Recent 6 months news in Banking

jUMPP, an AI-driven fintech platform, has received approval from the National Payments Corporation of India (NPCI) to operate as a Third Party Application Provider (TPAP). This authorization allows the platform to integrate UPI payment capabilities into its application.

The RBI has revamped the Kisan Credit Card (KCC) scheme by standardizing the definition of crop seasons to ensure uniform loan processing and repayment. The 'KCC Directions, 2026' will be applicable to all loans sanctioned under the scheme from January 2027.

The objective of these directions is to establish a framework for providing adequate and timely credit support through the banking system to meet the working capital and investment credit requirements of borrowers engaged in agriculture and allied activities.

Federal Bank Ltd has launched the 'FCNR Max Deposit Scheme', a Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit product for Non-Resident Indians (NRIs).

The scheme offers an annual interest rate of 6.25% on USD deposits with tenures ranging from 3 to 5 years and is valid until September 2026.

The Pension Fund Regulatory and Development Authority (PFRDA) has launched an AI-enabled grievance redressal platform named 'PFRDA Pension Sahayak' for subscribers of pension schemes regulated by the authority.

Zerodha Fund House, India's first passive-only, direct-only Asset Management Company (AMC), has launched the country's first lifecycle (target-date) mutual funds. The new funds include the 'Zerodha Life Cycle Fund 2036' (10-year maturity) and the 'Zerodha Life Cycle Fund 2041' (15-year maturity).

These funds are classified as equity funds for taxation purposes, offering long-term capital gains (LTCG) benefits. It is to be noted that these funds have no lock-in period and require a minimum investment of ₹100.

The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 7-member Working Group on AI (WG-AI) to guide insurance companies regarding the adoption, governance, and oversight of AI technologies.

The WG-AI is chaired by Prof. Sandeep K Shukla, Director of the International Institute of Information Technology (IIIT) Hyderabad. Deepak Gaikwad, General Manager (GM) and Chief Information Security Officer (CISO) at IRDAI, has been appointed as the member-convener of the group.

Punjab National Bank (PNB) has signed a 5-year agreement with Zaggle Prepaid Ocean Services Ltd to launch and distribute co-branded credit cards.

The RBI has cancelled the licence of Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank. The cancellation was due to inadequate capital and lack of earning prospects of the bank.

The RBI has directed banks to exempt agricultural and allied sector loans up to ₹2 lakh per borrower from collateral security and margin requirements under the updated guidelines of the Kisan Credit Card (KCC) scheme.

Furthermore, the voluntary pledge of gold and silver as collateral for agricultural loans up to the collateral-free limit of ₹2 lakh will not be considered a violation of the guidelines on collateral-free lending.

The Alliance of Reporting Entities in Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) (ARIFAC) has been launched as a national industry platform. It aims to strengthen the AML and CFT framework of India by establishing a unified defense against financial crimes.

This private-sector initiative operates under the guidance of the Financial Intelligence Unit–India (FIU-IND), which acts as an official observer. The day-to-day operations of the platform are managed by the Payments Council of India (PCI) and the Fintech Convergence Council (FCC).

Bank of Baroda has launched the 'bob Golden Goal Deposit Scheme', a 555-day retail term deposit plan for deposits below ₹3 crore, offering interest rates up to 7.4% per annum.

The bank has also introduced the 'bob Legend Foreign Currency Non-Resident (Bank) [FCNR(B)]' deposit scheme, which offers interest rates of 6% for tenures of 3 to less than 4 years, 6.1% for 4 to less than 5 years, and 6.5% for 5-year deposits.

The RBI has approved the extension of the tenure of Keki Mistry as the Interim Part-Time Chairman of HDFC Bank Limited for a period of 3 months. He will continue in the position until 18 September 2026.

The RBI has relaxed capital requirements for bank loans backed by the Emergency Credit Line Guarantee Scheme (ECLGS 5.0), effective immediately.

Under the revised norms, 75% of the guaranteed portion of the loan attracts a zero-risk weight, while the remaining 25% of the exposure attracts a 20% risk weight. To qualify for the 0% risk weight, banks must settle claims within 30 days from the date of invocation.

The RBI has imposed regulatory restrictions on the Mumbai-based Mogaveera Co-operative Bank Ltd for 6 months.

Under these directives, the withdrawal limit is capped at ₹1 lakh for depositors across all accounts, including savings and current accounts.

YES Bank and Northern Arc Capital have entered into a strategic partnership to expand access to formal credit, digital lending services, and investment opportunities across India.

The RBI has launched "RBI Reelathon 2026", a statewide cyber fraud awareness campaign in Kerala.

The initiative is being conducted across 150 colleges in the state to promote financial literacy, cyber hygiene, safe digital banking, smart borrowing, and vigilance against online financial threats through student engagement and a reel-making competition.

SEBI has revised the trading framework for Exchange Traded Funds (ETFs) by introducing dynamic price bands, effective from September 2026.

For equity and debt ETFs (excluding overnight and liquid ETFs), the fixed 20% price band based on Net Asset Value (NAV) is replaced by a dynamic price band starting at 10%, which can be expanded up to 20% after a cooling-off period. If prices hit the upper threshold, the band expands by 5% increments.

For commodity ETFs tracking gold and silver, the framework prescribes dynamic price bands with an initial limit of ±6%, which can be expanded in stages of 3% after a cooling-off period.

The Oman India Joint Investment Fund II (OIJIF II), a private equity firm promoted by the sovereign wealth fund of the Sultanate of Oman and the State Bank of India, has divested a 3.65% stake in Capital Small Finance Bank (SFB).

The RBI has issued the “Third Amendment Directions, 2026” to govern bank lending to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), while strengthening risk and exposure norms.

Banks are permitted to extend credit only to those REITs and InvITs that are registered with the SEBI and listed on recognized Stock Exchanges. Lending to REITs is restricted to listed trusts where at least 80% of assets consist of cash-generating properties that have been operational for more than 1 year.

Banks may lend to listed InvITs only if at least 80% of their assets are invested in completed and revenue-generating infrastructure projects that have demonstrated positive cash flows for a period exceeding 1 year.

The RBI has recognised the Sahamati Foundation as the Self-Regulatory Organisation (SRO) for the country’s Account Aggregator (AA) ecosystem.