RBI governor meets with Fintechs – need for innovation
The Governor, in his remarks, recognised the important role played by the FinTechs including the payment system players, account aggregators, digital lending service providers in the growth of India’s financial system and economy. The Governor underscored the need for responsible innovation and emphasised the need for ensuring compliance by the entities who are new to regulatory space. He also emphasized that RBI values such interactions with the ecosystem participants and would continue to adopt a consultative approach.
RBI Measures to Manage Liquidity Conditions
The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.
Bilateral agreement between Japan and India: arrangement to swap currency
The BSA is a two-way arrangement where both authorities can swap their local currencies in exchange for the US Dollar. The size of the BSA remains unchanged, that is, up to 75 billion US Dollars.
EPFO Extends UAN Activation and Aadhaar Seeding Deadline
EPFO extends the deadline for UAN activation and Aadhaar seeding for the ELI Scheme beneficiaries to March 15, 2025, ensuring seamless access to benefits.
“Regulations at a Glance” – New RBI handbook
The Department of Regulation (DoR) has compiled its regulatory instructions in an easily accessible handbook titled ‘Regulations at a Glance’ to provide a broad overview of the regulatory landscape across multiple dimensions of activities and entities. This handbook provides tabular summary of all major regulations issued by DoR and it has been organised in six chapters.
Review of Risk Weights on Microfinance Loans
RBI has clarified that microfinance loans which are not in the nature of consumer credit and fulfil all the four criteria may be classified under RRP provided that the banks put in place appropriate policies and standard operating procedures to ensure fulfilment of the qualifying criteria.
DPIIT and Paytm join hands to promote fintech startups
As part of its Paytm for Startups initiative, Paytm will launch dedicated programs to support fintech hardware manufacturers, such as Soundbox and PoS/EDC device makers, in scaling efficiently. These initiatives include mentorship programs, access to funding through investor connections and incubation programs, regulatory guidance with industry-focused workshops, and periodic tracking and impact assessments. Additionally, through its CSR arm, Paytm Foundation, the company is nurturing deep-tech startups in Climate Tech, Web3, Agritech, and Mobility.
Exposures of Scheduled Commercial Banks (SCBs) to Non-Banking Financial Companies (NBFCs) – Review of Risk Weights
On a review, it has been decided to restore the risk weights applicable to such exposures and the same shall be as per the external rating. The instructions shall come into effect from April 01, 2025.
Review of prudential norms: RBI regulations for UCBs
Key revision is related to UCBs’ investments in security receipts (SRs) held against assets transferred to Asset Reconstruction Companies (ARCs). The RBI has extended the glide path for provisioning against these SRs by two additional years, now extending to FY2027-28. This extension provides UCBs with more time to manage their provisions without disrupting their financial health. However, any provisions that have already been made will remain intact, ensuring consistency in financial management.
National Consumer Helpline: Ministry launches phase 2
The Department of Consumer Affairs is now focusing on further enhancing NCH’s reach in other North-Eastern states, including Assam, Meghalaya, Manipur, Nagaland, Tripura, Mizoram, and Sikkim.
