 500 million downloads each quarter. Mobile apps are now the go-to platform for financial services, and banking apps are leading the shift, setting the pace for digital transformation across the industry.
In the Indian market, despite Kotak811’s success, consumers still rely heavily on payment apps like PhonePe, Google Pay, and Paytm for daily transactions. However, Kotak811’s regulated framework and bank-manufactured products offer credibility, regulatory stability, and scalability, making it a full-fledged financial marketplace. As the digital banking landscape continues to evolve, Kotak811’s success demonstrates the potential for traditional banks to adapt and thrive in a mobile-first world.
Axis Bank: Reevaluation underway for potential sale of stake in Axis Finance subsidiary
Axis Bank is reevaluating its plans to sell a stake in its non-banking subsidiary Axis Finance due to uncertainty surrounding the Reserve Bank of India’s (RBI) upcoming “forms of business” circular. Potential investors have expressed interest in the transaction but are seeking regulatory clarity before making valuations. The bank had previously committed to the RBI that it would not infuse additional capital into Axis Finance and was exploring a strategic sale to private equity investors, with a potential initial public offering (IPO) at a later stage.
The RBI’s draft guidelines, issued last October, have restricted bank subsidiaries from undertaking core lending activities and discouraged duplication of businesses between banks and their non-banking financial company (NBFC) arms. This has weighed on valuations of bank subsidiaries, including Axis Finance. The company offers products such as gold loans, loans against property, and two-wheeler loans, which are also offered by Axis Bank.
In July, global private equity giants, including Blackstone, Advent, EQT, and Kedaara, expressed interest in acquiring a 20% stake in Axis Finance. However, the sector has seen valuation headwinds, with HDB Financial Services recently listing at a steep discount of nearly 40% lower than its price in the unlisted market. Axis Bank’s CEO, Amitabh Chaudhry, had stated that the bank is committed to raising capital for Axis Finance, which will need a couple of thousand crores over the next few years.
The RBI’s “forms of business” circular is expected to be finalized soon, according to RBI Governor Sanjay Malhotra. The circular’s clarity will be crucial in determining the valuation of Axis Finance and the potential sale of a stake in the company. Axis Bank is waiting for greater clarity on the circular before proceeding with the transaction. The bank’s commitment to the RBI and the need for regulatory clarity have made it challenging for potential investors to firm up valuations, leading to a reassessment of the plans to sell a stake in Axis Finance.
As a trusted news source, it is essential to stay updated on the developments surrounding Axis Bank and Axis Finance. The company’s plans to raise capital and the potential sale of a stake in the subsidiary will be closely watched by investors and industry experts. The RBI’s “forms of business” circular will play a crucial role in determining the fate of Axis Finance and the broader banking sector.
Your loan repayments might get cheaper sooner: RBI alters interest rate regulations, effective October 2
The Reserve Bank of India (RBI) has introduced significant changes to its interest rate policies, allowing banks to reduce interest rates on floating rate loans more frequently. Previously, banks were restricted from modifying certain spread components for a period of three years. However, with the new amendments, effective as of Wednesday, banks will have greater flexibility to reduce non-credit-risk components of the loan spread before the three-year lock-in period.
This change is expected to benefit borrowers by passing on rate cuts faster. The RBI’s 2016 directions on interest rates for retail, personal, and micro, small, and medium enterprises (MSMEs) loans have been amended to allow for more frequent reductions in interest rates. Additionally, borrowers will have the option to switch to fixed-rate loans at the time of reset, a provision that was first introduced in 2023.
In addition to the interest rate changes, the RBI has also relaxed lending norms for jewellers. Banks will now be able to extend working capital loans against bullion to manufacturers using gold as raw material, including urban co-operative banks in tier-3 and tier-4 cities. This move is expected to expand access to credit for jewellers and increase liquidity in the sector.
The RBI has also eased capital-raising rules for banks. Perpetual debt instruments (PDIs) issued overseas in foreign or rupee-denominated bonds can now be included as part of a bank’s Additional Tier 1 (AT1) capital, up to 1.5% of risk-weighted assets. This is an increase from the previous limit of 49% of the eligible amount.
The central bank has also released four draft circulars for comment, which pertain to gold metal loans, the large exposures framework, intragroup exposures, and credit information reporting. These draft circulars will be open for comment until October 20. Overall, the RBI’s changes aim to provide greater flexibility to lenders while benefiting borrowers, and are expected to have a positive impact on the banking and financial sector.
India’s banks to remain shut for a week during Durga Puja festivities, following a nationwide holiday schedule
Banks in various Indian cities are closed on September 29, 2025, to observe Maha Saptami, a significant day in the Durga Puja festival. This marks the beginning of a seven-day period where banks will be shut in different parts of the country due to religious festivals and national holidays. The Reserve Bank of India (RBI) has released a schedule outlining the bank holidays from September 29 to October 5.
On September 29, banks in Kolkata, Agartala, and Guwahati are closed for Maha Saptami. The next day, September 30, banks in several cities, including Agartala, Bhubaneswar, Guwahati, Imphal, Jaipur, Kolkata, Patna, and Ranchi, will be closed for Maha Ashtami or Durga Ashtami. On October 1, 16 cities, including major metros like Bengaluru, Chennai, and Kolkata, will observe a bank holiday for Navratri End, Maha Navami, Dussehra, Vijayadasami, or Durga Puja.
October 2 is a pan-India holiday, with all banks closed to commemorate Mahatma Gandhi Jayanti, Dasara, Vijaya Dashami, or Dussehra. The following days, October 3 and 4, will see banks closed in Gangtok for Durga Puja. Finally, on October 5, banks will be closed nationwide for the weekly Sunday off.
Despite these closures, the RBI has assured that online banking, mobile banking, ATMs, and UPI services will continue to operate during the holiday period. Additionally, banks will also be closed on the second and fourth Saturdays of each month. The month of October will see further closures due to festivals like Diwali and Chhath Puja. It is essential for customers to plan their banking activities accordingly and take advantage of the available digital services during the holiday period.
Saturday, September 27, is a bank holiday: Will banks be closed today?
Today is a bank holiday in India, with all banks, including the State Bank of India (SBI), remaining closed. This is in line with the Reserve Bank of India’s (RBI) holiday schedule, which includes the second and fourth Saturdays of each month and all Sundays. As a result, banks will be closed today, September 27, and tomorrow, September 28, for the weekend.
The RBI has released the full bank holiday schedule for September 2025. Some of the notable holidays include September 18, when all private and public banks in Shillong will be closed for the Unitarian Anniversary Day; September 22, when banks in Jaipur will be shut for Navratra Sthapna; and September 23, when banks in Jammu and Srinagar will be closed for the birthday of Maharaja Hari Singh Ji.
