Source: ET Context: India’s long-term growth prospects, coupled with a more accommodative regulatory environment from the Reserve Bank of India (RBI) and the government, are driving a wave of foreign investments in the country’s banking sector. These transactions aim to create larger and stronger banks, signaling confidence in India’s financial stability and growth potential. Modes of Foreign Investment in Indian Banks Regulatory Environment:

Source: FE Context: The International Monetary Fund (IMF) revised India’s gross domestic product (GDP) growth forecast for FY26 to 6.6%, up 20 basis points from its previous projection of 6.4%, citing a robust first-quarter performance that offset the impact of US interest rate hikes. The FY27 forecast was also revised upward to 6.2%. Key Highlights: Other Forecasts for India (FY26 GDP Growth %): Institution Earlier Current World Bank 6.3 6.5 OECD 6.3 6.7 S&P Global 6.5 6.5 ADB 6.5 6.5 RBI 6.5 6.8 IMF 6.4 6.6

Source: BS Context: The Securities and Exchange Board of India (SEBI) recently relaxed the Minimum Public Shareholding (MPS) requirements for large companies at the time of listing. The move allows: Key Changes:

Source: BS Context: The Employees Provident Fund Organisation (EPFO) has announced the Employees Enrolment Scheme, 2025 (EES 2025) to bring more workers under the social security net. The scheme allows employers to voluntarily declare and enrol eligible employees who were previously left out of the EPF system. Key Highlights: EPF Withdrawal Simplification:

Source: BS Context: NTT Data has signed a Memorandum of Understanding (MoU) with NPCI International Payments Ltd (NIPL) to facilitate the acceptance of Unified Payments Interface (UPI) transactions in Japan. This initiative targets Indian tourists visiting Japan, aiming to make payments seamless and convenient. Key Highlights:

Source: ET Context: The Employees’ Provident Fund Organisation (EPFO) has proposed major reforms to simplify partial withdrawals from the Provident Fund (PF), while making full settlement after leaving a job more restrictive. The proposals were approved by the Central Board of Trustees (CBT) to enhance efficiency, digital processing, and long-term savings discipline. Key Proposals at a Glance Aspect Existing Rule Proposed Change Partial Withdrawals 13 separate conditions with varying limits Merged into 3 broad categories – (1) Personal milestones (marriage, illness, education), (2) Housing, and (3) Special circumstances Frequency of Withdrawals Combined limit of 3 for marriage & education Up to 5 times for marriage and 10 times for education Minimum Service Period Varies by purpose Standardised to 12 months Minimum PF Balance No such rule Members must maintain 25% of contributions as minimum balance Withdrawal Limit Fixed per category Up to 100% of eligible balance (after maintaining 25%) Documentation Documents required Auto-settlement through simplified digital claim process Full Settlement (Post-Resignation) Allowed after 2 months Waiting period increased to 12 months Women Employees Allowed early withdrawal under certain conditions May continue under special circumstances Employees’ Pension Scheme (EPS) Withdrawal after 2 months Waiting period extended to 36 months Rationale Behind the Reform

Source: IE Context: The Government of India has sought the Reserve Bank of India’s (RBI) oversight over two major social security institutions — the Post Office Savings Bank (POSB) and the Employees’ Provident Fund Organisation (EPFO) — to strengthen internal controls, ensure transparency, and improve fund management practices. Key Developments: