Issue: 1317
·
PM Modi says UPI ready for next level, calls for global
expansion.
·
Reliance plans $1.3 billion bond in first sale since 2023.
·
NSE IPO likely to open on September 18, list on September 25:
Sources.
·
Bandhan Bank launched its credit card business in partnership
with Mastercard, introducing four variants.
·
BRICS Summit may consider invoice-discounting mechanism to
ease MSME funding crunch.
·
NBFC credit grows 14.9% YoY in July.
·
$127 billion deposits raise new rupee risk as banks face
future FX interest bills.
·
S&P assigns Bank of India 'BBB' rating on capital,
funding strength.
UK recognises India’s
carbon credit scheme for carbon tax relief: In a major breakthrough, the UK has recognised
India’s Carbon Credit Trading Scheme as a qualifying criterion for pricing
relief under its carbon border adjustment mechanism (CBAM), a move that would
reduce the tax burden on domestic exporters, an official said on Monday. In a
communication addressed to the Bureau of Energy Efficiency, Ministry of Power,
the UK’s HM Treasury confirmed that the CCTS has been included in the UK’s
published indicative list of overseas carbon pricing schemes assessed as
qualifying criteria under a provision of the Carbon Border Adjustment Mechanism
(Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations
2026, the official said. The move is important as the commerce ministry was
pursuing the matter with the UK for long.
(Business Line)
RBI launches inflation,
consumer confidence surveys ahead of October MPC meeting: The Reserve Bank of India has
announced key surveys on rural and urban consumer confidence and inflation
expectations with the aim of collecting qualitative data, which will help
capture the consumer sentiment over the employment scenario and price situations.
The central bank said that the results of these will be useful for the RBI’s
monetary policy. The announcement comes just one month ahead of RBI’s MPC
meeting, which is scheduled for October 4. The September round of the
Inflation Expectations Survey of Households (IESH), is being conducted across
nineteen cities to capture subjective assessments of price movements and
inflation.
(Financial Express)
Indian banks leave FX risk
open on overseas deposits, weighing on rupee: Indian banks have left much of
their future interest payments on overseas FX deposits unhedged, creating a
source of potential dollar demand ?that could compound depreciation pressure in
a rupee-weakening scenario, five bankers said. Lenders ?have raised more than
$127 billion in such deposits since the central bank introduced them ?as part
of one-off measures to strengthen India's balance of payments in the face of
surging oil prices in June.While the Reserve Bank of India's special swap
facility shields banks from FX risk on the deposits' principal amounts,
interest payments need to be managed by lenders independently.
(Business Standard)
Axis Bank launches Arise
Homecoming to hire foreign educated talent: Axis Bank has launched Arise
Homecoming, a hiring initiative designed for globally educated Indian talent
seeking career opportunities in India. The programme is open to Indian students
pursuing or recently completing education at overseas universities, and
professionals with up to two years of international work experience across
degrees, disciplines and institutions, with emphasis on skills, potential and
role fit, the private bank said in a statement on Monday.
(Economic Times)
Former RBI Governor calls
for incentives to create more small finance banks: India needs to do more to
strengthen the small finance bank segment, which currently has only around 11
such banks nationally, C Rangarajan, Former Governor, Reserve Bank of India,
said here on Monday. “I would appeal to the Reserve Bank of India to look at
how to incentivise the setting up of small finance banks,” he said, arguing
that the existing framework does not provide enough motivation. Rangarajan was
speaking at the formal inauguration of the Equitas’ Small Finance Bank’s new
corporate office Equitas Towers in Chennai.
(Business Line)
Shriram General Insurance
inks pact with SK Finance for distribution of insurance products: Shriram General Insurance has
partnered with SK Finance to enhance customer access to insurance products in
vital markets. This exciting collaboration will allow SK Finance to utilize its
broad branch network to distribute these offerings effectively. Through this
partnership, customers will benefit from relevant insurance solutions available
via SK Finance’s extensive distribution channels, while Shriram General
Insurance will handle all claims and service requests efficiently.
(Economic Times)
Irdai fines ICICI Lombard
Rs 1 crore for outsourcing, vendor management lapses: The Insurance Regulatory and
Development Authority of India has imposed a Rs.1 crore penalty on ICICI
Lombard General Insurance for lapses in outsourcing, vendor management and
corporate governance. The regulator said the insurer failed to classify event
management services involving agents of other insurers as outsourced activities
or report related expenses.