Additionally, there will be bank holidays on September 29 and 30 in several cities, including Agartala, Kolkata, and Guwahati, for Maha Saptami and Maha Ashtami/Durga Ashtami, respectively. Sundays, September 7, 14, 21, and 28, are also bank holidays, as are the second and fourth Saturdays, September 13 and 27.
In case of emergencies when banks are closed, customers can use online or mobile banking services, unless notified otherwise. ATMs are also open for withdrawals, and app and UPI services function as usual. The RBI and state governments create a list of holidays for banks, taking into account national and local occasions, operational requirements, religious celebrations, and other cultural observances.
It is essential for customers to be aware of the bank holiday schedule to plan their financial transactions accordingly. The RBI announces the holiday schedule through its official website and notifications to banks and other financial institutions. By checking the schedule in advance, customers can avoid any inconvenience caused by bank closures and make necessary arrangements for their financial needs.
India’s banking sector saw a significant surge, with loans increasing by 23.7 percent over a two-week period ending July 20, according to a report by Reuters.
According to a report by Reuters, Indian bank loans have seen a significant increase of 23.7% in just two weeks, up to July 20. This surge in lending activity is a positive indication for the Indian economy, suggesting a potential pickup in economic growth.
The data, which was released by the Reserve Bank of India (RBI), showed that outstanding loans from commercial banks rose to 133.44 trillion rupees ($1.73 trillion) as of July 20, compared to 107.83 trillion rupees ($1.40 trillion) in the corresponding period last year. This represents a substantial increase of 23.7% year-on-year.
The growth in loans was driven by a combination of factors, including increased demand from consumers and businesses, as well as the RBI’s efforts to boost lending through monetary policy measures. The central bank has been taking steps to stimulate economic growth, including cutting interest rates and providing liquidity to the banking system.
The surge in lending activity is a welcome sign for the Indian economy, which has been facing challenges in recent times. The country’s economic growth had slowed down in the previous fiscal year, and there were concerns about the impact of the COVID-19 pandemic on the economy. However, the latest data suggests that the economy may be starting to recover, driven by increased lending and spending.
The growth in loans was seen across various sectors, including personal loans, home loans, and loans to small and medium-sized enterprises (SMEs). This suggests that consumers and businesses are becoming more confident about the economic outlook and are taking on more debt to finance their activities.
Overall, the 23.7% growth in Indian bank loans in two weeks to July 20 is a positive development for the Indian economy. It suggests that the economy may be starting to recover, driven by increased lending and spending. However, it is important to note that the sustainability of this growth will depend on various factors, including the ongoing impact of the pandemic and the government’s policy responses.
Bank organizes camp to boost awareness and accessibility of central government’s financial inclusion initiatives
HDFC Bank, one of India’s leading private sector banks, organized a Financial Inclusion Saturation Campaign, which saw the participation of over 300 customers. The event aimed to increase the reach of various flagship government schemes, including the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY). This initiative is part of a three-month nationwide Financial Inclusion Campaign launched by the Department of Financial Services, which began on July 1 and will continue until September 30.
The campaign was attended by several senior officials, including Vivek Srivastava, Regional Director of the Reserve Bank of India (RBI) in Chandigarh, Pankaj Setiya, General Manager of the RBI, and Lalit Batra, Executive Vice-President of HDFC Bank. The event provided an opportunity for customers to enroll in the government schemes and also included awareness sessions on important topics such as ReKYC (Periodic updating of Know Your Customer) services and digital fraud prevention.
The awareness sessions focused on educating participants about safe digital banking practices to protect themselves from cyber frauds. By conducting these sessions, HDFC Bank aimed to empower customers with the knowledge necessary to navigate the digital banking landscape securely. The campaign is a significant step towards promoting financial inclusion and digital literacy among the population, aligning with the government’s initiatives to increase access to banking services and promote a more financially inclusive society.
The participation of senior officials from the RBI and HDFC Bank underscored the importance of collaboration between government agencies, regulatory bodies, and private sector banks in promoting financial inclusion. The event highlighted the commitment of HDFC Bank and the RBI to supporting the government’s initiatives and working together to achieve the goal of a more financially inclusive India. By organizing such campaigns, HDFC Bank is playing a crucial role in promoting financial literacy, digital banking, and access to government schemes, ultimately contributing to the country’s economic growth and development.
Over 29,000 competitors from Rajasthan gather for the fifth annual AU Bano Champion sports tournament, a village-level competition held in Jaipur
AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank, has successfully concluded the fifth edition of the AU Bano Champion Village-Level Sports tournament in Jaipur. The tournament saw participation from over 29,000 athletes from 60 locations, showcasing remarkable enthusiasm and emerging sporting talent. The AU Bano Champion program is a strategic CSR initiative of AU SFB aimed at nurturing a sporting culture across 75 rural and semi-urban regions of Rajasthan.
The program is designed to encourage youth participation, promote discipline and skill development, and provide structured training opportunities. Over the past editions, the initiative has produced more than 480 athletes who have gone on to represent at state and national levels. The closing ceremony was attended by bureaucrats, local authorities, and dignitaries, who commended AU Small Finance Bank’s efforts in driving community development through sports.
AU Small Finance Bank has recently received in-principle approval from the Reserve Bank of India (RBI) to transition into a Universal Bank. The bank has built a diversified retail banking model, offering services across deposits, loans, credit cards, investments, and insurance, supported by digital innovations. AU SFB has a wide network of 2,505 banking touchpoints across 21 States and 4 Union Territories, enabling service to more than 1.15 crore customers, powered by a workforce of 53,000+ employees.
The AU Bano Champion program is a testament to AU SFB’s commitment to community development and promoting sporting talent in rural and semi-urban areas. The program has been successful in identifying and nurturing young talent, providing them with opportunities to represent at state and national levels. The bank’s efforts in driving community development through sports have been recognized and appreciated by bureaucrats, local authorities, and dignitaries.
In conclusion, the fifth edition of the AU Bano Champion Village-Level Sports tournament was a resounding success, with over 29,000 athletes participating from 60 locations. The program has been successful in promoting sporting talent and community development in rural and semi-urban areas, and AU SFB’s commitment to this initiative is commendable. The bank’s transition into a Universal Bank is expected to further enhance its ability to serve its customers and promote community development.
Insurance companies aim for reliability in the bidding process for government debt securities.
Insurance companies in India have requested the Reserve Bank of India (RBI) to release a more predictable calendar for state development loan (SDL) auctions. This move is aimed at enabling fund managers to effectively plan their allocation and reduce disruptions in the government securities (G-Sec) market. Market participants have suggested that the SDL calendar be aligned with the central government’s borrowing schedule to avoid overlapping maturities, which are currently creating issues in the G-Sec market.
