RBI Grants Payment Aggregator License to Tata Pay.
Banking & Finance
26 Dec 2025
The Reserve Bank of India (RBI) has granted the coveted Payment Aggregator (PA) license to Tata Pay, the digital payments arm of Tata Digital. This authorization allows Tata Pay to efficiently manage e-commerce transactions within its super-app "Tata Neu" and onboard merchants directly, reducing dependence on third-party aggregators.
Key Highlights
- Tata Pay joins other authorized players like Razorpay, Cashfree, and Google Pay in the PA ecosystem.
- Payment Aggregators facilitate e-commerce sites and merchants to accept various payment instruments from customers.
- This strengthens Tata Group's foothold in the growing Indian digital financial services market.
Other Important Facts
- License: Payment Aggregator (PA).
- Regulator: RBI.
- Platform: Tata Neu.
RBI Report: "State Finances: A Study of Budgets of 2025-26" Released.
Banking & Finance
24 Dec 2025
The Reserve Bank of India (RBI) released its annual report "State Finances: A Study of Budgets of 2025-26". The report reveals that the gross fiscal deficit (GFD) of states is budgeted to decline to 3.1% of Gross State Domestic Product (GSDP) in 2025-26, from 3.5% in the previous year. It emphasizes prudent fiscal management by states.
Key Highlights
- The report warns against the reversion to the Old Pension Scheme (OPS) by some states, citing long-term fiscal risks.
- Capital expenditure by states is projected to grow by 18.2%, aiding infrastructure development.
- States are advised to focus on improving non-tax revenue mobilization.
Other Important Facts
- Report: State Finances: A Study of Budgets.
- Fiscal Deficit Target: 3.1% of GSDP.
- Key Warning: Risk from OPS.
RBI Issues New Norms for Penal Charges on Loan Accounts.
Banking & Finance
23 Dec 2025
The Reserve Bank of India (RBI) has issued new guidelines regarding penal charges on loan accounts. Under the new norms, penalties for non-compliance with loan terms must be treated as "penal charges" and not as "penal interest". This prevents the capitalization of penal charges, meaning no further interest can be computed on such charges.
Key Highlights
- The quantum of penal charges must be reasonable and commensurate with the non-compliance.
- These instructions apply to all Commercial Banks, Co-operative Banks, and NBFCs.
- The new rules will come into effect from April 1, 2026, to ensure fair lending practices.
Other Important Facts
- Guideline: Fair Lending Practice.
- Change: Penal Charges vs Penal Interest.
- Objective: Consumer Protection.
RBI Tightens Norms for AIF Investments to Prevent "Evergreening" of Loans.
Banking & Finance
22 Dec 2025
The Reserve Bank of India (RBI) has issued tighter norms for Regulated Entities (REs) investing in Alternative Investment Funds (AIFs). The new rules prohibit banks and NBFCs from investing in AIFs that have downstream investments in debtor companies of the said REs. This move aims to curb the practice of "evergreening" stressed loans.
Key Highlights
- If an AIF invests in a debtor company, the RE must liquidate its investment in the AIF within 30 days.
- Failing liquidation, the RE must make 100% provision for such investments.
- The directive addresses concerns that AIF structures were being used to mask bad loans in the financial system.
Other Important Facts
- Regulation: AIF Investment Norms.
- Target: Regulated Entities (Banks/NBFCs).
- Goal: Prevent Evergreening.
IndusInd Bank Launches "Indus Solitaire Program" for Diamond Industry.
Banking & Finance
20 Dec 2025
IndusInd Bank has launched the "Indus Solitaire Program", a dedicated community banking initiative for the diamond industry. The program offers exclusive features like 24x7 locker access at specific branches, family wealth management, and zero cross-currency markup on foreign travel cards.
Key Highlights
- It is targeted at diamond merchants, exporters, and employees in Mumbai and Surat.
- The program includes customized trade finance solutions to meet the working capital needs of the sector.
- This launch aligns with the opening of the Surat Diamond Bourse, the world's largest office building.
Other Important Facts
- Program: Indus Solitaire.
- Target Sector: Diamond Industry.
- Key Feature: 24x7 Locker Access.
RBI Releases Financial Stability Report (FSR) December 2025.
Banking & Finance
19 Dec 2025
The Reserve Bank of India (RBI) released the 32nd issue of the Financial Stability Report (FSR) for December 2025. The report states that the Indian banking system remains resilient with robust capital ratios and declining bad loans. The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) has further declined to 2.5%, a historic low.
