Issue: 1335
· Trump says Iran conflict will
end ‘very soon’, oil flows through Hormuz show signs of recovery.
· Groww rolls out US stocks to
select users via GIFT City route.
· AU SFB’s microfinance network
crosses 1,000 branches across India.
· CRIF Credit Information
Services names Suresh Venkatesan as CEO.
· Competition Commission okays
BNP Paribas-IndiaFirst Life Insurance deal.
· IndusInd Bank targets 1.3%
RoA, but insurance cuts pose earnings risk.
Indian rupee hits two-month
low, ends nearly flat below 96 per US dollar: The Indian rupee slipped past the 96 per US dollar
mark on Tuesday to touch a two-month low, amid pressure from elevated crude oil
prices and broader global cues. The currency recovered from its intraday low to
end nearly flat. As per provisional data, the rupee settled at 95.98 per US
dollar, down 1 paisa from its previous close. The rupee's move comes as crude oil prices remain
elevated, a key factor for India's external balance given the country's
dependence on imported crude oil. High global bond yields and the US dollar's
strength have also remained important factors for currency markets.
(Business Today)
RBI’s committee recommends
11.2% increase in States’ avg WMA limit: Considering States’ growing
budget size, which could lead to higher liquidity support requirement from the
Reserve Bank of India, there is a case for increasing the Ways and Means
Advances (WMA) limits of the States, according to the recommendations of the
central bank’s Advisory Committee. The Advisory Committee on WMA to State
governments, which was set upon April 30, 2026 to review the existing WMA
Scheme for the State governments and to examine other related issues, proposed
revision in aggregate WMA limit for the States to Rs.67,839 crore from the
existing limit of Rs.61,008 crore, an increase of 11.2 per cent over the
current limit.
(Business Line)
UP International Trade Show
draws 4,400 MoUs, worth Rs 6,500 crore: The fourth edition of the
Uttar Pradesh International Trade Show generated an estimated business
potential of Rs.15,500 crore, while 4,400 MoUs, worth around Rs.6,500 crore,
were signed for setting up enterprises in the state. Officials of the industrial
development department said at the conclusion of the trade show on Tuesday that
business activity had increased significantly compared with previous editions
and the state’s One District, One Cuisine (ODOC) initiative had received a strong
response.
(Business Standard)
Ensure distribution reforms
don’t affect intermediaries’ livelihoods: Insurance agents’ body tells IRDAI: A likely reduction in
remuneration is causing worry for nearly 15 lakh life-insurance agents.
Accordingly, they’ve urged the Insurance Regulatory and Development Authority
of India (IRDAI) to avoid a “disproportionate” cut under its proposed insurance-distribution
reforms. “On behalf of life-insurance agents, we have submitted our response to
the regulator’s consultation paper, requesting that any new distribution
framework should not adversely affect the legitimate expectations and
livelihoods of existing agents,” B Markandeyulu, Secretary General of the Life
Insurance Agents Federation of India (LIAFI), told businessline.
(Business Line)
High bank credit growth is
being led by loans to industry: Bank credit growth, which had
hit a low of 9 per cent in May 2025, has been steadily increasing since the
second half of last year, spurred by ample liquidity and low interest rates.
Credit growth of scheduled commercial banks accelerated to 19.3 per cent year-on-year
(YoY) in July 2026, a 26-month high. Loans to industry recorded the highest
growth, while growth in personal loans moderated. Businessline’s analysis of
data from RBI shows that outstanding bank credit rose to Rs.220.8 lakh crore in
July 2026 from Rs.185 lakh crore a year earlier. Credit to industry grew the
fastest, at 21.6 per cent YoY to Rs.48 lakh crore in July 2026 from Rs.39.5
lakh crore a year earlier. Loans to the services sector
rose 21.2 per cent to Rs.62 lakh crore from Rs.51.1 lakh crore. Personal loans,
the largest category, grew 16.6 per cent to Rs.71.8 lakh crore. Agriculture and
allied activities credit grew 17 per cent to Rs.27.1 lakh crore.