The bunching of long-tenor SDLs has been crowding out demand for G-Secs, making it challenging for investors to plan their portfolios. To address this, investors have proposed that states issue long bonds during weeks when similar tenured G-Secs are not being offered. This would help to smoothen the supply of SDLs and prevent volatility in the state debt auction from spilling over into the broader bond market.
The RBI has informally encouraged states to stagger their maturities in line with the G-Sec auction schedule to ease pressure. However, the central bank does not have direct authority over state borrowing plans. Despite this, insurers have provided feedback to align SDL supply better to protect G-Sec market stability.
The issue of unpredictable SDL auctions has been a concern this year, with state borrowings differing from the notified amount in the calendar. This has led to a spike in yields, with the 10-year yield for SDLs standing at 7.29% compared to the 10-year G-Sec yield of 6.47%. The yield spread between 10-year SDLs and G-Secs has narrowed to 56 basis points, but higher issuance could widen the spread again.
In the fiscal year so far, gross borrowing by state governments has increased by 26% to ₹4,41,700 crore. The RBI is expected to release the second half borrowing calendar for state and central government securities on September 26. The central bank governor has also urged state finance secretaries to follow fiscal discipline and manage off-budget borrowings to ensure stability in the market. As a reliable and trusted news source, it is essential to monitor developments in the SDL market and their impact on the broader bond market.
September 23 Bank Holiday Alert: Will banks be closed to observe Maharaja Hari Singh’s birthday – find out the full schedule
Today, September 23, is a bank holiday in Jammu and Srinagar, in the union territory of Jammu & Kashmir, as the region celebrates the birthday of Maharaja Hari Singh Ji, the last ruling monarch of Jammu & Kashmir. All public and private banks in these areas will be closed. However, it’s not a pan-India holiday, so banks in other parts of the country will remain open.
In India, banks are closed on holidays mandated by the Reserve Bank of India (RBI), which include the second and fourth Saturdays of each month and all Sundays. This means that banks will also be closed on September 27 and 28, which are the fourth Saturday and Sunday of the month.
If you have a banking emergency on a day when banks are closed, you can still use online or mobile banking services, unless there is a technical issue or other reason for downtime. Additionally, ATMs will still be available for withdrawals, and digital payment methods like UPI will function as usual.
The RBI and state governments create a list of holidays for banks, taking into account national and local occasions, operational requirements, and cultural observances. The central bank announces these holidays on its official website and notifies banks and other financial institutions. It’s always a good idea to check with your bank or the RBI website to confirm holiday schedules and plan your banking activities accordingly.
It’s worth noting that while banks may be closed on certain days, digital banking services and ATMs provide a convenient alternative for people to manage their finances and access cash when needed. This can help minimize disruptions and ensure that essential banking services are always available. Overall, today’s bank holiday in Jammu and Srinagar is a regional celebration, and banks in other parts of the country will continue to operate as usual.
Bank of Baroda slashes lending rates: 5 major banks, including BoB, cut EMIs in September 2025, making loans more affordable – The Economic Times
As of September 2025, several major banks in India have reduced their lending rates, paving the way for lower Equated Monthly Installments (EMIs) for borrowers. According to a report by The Economic Times, at least five banks have cut their lending rates, providing relief to home loan and personal loan customers.
One of the banks that has reduced its lending rates is the Bank of Baroda. The Bank of Baroda has lowered its Marginal Cost of Funds Based Lending Rate (MCLR) across various tenors, which will lead to a decrease in the interest rates on loans such as home loans, auto loans, and personal loans.
Other banks that have reduced their lending rates include the State Bank of India (SBI), ICICI Bank, HDFC Bank, and Axis Bank. The reduction in lending rates is expected to make borrowing more affordable for customers and provide a boost to the economy.
The cut in lending rates is also expected to increase credit demand, as lower interest rates will make loans more attractive to borrowers. This, in turn, can lead to an increase in consumer spending and investment, which can have a positive impact on the overall economy.
The reduction in lending rates by these banks is seen as a-move to pass on the benefits of the lower policy rates to the customers. The Reserve Bank of India (RBI) had earlier reduced the policy rates to stimulate economic growth.
The lowering of lending rates by these banks is a welcome move for borrowers, as it will lead to lower EMIs and reduced interest burden. However, it is essential for borrowers to review their loan agreements and terms to understand the impact of the reduced lending rates on their loans.
In conclusion, the reduction in lending rates by major banks in India, including the Bank of Baroda, is a positive development for borrowers. With lower lending rates, borrowers can expect lower EMIs and reduced interest burden, making borrowing more affordable. As the economy continues to evolve, it will be interesting to see how these changes impact the banking and financial sectors.
RBI Rate Cut Expected in September, According to SBI Research Forecast – BW Businessworld
According to a report by SBI Research, the Reserve Bank of India (RBI) is likely to cut interest rates in its September policy meeting. The research firm predicts that the RBI will reduce the repo rate by 25 basis points to 5.15%. This move is expected to provide a boost to the economy, which has been experiencing a slowdown.
The SBI Research report cites several factors that support a rate cut, including a decline in inflation, a slowdown in economic growth, and a reduction in crude oil prices. The report also notes that the RBI has been maintaining a accommodative monetary policy stance, which suggests that the central bank is willing to take measures to support economic growth.
The report states that the RBI’s decision to cut interest rates will depend on various factors, including the inflation trajectory, the growth outlook, and the global economic scenario. However, the research firm believes that a rate cut is likely, given the current economic conditions.
A rate cut by the RBI would have a positive impact on the economy, as it would reduce borrowing costs for consumers and businesses. This could lead to an increase in consumption and investment, which would help to boost economic growth. Additionally, a rate cut would also help to reduce the burden on borrowers, who have been facing high interest rates in recent times.
The SBI Research report also notes that the RBI’s decision to cut interest rates would be in line with the actions taken by other central banks around the world. Many central banks, including the US Federal Reserve, have been cutting interest rates in recent times to support economic growth.
Overall, the SBI Research report suggests that a rate cut by the RBI in its September policy meeting is likely, given the current economic conditions. The report predicts that the RBI will reduce the repo rate by 25 basis points to 5.15%, which would provide a boost to the economy and help to support economic growth. However, the final decision would depend on various factors, including the inflation trajectory, the growth outlook, and the global economic scenario.
It’s worth noting that the report is based on the analysis of the current economic conditions and the RBI’s previous actions, and the actual decision of the RBI may differ. The RBI’s September policy meeting is expected to be closely watched by market participants, as it would provide clues about the future direction of monetary policy in India.
The Reserve Bank of India sets up a regulatory review cell, as reported by Asian Banking & Finance.
The Reserve Bank of India (RBI) has established a regulatory review cell to streamline and simplify regulatory instructions. This move is aimed at making it easier for banks and other financial institutions to comply with regulations. The cell will review and refine existing regulations, removing redundant or obsolete ones, and make them more effective.