(Economic Times)
Union Finance Minister
meets delegation of bank employees representing different Public Sector Banks
(PSBs): The
Union Finance Minister met with a delegation of bank employees representing
different Public Sector Banks (PSBs) led by the Bharatiya Mazdoor Sangh. The
delegation raised various issues relating to the banking sector including
review of ex-gratia, medical facility for retired employees, revisiting the
present structure of Performance Linked Incentive (PLI) Scheme applicable for
the employees of PSBs, and other concerns related to employees. The concerns
expressed by bank employees were taken cognizance of, and in response to the
representation received on the PLI structure, it was decided to keep in
abeyance the implementation of the PLI Scheme dated 19.11.2024 for FY 2025–26
and take up the same during the ongoing Bipartite Settlement/ Joint Note
discussions.
(PiB)
Centre restores 'Sahara
Refund Portal' to process 2 million pending claims: The Ministry of Cooperation has restored the
'Sahara Refund Portal' under the Central Registrar of Cooperative Societies
(CRCS), resuming the verification and processing of around 2 million pending
claims from genuine depositors of Sahara Group cooperative societies. According to an official
statement, so far, Rs 9,267 crore has been refunded to around 4.2 million
depositors, with the money transferred directly into their Aadhaar-seeded bank
accounts. The refund process had been disrupted after the societies faced
operational and administrative hurdles, including issues related to IT
infrastructure, licences, hardware maintenance and manpower. The functioning of
the Sahara cooperative societies was affected in November 2025 after their
premises were sealed due to certain matters disconnected from the Sahara
societies, the statement added.
(Business Standard)
Amazon India seller base
tops 2 million ahead of festive season: With the festive season approaching, Amazon
India said that its seller base has crossed the 20-lakh milestone. With over 3
lakh new sellers joining the marketplace (in 15-18 months), this marks the
strongest year-on-year (YoY) growth in seller numbers. The growing seller
community spans businesses at every stage, from first-generation entrepreneurs
in Tier 3 towns to established brands managing thousands of stock keeping units
(SKUs). As sellers prepare for the festive season, Amazon is focused on making
selling on Amazon India simpler and more accessible, with tools, technology and
infrastructure. These are designed to help sellers advertise their products,
manage their businesses and serve customers effectively.
(Business Standard)
Adani leads Rs.37,500-cr
coal gasification scheme with three urea bids: The Centre’s Rs.37,500 crore scheme to promote
coal and lignite gasification has received seven applications in its first
bidding round, with Adani Enterprises submitting bids for three projects aimed
at producing urea, the Ministry of Coal said on Tuesday. The other applicants
include state-run NTPC Ltd and Talcher Fertilizers, as well as private sector
companies Gallantt Ispat and Shyam SEL & Power. NTPC and Shyram SEL &
Power have proposed synthetic natural gas (syngas) projects, while Gallantt
Ispat has applied for a project to produce direct reduced iron (DRI) and
syngas. Talcher Fertilizers has proposed a urea project.
(Business Standard)
BRICS weighs
law-enforcement network to track economic fugitives: India is set to seek greater cooperation among
BRICS countries for faster tracking and extradition of economic fugitives at
the forthcoming leaders’ summit, building on an in-principle agreement reached
by the bloc’s anti-corruption officials last month to establish a network of
law-enforcement practitioners, sources said. The proposed mechanism is intended
to facilitate quicker, informal exchanges between investigators, helping
authorities trace fugitives and identify illicit assets across borders.
(Business Line)
DGFT launches Open API to
simplify Certificate of Origin process for exporters: India’s exporters are set to get a more
seamless digital process for obtaining Certificates of Origin (CoO), with the
Directorate General of Foreign Trade (DGFT) introducing an Open API facility
that will allow businesses to integrate their own ERP and accounting systems
directly with the government’s CoO system. The move is expected to reduce
manual data entry, improve processing efficiency and make certificate-related compliance
easier for exporters. According to a trade notice issued by the DGFT on Monday,
the Open API facility has been introduced on the Trade Connect e-Platform and
is now available to eligible exporters and systems meeting the prescribed
technical requirements.
(Business Line)
FISCAL DOMINANCE
·
Fiscal dominance arises when
monetary policy becomes constrained by the government’s borrowing requirements
or debt-servicing burden.
·
In such a situation, the
central bank may find it difficult to raise interest rates sufficiently to
control inflation because higher rates would sharply increase government
borrowing costs. Persistent fiscal dominance can weaken monetary-policy
credibility and crowd out private-sector borrowing.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 94.7178
INR
/ 1 GBP : 128.2792
INR
/ 1 EUR : 110.1416
INR
/100 JPY: 61.6900
EQUITY INDEX
Sensex:
75577.58 (-555.23)
NIFTY:
23635.10 (-144.05)
Bnk NIFTY: 56777.55 (-310.75)
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