Key Highlights
- The report highlights that the Capital to Risk-Weighted Assets Ratio (CRAR) stands at 17.5%, indicating strong buffers.
- Macro-stress tests indicate that SCBs would be able to comply with minimum capital requirements even under severe stress scenarios.
- However, the RBI flagged potential risks from the high growth in unsecured retail lending.
Other Important Facts
- Report: Financial Stability Report (FSR) Dec 2025.
- GNPA: 2.5%.
- CRAR: 17.5%.
Kotak Mahindra Bank Partners with IIT Kanpur to Launch "Kotak School of Sustainability".
Banking & Finance
18 Dec 2025
Kotak Mahindra Bank, through its CSR initiative, has partnered with the Indian Institute of Technology (IIT) Kanpur to launch the "Kotak School of Sustainability". It is India's first fully integrated school dedicated to sustainability education, research, and innovation.
Key Highlights
- The school will offer undergraduate and postgraduate programs focusing on climate finance, clean energy, and sustainable development.
- The bank has committed funding of Rs 100 Crore for the establishment of the school.
- It aims to produce future leaders who can address global climate challenges through technological and policy interventions.
Other Important Facts
- Partnership: Kotak Bank & IIT Kanpur.
- Initiative: Kotak School of Sustainability.
- Funding: Rs 100 Crore (CSR).
SEBI Introduces "Same Day Settlement" (T+0) for Top 500 Stocks.
Banking & Finance
17 Dec 2025
The Securities and Exchange Board of India (SEBI) has officially rolled out the "T+0" (Same Day) trade settlement cycle for the top 500 listed companies by market capitalization. This allows investors to receive funds and securities in their accounts on the same day of the trade, enhancing liquidity and market efficiency.
Key Highlights
- The T+0 settlement is currently optional and runs parallel to the existing T+1 cycle.
- This move positions India among the few global markets to offer real-time settlement capabilities.
- SEBI plans to expand this to all stocks by the end of FY 2026 based on market feedback.
Other Important Facts
- Initiative: T+0 Settlement Cycle.
- Applicability: Top 500 Companies.
- Benefit: Instant Liquidity.
RBI Issues "Climate Risk Disclosure" Framework for Banks and NBFCs.
Banking & Finance
16 Dec 2025
The Reserve Bank of India (RBI) has issued a comprehensive framework for "Climate Risk Disclosure" applicable to all Scheduled Commercial Banks and Top-Layer NBFCs. The framework mandates financial institutions to disclose their exposure to climate-related risks and their strategy to mitigate them, effective from FY 2026-27.
Key Highlights
- Entities must report on four pillars: Governance, Strategy, Risk Management, and Metrics & Targets.
- This move aims to align the Indian financial sector with global sustainability reporting standards (IFRS S2).
- Small Finance Banks and Regional Rural Banks are currently exempted from these mandatory disclosures.
Other Important Facts
- Framework: Climate Risk Disclosure.
- Applicability: SCBs and Top-Layer NBFCs.
- Effective From: FY 2026-27.
RBI Enhances "UPI 123PAY" Transaction Limit to Rs 10,000.
Banking & Finance
15 Dec 2025
The Reserve Bank of India (RBI) has enhanced the transaction limit for "UPI 123PAY", the offline payment solution for feature phones. The per-transaction limit has been raised from Rs 5,000 to Rs 10,000. This move aims to deepen digital payment penetration in rural areas where internet connectivity is limited.
Key Highlights
- UPI 123PAY allows users to make payments via IVR (Interactive Voice Response) numbers or missed calls.
- The cumulative wallet limit for UPI Lite was also maintained at Rs 2,000 to ensure security for small-value transactions.
- This change is expected to help farmers and small merchants in tier-3 and tier-4 cities.
Other Important Facts
- New Limit: Rs 10,000 (Per Transaction).
- Target Device: Feature Phones.
- Mode: Offline (IVR/Missed Call).
RBI Launches Pilot for "Unified Lending Interface" (ULI) to Speed Up Credit.
Banking & Finance
13 Dec 2025
The Reserve Bank of India (RBI) has launched the pilot phase of the "Unified Lending Interface" (ULI). The platform aims to reduce the turnaround time for credit appraisal and disbursement, especially for MSMEs and rural borrowers. ULI enables seamless digital flow of financial and non-financial data (like land records) from various data providers to lenders.
Key Highlights
- ULI is designed on the lines of UPI, offering a "plug-and-play" architecture for lenders.
- It eliminates the need for extensive documentation by fetching verified data directly from government databases.
