Recent 6 months news in Banking

The Insurance Regulatory and Development Authority of India (IRDAI) has granted the final (R3) Certificate of Registration (CoR) to Prudential HCL Health Insurance Ltd. It is a joint venture (JV) between the Prudential Group of the UK (70% stake) and the HCL Group of India (30% stake). With this, the company becomes the 8th standalone health insurer in India.

It is to be noted that regulatory guidelines mandate a minimum paid-up equity capital of ₹100 crore for an Indian insurance company or a Limited Liability Partnership (LLP) registered under the LLP Act, 2008.

Punjab & Sind Bank (PSB) celebrated its 119th Foundation Day in New Delhi. During the event, the bank unveiled several digital banking initiatives, including the 'Navjyoti' mobile application and the 'PSB Bharat Connect' account. Additionally, the bank launched a revised Vision and Mission statement.

PayGlocal, an Indian cross-border payments platform, has integrated Google Pay Card Payments into its International Payment Gateway.

This integration enables Indian merchants to access a customer base of over 1 billion users across more than 90 countries through a single integration.

The Kakinada Cooperative Town Bank, an Urban Cooperative Bank (UCB) in Andhra Pradesh, has secured Tier-III status under RBI norms. The bank achieved this status after its deposits crossed the ₹2,000 crore mark while maintaining zero net Non-Performing Assets (NPAs).

It is to be noted that the RBI classifies UCBs into three categories based on deposits: Tier-I (deposits below ₹100 crore), Tier-II (deposits up to ₹1,000 crore), and Tier-III (deposits between ₹1,000 crore and ₹10,000 crore).

Paisabazaar, in partnership with SBM Bank Ltd, has launched the "SBM Paisabazaar Paisa+ Credit Card", a Fixed Deposit (FD)-backed secured credit card.

The card is designed to help consumers build their credit profile while offering cashback on daily expenses.

The SEBI has constituted an Expert Working Group (EWG) to review the regulatory framework for debenture trustees under the SEBI (Debenture Trustees) Regulations, 1993.

The group is chaired by Ananta Barua, a former Whole-Time Member of SEBI, and co-chaired by Rajnish Kumar, the former Chairman of the SBI.

The Asian Development Bank (ADB) has approved a Small Expenditure Financing Facility (SEFF) of $42.2 million to support the bamboo industry in the North Eastern Region (NER) of India.

The facility is designed to support community-based projects across 6 states in the NER (Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura).

Bengaluru-based Skydo, a cross-border payments platform, has secured an international payment license in Canada. With this, it has become the first Indian cross-border company to obtain regulatory approval overseas.

LEXI Money IFSC Pvt Ltd (LEXI), an AI-powered trade and payments platform, has received in-principle approval from the International Financial Services Centres Authority (IFSCA).

This approval authorizes the platform to operate as a Payment Service Provider (PSP) at the Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC) in Gandhinagar, Gujarat.

RBI has issued the ‘RBI (Non-Banking Financial Companies (NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026’ to revise the framework for identifying Upper Layer Non-Banking Financial Companies (NBFC-ULs).

Under the new rules, effective from June 24, 2026, any NBFC with an asset size of ₹1 lakh crore or more will be automatically classified as an NBFC-UL. This replaces the previous parameter-based assessment model with an absolute asset-size criterion.

The asset size threshold will be reviewed every 3 years, instead of the 5-year cycle proposed in the draft. Additionally, government-owned NBFCs that meet the eligibility criteria will now be considered for inclusion in the UL category.

HDFC Bank has appointed Rajiv Kumar as the part-time non-executive chairman for a period of 3 years. He succeeds the interim chairman Keki Mistry.

Additionally, he has been appointed as an additional independent director for a 4-year term, effective from June 30, 2026.

RBI has issued the "Master Directions – RBI (Credit Derivatives) Directions, 2026", which will come into effect on June 25, 2026. These directions aim to deepen the corporate bond market in India and expand the range of risk-management tools for market participants.

The framework introduces new products, including Total Return Swaps (TRS) linked to corporate bonds and derivatives on credit indices. Additionally, the RBI has mandated the creation of a Credit Derivatives Determinations Committee under the Fixed Income Money Market and Derivatives Association of India (FIMMDA) to support market development.

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.