(Business Line)
Bank of India launches
programmable digital Rupee with auto-payment feature: Bank of India has gone live
with user-level programmable digital rupee functionality and auto-issuance
capability on its Central Bank Digital Currency platform, developed by Montran
India, the companies announced today. The new feature allows account holders to
schedule automatic transfers of digital rupees (eRs.) to a beneficiary’s CBDC
wallet at a fixed amount and frequency, while restricting how the recipient can
spend the funds. The system runs without manual intervention once configured,
with purpose-based controls traveling with the money.
(Business Line)
ICICI Lombard launches
‘VIBE’ health insurance plan targeting Gen Z: ICICI Lombard General
Insurance has launched a new health protection proposition called VIBE,
targeting young consumers with a product that combines hospitalisation cover,
outpatient care, mental health support, teleconsultations, health screenings
and lifestyle rewards under one plan. The product is built on the company’s
existing IL TakeCare platform and is designed as a mobile-first offering. VIBE
comes in six plan variants, Rookie, BasicFit, Upgrade, Flex, GOAT and Value,
with sum insured options ranging from Rs.7 lakh to Rs.1 crore.
(Business Line)
SBI seeks clarity on bank
accounts under proposed FCRA rules: State Bank of India presented
to the Joint Parliamentary Committee regarding the Foreign Contribution
(Regulation) Amendment Bill. Officials raised concerns about gaps in foreign
donation handling when registration lapses occur. They suggested that clear
banking procedures be established for affected organizations. The bill proposed
transferring compliance responsibilities to a government-designated authority
in certain cases. Opposition parties criticized the bill for potentially
disadvantaging minority groups and impacting foreign funding for NGOs.
(Economic Times)
Strong growth for NEDFI
during FY 2025–26: Financial institution North
Eastern Development Finance Corporation Limited (NEDFI) during FY 2025–26
continued its strong growth trajectory, recording sanction of Rs. 977.42 crore
against Rs. 882.98 crore in FY 2024–25. With this performance, cumulative
sanction reached Rs. 10,091.80 crore, covering 34,327 projects. NEDFi
held its 31st Annual General Meeting on 29th September, 2026 at its registered
office at Guwahati to present its Annual Report for the Year 2025-26 to the
shareholders.
(Economic Times)
Hope RBI will find a common
ground with us: Tata Trusts Chairman Noel Tata: The Tata Sons board should review Tata Trusts’
restructuring proposal and make modifications, if required, in order to avert a
stock market listing, Tata Trusts Chairman Noel Tata said on Tuesday. Tata said he remains
hopeful of persuading the Reserve Bank of India (RBI) to reconsider its case
for not being considered an upper-layer non-banking financial company. “This is
very common practice in India and we hope that RBI will find a common ground
with us.” Tata said, while speaking at an event hosted by Republic TV in
Mumbai.
(Business Standard)
Insurers must compete on
price, not distributor commission: Irdai chief: A week after Irdai proposed sweeping changes
to insurance distribution norms, Chairman Ajay Seth said the proposals were not
final and stakeholder feedback would be considered if backed by sound economic
or business logic and policyholder interests. In an email interview with
Aathira Varier, Seth said the proposed reforms would be monitored on insurance
growth, affordability, distribution reach, and policyholder experience. The
proposed changes are anchored in the objectives of the Sabka Bima Sabki Raksha
(Amendment of Insurance Laws) Act, 2025. Under the 2023 framework, greater
flexibility was provided to insurers to manage expenses, including commissions,
within overall EoM limits. However, experience since then indicates that this
flexibility did not translate into adequate cost discipline. Commissions
increased significantly and, in several segments, grew faster than premiums.
Total expenses also increased: for private life insurers, from 16 per cent in
FY21 to 22 per cent now, and for private general insurers, from 25-26 per cent
in FY19 to about 32 per cent in FY26. The proposed framework seeks to
recalibrate the economics of distribution, bringing greater discipline while
continuing to recognise differences in product, channel and distribution
effort.
