Recent 6 months news in Banking

The RBI conducted the 4th Bi-monthly Monetary Policy Committee (MPC) meeting of FY27 under the chairmanship of Governor Sanjay Malhotra.

The MPC voted unanimously to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 5.50%, marking the first rate hike since February 2023.

Consequently, the standing deposit facility (SDF) rate was adjusted to 5.25%, while the marginal standing facility (MSF) rate and the Bank Rate stand at 5.75%. The panel shifted its policy stance from neutral to “calibrated tightening.” The RBI raised the GDP growth forecast of India for FY27 by 40 bps to 7.1%.

Additionally, the central bank set a threshold of ₹25,000 crore under the Standardised Approach for Counterparty Credit Risk (SA-CCR), effective from April 1, 2027, and announced the creation of a Technical Consultative Committee for Financial Markets.

The RBI has excluded Paytm Payments Bank Ltd (PPBL), an associate firm of Paytm, from the list of recognized Scheduled Banks (SBs).

It is to be noted that under the RBI Act, 1934, a scheduled bank must maintain paid-up capital and reserves of at least ₹5 lakh, along with satisfying other statutory conditions.

SEBI has issued a circular titled “Introduction of Credit Risk-o-Meter as an Additional Disclosure Mechanism for Debt Securities”, mandating a colour-coded Credit Risk-o-Meter to help investors assess the credit risk of debt securities.

The Credit Risk-o-Meter must be displayed across various platforms, including offer documents, abridged prospectuses, private placement memoranda, issuer advertisements, and Online Bond Platform Providers (OBPPs) web and mobile platforms.

It is to be noted that the existing SEBI credit ratings (ranging from AAA to D) are mapped into six distinct risk levels, spanning from ‘Lowest Credit Risk’ to ‘high to very High risk of default’, with each level represented by a specific colour.

The RBI has granted a Certificate of Registration (CoR) to Indiabulls Ltd to operate as a Core Investment Company (CIC), bringing the entity under the regulatory framework of the RBI. It is to be noted that a CIC is a Non-Banking Financial Company (NBFC) with an asset size of ₹100 crore or more.

To qualify as a CIC, an entity must hold at least 90% of its net assets in investments or loans of group companies, including equity shares, preference shares, bonds, or debentures. Furthermore, at least 60% of the net assets must be specifically maintained in the equity investments of group companies.

Lavanya R Mundayur has been appointed as the CMD of the New India Assurance Company Ltd (NIACL). She succeeds Girija Subramanian. Her tenure will continue until her superannuation in May 2029.

Bank of India (BOI), a Public Sector Bank (PSB), has launched a User-Level Programmable Central Bank Digital Currency (CBDC) with auto-issuance capability.

The system allows users to automate recurring Digital Rupee (e₹) payments and specify the purpose for which the funds can be used. It is to be noted that the technical functionality for this programmable CBDC solution was developed by Montran India.

The SEBI has approved several regulatory reforms to revamp Portfolio Management Services (PMS) and streamline settlement frameworks.

The board introduced the “PRIM” framework, allowing PMS providers to invest in direct mutual fund schemes and Specialised Investment Funds (SIFs). The minimum ticket size for SIFs is set at ₹25 lakh. Discretionary PMS can now invest up to 10% of client Assets Under Management (AUM) in investment-grade unlisted debt with client consent.

SEBI revised the settlement framework by introducing a formula-based method for settlement amounts and a fast-track mechanism for disclosure-related violations up to ₹10 lakh. The application window for settlement is extended from 60 to 90 days, with a one-time 90-day window for pending cases.

The rules for Vault Managers are updated to cover bullion-linked Exchange Traded Funds (ETFs) and derivatives, with their minimum net worth requirement increased to ₹75 crore. SEBI also eased retrospective listing norms for unlisted Non-Convertible Debentures (NCDs) and approved a fourth settlement scheme for illiquid stock-option cases.