- The pilot will initially focus on Kisan Credit Card (KCC) loans and dairy loans in select districts.
Other Important Facts
- Platform: Unified Lending Interface (ULI).
- Purpose: Faster Credit Appraisal.
- Target: MSMEs and Rural Borrowers.
Federal Bank and NCDEX e-Markets Partner to Enhance Agri-Lending.
Banking & Finance
12 Dec 2025
Federal Bank has entered into a strategic partnership with NCDEX e-Markets Limited (NeML) to strengthen its agricultural lending portfolio. Through this collaboration, the bank will facilitate easy credit access to farmers and Farmer Producer Organizations (FPOs) registered on the NeML platform.
Key Highlights
- The partnership utilizes NeML's digital e-market platform to assess the creditworthiness of farmers based on their transaction history.
- It aims to streamline the process of crop loans and warehouse receipt financing.
- NeML is the leading electronic web-based online commodities spot market in India.
Other Important Facts
- Partnership: Federal Bank & NeML.
- Objective: Agri-Lending to Farmers/FPOs.
- Platform: NCDEX e-Markets.
RBI Releases "Trend and Progress of Banking in India 2024-25" Report.
Banking & Finance
11 Dec 2025
The Reserve Bank of India (RBI) released its annual report titled "Trend and Progress of Banking in India 2024-25". The report highlights that the Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) has fallen to a multi-year low of 2.6%. It also notes a robust credit growth of 16.5% year-on-year, driven by the services and retail sectors.
Key Highlights
- The Capital to Risk-Weighted Assets Ratio (CRAR) of SCBs stood healthy at 17.2%, well above the regulatory requirement.
- The report flagged concerns regarding the high growth in unsecured retail loans and advised banks to increase risk buffers.
- Profitability of banks improved significantly, with Return on Assets (RoA) touching 1.3%.
Other Important Facts
- Report: Trend and Progress of Banking 2024-25.
- GNPA Ratio: 2.6% (Multi-year low).
- Credit Growth: 16.5%.
SBI Launches "Green Rupee Term Deposit" to Finance Environment-Friendly Projects.
Banking & Finance
10 Dec 2025
The State Bank of India (SBI) has launched a special deposit scheme named "SBI Green Rupee Term Deposit" (SGRTD). The funds raised through this scheme will be utilized to finance eco-friendly projects such as renewable energy, green building, and smart agriculture. This initiative aligns with the government's goal of achieving Net Zero by 2070.
Key Highlights
- The scheme is open to resident individuals, non-individuals, and NRIs, offering deposit tenors of 1111 days, 1777 days, and 2222 days.
- It offers an interest rate of 10 basis points (bps) lower than regular deposits but appeals to ESG-conscious investors.
- Depositors will receive a "Green Certificate" acknowledging their contribution to sustainable development.
Other Important Facts
- Scheme: SBI Green Rupee Term Deposit.
- Purpose: Finance Green Projects.
- Tenors: 1111, 1777, 2222 days.
RBI Cancels License of "Shankara Urban Co-operative Bank" Due to Capital Crunch.
Banking & Finance
09 Dec 2025
The Reserve Bank of India (RBI) has cancelled the banking license of "Shankara Urban Co-operative Bank Ltd", located in Maharashtra, effective from the close of business on December 8, 2025. The decision was taken as the bank does not have adequate capital and earning prospects to pay its depositors in full.
Key Highlights
- Upon cancellation, the bank is prohibited from conducting the business of "banking" which includes acceptance of deposits and repayment of deposits.
- According to the DICGC Act, 1961, every depositor is entitled to receive a deposit insurance claim amount of up to Rs 5 Lakh.
- The Registrar of Cooperative Societies, Maharashtra, has been requested to issue an order for winding up the bank and appoint a liquidator.
Other Important Facts
- Action: License Cancellation.
- Bank: Shankara Urban Co-operative Bank.
- Insurance Limit: Rs 5 Lakh per depositor.
RBI Allows Non-Bank Payment Aggregators to Offer CBDC Wallets.
Banking & Finance
08 Dec 2025
The Reserve Bank of India (RBI) has officially allowed Non-Bank Payment Aggregators (PAs) to offer Central Bank Digital Currency (CBDC) wallets to their users. This move aims to expand the reach of the Digital Rupee (e?) beyond the banking network. Previously, only banks were permitted to offer CBDC wallets via their mobile applications.
Key Highlights
- Payment Aggregators must undergo a rigorous technology audit and obtain specific authorization from RBI to facilitate CBDC transactions.