The RBI has been working to improve the regulatory framework for the banking sector, and the establishment of the regulatory review cell is a significant step in this direction. The cell will be responsible for reviewing existing regulations, identifying areas where simplification is possible, and making recommendations for changes.
The regulatory review cell will also be responsible for ensuring that regulatory instructions are consistent with the RBI’s policies and guidelines. This will help to reduce confusion and uncertainty among banks and other financial institutions, making it easier for them to comply with regulations.
The establishment of the regulatory review cell is part of the RBI’s efforts to improve the ease of doing business in the banking sector. The RBI has been taking several steps to simplify regulations and reduce compliance burden on banks, including the introduction of a simplified regulatory framework for small banks and non-banking financial companies.
The regulatory review cell will also help to promote transparency and accountability in the banking sector. By streamlining regulatory instructions and making them more effective, the cell will help to reduce the risk of regulatory arbitrage and promote a level playing field among banks and other financial institutions.
The RBI’s decision to establish a regulatory review cell has been welcomed by the banking industry, which sees it as a positive step towards simplifying regulations and improving the ease of doing business. The cell is expected to play a crucial role in promoting the growth and stability of the banking sector, and its establishment is a significant milestone in the RBI’s efforts to improve the regulatory framework for the sector.
Overall, the establishment of the regulatory review cell is a significant development in the Indian banking sector, and it is expected to have a positive impact on the sector’s growth and stability. By streamlining regulatory instructions and promoting transparency and accountability, the cell will help to improve the ease of doing business in the sector and promote a level playing field among banks and other financial institutions.
Regulatory Framework for Online Lending Platforms as per RBI Directives in 2025
The Reserve Bank of India (RBI) has introduced new rules, known as the Digital Lending Directions, 2025, to regulate the growing digital lending industry in India. These rules aim to protect borrowers from issues such as hidden fees, high interest rates, data misuse, and fake loan apps. The rules apply to all banks, non-banking financial companies, co-operative banks, housing finance companies, and lending service providers that operate in the digital lending space.
Key aspects of the new rules include the requirement for lenders to sign official contracts with digital partners, ensuring that loan money is disbursed directly to the borrower’s bank account, and that all charges are declared upfront. Lenders must also obtain explicit consent from borrowers before increasing their loan amount or credit limit. Additionally, the rules emphasize the importance of protecting borrowers’ personal data, allowing them to opt-out of data sharing and delete their data later.
The rules also introduce a complaint redressal system, requiring all digital lenders to have a Grievance Officer and providing borrowers with multiple channels to raise complaints. The RBI has also launched a new reporting tool, the Centralised Information Management System (CIMS), to track and prevent fake loan apps.
Borrowers are advised to ensure that the lender they choose is registered with the RBI, provides a loan agreement before disbursing the loan, and does not ask for unnecessary personal data. They should also be aware of all charges and interest rates associated with the loan and have access to the Grievance Officer’s contact information.
The new rules aim to bring transparency, accountability, and fairness to the digital lending industry, protecting borrowers from fraud and misuse. By following these rules, lenders and digital apps can help build trust in India’s growing digital loan space. Overall, the Digital Lending Directions, 2025, mark a significant step towards regulating the digital lending industry and promoting a safer and more secure borrowing experience for Indians.
The RBI governor instructs CCIL to expand its focus beyond just rupee-dollar transactions.
RBI Governor Sanjay Malhotra has urged the Clearing Corporation of India (CCIL) to expand its services beyond dollar-rupee trades. In a speech at CCIL’s silver jubilee event, Malhotra emphasized the need for CCIL to create settlement infrastructure for other currency pairs, which would help deepen markets and internationalize the rupee. He noted that this is in line with the broader objective of internationalizing the Indian rupee (INR).
Malhotra commended CCIL’s entry into Gift City and expressed his hope that the services and products offered there would continuously improve and expand. He outlined several expectations for the institution, including scaling up its forex platform, which currently handles $95 million in daily trades. To achieve this, he suggested that CCIL should review and optimize its risk processes, and provide better access through banks and mobile solutions.
The governor also emphasized the need for CCIL to keep up with global trends and embrace new technologies such as algorithmic and AI/ML-driven trading, tokenization of assets, peer-to-peer platforms, and mobile apps. He stressed that CCIL should provide a world-class experience, world-class facilities, and world-class risk management to maintain the trust it has built.
Furthermore, Malhotra called for wider participation in CCIL’s platforms, including corporates and non-resident investors, which would enhance market liquidity and add to overall efficiencies. He also sought stronger trade repository systems with automation, anomaly detection, and compliance checks.
CCIL, which is jointly owned by banks, financial institutions, and the RBI, plays a crucial role in supporting the rupee’s global push by acting as the central counterparty for clearing and settlement in government securities, money, forex, and derivatives markets. By expanding its services and embracing new technologies, CCIL can help deepen markets and increase the rupee’s international presence. Overall, Malhotra’s speech highlighted the importance of CCIL’s role in India’s financial system and the need for the institution to innovate and expand its services to support the country’s economic growth.
South Indian Bank Introduces UPI-Based GST Payment Facility
The Indian government has introduced two significant changes related to Goods and Services Tax (GST) that are expected to benefit taxpayers and policyholders. South Indian Bank has launched a UPI-based GST payment service, allowing taxpayers to pay their GST using the Unified Payments Interface (UPI). This service enables taxpayers to make secure and effortless payments from anywhere, either by scanning a QR code or inputting a Virtual Payment Address (VPA).
The bank, which is approved by the Reserve Bank of India (RBI) as an Agency Bank, was previously accepting GST payments through internet banking and at bank branches. The introduction of UPI-based payments is expected to make it easier for taxpayers to pay their GST, and the bank’s Head of Branch Banking, Biji SS, stated that UPI is the most preferred mode of payment today.
In addition to the new payment service, insurers are also working on methods to pass on the benefit of the recent GST cut on life and health insurance policies. The GST on premiums for individual life and health insurance policies has been reduced to zero, which means that insurers can no longer avail input tax credit. Insurers will need to adjust their pricing to align with the absence of input tax credit, and it is expected that the benefit of the GST cut will be passed on to consumers, although the extent of the benefit is still to be determined.
Edme Insurance Brokers Ltd. commented that the reduction of GST on premiums will likely lead to more people buying health and life insurance cover. The company’s Chief Human Resources Officer, Jonika Jain, stated that the GST cut will depend on how insurers adjust their pricing, and the entire benefit may not be passed on to consumers. However, the company is planning to expand its operations, including doubling its workforce to 1,000 in five years, and is also planning expansion in the UAE, UK, and Singapore.