Bank of Baroda (BoB), through its subsidiary BoB Pension Fund Management Company Limited, has received the Certificate of Appointment as a Sponsor of a Pension Fund from the Pension Fund Regulatory and Development Authority (PFRDA).

It is to be noted that BoB is the second Public Sector Bank (PSB) to obtain this sponsorship, following the State Bank of India (SBI), which was the first PSB to enter the pension fund segment in 2008.

IndusInd Bank has launched a dedicated Global Capability Centre (GCC) Banking vertical to provide a specialized approach for the unique requirements of such centers.

The vertical consolidates 5 core capabilities under a single relationship management structure to streamline the service delivery for GCCs.

Pramerica Life Insurance Ltd, a Joint Venture between DIL and Prudential International Insurance Holdings, Ltd (PIIH), has launched a new insurance product named “Poorna Rakshak”. It is a non-linked, non-participating individual savings life insurance plan.

Anup Bagchi has been appointed as the MD and CEO of HDFC Bank for a 3-year term starting October 27, 2026. He succeeds Sashidhar Jagdishan.

Anup Kumar Saha is appointed as the MD & CEO of Kotak Mahindra Bank Ltd for 3 years, starting January 2027. He succeeds Ashok Vaswani. Mahesh Muralidhar Pai has been appointed as the MD & CEO of the South Indian Bank for a 3-year term starting October 2026. He succeeds PR Seshadri.

SEBI has launched a nationwide investor-awareness campaign named “Project Jagrook” in Chandigarh, which will run until March 2027.

The initiative aims to improve financial literacy in rural areas and educational institutions, while warning investors against anonymous tips, finfluencers, and exaggerated return claims.

ICICI Lombard General Insurance Company Ltd has launched a health insurance product named ‘VIBE’ specifically for the Gen Z demographic. The insurance plan is designed for young adults within the age group of 18 to 35 years.

Apple Inc. has launched Apple Pay in India. The service enables transactions specifically through Visa and Mastercard credit cards issued by Axis Bank.

Samvriddhi Inclusive Growth Network Pvt Ltd (SIGN), a subsidiary of MOS Utility Ltd, has received in-principle authorisation from the RBI to operate as an Online Payment Aggregator (PA-Online).

NABKISAN Finance Ltd, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), has listed the first Social Bond in India dedicated to the Water, Sanitation and Hygiene (WASH) sector on the National Stock Exchange (NSE). The bond raised ₹180 crore.

The 5-year bond has a coupon rate of 8.1% and is scheduled to mature in September 2031. It is to be noted that the instrument has been assigned the highest domestic credit ratings of CRISIL AAA (Stable) and CARE AAA (Stable).

Sagarmala Finance Corporation Ltd has launched the inaugural blue bond in India. The bond aims to raise ₹600 crore, with a ₹500 crore green shoe option, and has a tenor of 10 years.

The debt offering received an AA+ rating, signifying its status in the upper tier of domestic debt instruments, and SBI Capital Markets served as the arranger for the issuance. It is to be noted that SMFCL is the first NBFC in India dedicated to the maritime sector.

The Pension Fund Regulatory and Development Authority (PFRDA) has issued operational guidelines for the National Pension System (NPS) Swasthya Pension Scheme under Section 14 of the PFRDA Act, 2013. The scheme allows an entry age of 18 to 70 years, with renewals permitted up to 85 years.

The minimum initial contribution includes the first-year insurance premium, ₹200 for annual maintenance charges of the Health Benefit Administrator, and at least ₹1,000 for investment in the NPS Swasthya account. The minimum subsequent contribution required is ₹10.

PayGlocal, a cross-border payments company, has received in-principle approval from the International Financial Services Centres Authority (IFSCA) to establish a Payment Service Provider (PSP) in the Gujarat International Finance Tec-City (GIFT) City in Gandhinagar, Gujarat.

SBI Card has launched a digital facility on the YONO (You Only Need One) platform of SBI. It enables eligible customers to apply for the ‘Advantage SBI Card’, which is a FD-backed secured credit card, in about 10 minutes.