BANKING, FINANCE AND BUSINESS

Banking, Finance and Business is a perennial favourite in banking and SSC exams alike. Expect questions on RBI policy actions, penalty amounts, growth forecasts from various agencies, and company-specific financial milestones — precise figures matter here.

RBI Fines Union Bank of India ₹95.4 Lakh for Customer-Protection Lapses

• The penalty relates to violations of RBI norms on limiting customer liability in unauthorised electronic transactions and on income-recognition automation.
• The bank had failed to credit disputed transaction amounts within the mandated ten-working-day window.
• Action was taken under the Banking Regulation Act, reinforcing RBI's tightening stance on consumer-protection compliance.

About Union Bank of India: Founded 1919 • HQ: Mumbai • MD & CEO: Asheesh Pandey • Slogan: ‘Good People to Bank With’.

Government Push Widens Kisan Credit Card Access

• Digital issuance of Kisan Credit Cards is being expanded across states to deepen farmer credit access.
• RBI's priority-sector norms require banks to direct at least 18 percent of adjusted net bank credit to agriculture, with a specific sub-target for small and marginal farmers.
• The push is part of a broader financial-inclusion drive tied to rural credit delivery.

JanSamarth Portal Crosses 41 Lakh Applications Worth Over ₹1 Lakh Crore

• Launched in 2022, the portal integrates 15 credit-linked central schemes spanning agriculture, housing, and livelihood support.
• Around 254 lenders, including public and private banks, RRBs, and NBFCs, are now onboarded onto the platform.
• Digital approvals have reached over 35 lakh beneficiaries, streamlining what was previously a fragmented application process.

RBI Unveils 'Payments Vision 2028' Roadmap

• Titled 'Shaping India's Payment Frontier', the vision sets out a three-year roadmap for the country's digital-payments ecosystem through December 2028.
• It outlines 15 key initiatives spanning fraud prevention, cross-border payment efficiency, and user empowerment.
• RBI has periodically issued such vision documents since 2001 to guide the sector's evolution.

CASA Ratio Slips to a Two-Year Low

• The Current Account and Savings Account ratio fell to 37.9 percent in the December 2025 quarter, down from over 40 percent two years earlier.
• The decline stems largely from savings-account balances shifting toward higher-yielding options like mutual funds and equities.
• Total bank deposits still grew 10 percent year-on-year, reaching nearly ₹240 lakh crore.

Amul's Parent Cooperative Crosses ₹1 Lakh Crore Brand Turnover

• GCMMF's brand turnover grew 11 percent in FY 2025-26, cementing Amul's position as India's largest FMCG organisation by this measure.
• The cooperative's own sales turnover also rose sharply, supported by a portfolio of over 1,200 product lines.
• The growth was driven by an extensive distribution network reaching deep into rural and semi-urban markets.

About GCMMF: Markets the Amul brand • Chairman: Ashokbhai Chaudhary • Managing Director: Dr Jayen Mehta.

Bank of Baroda Crosses ₹30 Lakh Crore Global Business

• The milestone reflects nearly 14 percent year-on-year growth in combined deposits and advances.
• Global deposits and advances both posted strong double-digit growth during the fiscal year.
• The bank's domestic deposit base also expanded significantly, reflecting broad-based retail momentum.

About Bank of Baroda: Founded 1908 • HQ: Vadodara, Gujarat • MD & CEO: Debadatta Chand • Tagline: ‘India’s International Bank’.

RBI Penalises Exclusive Capital Limited Over Leverage-Ratio Breach

• The ₹10.30 lakh penalty was imposed for non-compliance with leverage-ratio and supervisory-reporting norms.
• The company was found to have exceeded permissible leverage limits set under RBI regulations.
• The action underscores RBI's continuing scrutiny of NBFC balance-sheet discipline.

