Issue: 1308
·
IRDAI has permitted Indian insurance companies to invest in
New Development Bank’s Rs.25,000-crore onshore Maharajah Rupee Bonds.
·
NCLT approves Subhash Chandra’s Rs 6.5-crore repayment plan
against Rs 22,006 crore dues.
·
HDFC Bank, LIC Housing Finance to contest Zee resolution.
·
SBI sees corporate loan pipeline at Rs 5 lakh crore: CS
Setty, SBI, Chairman.
·
Banks, FIU-IND work on sharper framework to flag money mule
accounts.
·
India Ratings revises FY27 bank credit growth upward to 15%;
provisioning for expected loss may hit profit.
·
India, Canada on track to reach $50 billion trade target by
2030: FM.
S&P affirms India's
'BBB' sovereign rating; cites dynamic economy, policy predictability: S&P Global Ratings on Thursday retained India's
sovereign rating at 'BBB' with a stable outlook, citing the country's dynamic
and fast-growing economy, strong external balance sheet and policy
predictability. The ratings agency said high energy prices and
challenging agricultural conditions are likely to marginally slow India's
growth this year. However, it expects the country's economic fundamentals to
remain sound and support robust growth over the next two to three years. "The sovereign
credit ratings on India are anchored by a dynamic and fast-growing economy,
strong external balance sheet, and stable institutions that support policy
predictability," S&P said while affirming its 'BBB' long-term and
'A-2' short-term unsolicited sovereign credit ratings on India.
(Moneycontrol)
Govt rules out banning
onion exports despite spike in prices: Despite a sharp spike in
prices, the government was not considering a ban on onion exports as there was
no supply constraint because of adequate production and stocks, consumer affair
secretary Nidhi Khare said on Thursday. In terms of exports, India has
exported 0.53 million tonne (MT) of onions in FY27 so far to mostly Malaysia,
Sri Lanka, United Arab Emirates and Nepal , against 0.61 MT during the same
period in 2025-26. Shipment of onions to UAE and other Gulf countries was hit
because of the West Asia crisis.
(Financial Express)
S&P Global affirms
India's BBB sovereign rating, flags slippage risk: S&P Global on Thursday
affirmed India’s sovereign credit rating at BBB and retained its “stable”
outlook for the economy, citing policy stability and high infrastructure
investment, which is expected to support India's growth prospects. However, the
agency also flagged risk of slippage for the Centre’s fiscal deficit in the
current financial year of 2026-27 (FY27). “The sovereign credit ratings
on India are anchored by a dynamic and fast-growing economy, strong external
balance sheet, and stable institutions that support policy predictability,”
S&P Global said. “Counterbalancing these strengths are the government's
weak fiscal performance and burdensome debt stock, as well as low GDP (gross
domestic product) per capita,” it added.
(Business Standard)
HDFC Bank mulling appeal
against NCLT ruling in Subhash Chandra case: Leading private lender HDFC
Bank is mulling an appeal against the bankruptcy court NCLT's order in the case
involving Subhash Chandra, the bank said on Thursday. The bank said only 3.2 per
cent of the total claim amount has been admitted under the National Company Law
Tribunal (NCLT) order in the matter. HDFC Bank's total claim was Rs 680 crore. "HDFC
Bank had opposed and voted against this resolution, which was approved by the
majority. The Bank is exploring filing an appeal at the NCLAT (National Company
Law Appellate Tribunal)," HDFC Bank said in a statement. HDFC
Bank said it had inherited the loan facility from its parent, HDFC, before the
bank's merger. The bank's response comes a
day after an NCLT ruling in the matter triggered controversy, as lenders had to
take steep haircuts and are seen to be getting a negligible sum against their
claims. In an order on Wednesday, the NCLT approved a repayment plan under
which media baron Chandra will pay just Rs 6.5 crore to settle admitted
creditor claims of over Rs 22,000 crore, resulting in a haircut of 99.97 per
cent for lenders.
(Moneycontrol)
100% FDI, Insurance for All
by 2047 provide great opportunities for Canadian firms: FM Sitharaman: With FDI up to 100 per cent
permitted in the insurance sector, Finance Minister Nirmala Sitharaman asked
top Canadian insurance firms and pension funds to enhance investment in India.
