Issue: 1325
·
Tata Trusts asks Tata Sons to explore options other than
listing, says ‘Tata Model has to be saved’.
·
N Chandrasekaran reappointed for 5 yrs as Tata Sons Chairman;
board approves public listing.
·
Godrej Wealth plans mutual fund business, targets Rs.1 lakh
crore AUM by 2031.
·
SEBI to examine brokers’ concerns over UPI merchant charges.
·
Gujarat to undertake GIS-based mapping of MSME units.
·
India responds to US’ 100% tariff threat: ‘Firmly committed
to ensuring energy security’.
Auto exports rise 22% in
August led by two-wheelers: India’s automobile exports rose 22.2 per cent
year-on-year to 6,81,338 units in August 2026, compared with 5,57,446 units in
the same month last year, according to data released by the Society of Indian Automobile
Manufacturers (SIAM). Two-wheelers led the growth with 28.5 per cent growth. Passenger-vehicle
exports were more subdued, declining 17 per cent to 68,230 units from 82,246
units in August 2025. In the segment, passenger car exports declined by 51.5
per cent in August over the same period last year. The geopolitical disruptions
led to the decline, say industry sources. However, PV data does not include
data for BMW, Mercedes, JLR, Tata Motors and Volvo Auto, SIAM notes.
(Business Line)
PM pitches India as ‘new
& trusted’ chip manufacturing hub: Prime Minister Narendra Modi
on Thursday pitched India as a “new and trusted” semiconductor manufacturing
destination, and highlighted the government’s policy measures and regulatory
reforms for the growth of the industry. “India is taking every step needed to
become a preferred destination for the semiconductor industry,” he said,
inaugurating the fifth edition of the Semicon India conclave here. The Prime
Minister bracketed the chip push with the country’s broader economic growth momentum: “On one
hand, India’s economy is growing, and on the other hand, the world’s trust in
India is also increasing.”
(Financial Express)
World Bank mobilises $112
billion in private capital for developing nations: The World Bank mobilised $112
billion in private capital for developing nations last year. This significant
increase reflects a strategic shift due to donor funding limitations. Private
capital mobilisation now nearly matches the World Bank Group's own lending
efforts. The bank employs various methods to de-risk and incentivise private
investment. These efforts aim to bridge development financing gaps and foster
job creation.
(Economic Times)
Costlier ECBs may drive
corporates towards domestic loans: The US Federal Reserve’s first
rate hike in three years could change the borrowing calculus for Indian
companies, prompting them to increasingly weigh domestic funding against
external commercial borrowings (ECBs) as overseas borrowing costs rise. The Fed
raised its target rate by 25 basis points to 3.75-4% and signalled that
inflation remains elevated. US Treasury yields edged higher after the
announcement, with markets factoring in further rate increases and the
possibility of rates remaining “higher for longer”. Industry experts said abundant
liquidity in the Indian banking system could make domestic borrowing relatively
more attractive for companies, particularly if the Fed tightens more aggressively
than the Reserve Bank of India.
(Financial Express)
‘NaBFID aims to expand loan
book to Rs 5 lakh crore by 2030’: The National Bank for
Financing Infrastructure and Development (NaBFID) aims to add at least Rs 1
lakh crore to its loan book annually through 2030, taking the portfolio to
around Rs 5 lakh crore, MD & CEO Rajkiran Rai said. In an interaction with
Christina Titus, Rai said urban infrastructure and ports will be key focus
areas, while demand is also emerging from sectors such as railways, data
centres and healthcare.
(Financial Express)
MDR rollout will be
monitored to protect users: The government would closely
monitor the rollout of Merchant Discount Rate (MDR) from October 15 to ensure
that merchants do not pass these charges to customers, officials said. "We
are in touch with payment aggregators. The rollout would be closely
monitored," an official said, adding that MDR is necessary to help the
fintech ecosystem sustain and grow. The official said any issue
with regard to levy of goods and services tax on MDR can be taken up by the GST
Council. He said input tax credit can be used by merchants to offset their tax
liability.
(Economic Times)
RBI cancels licences of 5
NBFCs, 8 others surrender registrations: The Reserve Bank of India
cancelled five NBFC registration certificates on Thursday. Eight other NBFCs
surrendered their registrations for various business reasons. Some companies
ceased to be legal entities due to mergers and dissolutions. Anagram Industries
and CDN Finance surrendered registrations after meeting specific criteria.
These actions reflect regulatory adjustments within the financial sector.
(Economic Times)
Govt considers mechanism to
check pass-through of MDR to customers: The government is considering
setting up a mechanism to monitor and ensure that the Merchant Discount Rate
(MDR) charges, applicable on some UPI transactions starting October 15, are not
transferred to the consumer, a finance ministry official said. Starting October 15, UPI transactions over Rs.
2,000 to specific merchants will attract an MDR of 0.4 per cent, capped at Rs.
300 for transactions of Rs. 75,000 or more. Small merchants that transact up to
Rs. 100,000 per month through UPI will remain fully exempt from the charges. Person-to-merchant
(P2M) transactions up to Rs. 2,000 will remain free of MDR. Peer-to-peer (P2P)
transactions, such as transfers among family and friends, will also remain
free.
