Category Archives: banking

banking, economy, finance, policy

RBI raises IPO financing limit to ₹25L per investor

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**RBI Raises IPO Financing Limit to ₹25 Lakh Per Investor**

*By Akash Pandey | Oct 01, 2025, 05:12 PM*

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**Overview**

The Reserve Bank of India (RBI) has announced a significant increase in the financing limit for Initial Public Offerings (IPOs), raising it from ₹10 lakh to ₹25 lakh per investor. This decision aims to improve credit flow in the economy and was revealed by RBI Governor Sanjay Malhotra following a three-day meeting of the monetary policy committee.

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**Key Regulatory Changes**

Alongside the hike in IPO financing limits, the RBI is set to remove the regulatory cap on lending against listed debt securities. In addition, the loan limit against shares has been raised substantially—from ₹20 lakh to ₹1 crore per person.

These measures form part of RBI’s wider strategy to enhance credit availability across the Indian economy.

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**Expansion of Banking Lending Scope**

In a major policy shift, Indian banks are now permitted to finance mergers and acquisitions (M&A) among domestic companies. This structural change is anticipated to bolster the banking sector by diverting deal financing from private credit players to formal banking channels.

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**Industry Response and Policy Alignment**

Experts have welcomed the RBI’s measures aimed at boosting credit flow. Chanchal Agarwal, Chief Investment Officer at Equirus Family Office, highlighted that these reforms will help banks regain credit flows previously moving towards structured credit products.

Furthermore, the RBI’s policy focuses on broadening credit intermediation, especially by enabling Urban Cooperative Banks to expand their services. This aligns with the government’s “Viksit Bharat” agenda, which emphasizes improving credit access and deepening India’s financial ecosystem.

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**Economic Projections**

The RBI has revised upward its GDP growth forecast for the current fiscal year from 6.5% to 6.8%, while lowering its Consumer Price Index (CPI) inflation estimate from 3.1% to 2.6%.

Murthy Nagarajan, Head of Fixed Income at Tata Asset Management, noted that these adjustments may create room for potential rate cuts in upcoming monetary policy meetings. The repo rate remains unchanged for now, as broadly expected.

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**Promoting the International Use of the Indian Rupee**

In efforts to enhance the global footprint of the Indian rupee (INR), the RBI has proposed measures to allow authorized Indian banks to offer rupee-denominated loans to non-residents in Bhutan, Nepal, and Sri Lanka for cross-border trade transactions.

Governor Malhotra stated that the RBI has made steady progress toward this goal, with the current proposals serving as critical steps in that direction.

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**Conclusion**

The RBI’s recent policy measures—including raising IPO financing limits, expanding lending scopes, and promoting the rupee’s internationalization—are designed to stimulate credit flow, support economic growth, and strengthen India’s financial system. Market participants and experts alike view these steps as positive developments for India’s evolving economic landscape.
https://www.newsbytesapp.com/news/business/rbi-enhances-ipo-financing-limit-improving-credit-flow/story

banking, economy, finance, policy

RBI proposes risk-based deposit insurance premium structure for banks

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**RBI Proposes Risk-Based Deposit Insurance Premium Structure for Banks**
*By Akash Pandey | Oct 01, 2025, 04:54 PM*

The Reserve Bank of India (RBI) has proposed a significant change to the deposit insurance premium structure for banks, shifting from the current flat-rate system to a risk-based model. This move aims to align India’s banking practices with international standards and promote stronger risk management within the sector.

**Current Premium Structure and Proposed Changes**
At present, all banks pay a uniform premium of 12 paise per ₹100 of deposits to the Deposit Insurance and Credit Guarantee Corporation (DICGC), irrespective of their financial health or risk profile. Under the new proposal, this flat rate would act as a ceiling, ensuring that no bank pays more than the current premium.

However, banks with stronger balance sheets and healthier financial indicators could benefit by paying lower premiums. This approach rewards sound financial management and incentivizes banks to maintain robust risk profiles.

**Linking Premiums to Financial Health**
The proposed risk-based premium structure will factor in critical indicators such as capital adequacy, asset quality, and governance standards. RBI Governor Sanjay Malhotra emphasized that this framework is designed to encourage sound risk management practices and increase accountability among banks.

By tying premiums to financial health, the RBI expects to foster greater market discipline and reduce the systemic risks posed by weaker banks.

**No Change in Insurance Coverage Limit**
It is important to note that this proposal does not affect the existing deposit insurance coverage. Depositors continue to enjoy protection up to ₹5 lakh per depositor, per bank— a limit that was raised from ₹1 lakh in 2020 following several bank failures that undermined depositor confidence.

The coverage includes both principal and accrued interest.

**Context of Wider Banking Sector Reforms**
The RBI’s premium restructuring is part of broader reforms aimed at strengthening India’s banking sector resilience. These reforms include implementing expected credit loss provisioning, introducing Basel III capital norms starting 2027, and enforcing stricter governance requirements under the amended banking laws.

Alongside these regulatory measures, the RBI recently maintained the repo rate unchanged for the second consecutive meeting and signaled a neutral stance on future monetary policy moves.

**Conclusion**
By transitioning to a risk-based deposit insurance premium framework, the RBI is incentivizing healthier banking practices and aligning India’s financial system with global best practices, all while ensuring continued protection for depositors.

