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The Banking Frontline 13 March 2026

Issue: 1165


India extends LPG booking cycle for rural households to 45-days amid supply concerns after Hormuz disruption: As the shortage of liquified petroleum gas (LPG) continues to stress Indian markets, the oil ministry has increased the lock-in period or the booking cycle to 45 days for rural consumers as against 25 days earlier, officials from oil ministry said. “The country has never seen such situation in past. Domestic supplies (of gas) have been affected after the closure of strait of Hormuz,” said Sujata Sharma, Joint Secretary, ministry of petroleum and natural gas, adding that booking of cylinder will now be possible after 45 days for rural consumers. She also said that the country is importing LPG from multiple sources.

(Moneycontrol)

Retail inflation rose to 3.21% in February, war impact likely from next month: Food and precious metals pushed up retail inflation based on the Consumer Price Index (CPI), which rose by 47 basis points to an 11-month high of 3.21 per cent in February, the government reported on Thursday. Experts expect inflation to rise further in the coming months on account of war and the resultant fuel crisis. The uptick in retail inflation was largely driven by higher food inflation, with major contributions from coconut, tomato and cauliflower. At the same time, prices of silver, gold/platinum jewellery rose sharply by over 160 per cent and 48 per cent respectively in February 2026.

(Business Line)

Remittances from West Asia see 20-30% jump in March due to conflict: Remittances from West Asia in March rose sharply amid the conflict in the region, with industry insiders estimating inflows to be 20-30 per cent higher than what is usual in a month. With anxieties setting in, members of the Indian diaspora are remitting more, they said, adding that the depreciation of the rupee against the dollar has also contributed to the rise. The rupee has depreciated 1.32 per cent since the conflict began, breaching 92 a dollar. Before this, it was trading near 91.

(Business Standard)


Digital Payments Awareness Week 2026 - Launch of ‘Awareness Program on Digital Payments’ and Interaction with Payment Systems Operators (PSOs): The sixth edition of Digital Payments Awareness Week (DPAW) is being observed during March 9-13, 2026. As part of this initiative, Governor Shri Sanjay Malhotra launched the pilot program titled 'Awareness Program on Digital Payments'. The pilot will be conducted in Maharashtra in partnership with CSC e-Governance Services India Limited. The pilot will include conduct of in-person awareness programs for 10 lakh participants in rural and semi urban areas through Village Level Entrepreneurs (VLEs). On this occasion, the Reserve Bank also launched a multi-media awareness campaign "Thoda Dhyan Se" (be alert/ be careful), which encourages users to be careful while making payments and transacting online.

(RBI Press Release)

Central Bank of India partners with IIFL Finance for co-lending loans: Central Bank of India has entered into Co-Lending Partnership with IIFL Finance to offer Loans at competitive rates, subject to compliance with the applicable law(s) including the revised Co-Lending Arrangements (CLA) guidelines issued by BI). Under the arrangement, IIFL Finance will originate loan proposals, which will then be processed by both lenders based on jointly defined credit parameters

(Financial Express)

South Indian Bank collaborates with EPFO to launch EPF payment services: South Indian Bank has introduced Employees' Provident Fund payment services through its SIBerNet internet banking platform. This collaboration with EPFO allows employers to easily remit EPF contributions. The integration simplifies statutory payments for businesses. Employers can now use South Indian Bank's net banking facility for direct remittances via the EPFO portal. This move enhances the bank's digital offerings.

(Economic Times)

Public sector banks still ahead of private peers in credit growth: Public sector banks (PSBs) outpaced private lenders in credit growth during the December quarter of FY26, with loan growth ranging from 17-28% year-on-year. This surge boosted PSBs' market share in loans to 54.4%, while private banks saw a slight decline. Improved asset quality and corporate lending revival fueled PSB momentum.

(Economic Times)

Nabard, REC pull ?11,000 crore bond issues after weak investor demand: NABARD and REC, both state-owned, on Thursday pulled out their planned bond issues worth a combined ?11,000 crore after receiving a limited number of bids and that too at yields higher than what they were willing to accept, according to sources. While REC’s cancelled bond issue (for ?3,000 crore) was for two years, it raised another ?3,000 crore through five-year bonds at a coupon rate of 7.19 per cent. Nabard was looking to raise ?8,000 crore through bonds maturing in seven years and three months.

(Economic Times)

Razorpay launches world’s first AI Agent Studio for payments: Razorpay, India’s omnichannel payments and banking platform for businesses, on Thursday announced the launch of the world’s first Agent Studio built using the Claude Agent SDK from Anthropic at the FTX 2026 event. The company also introduced its Agentic Experience Platform, a new AI-native layer aimed at simplifying how online businesses onboard to Razorpay, integrate payments into their products and manage payment operations.

(Economic Times)


India in talks with Iran for safe passage of ships through Strait of Hormuz: Amid concerns over India’s energy security, especially the looming shortage of cooking gas and fertilisers due to the conflict in West Asia, Indian government sources said on Thursday that New Delhi is in talks with Tehran to provide safe passage to Indian-flagged merchant vessels — especially the 28 currently stranded in the region — to transit the key shipping route of the Strait of Hormuz. When asked if such an effort was in the works, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said at the ministry’s weekly media briefing on Thursday evening that External Affairs Minister S Jaishankar and his Iranian counterpart Abbas Araghcchi have had three conversations in recent days.

