Context: Founders of top fintech startups Jupiter, Fi, Lendingkart, OneCard, and Signzy — have come together to form a new industry body. The objective is to secure a self-regulatory organisation (SRO) licence from the Reserve Bank of India (RBI). Leadership and Structure RBI’s Role and Criteria Regulatory The collaborative move by leading fintech founders marks a significant step toward industry-led governance. With regulatory oversight tightening, the new SRO aims to align fintech innovation with compliance, representing a unified voice to regulators and stakeholders. Source: Economic Times

Key Highlights Liquidity Deficit Lower Acceptance in the Latest OMO Demand and Auction Details Outlook for FY26 The RBI continues to manage liquidity challenges through calibrated interventions. The latest OMO reflects cautious acceptance levels, aligning with the central bank’s pricing comfort. Market participants anticipate sustained OMOs and stronger liquidity conditions in the upcoming fiscal year. Source: The Economic Times

Context: Under the leadership of Tuhin Kanta Pandey, the Securities and Exchange Board of India (SEBI) is adopting a more deregulated, governance-focused approach, moving away from rapid regulatory tightening. Key Changes Announced at SEBI’s Latest Board Meeting Earlier Steps Ahead of Board Meeting SEBI’s New Playbook: Key Themes

RBI’s Proposal and Intent Why Transparency Is Welcome The Complexities of Banning Prepayment Charges Potential Adverse Effects A Middle-Ground Solution The Long-Term Solution While the RBI’s efforts to enhance transparency and borrower choice are commendable, a complete ban on prepayment charges may reduce credit availability for small businesses. A nuanced approach, balancing fair costs and free market movement, is essential to foster healthy credit growth for small enterprises. Source: BS

1. The Original Framework of Economic Reforms (1990s) Key Assumptions Regulatory Leadership: Early Approach Diverse Talent Pool Principle of Conflict-Free Appointments Erosion of Guardrails Gradual Change Legislative Tweaks Growing Dominance of Civil Servants in Regulatory Roles Recent Trends Risks and Concerns The Need for Course Correction Recommendations and Insights India’s regulatory landscape, once built on principles of independence, autonomy, and conflict-free governance, is facing significant dilution. Over-reliance on retired civil servants and relaxing safeguards threatens to blur lines between policymaking and regulation. Restoring a diversified talent pool, coupled with strong post-tenure restrictions, is essential to safeguard the integrity of reforms and ensure long-term market confidence and institutional trust. BS

Context: The National Payments Corporation of India (NPCI), with approval from the Reserve Bank of India (RBI), has announced an increase in ATM interchange fees for cash withdrawals from ₹17 to ₹19, effective May 1, 2025. Details of Fee Revision Transaction Type Previous Interchange Fee Revised Interchange Fee Cash Withdrawal (Domestic) ₹17 ₹19 Non-Financial Transactions (Domestic) ₹6 ₹7 Balance Enquiries (Nepal & Bhutan) ₹6 ₹7 (excluding GST) Note: All revised rates are exclusive of GST. NPCI Circular Highlights Key Points from RBI and NPCI Impact on Stakeholders Stakeholder Impact Banks & ATM Operators Increased revenue on each cash withdrawal and non-financial transaction. Consumers No direct increase in fees unless banks pass on the rise; encourages digital transactions. ATM Network (NFS) Continued alignment with market-driven pricing and operational costs. Exemptions to Note The revised interchange fees will not apply to: The interchange fee revision reflects RBI and NPCI’s efforts to ensure ATM operations remain viable and sustainable, balancing the cost burden between banks and ATM operators while maintaining customer access.