She also emphasised that the vision of ‘Insurance for all by 2047’, provides a
big opportunity for investors. Sitharaman is in Canada to pitch India as an
attractive investment destination and further strengthen bilateral economic
ties.
(Business Line)
RBI allows banks to tap FX
swap window more frequently: The Reserve Bank of India
(RBI) has permitted banks to access the foreign exchange swap window for
overseas deposits more than once a week, according to currency traders. This
change comes as the window nears its closing date, prompting a rush to attract
dollar inflows. According to earlier guidelines, a bank can avail the swap
facility only once in a week. “Since this is the final week before the August
31 deadline, only a few days remain. The RBI said that banks can now access the
swap window every day, and it applies to overseas deposits above $100 million,”
said a senior dealer at a private sector bank.
(Financial Express)
PM Jan Dhan Yojana
Completes 12 Years of Transforming India’s Financial Inclusion Landscape: Launched by Prime Minister Shri Narendra Modi
as one of his very first programmes on 28th August 2014, the Pradhan Mantri Jan
Dhan Yojana (PMJDY) has completed 12 years. Under PMJDY, 78% of the accounts have been opened
in rural or semi-urban areas, and approximately 56% of accounts are owned by
women. As on 19th August ’26, the total number of PMJDY
accounts stands at 59.09 crore; 55.7% (32.92 crore) of Jan Dhan account holders
are women, and 77.8% (45.95 crore) of Jan Dhan accounts are in rural and
semi-urban areas. Total deposit balances under PMJDY accounts stand
at Rs.3,16,514 crore. The average deposit per account is Rs.5,356 as on
19.08.2026. 41.29 crore RuPay cards have been issued to PMJDY
account holders.
(PiB)
Payment aggregators push
for fixed and direct share of UPI MDR: Payment aggregators (PAs) are seeking a fixed,
direct share of any merchant discount rate (MDR) imposed on Unified Payments
Interface (UPI) transactions, rather than relying on partner banks to pass on a
portion of the fee, according to people in the know. This comes after
Parliament last month passed the Taxation and Other Laws (Amendment) Bill,
2026, which allows for charging MDR on UPI transactions. To be sure, Finance
Minister Nirmala Sitharaman clarified that any future fee on digital payments
would not apply to customers, covering only a limited category of merchant
transactions above a certain high threshold.
(Business Standard)
MCA requires separate
compliance for foreign companies despite RBI approvals: The government has clarified that there is
currently no automatic data-sharing mechanism between the ministry of corporate
affairs (MCA) and the RBI for foreign company registrations. In a FAQ document
on registration of foreign companies and subsidiaries of foreign bodies
corporate, the MCA said that documentation requirements of the two regulators
differ and that RBI approval does not by itself replace the separate MCA filing
and documentation requirements. The ministry said the National Single Window System
(NSWS) can help foreign companies find out which approvals they need, but it
does not replace MCA filings or approvals from sectoral regulators. Foreign
companies must still file form FC-1 along with the required regulatory
approvals, including those from the RBI under FEMA.
(Financial Express)
Apple, Samsung dominate
global top 10 smartphone sales in Q2: Apple and Samsung dominated the global
smartphone market in the second quarter of calendar year 2026, with five models
each making it to the top 10 best-selling smartphones worldwide, according to
Counterpoint Research's Global Handset Model Sales Tracker. Apple’s iPhone 17
was the best-selling smartphone during the quarter, accounting for 6 per cent
of global smartphone unit sales. The concentration at the top comes as the overall
smartphone market faces pressure from higher component costs and weaker demand.
(Business Standard)
FPIs pump in over Rs 27k cr
in Aug; highest monthly flow since Sept 2024: Foreign portfolio investors (FPIs) have pumped
in Rs 27,186 crore ($2.849 billion) so far in August 2026 in the Indian equity
markets according to the latest data with National Securities Depository
Services Ltd (NSDL), marking the second consecutive month of foreign portfolio
investor (FPI) inflows. The net inflow in August is the highest since
September 2024, when FPIs had pumped in Rs 57,724 crore ($6.890 billion) in
Indian equities. FPIs turned net buyers for the second straight month. In July,
they pumped in Rs 20,200 crore ($ 2.123 billion), data shows.
