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RBI & Policy

Regulation and policy — and what it means for the lending business.

Nirmala Sitharaman has officially directed public sector banks to aggressively step up their Non-Resident Indian (NRI) outreach to accelerate foreign currency inflows.RBI & Policy

Sitharaman directs public banks to chase NRI deposits at 7.5% to shore up forex

The finance minister has launched a coordinated capital mobilization campaign targeting the global Indian diaspora, leveraging RBI's removal of interest rate caps on FCNR(B) deposits.

14 Jul 20261 min read

For decades, changing jobs in India meant dealing with one of the most frustrating bureaucratic chores: manually transferring your Provident Fund. The EPFO ( Employees Provident FuRBI & Policy

EPFO to centralize 34 crore accounts under CITES 2.0, automating PF transfers

The Employees Provident Fund Organisation will ratify a complete IT redesign on July 25, replacing decentralized regional databases with a unified national system. Automatic transfers, higher advance claim limits, and pre-validation will cut rejection rates.

12 Jul 20261 min read

State-run general insurers in India have operated under a massive accounting blind spot for decades. The Insurance Regulatory and Development Authority of India is finally shuttingRBI & Policy

IRDAI mandates wage provision accounting for state insurers

Public sector general insurers must now set aside annual provisions for expected wage revisions instead of absorbing sudden lump-sum bills when deals are signed.

12 Jul 20261 min read

For years, the Trade Receivables Discounting System (TReDS) has been a quiet lifesaver for small businesses. It lets MSMEs upload invoices and get them paid instantly by bidding fiRBI & Policy

RBI mandates TReDS platform interoperability to break 90% market concentration

The Reserve Bank has released a process note linking all invoice discounting platforms, ending the silo structure that locked MSMEs into single-platform relationships and concentrated market power among three players.

8 Jul 20262 min read

Insurance Regulatory and Development Authority of India ChairpersonRBI & Policy

IRDAI approves two general insurance licenses under new 100% FDI policy

India's insurance regulator has greenlit two new entrants following a landmark shift to allow full foreign ownership. Global insurers can now build standalone Indian operations without local joint-venture partners.

5 Jul 20262 min read

For years, the Indian "term money market" (the massive liquidity pool where financial institutions lend each other uncollateralized cash for 14 days to 1 year) has been an exclusivRBI & Policy

RBI opens term money market to HFCs and AIFIs, unlocking cheaper capital

The central bank's draft directions will let Housing Finance Companies and All India Financial Institutions borrow and lend directly in the inter-bank liquidity pool, historically reserved for large banks and primary dealers.

27 Jun 20261 min read

For years, the Reserve Bank of India (RBI) has maintained incredibly strictRBI & Policy

RBI raises NBFC-IFC lending limit to 45% to unlock infrastructure project funding

The central bank increased the large exposure cap for top-tier infrastructure finance companies, removing a key bottleneck in mega-project financing.

25 Jun 20261 min read

➤For decades, traditional Indian banks have largely viewed MSME lendingRBI & Policy

RBI Governor calls for mindset shift as banks rethink MSME lending strategy

Reserve Bank of India Governor Sanjay Malhotra has pushed banks to move beyond hitting priority sector targets and build genuine MSME partnerships, backed by new digital infrastructure.

23 Jun 20261 min read

Yesterday, the government didn't just announce a few routine administrative appointments; they effectively locked in the long-term regulatory and corporate leadership architecture RBI & Policy

IRDAI locks in leadership through 2028, signalling decade-long reform agenda

The government has confirmed permanent appointments at GIC Re and fortified the IRDAI board with senior industry figures, locking in continuity for structural insurance reforms.

22 Jun 20261 min read

To truly understand the plumbing of the Indian economy, you have to watch the unintended consequences of sudden regulatory shifts.RBI & Policy

RBI's NRI deposit rate hike triggers 'break and rebook' crisis at Indian banks

Commercial banks face pressure from high-net-worth NRI clients demanding early exit from low-yield deposits to capture newly announced 7.1% rates. Banks are seeking regulatory relief from the Reserve Bank of India.

20 Jun 20262 min read

The Reserve Bank of India (RBI) just dropped the regulatory hammer on Shree Mahalaxmi Urban Co-operative Credit Bank. Effective immediately, their banking license is completely canRBI & Policy

RBI cancels Shree Mahalaxmi Urban Co-op Bank licence; 97.9% depositors covered

The regulator ordered liquidation citing inadequate capital and no earning prospects, but DICGC insurance means nearly all depositors recover their money in full.

19 Jun 20261 min read

➤Global tech giants are realizing something critical about India:RBI & Policy

Oracle and UP govt to train 300,000 in AI, cloud and cybersecurity by 2029

A free, digitally-delivered tech upskilling programme aims to build India's talent pipeline beyond traditional metro hubs. The curriculum spans over 300 hours across AI, cloud computing, cybersecurity and data science.