Axis Bank Enables Aadhaar Face-Authentication for Mobile-Number Updates

• Customers can now update registered mobile numbers through a secure, three-step facial-recognition process on the bank's app.
• The feature matches a live image against UIDAI's Aadhaar database for verification.
• It complements existing branch-based channels, easing a previously cumbersome update process.

About Axis Bank: Founded 1993 • HQ: Mumbai • CEO: Amitabh Chaudhry • Slogan: ‘Badhti Ka Naam Zindagi’.

Bank of Baroda Launches 'bob SAMVAD' AI Platform for Branch Interactions

• The multilingual conversational platform, supporting 22 languages, aims to eliminate language barriers between customers and branch staff.
• It uses real-time AI-driven speech technology for two-way communication with low latency.
• The rollout was inaugurated by the Department of Financial Services Secretary in Mumbai.

RBI Holds FPI Investment Limits Steady for FY 2026-27

• Limits remain unchanged at 6 percent for government securities, 2 percent for state government securities, and 15 percent for corporate bonds.
• The Fully Accessible Route for eligible foreign investors in specified government securities continues without change.
• The 50:50 allocation ratio between general and long-term sub-categories for incremental limits has also been retained.

RBI Cancels Licence of Shirpur Merchants' Co-operative Bank

• The bank ceased operations after RBI found inadequate capital and weak earning prospects.
• The cancellation was carried out under the Banking Regulation Act over sustained non-compliance with regulatory norms.
• RBI said continuation of the bank's operations would have been prejudicial to depositor interests.

Moody's Trims India's FY27 Growth Forecast on West Asia Conflict Impact

• The revised forecast of 6 percent marks an 80-basis-point cut from the earlier estimate.
• Despite the downgrade, India remained the fastest-growing major G-20 economy in calendar year 2025.
• Moody's flagged rising inflation projections for FY27 as an additional pressure point.

RBI Proposes Overhaul of the Business Correspondent Model

• The draft framework introduces a three-tier delivery structure to strengthen last-mile banking access.
• It classifies correspondents into two functional categories with uniform wage standards.
• The reform aims to make fixed-point banking outlets more reliable for underserved communities.

Pradhan Mantri MUDRA Yojana Completes 11 Years

• The scheme, offering collateral-free loans up to ₹20 lakh, has been central to funding India's grassroots entrepreneurs since 2015.
• Its 'Fund the Unfunded' mission targets borrowers traditionally excluded from formal banking channels.
• MSMEs supported by the scheme continue to be recognised as the backbone of India's industrial base.

Morgan Stanley Cuts India's FY27 Growth Forecast to 6.2 Percent

• The 30-basis-point downgrade reflects softening industrial activity and tightening external financing conditions.
• The brokerage projects a further slowdown in the April-June quarter of FY27.
• Elevated crude-oil price assumptions were cited as an additional drag on the outlook.

SEBI Clears Bajaj's Alternate Arm to Launch Portfolio Management Services

• The approval lets the company expand into listed-equity portfolio management alongside its existing alternate investment funds.
• It strengthens Bajaj's positioning as a diversified wealth and investment platform.
• The move reflects continued growth in India's professionally managed investment services segment.

India's Coffee Exports Hit a Record High in FY26

• Export value rose 17 percent to over $2.1 billion, driven by stronger global prices and slightly higher shipment volumes.
• In rupee terms, exports crossed ₹18,800 crore, up more than 22 percent from the previous year.
• The Coffee Board attributed the gains to improved unit-value realisation for Indian growers and exporters.

Razorpay Partners with OpenAI on 'Agentic Payments'

• The tie-up lets AI systems built on OpenAI's platform initiate and complete payments autonomously through Razorpay's infrastructure.
• Developers can embed payment functionality into AI-built applications within minutes via an MCP server integration.
• Razorpay is also extending the collaboration to enable payment management through conversational prompts on ChatGPT.