(Business Standard)
BRICS Summit may push for cross-border payment systems: The BRICS Summit in New Delhi next month is
likely to push for mechanisms to facilitate cross-border payments between
members, including links between digital payment systems and central bank
digital currencies (CBDCs). India has projected these as a way to cut
transaction costs and boost trade and investment, rather than as an alternative
to global payment systems, or an attempt at de-dollarisation, said sources. “The
BRICS Finance Ministers and Central Bank Governors (FMCBG) track is expected to
meet again early September to provide greater clarity on the possible way
forward on CBDC and fast payment system linkages that could be adopted at the
BRICS Summit,” a source tracking the matter told businessline. The heads of state and
senior representatives of the 11-member BRICS, including Brazil, Russia, India,
China, South Africa, Egypt, Ethiopia, Saudi Arabia, the UAE, Iran and
Indonesia, will meet in New Delhi on September 12-13, against the backdrop of
the West Asia crisis and escalating US tariff pressures.
(Business Line)
Home Ministry’s nod
required for appointing Chinese nationals on board of foreign co’s Indian arm:
MCA:
A foreign
company appointing directors from China and other land-border sharing country
in its subsidiary company in India will need to seek clearance for Home
Ministry, the Ministry of Corporate Affairs (MCA) has said. Also, government
approval is required on beneficial ownership. These form part of ‘Frequently
Asked Questions’, released by the MCA on Thursday, with regard to registration
of foreign companies or Indian subsidiaries of foreign body corporate. A
foreign company can set up Liaison Office, Project Office or Branch Office in
India. As on June 30, over 3,300 companies out of over 5,300 registered foreign
entities were active. During the April-June quarter, 27 new overseas business
entities got registered with the MCA.
(Business Line)
Gujarat extends 100% penal
interest waiver scheme for housing beneficiaries: The Gujarat Government has approved a scheme
to provide a 100 per cent waiver of penal interest accrued on outstanding
instalments of the principal amount for beneficiaries of various housing schemes
constructed by the Gujarat Rural Housing Board under the Hire-Purchase Scheme. These include EWS, LIG,
MIG, Competitive (Composite), and Cash Loan housing schemes. According to
details received from the Gujarat Rural Housing Board, a total of 22 recovery
camps were organised at the district level during the first phase of the
scheme. Through these camps, 2,988 beneficiaries paid Rs. 10.57 crore towards
the principal amount.
(Business Standard)
APPROVED TReDS
PLATFORMS
·
RXIL (Receivables Exchange of India Limited): India's
first TReDS (Trade Receivables Discounting System) platform. Joint venture between the SIDBI
and NSE, backed by banks like SBI, ICICI Bank, and Yes Bank. Commenced operations on January
9, 2017.
· M1xchange (Mynd Solutions): Operated by Mynd Solutions (A.
TReDS Limited) with a broad network of banks and financial institutions.
· Invoicemart (A. TReDS Ltd): A joint venture between Axis Bank
and mjunction services.
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 : 95.5131
INR
/ 1 GBP : 129.7978
INR
/ 1 EUR : 111.3157
INR
/100 JPY: 59.9400
EQUITY INDEX
Sensex:
76933.59 (-539.35)
NIFTY:
24090.85 (-116.90)
Bnk NIFTY: 57509.95 (-273.80)
Historic events: . In India, the
day is remembered for the Mughal capture of Ahmednagar in 1600, the appointment
of the drafting committee for the Indian Constitution under Dr. B.R. Ambedkar
in 1947, and the signing of the India-Pakistan prisoner-of-war accord in 1973.
On the global stage, August 28 witnessed the capture of Belgrade by Ottoman
forces in 1521 and Martin Luther King Jr.’s historic "I Have a Dream"
speech during the March on Washington in 1963.
****WISHING A NICE DAY****
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