Issue: 1320
·
Coforge independent director DK Singh resigns amid board
tensions, cites ‘differences’.
·
Haven't applied to SEBI for permission to trade on our own platform,
says NSE CEO.
·
RBI should hike repo rate by 25 bps in October, December to
counter inflation: SBI Research.
·
Russia, India explore digital currencies for trade
settlements, says Sberbank CEO Herman Gref.
·
SBI developing solution to use UPI data for checking
creditworthiness of small biz.
·
Bankers’ Books Evidence Act, 2026 to come into force from 1st
October 2026.
·
Nearly 50% FCNR(B) deposits are for 5-year tenure: RBI
Governor Malhotra.
RBI to conduct OMO bond
sales worth Rs 1 lakh crore in three tranches on Sept 17, 21 and 28: The Reserve Bank of India on September 11 announced
an open market sale of bonds, one of the most potent liquidity-draining tools. The Reserve Bank of India
will sell bonds maturing in fiscal 2029 to fiscal 2032 worth Rs 1 lakh crore in
its first net sale of bonds in two years, after it sold notes in the secondary
market in September 2024. The central bank had conducted simultaneous purchase
and sale of bonds in fiscal 2021 and 2022. "On a review of current and evolving liquidity
conditions, the Reserve Bank has decided to conduct OMO sale auctions of
Government of India securities for an aggregate amount of Rs 1 lakh crore in
three tranches of Rs 50,000 crore, Rs 25,000 crore, and Rs 25,000 crore to be
held on September 17, 2026, September 21, 2026, and September 28, 2026,
respectively, through multi-security auction using the multiple price
method," said RBI in a press release.
(Moneycontrol)
Putin pitches NDB
investment platform to deepen BRICS trade, technology ties: Russian President Vladimir
Putin on Friday pitched a new investment platform to fund projects in trade,
infrastructure, logistics and technology across BRICS, while stressing that the
grouping’s expanding economic cooperation was “not against anyone” and aimed
instead at advancing the national interests of its members. Addressing
a gathering of BRICS business leaders ahead of the summit, Putin said Russia
was ready to work with partners on infrastructure and logistics projects,
including the Arctic Transport Corridor and North-South Transport Corridor, as
well as cooperation in technology, artificial intelligence, unmanned transport,
finance, tourism and industry. Putin said the proposed
investment platform, to be based on the New Development Bank (NDB), would seek
to mobilise private-sector funding and make BRICS economies more competitive.
He expressed hope that other BRICS members would support the initiative.
(Moneycontrol)
Unified payment system
achievable with right trust framework: South African chapter of BRICS council: A unified payment system for
the 11-member BRICS bloc is achievable with the right trust and regulatory
framework, while affordable connectivity remains key to bridging the global
digital divide, said Ziaad Suleiman, Chair for the Digital Economy Working
Group, South Africa Chapter, BRICS Business Council. Suleiman, who is attending
the BRICS business forum in New Delhi, talks about digital payments, local
currencies, connectivity and technology.
(Business Line)
Payments bank industry
seeks pricing flexibility as costs rise: Jio Payments Bank MD Easwaran: The payments bank industry has
sought greater flexibility in pricing certain services to offset the rise in
operating costs, Jio Payments Bank Managing Director and CEO Vinod Easwaran
said. “Some of the pricing and our margins have remained constant,” Easwaran
said in an interaction with FE at the Global Fintech Fest. Pricing caps for
products such as Aadhaar-enabled Payment System (AePS), a key transaction
banking use case for payments banks, have remained unchanged since the licences
were issued, even as the cost of doing business has risen, he said.
(Business Line)
Payment system providers
will need to move towards quantum-proofing: RBI DG: The time has therefore come
for Indian payment system providers and network operators to begin moving
towards quantum-proofing our payment systems, said Deputy Governor Shirish
Chandra Murmu on Friday. “Banks, payment operators, fintechs, technology
providers and standard-setters will need to move together, because quantum
resilience is an ecosystem capability, not an institutional one. We must
innovate not only for the future, but for the risks the future creates,” said
Murmu, while speaking at Global Fintech Fest.
(Financial Express)
IRDAI imposes Rs 1 crore
penalty on Canara HSBC Life Insurance on policyholder interest lapses: Canara HSBC Life Insurance
Company has been penalised Rs 1 crore by the Insurance Regulatory and
Development Authority of India. The order relates to lapses concerning
policyholder interest. The company disclosed the development in a regulatory
filing to the National Stock Exchange and BSE on September 10. As
part of the order, IRDAI also issued additional directions to Canara HSBC Life.
The company has been advised to submit an Action Taken Report on these
directions within specified timelines.
(Financial Express)
Russia’s Sberbank plans major
India push, to build business hub: Sberbank CEO Herman Gref
announced plans for new financial and technology infrastructure tools. The bank
will establish the largest Russian business hub in India, expanding its
presence. Sberbank has been developing its financial business in India for
sixteen years. Money transfers between India and Russia now take only minutes,
improving business opportunities. Two office buildings are under construction
and will be commissioned in 2028.
(Economic Times)
FM Sitharaman for AI
safeguards to keep pace with rapid tech evolution: Finance Minister Nirmala
Sitharaman on Friday called for stronger safeguards around artificial intelligence
(AI), saying they must be put in place quickly and continuously updated to keep
pace with the rapid evolution of technology. Without such safeguards, “the
question of AI going rogue is left for society at large to answer”, she said,
calling this “an unsustainable distribution of risk”. Sitharaman’s comments come
amid growing concerns within the AI industry over the pace at which frontier AI
models are being developed and deployed. A researcher recently resigned from
one of the world’s leading AI laboratories, publicly warning that commercial
frontier labs were “racing straight to self-improving super-intelligence and
gambling with our lives”.