Context: The Union Finance Ministry has announced the discontinuation of the medium- and long-term government deposit (MLTGD) components of the Gold Monetisation Scheme (GMS), effective March 26, 2025. This decision follows a comprehensive review of the scheme’s performance and changing market dynamics. Medium Term Government Deposit (5-7 years), and. Long-Term Government Deposit (12 – 15 years) The Gold Monetisation Scheme The Gold Monetisation Scheme was announced on September 15, 2015, with the objective to reduce country’s reliance on the import of gold in the long run and mobilise gold held by households. Advertisement. Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS. Background of the GMS Key Policy Change What Continues? Reason for Discontinuation Implications for Stakeholders Stakeholder Impact Households/Institutions Limited to short-term deposits, reducing long-horizon monetisation opportunities. Banks Continued participation through STBDs, subject to profitability. RBI Will issue revised guidelines on short-term deposit handling. The government is shifting its focus to shorter-term gold deposits, possibly due to higher efficiency and bank interest in that segment. The move aligns with market feedback and aims to enhance commercial viability. Continued gold mobilisation will depend on bank adoption and RBI’s revised guidance. Source: BS

Context: The Reserve Bank of India (RBI) has announced revised Priority Sector Lending (PSL) norms, effective April 1, 2025, aimed at increasing credit flow to sectors such as housing, clean energy, and weaker sections. These regulations are expected to benefit banks with lower organic PSL generation, notably HDFC Bank, RBL Bank, Federal Bank, and IndusInd Bank. Key Highlights of Revised PSL Guidelines: Enhanced Housing Loan Limits (Based on City Population) To improve access to affordable housing, RBI has revised upward the PSL-eligible loan ceilings: City Population Maximum Housing Loan Eligible under PSL Above 50 lakh ₹50 lakh 10–50 lakh ₹45 lakh Below 10 lakh ₹35 lakh Expanded Renewable Energy Lending Farm Produce Hypothecation Loans These changes are aimed at supporting post-harvest financing and reducing farmers’ reliance on informal credit. Higher Limits for Educational and Social Sector Loans Revised PSL Targets for Urban Co-operative Banks (UCBs) Expanded Definition of ‘Weaker Sections’ The definition now includes: Differential Weight System for Regional Credit Flow To incentivize banks to lend in underserved areas: District Type PSL Weightage Lower per capita credit districts 125% Higher per capita credit districts 90% This weighting mechanism encourages balanced regional development and more equitable credit distribution. Strategic Impact of the Revised PSL Norms What is Priority Sector Lending (PSL)? Priority Sector Lending refers to mandatory credit allocation by banks to certain critical sectors of the economy that face difficulty accessing credit. These include: PSL Targets by Bank Category Category Domestic Commercial Banks & Foreign Banks (≥20 branches) Foreign Banks (<20 branches) Regional Rural Banks (RRBs) Small Finance Banks (SFBs) Total Priority Sector 40% 40% (upto 32% in form of Export Credit) 75% 75% Agriculture 18% Not applicable 18% (Same as DCB) 18% (Same as DCB) Micro Enterprises 7.5% Not applicable 7.5% (Same as DCB) 7.5% (Same as DCB) Advances to Weaker Sections 12% Not applicable 15% 12% (Same as DCB) Instruments for PSL Compliance 1. Direct Lending 2. Investments in Eligible Instruments 3. Priority Sector Lending Certificates (PSLCs) What Happens If PSL Targets Are Missed? Banks failing to meet PSL obligations must contribute to designated funds such as: About RIDF (Rural Infrastructure Development Fund) Benefits of PSL Challenges in PSL Implementation

Context: The Bharat Interface for Money (BHIM) app will continue to function as a sandbox for digital payment innovations in India, enabling industry-wide adoption of new features as UPI use cases continue to grow. Key Announcements New Features in BHIM 3.0 BHIM’s Strategic Innovations Current Market Metrics Key Takeaways BS

Context: Key Decision Rationale Behind the Move Previous Norms Expected Impact SEBI’s revision of disclosure norms is seen as a pro-growth and investor-friendly move. The decision is expected to strengthen capital inflows, foster market stability, and make India more competitive among global emerging markets. Mint