(Business Standard)

Indian equities fall as Iran attacks raise fears of oil supply disruption: Indian equities declined for the second consecutive session on Thursday, with the Nifty slipping into correction territory, as Iran’s continued attacks on ships across West Asia dampened hopes of an early end to the conflict. The escalation also raised concerns about a prolonged disruption to oil flows through the Strait of Hormuz. The Sensex ended the session at 76,034, down 829 points, or 1.08 per cent. The Nifty closed at 23,639, declining 228 points, or 1 per cent. Since the beginning of the conflict, the Sensex has fallen 6.5 per cent and the Nifty 6.1 per cent. From their all-time highs, the Sensex is down 11.4 per cent and the Nifty 10.2 per cent.

(Business Standard)

India asks china for urea as war-induced gas crunch hits plants: India has asked China to allow the sale of some urea cargoes as the war in the Middle East curtails the nation’s gas supplies, threatening fertilizer production in the agricultural powerhouse. Indian officials have asked their Chinese counterparts to consider easing export restrictions as an expanding conflict in the Persian Gulf upends supplies of liquefied natural gas — a crucial feedstock — and forces some fertilizer makers in the South Asian nation to shut plants, according to people familiar with the matter.

(Business Standard)


SEBI proposes simplified claim process, higher limits to ease transmission of securities:  Capital market regulator, SEBI, has proposed a comprehensive overhaul of the framework governing the transmission of securities after the death of an investor, aiming to simplify documentation requirements, raise thresholds for simplified procedures and introduce straight-through processing for low-value claims. In a consultation paper issued on Thursday, the regulator said the proposed changes are intended to enhance ‘ease of investing’ by reducing procedural hurdles faced by legal heirs while claiming securities. SEBI noted that bereaved families often encounter complex documentation requirements and inconsistent practices across intermediaries, which can delay the transfer of assets. Currently, simplified documentation is allowed for transmission of securities up to Rs 5 lakh per listed entity for physical holdings and Rs 15 lakh per beneficial owner for dematerialised holdings. SEBI has proposed increasing these limits to Rs 10 lakh for physical securities and Rs 30 lakh for dematerialised securities.

(Moneycontrol)

IBA Hosts RRB Conclave 2026 on “Next-Gen Reforms for RRBs – Challenges & Opportunities”: IBA hosted a one day “RRB Conclave 2026: “Next-Gen Reforms for RRBs - Challenges & Opportunities” on 11th March 2026 in New Delhi. Organised under the guidance of the Department of Financial Services, the conclave was convened to deliberate on opportunities, challenges, and the roadmap for next-generation reforms for RRBs. Deliberations on the conclave focused on key theme areas viz: (i) Banking for Emerging India, (ii) Innovation in Agri-Financing, (iii) Digital & Technology Transformation, (iv) Financial Inclusion & Customer EASE, (v) Human Resource Development & Capacity Building for RRBs, and (vi) Collaborative Approach.

(PiB)

RBI-Esma pact likely to need reboot if India's concerns not resolved: The recently signed agreement between the Reserve Bank of India (RBI) and the European Securities and Markets Authority (Esma) may have to be renegotiated if India’s concerns are not addressed adequately, sources told Business Standard. The Indian central bank and the Esma, the European Union’s financial markets regulator and supervisor, signed a Memorandum of Understanding (MoU) this January, which was a part of the larger India-European Union (EU) trade pact, to facilitate cooperation and exchange of information for the recognition of central counterparties (CCPs) established in India and supervised by the Indian regulator. While the MoU is aimed at resolving a prolonged impasse between the RBI and the Esma, after the latter had demanded to audit books of Indian central counterparties like the Clearing Corporation of India (CCIL), it was contingent on the Indian regulator’s concerns being addressed in the next iteration of the European Market Infrastructure Regulation (EMIR), according to sources.

(Business Standard)


ANNUAL REVENUE RUN RATE (ARR)

§ Annual revenue run rate is a financial metric that estimates a company's future revenue by projecting current revenue over a year. It's also known as sales run rate or data annualization.

§ To calculate the ARR; Divide the total revenue for a given period by the number of days in that period and then multiply the result by 365.

§ It helps companies forecast future revenue and plan budgets.

§ It helps companies compare their performance to others in their industry.

§ It's useful for companies that are growing rapidly, young, or trying to raise funds.

§ However, some factors that can affect annual revenue run rate, such as; Month-to-month sales can be volatile, which can affect the annual revenue run rate.


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 : 92.3530

INR / 1 GBP : 123.4655

INR / 1 EUR : 106.6197

INR /100 JPY: 58.0700

EQUITY INDEX

Sensex: 76034.42 (-829.29)

NIFTY: 23639.15 (-227.70)

Bnk NIFTY: 55100.95 (-634.80)


Historical events: March 13 holds significant historical events, notably in 1940 when Udham Singh shot Michael O'Dwyer in London to avenge the Jallianwala Bagh massacre. Other key events include the 1781 discovery of Uranus by William Herschel, the 1997 selection of Sister Nirmala to succeed Mother Teresa, and the 2004 passing of sitar maestro Ustad Vilayat Khan.

 

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