(Business Standard)
Bank strike disrupts PSB
operations across states, digital services normal: Work at branches of
public-sector banks (PSBs) was disrupted on Friday in several parts of the
country with employees and officers joining a nationwide strike called by the
United Forum of Bank Unions (UFBU), according to bank officials. The
UFBU said the strike brought operations in Maharashtra to a standstill, with
more than 100,000 employees and officers in the state participating in the
strike. Rallies and demonstrations were held at more than 25 centres in
Maharashtra. “Clearing exchanges could not take place and over-the-counter
transactions were virtually zero. Money-market and foreign-exchange operations
were also affected, with only limited transactions taking place,” the union
said.
(Business Standard)
Tech service providers set
to gain as MDR returns to UPI: Banks and payment apps may split the merchant
discount rate (MDR) set to return on UPI, but the first to benefit could be the
companies that build their payment systems. Technology service providers
(TSPs), which build UPI switches, card platforms and payment apps, are already
seeing an influx of enquiries from banks and non-banking financial companies
(NBFCs) looking to launch their own third-party application provider (TPAP)
apps, the consumer-facing UPI apps such as PhonePe and Google Pay, according to
multiple industry executives FE spoke to. The layer includes Mindgate
Solutions, NPST, Sarvatra Technologies, Juspay, M2P Fintech, Zeta, iServeU and
Finarkein Analytics.
(Financial Express)
Centre pushes for
digitising construction worker welfare services: The Centre is pushing states to digitise employment
and welfare services for building and other construction workers, with nine
states and Union Territories (UTs) launching digital Labour Chowks at a two-day
national conference that began in Mumbai on Friday.The conference is being
attended by state labour ministers, senior officials and representatives of
building and other construction workers’ welfare boards. It is also reviewing
implementation of measures announced at a similar conference last year. Maharashtra,
Telangana, Delhi, Madhya Pradesh, Jharkhand, Bihar, West Bengal, Andhra Pradesh
and Odisha will launch their respective Digital Labour Chowk initiatives during
the conference.
(Business Standard)
Record $44.9 bn surge in a
week makes India 4th-largest Fx holder: India’s foreign exchange reserves posted their
biggest-ever weekly increase, surging by $44.9 billion to a record $785.7
billion in the week ended September 4, boosted by strong dollar inflows under
the Reserve Bank of India’s (RBI’s) concessional swap window, especially the
foreign currency non-resident (bank) — or FCNR(B) — deposits scheme. This increase pushed
India past Russia to become the world’s fourth-largest holder of foreign
exchange reserves, behind China, Japan and Switzerland, according to data
compiled by Bloomberg. Total reserves had stood at a previous high of about
$740 billion in the week ended August 28.
(Business Standard)
MSE facilitates India’s
first tokenised corporate bond under SEBI’s Demat 2.0 pilot: Metropolitan Stock Exchange of India (MSE) has
facilitated the country’s first tokenised corporate bond issuance under the
Securities and Exchange Board of India’s (SEBI) Demat 2.0 pilot, a regulatory
sandbox initiative aimed at modernising India’s debt market infrastructure. The
bond was issued by IIFL Finance Ltd through MSE’s Electronic Bond Platform (MSE
EBP), with Trust Investment Advisors Pvt Ltd serving as the arranger. The
issuance marks the first instance of a corporate bond being issued natively on
a distributed ledger in India, with ownership records held with statutory
depositories and settlement conducted in Central Bank Digital Currency (CBDC).
(Business Line)
UPI's AI protocol
temporarily on hold as NPCI builds safeguards: Enabling artificial intelligence (AI) agents
or digital assistants to make automated payments through the existing Unified
Payments Interface (UPI) infrastructure may have to wait for a few more months.
The much-awaited launch of Unified Agentic Protocol (UAP), a new standard for
AI-led transactions on UPI, has been temporarily put on hold by the National
Payments Corporation of India (NPCI) as it awaits regulatory clearance, five
people aware of the development said. NPCI, which is developing the protocol,
is expected to iron out concerns on agentic payments over the next few months
before seeking approval again, according to two of the persons cited above.
(Business Standard)
IFSCA pilots Aadhaar face
authentication to ease cross-border KYC for NRIs: The International Financial Services Centres
Authority (IFSCA) is piloting unassisted Aadhaar face authentication with four
international jurisdictions to simplify cross-border know your customer (KYC) process for non-resident Indians
(NRIs), as it seeks to make Gujarat International Finance Tec (GIFT) City a
platform for global wealth management, IFSCA chairman K Rajaraman said on
Friday. Under the pilot, an NRI with an Aadhaar footprint
could complete the onboarding process without assistance, allowing an investor
overseas to digitally open an account and invest, the chairman said at the
Global Fintech Fest.
(Business Standard)
PARTICIPATORY NOTES
· Participatory notes, known as P-notes or PNs, enable
investors or hedge funds not registered with the Securities and Exchange Board
of India (SEBI) to invest in Indian securities.
· These
Offshore Derivative Instruments allow foreign investors to bypass direct
registration, facilitating quick and anonymous market access. Despite their
popularity, P-notes are controversial due to regulatory concerns about
anonymity and unaccounted funds entering India.
·
Investors receive dividends or
capital gains from securities, but Indian regulators worry that hedge funds
using participatory notes might create market volatility.
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 : 95.7245
INR
/ 1 GBP : 129.4498
INR
/ 1 EUR : 111.1531
INR
/100 JPY: 62.1400
EQUITY INDEX
Sensex:
74781.76 (-120.83)
NIFTY:
23398.10 (-79.70)
Bnk NIFTY: 56606.55 (+134.60)
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