(Business Standard)
Mobile phone prices up by
16% in 2026 H1, supplies to dip in double digits: Mobile phone prices have increased by 16 per
cent on average in India due to an increase in the cost of memory, with a
weaker rupee adding to the woes as it made imported components more expensive
for local manufacturers, market research firm Counterpoint Research said on
Tuesday. According to Counterpoint Research, the overall
smartphone market is expected to decline in double digits except that of
Chinese mobile phone brand OnePlus because of limited increase in price. "Smartphone
prices in India rose 16 per cent on average in the first half of 2026, but
OnePlus kept its own increase to 8 per cent. The hikes came as memory costs
climbed, pushing India's average smartphone selling price to a record USD 318
in the second quarter of 2026," the research firm said. Phones priced below
10,000 saw the sharpest hikes, around 32 per cent on average.
(Business Standard)
MSME Ministry, MoSPI sign
MoU to strengthen Statistical Business Register: The Ministry of Micro, Small, Medium and
Medium Enterprises (MSME) and the Ministry of Statistics and Programme
Implementation (MoSPI) have signed an MoU to strengthen the Statistical
Business Register (SBR), as per a statement by the Ministry of Micro, Small
& Medium Enterprises on Tuesday. The MoU sets the terms and understanding
between both the ministries regarding the sharing of unit-wise data of the
Udyam Registration available with the MSME Department through APIs. Also, the
two-way API shall provide data for preparation of the National Statistical
Business Register (NSBR), as per the release shared by the MSME Ministry.
(Business Line)
Government likely to extend
RoDTEP scheme for exporters: The government is expected to extend the duty
refund scheme - Remission of Duties and Taxes on Exported Products (RoDTEP) -
for exporters, an official said on Tuesday. The scheme will end on September 30. The official
said the ministry is in discussion with the finance ministry on the issue. The
scheme, launched in 2021, provides for a refund of taxes, duties and levies
that are incurred by exporters in the process of manufacturing and distribution
of goods and not being reimbursed under any other mechanism at the Centre,
state or local level. Refunds under the scheme range from 0.3 per cent to 3.9
per cent.
(Business Standard)
UIDAI unveils five new
initiatives to further advance trusted digital identity and good governance: On the 17th Aadhaar Day on 29
September at Kolkata, UIDAI unveiled five new initiatives aimed at enhancing
resident convenience, strengthening security, enabling good governance and
preparing the Aadhaar ecosystem for the next phase of digital transformation. A
key launch was Face Authentication for the Electronic Public Distribution
System (ePDS), jointly undertaken by UIDAI, the Department of Food and Public
Distribution (DFPD) and the National Informatics Centre (NIC). UIDAI
also launched SWIK Portal 2.0, which streamlines the process for seeking
approval for Aadhaar authentication under the Aadhaar Authentication for Good
Governance framework. Eligible non-Government entities can now submit proposals
for permissible use cases directly through the portal to the concerned
Ministry/Department, enabling a structured and coordinated approval process. The
Sub-AUA/Sub-KUA (LITE) Framework launched today will facilitate wider adoption
of Aadhaar authentication by Government and eligible other than Government entities
with low-volume requirements. UIDAI also unveiled a new
Token Management System, which will make it easier for people to go to state
and regional offices of UIDAI for services wherever applicable.
(PiB)
GINI COEFFICIENT
§ The Gini coefficient is a statistical measure of
income or wealth inequality within a population, ranging from 0 to 1. A score
of 0 represents perfect equality, where everyone has the same income, while a
score of 1 indicates perfect inequality, where all income belongs to a single
person.
§ Named after Italian sociologist Corrado Gini, it is
widely used to compare the distribution of resources across different countries
and over time.
§ The coefficient is calculated based on the cumulative
share of the population and the cumulative share of total income they receive.
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 : 96.0321
INR
/ 1 GBP : 127.1654
INR
/ 1 EUR : 109.1286
INR
/100 JPY: 61.0600
EQUITY INDEX
Sensex:
72529.07 (-242.65)
NIFTY:
22716.20 (-64.05)
Bnk NIFTY: 54259.95 (-211.70)
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