Recent 6 months news in Banking

According to data from the Ministry of Finance (MoF), Scheduled Commercial Banks (SCBs) recorded a 15.9% year-on-year (y-o-y) growth in non-food credit in FY26, an increase of 497 basis points (bps) from 10.9% in FY25.

Credit to agriculture and allied activities grew by 15.7% (up from 10.4% in the previous year), while industrial sector credit expanded by 15%, nearly double the 8.2% growth rate of the previous year. The services sector registered the highest growth of 19% in FY 2025-26, compared to 12% in the preceding year.

NPCI Bharat BillPay Ltd (NBBL), a subsidiary of the National Payments Corporation of India (NPCI), has partnered with the fintech firm Juspay Technologies Pvt Ltd to launch a unified switch and software development kit (SDK) for the ‘Banking Connect’ platform.

The initiative is designed to improve the net banking experience in India by providing seamless technological integration for financial institutions.

Tata AIA Life Insurance has launched a unit-linked life insurance plan (ULIP) named “Shubh Health Criti” to create a market-linked health fund for long-term medical needs. The plan provides coverage for over 60 critical illnesses and is available for individuals aged 18-65 years.

The RBI has launched a nationwide mission-mode initiative named “Mission SAKSHAM” (Sahkari Bank Kshamta Nirman) for the Urban Co-operative Banking (UCB) sector. The mission focuses on the comprehensive capacity building of the sector to enhance overall performance. The core objectives of the initiative include strengthening managerial and operational efficiency to ensure that the UCB sector aligns with modern banking standards.

The SEBI has operationalized the “Past Risk and Return Verification Agency” (PaRRVA) framework, a global initiative to standardize performance disclosures and prevent misleading claims. CARE Ratings Ltd is the designated agency for the independent validation of performance claims, while the National Stock Exchange (NSE) will act as the PaRRVA Data Centre (PDC). The framework applies to Investment Advisers (IAs), Research Analysts (RAs), and Algorithmic Trading service providers.

These entities must enroll with the agency by August 3, 2026, to share certified performance data. From May 3, 2028, only PaRRVA verified metrics can be used in client communications, and the use of data from the pre-PaRRVA period will be banned. It is to be noted that the agency will compute 50 risk and return parameters using transaction-level data from exchanges and clearing corporations.

The RBI has cancelled the banking licence of Paytm Payments Bank Ltd (PPBL), effective April 24, 2026. The regulatory action was taken due to persistent non-compliance and material supervisory concerns within the bank.

The RBI has issued the final guidelines titled “RBI (Non-Banking Financial Companies (NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026”, applicable to NBFCs that do not use public funds and lack a customer interface.

Effective from July 2026, entities with an asset size under ₹1,000 crore will be classified as ‘Unregistered Type I NBFCs’ and will be exempt from registration with the RBI. All other NBFCs that do not meet this criteria will be categorized as ‘Type II NBFCs’.

Flipkart Internet Pvt Ltd, in collaboration with Axis Bank Ltd and PayU Payments Pvt Ltd, has introduced biometric authentication for card-based transactions. The system enables users to authorize payments via fingerprint or Face Identification (Face ID), serving as a replacement for traditional One-Time Passwords (OTPs).

The RBI has approved the application of One MobiKwik Systems Ltd to operate as a Non-Banking Financial Company (NBFC). This allows the company to establish a subsidiary named MobiKwik Financial Services Private Ltd as its lending arm, contingent upon the issuance of a Certificate of Registration (CoR).

RBI has imposed a monetary penalty of ₹41.8 lakh on Bandhan Bank for non-compliance with Know Your Customer (KYC) guidelines. It has also levied a fine of ₹80,000 on Muthoot Housing Finance Company for failing to follow the Fair Practices Code. Additionally, a cumulative penalty of ₹2.6 lakh was imposed on Ebix Payments Services Ltd and two cooperative banks under the Payment and Settlement Systems (PSS) Act, 2007.

The government of India has sanctioned the inaugural withdrawal worth ₹3,000 crore ($360 million) for the Maldives under the South Asian Association for Regional Cooperation (SAARC) Currency Swap Framework (2024–2027). The facility is provided through the Indian Rupee (INR) Swap Window to offer short-term foreign exchange liquidity support to the member nations of SAARC.

The approval follows the settlement of a previous $400 million facility by the Maldives in October 2024. It is to be noted that the RBI has provided cumulative swap support worth $1.1 billion to the Maldives since 2012.

The RBI has issued a Master Direction to transition toward an Expected Credit Loss (ECL) based approach for asset classification, income recognition, and provisioning. The new directions will come into force in April 2027, replacing the current regulatory norms.

Under the proposed ECL framework, the 90-day rule for Non Performing Assets (NPAs) will be maintained, classifying loans as NPAs if repayments remain overdue for more than 90 days. Additionally, a new reporting framework for Over-the-Counter (OTC) FX derivative contracts will be effective from July 2027.

Union Minister Nirmala Sitharaman delivered the keynote address at the 38th foundation day of the SEBI in Mumbai. She highlighted that SEBI should expand investor awareness campaigns across digital platforms and regional languages to ensure wider protection.

She also launched “Mission Jagrook”, a nationwide investor awareness initiative aimed at safeguarding retail investors against misinformation, fraud, and manipulative financial content.

Union Minister Nirmala Sitharaman has announced that the Government of India (GoI) has established a high-level panel to evaluate systemic threats posed by “Mythos”, an advanced AI model developed by Anthropic. The announcement was made after a meeting with Union Minister Ashwini Vaishnaw and senior banking executives.

The committee is chaired by CS Setty, the Chairman of the SBI and leader of the Indian Banks’ Association (IBA). The primary objective of the panel is to assess “AI-born” risks to the financial sector and identify strategic technology investments required to enhance national resilience.

India Post Payments Bank (IPPB) has introduced a specialized Self Help Group (SHG) Savings Account to cater to the unique banking requirements of community-based organizations.

The initiative aims to advance financial inclusion and provide economic empowerment to women-led SHGs in rural India by facilitating access to formal banking channels.

The RBI has withdrawn certain restrictions on foreign exchange dealers regarding positions in the offshore Non-Deliverable Forwards (NDF) market, which were originally implemented to mitigate rupee volatility.

To manage market fluctuations, the RBI has capped the net open positions of banks in the offshore derivatives market at $100 million.

Punjab National Bank (PNB) has partnered with the fintech firm Kiwi to launch a co-branded RuPay credit card named “PNB Kiwi Credit Card” integrated with the UPI. The initiative aims to expand digital credit access and strengthen the digital payments ecosystem in India.

CheQ, a credit management platform, has partnered with AU Small Finance Bank (AU SFB) to launch the “CheQ AU Credit Card”, which is the first co-branded Light-Emitting Diode (LED)-powered credit card in India.

The card is designed to simplify payments and maximize rewards through a unified rewards ecosystem and advanced tap-to-pay features.

NPCI Bharat Bill Pay Ltd (NBBL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), has onboarded Postal Life Insurance (PLI) as a biller under the insurance category on the Bharat Connect platform.

PLI is managed by India Post, and SBI served as the Biller Operating Unit (BOU) to facilitate the onboarding. With the addition of PLI, the total number of insurance billers on the Bharat Connect platform has reached 65.

Pay Point India Network has become the first private-sector fintech company to join the Centralised Payment System (CPS) operated by the RBI.