Overall, these developments highlight the impact of the GST changes on businesses and consumers. The UPI facility from South Indian Bank provides easier tax payment options, while the GST reductions are expected to lead to increased demand for health and life insurance cover. As the insurance industry adjusts to the new GST rates, consumers can expect to see changes in pricing and potentially more affordable insurance options.
Indian states urged by central bank to diversify borrowing periods, according to sources
The Reserve Bank of India (RBI) has advised state governments to adopt a more strategic approach to borrowing, in light of the record 12 trillion rupees ($135.95 billion) they are set to borrow in fiscal 2026. The central bank has suggested that states spread their borrowings across different tenures, rather than focusing on long-term bonds, which have seen yields rise by 30-60 basis points so far this year. This surge in yields has disrupted markets and led to concerns among investors.
In a meeting with state government officials, the RBI recommended that states stick to their indicated borrowing calendar as much as possible, rather than borrowing more or less than planned. This would help to reduce uncertainty and volatility in the market. The central bank also encouraged states to reissue existing securities, rather than issuing new bonds at every weekly auction. This would increase trading volumes in the secondary market and improve liquidity, making it easier for investors to exit their positions.
The RBI’s advice is motivated by concerns that several large banks are nearing their internal limits for state debt investments. If states continue to issue new bonds without reissuing existing securities, it could lead to a decrease in demand from banks and other investors, forcing them to hold these securities till maturity. This could limit their appetite for fresh purchases and disrupt the market further.
State governments have been criticized for their ad-hoc approach to market borrowing, which can lead to exorbitant borrowing costs and mark-to-market losses. The RBI’s guidance is aimed at promoting a more disciplined and transparent approach to borrowing, which would help to maintain stability in the market and reduce the risk of disruption. By spreading their borrowings across different tenures and sticking to their indicated borrowing calendar, states can help to reduce uncertainty and volatility, and create a more favorable environment for investors.
India’s top investigative agency files charges against Anil Ambani and ex-Yes Bank CEO in connection with alleged loan scam, reports Reuters
The Central Bureau of Investigation (CBI) has filed chargesheets against several high-profile individuals, including Anil Ambani, the chairman of the Reliance Group, and Rana Kapoor, the former CEO of Yes Bank, in connection with an alleged loan fraud case. The case involves a corruption scandal worth ₹2,796 crore (approximately $390 million). The CBI has accused Ambani and Kapoor of conspiring to cheat and defraud Yes Bank, which is one of India’s largest private sector banks.
According to the CBI, Ambani’s companies, including Reliance Infrastructure and Reliance Power, took large loans from Yes Bank, which were not repaid. The agency alleges that Kapoor, who was the CEO of Yes Bank at the time, colluded with Ambani to extend the loans without proper due diligence, and also allegedly took bribes from Ambani’s companies. The CBI has also charged several other Yes Bank officials, including former CFOs and senior executives, in connection with the case.
The alleged scam is part of a larger investigation into Yes Bank’s financial dealings, which were revealed after the bank’s financial health began to deteriorate in 2020. The Reserve Bank of India (RBI) had taken control of Yes Bank in March 2020, citing “serious governance issues” and “financial irregularities”. The CBI has been investigating the case since then, and has filed chargesheets in two separate cases involving Ambani’s companies and Yes Bank officials.
The chargesheets filed by the CBI allege that Ambani’s companies took loans worth ₹6,000 crore (approximately $830 million) from Yes Bank between 2015 and 2017, which were not repaid. The agency alleges that Kapoor and other Yes Bank officials conspired with Ambani to extend the loans, and also allegedly took bribes from Ambani’s companies. The CBI has charged Ambani, Kapoor, and several other individuals with offenses including cheating, conspiracy, and corruption. The case is likely to have significant implications for India’s corporate sector, and is being closely watched by investors and regulators.
Comprehensive Financial Literacy Drive at Heningkunglwa to Promote Widespread Inclusion
A financial inclusion saturation campaign and Know Your Customer (KYC) re-verification program was held at the Heningkunglwa village council hall in Peren district on September 17, 2025. The campaign was organized by the State Bank of India (SBI) Regional Business Office (RBO) in Dimapur. The event aimed to promote financial literacy and awareness about social security schemes in rural communities.
Amresh Kumar Jha, General Manager of SBI’s Local Head Office in Guwahati, emphasized the importance of financial literacy in enabling improved financial decisions and access to banking services. He encouraged villagers to spread awareness about central government social security schemes. K Samuel Liangousiam, Assistant General Manager of the Reserve Bank of India (RBI) in Kohima, highlighted the grievance redressal mechanism available to the public.
Rongsenyangla, Lead District Manager of Peren, discussed key social security schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, and Pradhan Mantri Jan Dhan Yojana. The Jalukie branch manager of SBI focused on the importance of KYC re-verification, nomination, unclaimed deposits, and prevention of cybercrime.
The program featured short speeches from various dignitaries, including Vinod Kumar, Director of the Department of Financial Services, and Sizin Renttah, Village Secretary of Heningkunglwa. A song was presented by inmates of Operation Salvage undergoing training at the Rural Self Employment Training Institute (RSETI). The event was chaired by Lilly Lotha, Director of SBI RSETI Peren, and attended by 114 participants.
The campaign aimed to promote financial inclusion and awareness about social security schemes in rural areas. The organizers emphasized the importance of financial literacy and the need for villagers to take advantage of government schemes and banking services. The event was part of a three-month financial inclusion saturation campaign and KYC re-verification program organized by SBI RBO Dimapur. The program’s objective was to enable improved financial decisions and access to banking services for rural communities.
The Reserve Bank of India needs to reassess and adjust its strategy for intervening in the market.
According to Jamal Mecklai, the initial excitement about the potential benefits of Trump’s tariffs for the Indian economy has worn off. The government has taken measures such as cutting goods and services tax (GST) and providing support to exporters, but Mecklai argues that more needs to be done to address the underlying structural issues in the economy. These include land reform, improving agricultural productivity, creating meaningful employment opportunities, and increasing investment in education, health, and research and development.
Mecklai believes that the current macroeconomic position, with a contained deficit and stable growth, presents an opportunity to increase investment in these areas, even if it means a slightly higher deficit. However, the Chief Economic Advisor has expressed concerns about the potential risks to the government’s borrowing program.
Mecklai also suggests that exchange rate policy can be used as a tool to support the economy. The rupee has been the worst-performing currency among 25 tracked currencies since January, despite the dollar index falling by 8.8%. Mecklai argues that a stronger rupee would have helped control inflation and interest rates, but the Reserve Bank of India (RBI) has been focused on supporting exporters by keeping the rupee weak.
However, Mecklai notes that this approach has not been effective, with goods exports growing by only 0.2% year-on-year over the past 12 months, despite a nearly 9% weaker rupee against the euro. He suggests that the RBI should develop a more nuanced approach to exchange rate policy, taking into account global growth forecasts and domestic competitiveness. This could involve allowing the rupee to strengthen when global growth is weak and uncertain, rather than pushing it lower.