18 Jun 20261 min read

Indian public sector banks just doubled their "Green Deposits" in a single year. Here is how the banking sector is actively funding the climate transition.RBI & Policy

PSU banks double green deposits in one year under RBI framework

State Bank of India and Bank of Baroda have deployed green deposits entirely into renewable energy and EV loans, proving the RBI's ring-fenced capital model is working at scale.

18 Jun 20261 min read

If you ask any hospital administrator, they will tell you that getting empanelled for cashless claims is an administrative nightmare.RBI & Policy

GIC launches unified health insurance empanelment platform, 10,000+ hospitals already applying

India's 32 health insurers now share a single registration system for hospital onboarding, ending decades of fragmented administrative procedures.

15 Jun 20261 min read

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey just made a massive announcement that will reshape the Indian fintech and algo-trading landscape: the reguRBI & Policy

SEBI mandates human oversight for all AI-driven trading and portfolio decisions

India's market regulator is drafting a framework requiring human supervisors to retain control over algorithmic execution, banning fully autonomous trading systems to prevent flash crashes and ensure accountability.

15 Jun 20262 min read

The Reserve Bank of India (RBI) is sending a very clear, uncompromising message to the financial sector: comply with the rules, or lose your license immediately.RBI & Policy

RBI revokes NBFC licences for 135 entities over compliance failures

The Reserve Bank of India has cancelled registrations for 135 non-banking finance companies across India, citing regulatory violations and inactive operations. The majority of revoked entities were based in West Bengal.

15 Jun 20261 min read

⬩A massive, coordinated financial maneuver is currently underway. Indian banks are preparing to raise a staggering 35to40 billion through the Foreign Currency Non-Resident (Bank) dRBI & Policy

RBI to absorb hedging costs as banks target ₹35-40B in NRI deposits

The central bank is removing barriers to FCNR(B) deposits to attract dollar inflows from non-residents, allowing Indian banks to offer rates that compete with U.S. Treasury yields.

9 Jun 20262 min read

➤The Reserve Bank of India (RBI) has penalized Canara Bank following its latest Statutory Inspection for Supervisory Evaluation. While the penalty amount is relatively small for a RBI & Policy

RBI penalizes Canara Bank for KYC delays and account misclassification lapses

The regulator flagged two operational deficiencies during a statutory inspection: failure to upload customer KYC records to the central registry on time, and improper classification of active accounts as inoperative.

6 Jun 20261 min read

➤For years, some directors at Urban Co-operative Banks (UCBs) treated their board seats like family heirlooms. When they hit statutory tenure limits, they would execute a simple maRBI & Policy

RBI caps UCB director tenure at 10 years, mandates 3-year cooling-off period

New amendments effective this week plug a long-standing governance loophole where co-operative bank directors would resign and get re-elected to reset their tenure clocks.

26 May 20261 min read

Here is the breakdown of what triggered the regulator, and why your compliance team needs to pay attention:RBI & Policy

RBI flags farm loan fee levy and SHG data gaps in bank compliance audit

A statutory inspection revealed a bank improperly charged fees on small agricultural loans and failed to report member-level SHG data to credit bureaus—exposing core banking system weaknesses.

23 May 20261 min read

󠁯•󠁏The Reserve Bank of India issued a press release on May 14, 2026, stating that it has cancelled the Certificate of Registration of 150 NBFCs.RBI & Policy

RBI cancels registrations of 150 NBFCs in regulatory crackdown

The central bank issued enforcement action on 150 non-banking financial companies on May 14, while restoring one and accepting surrenders from seven others.

15 May 20261 min read

▸The Reserve Bank of India has cancelled the licence of Sarvodaya Co-operative Bank Ltd., Mumbai, effective from the close of business on May 12, 2026.RBI & Policy

RBI cancels Sarvodaya Co-operative Bank licence over capital shortfall

The central bank has shut down the Mumbai-based lender, citing inadequate capital and regulatory non-compliance. Most depositors will be protected under DICGC insurance.

13 May 20261 min read

“Lower NPAs mean little if recoveries are opaque.”RBI & Policy

RBI tightens collateral recovery rules to plug moral hazard in bad-loan resolution

New draft rules bar banks and NBFCs from selling seized immovable assets back to borrowers or related parties, and require disposal within seven years. The move targets opacity in how lenders recover on defaulted loans.

6 May 20261 min read

➜The Government of India has reviewed its divestment programme, including the proposed stake sale in IDBI Bank, at a recent high-level meeting of senior officials.RBI & Policy

Government pauses IDBI Bank stake sale, orders fresh valuation amid weak bids

The divestment process has stalled due to lower-than-expected investor interest and market volatility. New pricing will determine next steps.

28 Apr 20261 min read

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