SEBI Eases IPO and Minimum Public Shareholding Deadlines

• Companies whose IPO approvals were set to expire between April and September 2026 now have until 30 September to launch their offerings.
• The relief responds to volatile market conditions that had slowed primary-market activity.
• SEBI framed the move as a one-time accommodation rather than a permanent rule change.

IRDAI Forms Panel to Review Private Health Insurance

• The sub-committee will examine coverage, claims experience, product design, and grievance redressal in the segment.
• It is part of continuing efforts to build consumer trust as health-insurance penetration rises.
• Findings are expected to inform future regulatory changes in policy design and pricing.

World Bank Raises India's Growth Forecast to 6.6 Percent

• The upgrade from 6.3 percent reflects resilient domestic demand and gains from recent free-trade agreements.
• India is expected to remain South Asia's primary growth engine and the fastest-growing major economy globally.
• Private consumption, aided by GST rationalisation, was cited as a key driver of the improved outlook.

About World Bank: Founded 1944 (Bretton Woods) • HQ: Washington, D.C. • President: Ajay Banga • Comprises 5 institutions – IBRD, IDA, IFC, MIGA, ICSID • 189 member countries.

CSB Bank Launches 'SMART SAVE' Retail Account

• The account is available in savings, current, and NRO variants targeted at salaried professionals and NRIs.
• It is designed to automate liquidity management without requiring manual customer intervention.
• The launch marks the bank's first dedicated push into a broader retail savings portfolio.

About CSB Bank: Founded 26 November 1920 • HQ: Thrissur, Kerala • MD & CEO: Pralay Mondal.

PFRDA Approves PPFAS as a New Pension Fund Sponsor

• The approval lets PPFAS Asset Management enter India's National Pension System as a sponsor for the first time.
• A dedicated pension fund company will invest subscriber assets across equities, government securities, and corporate bonds.
• The move expands the roster of sponsors managing India's long-term retirement savings.

About PFRDA: Established 2003; statutory status under PFRDA Act, 2013 • HQ: New Delhi • Chairman: Sivasubramanian Ramann.

SEBI Rolls Out Three New IT Platforms for Market Oversight

• SUPCOMS replaces email-based regulatory communication with a unified, auditable platform.
• An e-adjudication portal and a cybersecurity audit-compliance system round out the trio of new tools.
• Together they aim to improve transparency and reduce fragmented communication with regulated entities.

UPI Marks a Decade of Transforming Digital Payments

• Launched by NPCI in 2016, UPI has grown from 216 participating banks in 2021 to 691 by January 2026.
• The system eliminated the need for account numbers and IFSC codes, simplifying peer-to-peer transfers.
• It has become the backbone of India's shift from a cash-dominant to a real-time digital economy.

About NPCI: Operator of UPI, RuPay, IMPS, and other national payment systems • A not-for-profit initiative of RBI and IBA.

Jio and Bank of Baroda Launch 'bob World Lite' for Feature Phones

• The mobile-banking app targets JioPhone Prima 4G users who lack access to smartphone banking apps.
• It extends digital banking to segments previously excluded from app-based financial services.
• The initiative aligns with RBI's broader financial-inclusion objectives.

NSE Reserves Name for Proposed 'National Coal Exchange of India'

• The Ministry of Corporate Affairs approval covers only name reservation, not operational clearance.
• NSE plans to set up the exchange through a dedicated wholly owned subsidiary.
• The move signals early steps toward formalised electronic coal trading in India.

PhonePe and SBI Card Launch Co-Branded Credit Card

• The card offers a first-year joining-fee waiver and is available on both RuPay and Visa networks.
• It offers a flat 5 percent rewards rate on online purchases regardless of merchant category.
• The launch targets PhonePe's large digital-first user base to expand credit-card adoption.

ADB Raises India's FY27 Growth Forecast to 6.9 Percent

• The Asian Development Outlook report cited resilience despite ongoing Middle East conflict pressures.
• The revised projection remains below the 7.6 percent growth estimated for FY26.
• ADB continues to see India as a key growth anchor within the Asia-Pacific region.

