Recent 6 months news in Banking

ZikZuk Technologies Pvt Ltd has received final authorization from the RBI to operate as a Prepaid Payment Instrument (PPI) issuer under the Payment and Settlement Systems Act (PSSA), 2007.

The National Commodities and Derivatives Exchange Ltd (NCDEX) has launched the first exchange-traded weather derivatives contract in India, named “RAINMUMBAI”, marking the entry of the country into a regulated weather-risk trading market.

Scheduled for implementation in June 2026, the contract is designed to hedge the financial exposure of rainfall extremes and variability in Mumbai. It was developed in collaboration with the IIT Bombay and is based on official rainfall data from the India Meteorological Department. The contract features a tick size of 1 millimeter (mm) with a lot multiplier of ₹50 per mm and a maximum order size of 50 lots.

The RBI has cancelled the licence of Maharashtra-based Yashwant Co-operative Bank Ltd (UCB) with immediate effect, citing inadequate capital, poor financial health, and regulatory violations.

Following the liquidation process, eligible depositors of the UCB will be entitled to receive a deposit insurance claim of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The RBI has imposed regulatory restrictions on the Uttar Pradesh-based Nagar Sahakari Bank Ltd due to deteriorating financial conditions and supervisory concerns. Under these restrictions, a withdrawal cap of ₹10,000 per depositor has been placed on all savings, current, and other accounts for 6 months.

Skydo has secured in-principle approval to operate as a Payment Service Provider (PSP) within the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, Gujarat.

The RBI has issued final amendment directions to revise the regulatory framework governing the Investment Fluctuation Reserve (IFR) for banks and regulated entities. Under the revised norms, the mandatory requirement to maintain the IFR will be discontinued with effect from May 18, 2026.

It is to be noted that the IFR is a reserve created by banks from their profits to absorb losses arising from Mark-to-Market (MTM) valuation changes in investments, particularly government securities.

The Ministry of Finance has approved a proposal by the UAE-based Emirates NBD to acquire a 49%–74% stake in RBL Bank. The transaction is valued at $3 billion (₹26,850 crore) and will be executed through a preferential allotment and a mandatory open offer. This is one of the largest Foreign Direct Investment (FDI) transactions in the banking and financial services sector of India.

Mahindra & Mahindra (M&M) has signed an MoU with DBS Bank to launch the first sustainability-linked dealer financing scheme in the automotive sector in India. Under this scheme, authorized dealers of Mahindra will receive preferential interest rates on vehicle loans, linked to their environmental performance.

IDFC FIRST Bank has launched a ‘Fixed Deposits (FD)-backed Business Multiplier Metal Credit Card’ in Mumbai, Maharashtra. The card is designed for founders, entrepreneurs, startups, and business owners. Key features include assured credit limits linked to FDs, zero forex markup, and business expense management capabilities.

Assam CM Himanta Biswa Sarma inaugurated India’s first AI-powered ‘phygital’ banking branch of Slice Small Finance Bank (Slice SFB) in Guwahati, Assam. The ‘phygital’ model integrates physical banking infrastructure with digital technologies to provide seamless and efficient financial services.

TVS Venu Group has announced plans to acquire up to a 9.9% stake in Jana Small Finance Bank (Jana SFB) through a combination of warrants and secondary share purchases. GWC Family Fund Investments will acquire a 5.64% stake via a primary issue of shares, and TVS Motor Company will purchase a 4.9% stake in the bank.

Viyona Fintech India Pvt Ltd has received certification from the National Payments Corporation of India (NPCI). The certification covers integrations for UPI Acquirer, UPI Issuer, Immediate Payment Service (IMPS), and Interoperable Mobile Banking (IBMB). This development aims to provide secure and seamless digital payment solutions for banks, fintech companies, and merchants.

ICICI Bank, in partnership with Visa, has launched India’s first USD-denominated debit card for Non-Resident Indian (NRI) customers.

The card was introduced through the International Financial Services Centre (IFSC) Banking Unit (IBU) located at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, Gujarat. The card is built on the Visa Infinite platform, which is the highest tier in the Visa network.

The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new post-retirement framework under the National Pension System (NPS) to provide subscribers with flexible periodic payout options. The regulator has launched Retirement Income Schemes (RIS) to facilitate flexible payouts during the decumulation phase while supporting corpus appreciation.

Currently, NPS subscribers can withdraw 60% of their corpus tax free at retirement, while the remaining 40% must be used to purchase an annuity. Additionally, PFRDA has extended the maximum age for maintaining NPS accounts from 75 years to 85 years for both government and non-government subscribers.

The SEBI has proposed a new regulatory framework named ‘Green Channel: Alternative Investment Funds (AIF) Rollout Upon Document Acknowledgement (GARUDA)’ to accelerate the launch and approval process of AIF schemes in India.

The GARUDA mechanism aims to streamline the processing of Placement Memorandums (PPMs) to facilitate faster fundraising. Under this, the waiting period for Non-Accredited Investor schemes is reduced from 30 days to 10 working days after filing the PPM. Additionally, Angel Funds and Accredited Investor-only schemes can commence fundraising almost immediately after filing their documents with the regulator.

AU Small Finance Bank (AU SFB) has launched a new portfolio of four credit cards named AU Ananta, AU Laksya, AU Tejas, and AU Prathama to cater to diverse income and lifestyle segments in Tier-1 and Tier-2 cities.

The credit card suite introduces an industry-first feature of providing complimentary airport lounge access for flight bookings made via the AU Rewardz platform.

The RBI has removed the requirement of prior approval for non bank entities to establish tie-up arrangements for outward remittance services through banks in India. This is part of an operating framework issued by the RBI to facilitate such services through Authorised Dealer (AD) Category I banks.

CTBC Bank Co Ltd has inaugurated a new branch at the GIFT City in Gandhinagar, Gujarat, becoming the first Taiwanese bank to establish a presence in the International Financial Services Centre (IFSC) of India.

It is to be noted that the bank has been operating in India for 30 years and has existing branches in New Delhi and Chennai.

The Department of Financial Services (DFS) under the Ministry of Finance (MoF) has launched the “Bharat Maritime Insurance Pool” (BMIP) in New Delhi. The BMIP is established with a total value of $1.5 billion, which includes a sovereign guarantee of $1.4 billion (₹12,980 crore).

The initiative aims to reduce the heavy reliance of Indian vessels on foreign International Group (IG) Protection and Indemnity (P&I) Clubs for third-party liability coverage.

The Delhi Metro Rail Corporation (DMRC) has partnered with Airtel Payments Bank to launch co-branded RuPay ‘On-The-Go’ National Common Mobility Cards (NCMC) to facilitate seamless digital payments and integrated metro travel across various transit systems in India.