Overall, Mecklai argues that the Indian economy needs a more aggressive and comprehensive approach to addressing its structural issues, rather than relying on short-term measures to support exporters. By investing in key areas and adopting a smarter exchange rate policy, India can build a stronger and more competitive economy. Mecklai’s views are personal and do not reflect the official position of FinancialExpress.com.
RBI imposes ₹21 lakh penalty on PhonePe for violating pre-paid payment instrument regulations
The Reserve Bank of India (RBI) has imposed a penalty of ₹21 lakh on PhonePe Limited for non-compliance with its regulatory directions on Prepaid Payment Instruments (PPIs). The penalty was announced on September 12, 2025, and is a result of an inspection conducted by the RBI from October 2023 to December 2024. The inspection revealed that PhonePe had failed to maintain sufficient funds in its escrow account to cover all outstanding balances and merchant dues, and had also failed to report these shortfalls immediately to the RBI.
PPIs are digital wallets or cards that store monetary value and are used to purchase goods and services. The RBI requires PPI issuers to maintain an escrow account with sufficient funds to cover all outstanding balances and merchant dues. Any shortfall or delay in reporting such discrepancies is treated as a serious compliance violation. In PhonePe’s case, the inspection found that on certain days, the end-of-day balance in its escrow account was less than the value of outstanding PPIs and payments due to merchants, which is a clear violation of the RBI’s PPI guidelines.
The RBI has emphasized that the penalty is based solely on deficiencies in regulatory compliance and does not impact the validity of any transactions or agreements between PhonePe and its customers. The penalty was imposed under the provisions of Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007. The RBI has also stated that this action does not prevent it from taking further steps in the future.
The penalty imposed on PhonePe is a significant one, and it highlights the importance of regulatory compliance in the payment services industry. The RBI has made it clear that it will take strict action against any company that fails to comply with its regulatory directions, and this penalty is a testament to that. PhonePe will need to take steps to ensure that it is in compliance with the RBI’s PPI guidelines going forward, and it will be interesting to see how the company responds to this penalty.
Overall, the penalty imposed on PhonePe is a significant development in the payment services industry, and it highlights the importance of regulatory compliance. The RBI’s actions demonstrate its commitment to ensuring that companies operating in the industry are in compliance with its regulatory directions, and it will be interesting to see how the industry responds to this penalty.
Former director raises concerns over Suraksha ARC’s dealings with Yes Bank, alleging suspicious fund transfers
A former director of Sapphire Land Development Pvt. Ltd. (SLDPL), Lakhminder Dayal Singh, has filed a petition with the National Company Law Tribunal (NCLT) in Mumbai, accusing Suraksha Asset Reconstruction Company (ARC) of fraud and regulatory violations in the company’s insolvency proceedings. Singh claims that Suraksha ARC and Yes Bank colluded in the transfer of SLDPL’s loan, using “round-tripping” transactions to indirectly fund Suraksha’s acquisition of the loan. This practice, known as loan evergreening, is prohibited by Reserve Bank of India (RBI) rules.
Singh alleges that Yes Bank’s internal audit flagged the issue, and it was also referenced in a Central Bureau of Investigation (CBI) chargesheet. He disputes Yes Bank’s decision to classify SLDPL’s account as stressed, claiming that repayments were on track and that the move was intended to create default conditions that would allow Suraksha ARC to initiate insolvency proceedings.
The petition also questions the conduct of Resolution Professional (RP) Snehal Kamdar, alleging that Singh was denied access to company records and excluded from Committee of Creditors (CoC) meetings despite his rights as a suspended director under the Insolvency and Bankruptcy Code (IBC). Kamdar has declined to comment on the matter, citing that it is sub judice.
Singh has requested the tribunal to overturn the admission of the insolvency petition, remove Suraksha ARC’s status as a financial creditor, dissolve the CoC, and restore control of SLDPL to its board. He has also sought a stay on the ongoing Corporate Insolvency Resolution Process (CIRP). The outcome of the case, which is expected to be heard in the coming weeks, may have significant implications for how banks and ARCs structure loan transfers in future insolvencies.
The allegations made by Singh have brought Suraksha ARC under scrutiny, and the case has the potential to impact the broader insolvency landscape in India. The use of “round-tripping” transactions and loan evergreening practices raises concerns about the transparency and integrity of the insolvency process. The NCLT’s decision in this case will be closely watched, as it may set a precedent for future cases involving similar allegations of fraud and regulatory violations.
Rupee dips to 88.30, down 4 paise, as trade tariff concerns escalate and RBI’s intervention cushion weakens
The Indian rupee experienced a decline of 4 paise against the US dollar on Monday, trading at 88.30. This depreciation is attributed to concerns over trade tariffs, foreign outflows, and expectations of a US rate cut. Despite this, the Reserve Bank of India’s (RBI) intervention helped to cap losses. The rupee’s value has been under pressure due to worries over US trade tariffs and persistent foreign portfolio outflows.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the RBI’s intervention has been crucial in controlling volatility and preventing a quick depreciation. The RBI is believed to have sold around $5-6 billion to support the rupee. Bhansali noted that market attention is now focused on the Federal Reserve’s (Fed) decision on September 17, with expectations of a rate cut creating uncertainty around the dollar’s future strength.
The dollar index rose 0.07% to 97.61, while Brent crude was trading 0.58% higher at $67.38 per barrel. On the domestic equity market front, the Sensex was up 93.81 points to 81,998.51, and the Nifty rose 24.45 points to 25,138.45. Foreign Institutional Investors purchased equities worth Rs 129.58 crore on Friday.
The country’s forex reserves jumped $4.038 billion to $698.268 billion during the week ended September 5, driven by a significant increase in the value of gold reserves. US Commerce Secretary Howard Lutnick warned that India must bring down its tariffs or face a “tough time” doing business with the US. Lutnick stated that the relationship between the US and India is one-sided, with India selling to the US and taking advantage of the open US economy.
The RBI’s efforts to maintain market confidence and control volatility have been successful so far, but the ongoing trade tensions and expectations of a US rate cut continue to weigh on the rupee’s value. The upcoming Fed decision will likely have a significant impact on the currency market, and investors are eagerly awaiting the outcome. Overall, the Indian rupee’s depreciation is a result of a combination of factors, including trade tariffs, foreign outflows, and US rate cut expectations, but the RBI’s intervention has helped to mitigate the losses.
Bank of Maharashtra set to launch new branch in GIFT City following approval from Reserve Bank of India.
Bank of Maharashtra is set to open a branch in Gujarat International Finance Tec-City (GIFT City) after receiving approval from the Reserve Bank of India (RBI). This move is part of the bank’s effort to expand its presence in the country’s first International Financial Services Centre (IFSC).
