Context: RBI approved only a one-year extension for MD & CEO Sumant Kathpalia, despite the bank’s board recommending a three-year term. This follows a previous instance where RBI had approved a two-year term against a three-year recommendation. Accounting Discrepancies and Market Reaction Internal Control and Risk Management Lapses RBI and Market Communication Key Questions Raised 1. Disclosure Gaps: 2. Appointment Decisions: 3. Need for Regulator Transparency: The IndusInd Bank episode underlines the critical need for stronger internal governance, audit oversight, and proactive regulatory transparency. In a trust-based business like banking, both board-level governance and regulator decision clarity are vital to maintaining market confidence and financial stability.

Key Highlights First Board Meeting Under New Chairperson Major Proposed Changes =FPI Disclosure Norms Relaxation About PN3 Advance Fee Collection Limits for Investment Advisors and Analysts Relaxation for Category II AIFs and Angel Funds Cost Reduction for Sachet-Sized SIPs Proposals Likely to Be Deferred Additional Expectation SEBI’s upcoming board meeting under new chairperson Tuhin Kanta Pandey signals significant regulatory shifts aimed at easing compliance for FPIs, increasing flexibility for advisors, supporting small-ticket SIP growth, and streamlining angel fund investments.

Key Highlights Fundraising Details (March 20, 2025) Bank Amount Raised (₹ crore) Maturity Yield (%) Punjab National Bank (PNB) 4,950 3 & 12 months 7.56 – 7.57 IndusInd Bank 1,000 6 months 7.90 Jammu & Kashmir Bank 275 3 months 7.75 CSB Bank 100 12 months 8.50 Utkarsh Small Finance Bank 50 3 months 8.05 Total fund raised on March 20: ₹17,300 crore The surge in CD issuances highlights the increasing liquidity stress within the Indian banking system, driving both large and small banks to raise funds at higher yields. IndusInd Bank’s massive ₹14,750 crore fundraise, led largely by public sector banks, underscores the sector’s reliance on short-term instruments to meet funding needs.

Key Highlights The fintech industry is at a crossroads following the reduction of government incentives for low-value UPI transactions. Without a viable revenue model or support through expanded incentives or MDR for large merchants, fintech service providers risk financial instability and innovation slowdown. As UPI continues to play a pivotal role in India’s digital economy, it is crucial for policymakers to recalibrate support measures that sustain growth and encourage wider adoption across both small and large merchants.

Context: Payments banks in India have approached the Union Finance Ministry, requesting an increase in their individual account deposit limit from the current ₹2 lakh to ₹5 lakh. This proposal was discussed in a meeting chaired by Department of Financial Services Secretary M. Nagaraju in New Delhi. Payment Banks Payment banks are specialized financial institutions, introduced by the Reserve Bank of India (RBI), that focus on providing basic banking services like deposits, withdrawals, and remittances, primarily through digital channels, to the unbanked and underbanked populations, but cannot issue loans or credit cards.  Key Highlights Small Finance Bank Conversion IPPB Recognized for Financial Inclusion Current Players in the Payments Bank Sector Payments banks are urging the government to increase deposit limits and allow lending to the microfinance sector to strengthen their financial sustainability and broaden income avenues. If approved, these changes could significantly enhanc

Context: The Securities and Exchange Board of India (SEBI) is likely to increase the investment threshold for granular ownership disclosures by foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore. This strategic move is designed to enhance FPI confidence and align disclosure requirements with India’s growing financial markets. Key Highlights Indian Stock Market Continues to Rally Foreign Portfolio Investment Inflows at 1-Year High Possible Relief for Startups and Pre-IPO Founders SEBI’s proactive regulatory measures, including raising FPI disclosure thresholds and easing norms for startups and investment professionals, signal a strong commitment to fostering market growth, encouraging foreign investments, and supporting India’s dynamic financial and startup landscape. These developments are expected to hav