- This initiative is expected to boost the retail segment (e?-R) adoption, targeting 5 million daily transactions by mid-2026.
- RBI also clarified that CBDC transactions via PAs will remain interoperable with the existing UPI QR code infrastructure.
Other Important Facts
- Initiative: Expanding CBDC Ecosystem.
- New Participants: Non-Bank Payment Aggregators.
- Target: 5 Million Daily Transactions.
RBI Issues New Master Directions on "IT Governance, Risk, Controls and Assurance Practices".
Banking & Finance
06 Dec 2025
The Reserve Bank of India (RBI) has issued updated Master Directions on "Information Technology Governance, Risk, Controls and Assurance Practices" for Banks and NBFCs. The new framework mandates the establishment of a robust IT Governance framework to manage cyber security risks effectively. It aims to ensure operational resilience in the face of growing digital threats.
Key Highlights
- Banks and NBFCs are now required to set up a Board-level "IT Strategy Committee" (ITSC) chaired by an independent director.
- The guidelines emphasize periodic Information Systems Audit (IS Audit) and the appointment of a Chief Information Security Officer (CISO).
- These directions will come into effect from April 1, 2026, giving institutions time to upgrade their systems.
Other Important Facts
- Direction: IT Governance, Risk & Controls.
- Mandatory Committee: IT Strategy Committee (ITSC).
- Effective Date: April 1, 2026.
RBI Enhances UPI Transaction Limit for Healthcare and Education to Rs 10 Lakh.
Banking & Finance
05 Dec 2025
Following the MPC meeting, the Reserve Bank of India (RBI) announced a hike in the Unified Payments Interface (UPI) transaction limit for payments specifically related to hospitals and educational institutions. The limit has been raised from Rs 5 Lakh to Rs 10 Lakh per transaction to facilitate higher-value payments for medical bills and college fees.
Key Highlights
- This enhanced limit applies only to verified merchants under specific Merchant Category Codes (MCC) for healthcare and education.
- RBI also announced the proposal to set up a "Fintech Repository" to capture data on fintech firms for better policy making.
- Additionally, the limit for recurring e-mandates for credit card bill payments and insurance premia was increased to Rs 1 Lakh.
Other Important Facts
- New Limit: Rs 10 Lakh per transaction.
- Applicable Sectors: Healthcare (Hospitals) and Education.
- Regulation: Guidelines issued by RBI.
RBI Monetary Policy Committee (MPC) Meeting Commences in Mumbai.
Banking & Finance
04 Dec 2025
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting commenced on December 3, 2025, in Mumbai. The six-member committee, chaired by Governor Shaktikanta Das, is deliberating on the bi-monthly monetary policy. The final decision regarding the Repo Rate and policy stance will be announced on December 5, 2025.
Key Highlights
- Analysts predict a "Status Quo" on the Repo Rate (currently at 6.5%), citing persistent food inflation risks despite a stable core inflation.
- The committee is also reviewing the GDP growth forecast for FY26, currently projected at 7.0%.
- Liquidity management measures, specifically Open Market Operations (OMO), are expected to be a key discussion point.
Other Important Facts
- Event: Bi-monthly MPC Meeting (Dec 2025).
- Chair: Shaktikanta Das (RBI Governor).
- Focus: Interest Rates and Inflation Targeting.
RBI Governor Releases "National Strategy for Financial Inclusion (NSFI): 2025-30".
Banking & Finance
03 Dec 2025
RBI Governor Sanjay Malhotra formally released the "National Strategy for Financial Inclusion (NSFI): 2025-30". The document, approved by the Financial Stability and Development Council (FSDC) Sub-Committee, outlines a roadmap for the next five years. It focuses on making financial services available, accessible, and affordable to all citizens, building on the progress of the previous 2019-2024 strategy.
Key Highlights
- The strategy is anchored in five key objectives collectively termed "Panch-Jyoti", which includes expanding equitable services, promoting women-led inclusion, and linking finance with livelihoods.
- It emphasizes "Leveraging Financial Education" to promote financial discipline and protecting customers from digital frauds and cyber risks.
- The strategy sets ambitious targets for increasing credit penetration in underserved districts and enhancing the reach of insurance and pension schemes.
Other Important Facts
- Document: NSFI 2025-30 released by RBI Governor Sanjay Malhotra.
- Core Concept: "Panch-Jyoti" comprising 5 strategic objectives.
- Goal: Expanding affordable financial services and women-led inclusion.