GIFT City is a planned business district in Gujarat, aimed at developing a hub for financial and technology services. The city is designed to attract foreign investment, promote trade, and provide a platform for Indian companies to access global markets. By opening a branch in GIFT City, Bank of Maharashtra aims to tap into the growing opportunities in the financial services sector and cater to the needs of businesses and individuals operating in the area.
The RBI’s approval is a significant milestone for Bank of Maharashtra, as it marks the bank’s entry into the IFSC space. The bank will offer a range of financial services, including corporate banking, trade finance, and foreign exchange services, to its customers in GIFT City. This move is expected to enhance the bank’s competitiveness and enable it to better serve its clients.
The opening of the branch in GIFT City is also expected to contribute to the growth of the Indian economy. By providing financial services to businesses and individuals operating in the IFSC, Bank of Maharashtra will help facilitate trade, investment, and economic activity. This, in turn, will create new job opportunities, stimulate economic growth, and increase India’s global competitiveness.
Bank of Maharashtra’s decision to open a branch in GIFT City is a strategic move, given the city’s potential to emerge as a major financial hub. The bank’s presence in GIFT City will enable it to leverage the city’s infrastructure, including its state-of-the-art technology and connectivity, to deliver high-quality financial services to its customers.
Overall, the opening of Bank of Maharashtra’s branch in GIFT City is a significant development, marking the bank’s entry into the IFSC space and its commitment to expanding its presence in the country’s financial services sector. With the RBI’s approval, the bank is poised to tap into the growing opportunities in GIFT City and contribute to the growth of the Indian economy.
More than 50% of foreign investments made by Indian companies are channeled through countries with low tax rates, according to data from the Reserve Bank of India.
According to recent data from the Reserve Bank of India (RBI), more than half of India’s outward foreign direct investment (FDI) is being routed through low-tax hubs. This phenomenon has raised concerns about tax evasion and round-tripping of funds. The data shows that in the financial year 2020-21, Indian companies invested a total of $12.3 billion abroad, out of which $6.8 billion was routed through tax havens such as Singapore, Mauritius, and the Netherlands.
The practice of routing investments through low-tax jurisdictions is not new, but it has gained significant attention in recent years due to its potential for tax avoidance. By investing in foreign companies through subsidiaries in tax havens, Indian firms can take advantage of lower tax rates and minimize their tax liabilities in India. This can lead to a loss of revenue for the Indian government and undermine the country’s efforts to boost its economy.
The RBI’s data reveals that Singapore is the most popular destination for Indian outward FDI, accounting for 37% of the total investments. Mauritius and the Netherlands are also among the top destinations, with 14% and 12% of the investments, respectively. These countries have tax treaties with India, which allow for reduced tax rates on investments made through these jurisdictions.
The practice of routing investments through tax havens has been criticized for facilitating tax evasion and round-tripping of funds. Round-tripping refers to the practice of investing funds abroad through a subsidiary company and then bringing them back to India as FDI, thereby avoiding taxes and taking advantage of investment incentives. This can distort the true picture of India’s FDI inflows and outflows, making it difficult for policymakers to assess the country’s economic performance.
The Indian government has taken steps to curb tax evasion and round-tripping of funds. The government has introduced measures such as the General Anti-Avoidance Rule (GAAR) and the Place of Effective Management (POEM) rule to prevent companies from misusing tax treaties and routing investments through tax havens. However, the RBI’s data suggests that these measures may not be fully effective, and more needs to be done to address the issue.
In conclusion, the RBI’s data highlights the significant portion of India’s outward FDI that is being routed through low-tax hubs. This practice raises concerns about tax evasion and round-tripping of funds, and the Indian government needs to take further steps to address this issue and prevent the loss of revenue. The government should consider strengthening its tax laws and enforcement mechanisms to prevent the misuse of tax treaties and ensure that Indian companies comply with tax regulations.
Crisil has revised its inflation forecast for FY26 downwards to 3.2%, hinting at a possible rate cut by the RBI in the later part of the year.
According to a recent report by Crisil, a ratings agency, the outlook for India’s retail inflation has improved significantly. The agency has revised its projection for headline Consumer Price Index (CPI) inflation for fiscal 2026, lowering it to 3.2% from its earlier estimate of 3.5%. This represents a substantial decline of almost 140 basis points from the previous year.
Crisil attributes this moderation in inflation to several key factors. Firstly, lower crude prices have contributed to the easing of inflationary pressures. Additionally, healthy kharif sowing, which refers to the planting of crops during the monsoon season, is expected to lead to a bountiful harvest and thereby reduce food prices. Furthermore, the impact of Goods and Services Tax (GST) rate cuts is also seen as a contributing factor to the decline in inflation.
The agency believes that this improved inflation trajectory could have significant implications for monetary policy. Specifically, Crisil suggests that the Reserve Bank of India (RBI) may consider another 25-basis-point rate cut this year. This would be a welcome move for consumers and businesses, as lower interest rates can help stimulate economic growth and reduce borrowing costs.
The decline in inflation is a positive development for India’s economy, as it suggests that prices are rising at a slower pace, making goods and services more affordable for consumers. The combination of lower crude prices, healthy agricultural production, and GST rate cuts has created a favorable environment for price stability. As a result, the RBI may feel more comfortable cutting interest rates to support economic growth, without worrying about fuelling inflation.
Overall, Crisil’s report suggests that India’s retail inflation is on a downward trajectory, driven by a combination of factors. The agency’s projection of 3.2% CPI inflation for fiscal 2026 is a significant improvement from its earlier estimate, and could lead to further monetary policy easing by the RBI. This development is likely to have positive implications for India’s economy, and could help support growth and stability in the coming year.
India’s Public Sector Banks on Verge of Revolution with AI and Technology Integration
The Finance Ministry’s PSB Manthan 2025 conference is being held in New Delhi, with a focus on transforming India’s public sector banks (PSBs) through technology, innovation, and AI-driven reforms. The two-day event brings together policymakers, banking leaders, and technology experts to chart a roadmap for future-ready, globally competitive banking institutions. Unlike conventional banking conferences, PSB Manthan 2025 emphasizes the role of technology and artificial intelligence in redefining operational efficiency, customer experience, and governance in PSBs.
The conference has attracted top officials, including Chief Economic Adviser Dr. V. Anantha Nageswaran, heads of PSBs, and RBI Deputy Governor Swaminathan J. The event features a fireside chat on “Technology and AI-powered banks of the future,” which highlights the potential of cloud infrastructure, artificial intelligence, and automation to enable PSBs to deliver personalized customer experiences and enhanced productivity.
