Context: RBI Governor Sanjay Malhotra and Deputy Governor Rajeshwar Rao told the Public Accounts Committee (PAC) that they are “optimistic” about the impact of US tariffs on India. The RBI believes that in the long run, India could benefit from declining US-China trade ties as global supply chains diversify. The central bank is still assessing short-term impacts but sees no major threat to the Indian economy. Focus on Banking Reforms Key Discussions and Highlights Strategic Direction BS

Context: The National Payments Corporation of India (NPCI) has issued two new circulars aimed at enhancing the performance and reliability of the Unified Payments Interface (UPI). These updates focus on reducing API response times and curbing the misuse or overuse of API calls, with implementation mandated by June 16, 2025. Faster Response Times for Key UPI APIs NPCI has directed banks to improve response times for four critical APIs: These changes are expected to: Controlling Misuse of ‘Check Transaction Status’ API NPCI’s second circular addresses the overuse of API calls which often leads to system congestion: Why This Matters Industry Concerns and Next Steps BS

Context: The Securities and Exchange Board of India (SEBI) has proposed a new framework to ensure the orderly winding down of critical services by KYC Registration Agencies (KRAs) in scenarios such as: Key Goal: Core Principles of the Proposal SEBI’s consultation paper highlights the need to: Key Features of the Proposed Framework KRA Responsibilities KRAs will be responsible for: BS

Context: The Reserve Bank of India (RBI) plans to buy ₹1.25 trillion in government bonds, coupled with a ₹1.5 trillion dividend transfer to the Union government in May. This will likely increase surplus liquidity in the banking system, expected to reach ₹5 trillion by June 2025. Impact on Lending Rates Liquidity Conditions and Market Response Economists’ View on RBI’s Bond Purchases Impact on Retail Lending

Context: SEBI has extended the implementation timeline for the optional T+0 (same-day settlement) cycle for qualified stock brokers (QSBs) to November 1, 2025, from the initial deadline of May 1, 2025. Reason for extension: The extension was granted based on feedback from QSBs, along with consultations with stock exchanges, clearing corporations, and depositories, to ensure smoother implementation. T+0 Settlement Cycle A T+0 settlement cycle means that a stock trade is settled on the same day it’s executed. This means that the buyer receives the shares and the seller receives payment on the same trading day. Previously, India used a T+1 system where settlement occurred the next business day.  Implementation Challenges Background on T+0 Settlement Cycle Impact on QSBs and Investor Participation Industry Implications Mint

Context: The Investor Education and Protection Fund Authority (IEPFA) has signed a Memorandum of Understanding (MoU) with Kotak Mahindra Bank Limited (KMBL) to enhance investor awareness across India. Initiative Details

Context: Airtel Payments Bank has introduced the RuPay ON-THE-GO card, enabled with the National Common Mobility Card (NCMC) feature, aiming to simplify digital payments for travel, shopping, and daily expenses. The National Common Mobility Card (NCMC) The National Common Mobility Card (NCMC) is a feature that enables contactless payments across various modes of transportation and retail outlets using a single, interoperable card. It leverages RuPay technology and allows for stored value, enabling offline transactions for low-value payments. The NCMC supports payments for metro, bus, suburban railways, toll, parking, and retail purchases.  Key Features How to Obtain the Card Usage and Charges TET