About ADB: Formation 19 December 1966 • HQ: Manila, Philippines • President: Masato Kanda • 69 member countries.

RBI Launches 'Utkarsh 2029' Medium-Term Strategy

• The framework succeeds Utkarsh 2.0 and sets strategic priorities for the central bank through March 2029.
• It is structured around six pillars, including robust regulation, technology, and global integration.
• The approach continues RBI's shift toward long-term strategic planning first introduced in 2019.

RBI Proposes Revised Upper-Layer NBFC Identification Framework

• The draft directions redefine which large NBFCs fall under the stricter Scale-Based Regulation regime.
• Entities with assets exceeding ₹1 lakh crore would be classified as Upper Layer NBFCs under the proposal.
• The move aims to keep systemic-risk oversight aligned with the sector's growing scale.

Paytm Rolls Out Biometric UPI and Cardless ATM Withdrawals

• The features align with RBI's new two-factor authentication framework for digital payments.
• Customers can authenticate transactions and withdraw cash without entering a UPI PIN.
• The rollout reflects a broader industry shift toward biometric-first payment security.

Non-Life Insurance Premiums Grow 9.2 Percent in FY26

• Gross direct premiums reached about ₹3.35 lakh crore, led by strong growth in health insurance.
• General insurance premiums alone rose nearly 8 percent over the previous fiscal year.
• IRDAI data show sustained expansion in both retail and group insurance segments.

India's Exports Rise 4 Percent as Trade Deficit Widens Sharply

• Total exports reached about $860 billion in FY26, while imports grew faster, pushing the trade deficit up over 26 percent.
• Merchandise exports grew only marginally, while merchandise imports rose at a much steeper pace.
• The widening gap reflects rising import dependency even as export volumes held broadly steady.

LIC Launches MyLIC and Super Sales Saathi Apps

• The apps aim to modernise policy servicing, claims support, and agent engagement for the insurer's vast customer base.
• MyLIC offers a single-window digital interface integrating payments and documentation.
• The rollout supports LIC's push to strengthen its digital ecosystem amid rising insurtech competition.

DoT and SEBI Sign MoU to Curb Telecom-Linked Financial Fraud

• The agreement integrates telecom intelligence systems with securities-market surveillance mechanisms.
• It marks a shift from reactive enforcement toward proactive detection of investment scams.
• The partnership targets the misuse of mobile numbers and SIM infrastructure in fraud schemes.

China Overtakes the US as India's Largest Trading Partner

• The shift ends a four-year run in which the United States held the top position.
• It reflects changing trade patterns amid tariff actions and supply-chain realignments.
• Officials noted the trade imbalance with China remains a continuing policy concern.

Cabinet Approves Bharat Maritime Insurance Pool

• The pool carries a sovereign guarantee of nearly ₹13,000 crore to ensure continuous coverage for shipping.
• It is designed to keep maritime insurance affordable even through volatile transit corridors.
• The initiative supports vessels and cargo moving between international and Indian ports.

Cabinet Clears Additional Dearness Allowance Instalment

• The two-percentage-point hike benefits over 50 lakh central government employees and more than 68 lakh pensioners.
• The revised rate takes effect retrospectively from 1 January 2026.
• The additional exchequer burden is estimated at close to ₹6,800 crore annually.

Amaravati Development Authority to Raise ₹15,000 Crore from Multilateral Lenders

• The funds from the World Bank and Asian Development Bank will supplement financing already secured for the capital-city project.
• Total requirements for the Amaravati project are estimated to exceed ₹43,000 crore.
• Domestic institutions including NaBFID, HUDCO, and NABARD are also contributing to project financing.

World Bank Launches 'Water Forward' Initiative

• The platform aims to improve water security for a billion people by 2030 in partnership with multilateral development banks.
• It focuses on expanding reliable water services and strengthening resilience to droughts and floods.
• The initiative was announced by the World Bank Group's President.

DGFT Updates List of Banks Authorised to Import Gold and Silver

• Fifteen banks can now import both metals, while two others are authorised for gold alone, valid through March 2029.
• The revised list took effect from 1 April 2026 under updated foreign-trade policy guidelines.
• The update aims to streamline bullion-import channels for authorised dealers.

NABARD Survey Finds Rural Income Optimism at a Multi-Year Low

• Just under 70 percent of surveyed rural households expect income growth in the coming financial year, down from a peak of nearly 76 percent recorded in late 2025.
• The survey, conducted bi-monthly, tracks rural economic sentiment across states.
• Analysts linked the dip to input-cost pressures and uneven monsoon expectations.

About NABARD: Founded 12 July 1982 • HQ: Mumbai • Chairman: Shaji K V • Apex supervisory body for RRBs and cooperative banks.

World Bank Sanctions $225 Million for Rajasthan Highway Modernisation

• The loan, routed through the IBRD, includes a 35-year maturity and a five-year grace period.
• It introduces India's first Step-Up Loan mechanism for a highway infrastructure project.
• The funding is expected to support road-widening and safety upgrades across the state.

RBI Issues Fresh Guidelines on Currency Exchange Services

• Master Directions mandate all bank branches to offer free, non-discriminatory exchange of soiled notes and coins.
• The rules define acceptable conditions for damaged or two-piece notes to qualify for exchange.
• The move aims to standardise currency-exchange practices across the banking network.

Singapore Tops FDI Sources Into India

• DPIIT data for April-December FY26 showed Singapore contributing over a third of total FDI equity inflows.
• The United States and Mauritius followed as the second- and third-largest sources respectively.
• Total FDI equity inflows during the period stood at nearly $48 billion.

NSE's Active Client Base Shrinks for the First Time Since the Pandemic Boom

• The exchange's active investor count fell 7 percent in FY26, with roughly 35 lakh trading accounts exiting the market.
• Discount broker Zerodha accounted for the largest share of the decline.
• Analysts linked the pullback to volatile markets and tighter margin requirements.

PhonePe Becomes First UPI App to Cross 10 Billion Monthly Transactions

• The platform processed 10.5 billion transactions in March 2026, commanding nearly half of UPI's total transaction value.
• Overall UPI volumes for the month touched a record 22.64 billion transactions worth close to ₹29.5 lakh crore.
• Google Pay and Paytm followed as the second- and third-largest UPI apps by volume.

RBI Continues Push on Financial Literacy Through PSL Reviews

• Regular reviews of Priority Sector Lending targets remain a key tool for channelling credit to agriculture and small enterprises.
• Banks continue to be assessed against sub-targets for weaker sections and small and marginal farmers.
• The central bank has signalled continued emphasis on inclusive credit delivery through FY27.

Public Sector Banks Report Steady Q4 Business Growth

• Several public-sector lenders posted double-digit growth in deposits and advances during the March quarter.
• Digital-first product launches, including AI-based customer service tools, were a common theme across earnings updates.
• Analysts noted improving asset quality trends across the sector heading into FY27.

⚡ QUICK REVISION — BANKING, FINANCE AND BUSINESS

• RBI's Payments Vision 2028: 'Shaping India's Payment Frontier'
• CASA ratio falls to 37.9% — a two-year low
• GCMMF (Amul) crosses ₹1 lakh crore brand turnover in FY26
• Bank of Baroda crosses ₹30 lakh crore global business
• UPI completes 10 years; PhonePe first app to cross 10 billion monthly transactions
• India's exports reach $860 billion in FY26; trade deficit widens over 26%
• World Bank raises India's FY27 growth forecast to 6.6%; ADB to 6.9%
• China overtakes the US as India's largest trading partner