The conference also explores strategic roadmaps for global competitiveness, with a focus on strong governance, operational excellence, and technology adoption. Experts emphasize the need for PSBs to embed a customer-centric culture and leverage innovation to drive growth. The second day of the conference shifts focus to human capital and workforce transformation, with discussions on building an inclusive, future-ready workforce and aligning talent development with national goals.
The conference addresses a range of topics, including governance, asset quality, and modernization, with a holistic approach that integrates operational efficiency with technological innovation. The event is seen as a strategic blueprint for India’s banking future, with a focus on AI integration, digital infrastructure, and innovation-led reforms. Experts believe that the outcomes of the conference will shape next-generation banking policies, enhance customer experience, and ensure the long-term resilience of India’s public sector banks.
Overall, PSB Manthan 2025 is a landmark conference that signals India’s intent to modernize its banking sector and align it with global standards. The event’s unique emphasis on AI, technology, and innovation makes it a significant step towards creating future-ready, globally competitive banking institutions that can drive national economic growth. With its focus on transformation and modernization, PSB Manthan 2025 is poised to have a lasting impact on India’s banking sector and its role in the global economy.
Banks May Soon Be Able to Remotely Disable Your Smartphone if You Miss EMI Payments, Here’s What You Should Know
The Reserve Bank of India (RBI) is moving forward with a proposal to allow lenders to remotely lock smartphones purchased on EMI if users default on payments. This measure aims to reduce the surge in defaults on consumer loans and give financial institutions more leverage in debt recovery. The RBI has drafted guidelines that require borrower consent and prohibit lenders from accessing personal data while locking devices.
The proposal has sparked intense debate about privacy, fairness, and digital inclusion, with stakeholders holding different views. Some argue that remote locking is necessary to curb defaults, while others express concerns about the potential misuse of personal data and the impact on vulnerable users. The RBI has clarified that remote locking will only be used as a last resort, with strict privacy controls in place, and that lenders will not be allowed to view or manipulate personal data on borrowers’ devices.
The mechanism is specifically designed for loans below ₹1 lakh, which often see higher delinquency rates. Consumers will be informed about the possibility of remote locking before accepting loan terms, and activation will occur only after formal consent. Lenders will employ certified software or apps that enable locking but not data extraction, addressing past concerns about misuse.
The policy has been met with mixed reactions from industry groups, with some arguing that it is necessary to bring discipline to loan markets, while others express concerns about the potential impact on vulnerable users. Privacy advocates have cautioned that the policy could create a punitive digital ecosystem that disproportionately affects the poor and digitally marginalized.
The RBI’s draft ‘Fair Practices Code’ aims to balance lender interests with borrower protection. Technology experts have warned that remote locking could “weaponize access to vital digital infrastructure,” potentially pushing vulnerable users deeper into exclusion during financial hardship. The coming weeks will see consultations with industry, consumer groups, and digital rights advocates before the final notification.
Ultimately, the policy’s success will depend on its ability to balance the needs of lenders with the rights of borrowers. While lenders need recovery tools, regulations must protect user rights at every stage. The RBI must ensure that the policy is implemented in a way that prioritizes dignity, transparency, and access to essential communication services.
Ujjivan Small Finance Bank intends to generate ₹2,000 crore in capital through a Qualified Institutional Placement (QIP) process, which is expected to be completed within the next 18 to 24 months.
Ujjivan Small Finance Bank (SFB) is planning to raise approximately ₹2,000 crore over the next 18-24 months through a Qualified Institutional Placement (QIP) to support its long-term growth strategy. The bank has submitted an application for a universal banking license to the Reserve Bank of India (RBI) and is awaiting a decision, which is expected by December. Despite the uncertainty surrounding the license, Ujjivan SFB has set several growth priorities for FY30, including tripling its liabilities, achieving a CASA ratio of around 35%, and expanding its gross loan book to approximately ₹1 lakh crore.
The bank also plans to add about 500 new branches, maintain a cost-to-income ratio of about 55%, and keep operating expenses below 5% of average assets. For the nearer term, Ujjivan SFB has guided for FY26 with projected asset growth of 20%, a CASA deposit ratio of 27%, a return on assets (ROA) of 1.2-1.4%, and a return on equity (ROE) between 10-12%. The cost-to-income ratio is expected to be around 67%.
According to Sanjeev Nautiyal, MD & CEO of Ujjivan SFB, the bank’s five-year growth plan is designed to be agnostic to whether the RBI grants the universal banking license, ensuring that Ujjivan SFB’s strategic priorities remain on track regardless of regulatory outcomes. This means that the bank is prepared to move forward with its growth plans, with or without the universal banking license.
The proposed QIP of ₹2,000 crore will help Ujjivan SFB to support its long-term growth strategy, which includes expanding its branch network, increasing its loan book, and improving its deposit base. The bank’s management is hopeful that the RBI will grant the universal banking license, which would enable Ujjivan SFB to offer a wider range of banking services to its customers. However, even if the license is not granted, the bank is confident that it can still achieve its growth objectives. Overall, Ujjivan SFB is well-positioned to achieve its long-term growth strategy, with a clear plan in place and a strong management team to execute it.
India’s central bank reduced its US debt holdings and increased its gold reserves prior to the implementation of Trump’s tariffs.
The Reserve Bank of India (RBI) has made significant changes to its investment portfolio, reducing its holdings of US Treasury securities and increasing its gold reserves. According to recent reports, the RBI cut its US debt holdings from $235.3 billion to $227.4 billion. This decision was made even before the tariffs imposed by US President Donald Trump, suggesting that the RBI was anticipating potential trade tensions.
The reduction in US Treasury holdings is a notable trend, and experts speculate that Trump’s tariffs could further accelerate this shift. The RBI’s decision to diversify its investments and reduce its exposure to US debt may be driven by concerns about the impact of trade wars on the global economy. By decreasing its US Treasury holdings, the RBI may be seeking to mitigate potential risks and maintain the stability of India’s foreign exchange reserves.
Meanwhile, the RBI has also increased its gold holdings, which now form a larger part of its foreign exchange reserves. The latest data shows that India’s forex reserves have risen by $3.5 billion to $694.2 billion, supported by an increase in foreign currency assets and gold holdings. The RBI’s decision to accumulate more gold reserves may be seen as a strategic move to diversify its portfolio and reduce its dependence on US debt.
The increase in gold holdings is also reflected in the RBI’s report, which shows a higher IMF reserve position. This suggests that the RBI is taking a more prudent approach to managing its foreign exchange reserves, seeking to maintain a balanced portfolio that is less vulnerable to market fluctuations.
Overall, the RBI’s decision to reduce its US Treasury holdings and increase its gold reserves indicates a shift towards a more diversified investment strategy. This move may be driven by concerns about trade tensions and the potential impact on the global economy. As India’s forex reserves continue to rise, the RBI’s approach to managing its investments will be closely watched, and its decisions may have significant implications for the country’s economic stability and growth.