(Business Standard)
Tata Trusts proposes Rs.25,000
crore plan for SP Group, says Tata Sons listing is not an option: Tata Trusts Chairman Noel N Tata has proposed a
plan to provide liquidity to the Shapoorji Pallonji (SP) Group by facilitating
the monetisation of a portion of its stake in Tata Sons, even as the Trusts
reiterated their opposition to a public listing of the Tata Group holding company. At the Tata Sons board
meeting on September 17, Noel Tata tabled a proposal received from the SP Group
to sell a portion of the Tata Sons shares held by Sterling Investments
Corporation Private Limited (SICPL) and Cyrus Investments Private Limited (CIPL).
The proposed transaction would generate gross proceeds of at least Rs.25,000
crore, based on the minimum valuation determined under Rule 11UA of the Income
Tax Rules, 1962.
(Business Today)
US sanctions Bill: India
says energy security for 1.4 bn people a priority: The Ministry of External Affairs (MEA) on
Thursday said India cannot be pressured on its energy sourcing, flagging the
potential damage of a Bill passed by the US Congress hours earlier. The Bill
authorises President Donald Trump to impose sanctions on Russia and steep
tariffs up to 100 per cent on countries that buy oil and gas from it, including
India. The MEA reiterated that India remains firmly committed to ensuring
energy security for its 1.4 billion people. “It will continue to do so through
diversified sourcing and on the basis of evolving market dynamics,” the
statement read. The government will work closely with Indian trade and industry
bodies to deal with the implications of these developments, it said.
(Business Standard)
RBI absorbs Rs.50,000 crore
through bond sale amid liquidity surge: The Reserve Bank of India on Thursday sold Rs.50,000
crore worth of government securities through an open market operation (OMO)
sale auction as it makes efforts to drain durable liquidity from the banking
system. Market participants said demand was robust despite
the cut-off price being higher than expected. This was the first of the three
OMO tranches announced last week to suck out Rs.1 trillion this month. Some
banks preferred buying bonds at current levels over parking funds through the
central bank’s variable rate reverse repo auctions, they said.
(Business Standard)
DFS Launches Nationwide
Swachhata Hi Seva 2026 Campaign: The Department of Financial Services (DFS),
Ministry of Finance, launched the nationwide Swachhata Hi Seva (SHS) 2026
campaign today. Marking the formal commencement of the campaign, Shri Sanjay
Lohiya, Secretary (DFS), led the Swachhata Pledge ceremony. The Swachhata Hi Seva
2026 campaign is being observed across the country from 17th September to 2nd
October 2026, guided by the central theme “Swachhata Mein Sahbhag, Swachh
Bharat, Viksit Bharat”. During the campaign, the Department will primarily
focus on; Transformation of Cleanliness Target Units (CTUs) & Clean Public
Spaces, SafaiMitra Suraksha Evam Samman Shivirs, Mass Cleanliness Drive — “Ek Din, Ek Ghanta,
EkSaath”, Jan Bhagidari & Sustainable Waste Management and Plantation Drive
('Ek Ped Maa Ke Naam').
(PiB)
GST on UPI MDR: Government
rejects ‘tax on UPI’ rumours, says MDR will be set off through input tax credit: The government has rejected reports of a
separate GST being imposed on UPI transactions following the introduction of
Merchant Discount Rate (MDR) on select merchant payments. Government sources
said the new framework does not amount to a GST on UPI payments and that the
applicable MDR will be treated within the existing tax framework. “GST on UPI is a false
rumour. It will be set off in Input tax credit,” government sources told news
agency ANI, adding that any issue arising from the implementation would be
considered by the GST Council. The clarification comes amid a wider debate over
the proposed MDR, which will apply to eligible person-to-merchant (P2M) UPI
transactions above Rs.2,000 from October 15. Under the framework, such
transactions will attract an MDR of 0.4%, subject to an overall cap of Rs.300.
(Business Today)
Liquidity normalisation key
before RBI embarks on interest rate hikes: With global central banks such as the European
Central Bank (ECB) and US Federal Reserve raising interest rates, RBI may feel
compelled to do its bit at the next monetary policy review scheduled for
October 5-7. In the minutes of the August review meeting, members of the
domestic rate-setting panel had indicated the need to recalibrate rates as inflation
was becoming generalised. On Wednesday, the US Federal Reserve raised interest
rates for the first time since 2023, while the European Central Bank raised
rates last week for the second time in 2026. The Bank of Japan is widely
expected to raise rates to a 31-year high on Friday.
(Business Standard)
NEOLIBERALISM
§
Neoliberalism
is a policy model that encompasses both politics and economics. It favors
private enterprise and seeks to transfer the control of economic factors from
the government to the private sector.
§ Many neoliberal policies concern the efficient
functioning of free market capitalism and focus on limiting government
spending, government regulation, and public ownership.
§ More recently, neoliberalism has been associated
with austerity policies and attempts to cut government spending on social
programs.
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 : 95.8855
INR
/ 1 GBP : 128.4083
INR
/ 1 EUR : 110.0452
INR
/100 JPY: 61.6200
EQUITY INDEX
Sensex:
74314.59 (-21.86)
NIFTY:
23270.60 (+53.00)
Bnk NIFTY: 56055.75 (-236.70)
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