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*Stay updated with the latest developments in India’s banking sector by following our coverage.*
https://www.newsbytesapp.com/news/business/rbi-to-introduce-risk-based-deposit-insurance-premium/story

banking, business, gender, politics

Mumbai Bank Launches 0% Interest Loans For Women Recipients Of Ladki Bahin Scheme; BJP Leader Pravin Darekar Supports Initiative

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**Mumbai Bank Launches Zero-Interest Loans to Support Women Under Ladki Bahin Scheme**

Mumbai: As the Ladki Bahin scheme experiences a slight decline, Mumbai Bank has introduced a new initiative aimed at supporting women beneficiaries of the program. Under the vision of BJP leader Pravin Darekar, the bank is offering zero percent interest loans to women recipients of the Chief Minister’s Ladki Bahin Yojana, which was launched on September 4.

The rollout event took place at Mumbai Bank’s head office auditorium in Fort and was attended by the bank’s chairman and MLA Pravin Darekar. During the press conference, Darekar shared, “Chief Minister Devendra Fadnavis personally addressed the sisters present at the program where loans were provided at zero percent interest from Mumbai Bank. The Maharashtra government launched the Ladki Bahin Yojana to provide ₹1,500 per month to women in order to improve their financial condition and ensure their overall development.”

He further explained, “The women can use the monthly amount to invest in their businesses. This idea aligns with the vision of Honorable Chief Minister Devendra Fadnavis Saheb. I requested the Chief Minister to allow me to provide 1 lakh interest-free loans to these beloved sisters.”

### Key Details of the Loan Program

Under this initiative, Mumbai Bank will offer loans up to ₹1 lakh to Ladki Bahin beneficiaries at zero percent interest. According to a report by *Saamana*, approximately 5,000 women are expected to benefit from this program. At the launch event, loans were disbursed to the first 200 beneficiaries.

The event was also attended by Mumbai Bank Vice President Siddharth Kamble, along with other dignitaries including Shivajirao Nalawade, Prasad Lad, Nandkumar Katkar, Shilpa Sarpotdar, Tejaswini Ghosalkar, Kavita Deshmukh, and Sandeep Ghandat.

### Introduction of QR Code Service

In addition to the loan scheme, the bank also introduced a QR code service rollout at the same event, aimed at facilitating easier and more secure transactions for beneficiaries.

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### Recent Updates on the Ladki Bahin Scheme

The Maharashtra government encountered controversy and audits in 2025 over irregularities in the scheme’s benefit disbursements. Minister Aditi Tatkare revealed in August that around 26 lakh women might be ineligible for the benefits.

In response, a physical verification drive was launched to confirm eligibility based on criteria such as age, income, and household status. The government temporarily paused payments in July 2025 to complete this verification process, with plans to resume payouts to eligible women subsequently.

An audit uncovered fraudulent enrollments, including over 14,000 men listed as beneficiaries, resulting in ₹21 crore being wrongly disbursed. Opposition leaders have demanded a CBI investigation into alleged scams worth ₹4,800 crore linked to the scheme.

Despite these challenges, the government disbursed the July installment of ₹1,500 on August 8 to the verified eligible beneficiaries.

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Mumbai Bank’s new zero-interest loan program aims to revitalize support for women under the Ladki Bahin scheme, promoting financial empowerment and encouraging entrepreneurship among Maharashtra’s women.
https://www.freepressjournal.in/mumbai/mumbai-bank-launches-0-interest-loans-for-women-recipients-of-ladki-bahin-scheme-bjp-leader-pravin-darekar-supports-initiative

banking, cryptocurrency, finance, regulation, technology

UK banks forge ‘digital sterling’ in landmark tokenization pilot

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**UK Banks Launch Live Pilot for Tokenized Sterling Deposits, Advancing Financial System Modernization**

UK banks are embarking on a live pilot phase for tokenized sterling deposits, marking a significant step toward modernizing the core infrastructure of the United Kingdom’s financial system through distributed ledger technology (DLT).

According to a press release dated September 26, UK Finance is leading this initiative with participation from major banks including Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander. The project, running through mid-2026, aims to facilitate live transactions using tokenized sterling deposits.

### Pilot Focus and Objectives

The pilot will specifically test practical applications such as online marketplace payments, remortgaging, and digital asset settlement. Key goals include enhancing transaction speed and reducing fraud, thereby highlighting tangible benefits of tokenized deposits in everyday financial activities.

### Building on the Regulated Liability Network

This new pilot builds directly on the foundation established by the Regulated Liability Network (RLN), a multi-phase initiative exploring how tokenization can be applied to money circulating within the regulated financial system.

Previous RLN trials demonstrated that commercial bank deposits can be transformed into digital tokens without compromising the trust and protections fundamental to the banking sector. Transitioning into a live transaction phase allows UK Finance and its member banks to rigorously test this model at scale and across various real-world use cases.

### Guidance and Support from the Bank of England

The Bank of England has played a discreet yet influential role in shaping this direction. Governor Andrew Bailey recently encouraged banks to prioritize tokenized deposits over issuing proprietary stablecoins, citing tokenized deposits as a more stable and regulated pathway for modernizing money.

### Interoperability and Inclusive Access

A critical technical feature of the pilot platform is its full interoperability. As stated in the press release, the platform is being developed to seamlessly integrate with other emerging digital money and payment systems. This includes tokenized deposits, potential future central bank digital currencies (CBDCs), and projects like the planned digital gilt (DIGIT).

Furthermore, the pilot offers tokenization-as-a-service, enabling institutions without in-house capabilities to develop their own digital deposit systems to participate. This approach broadens access and helps establish an inclusive framework for digital payments across the UK financial landscape.

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This live pilot phase represents a pivotal milestone in the UK’s journey toward a more efficient, secure, and technologically advanced financial system. By leveraging tokenization and distributed ledger technology, UK banks are setting the stage for innovative payment solutions that promise to benefit consumers, businesses, and the economy as a whole.
https://crypto.news/uk-banks-forge-digital-sterling-in-landmark-tokenization-pilot/

banking, crime, finance, investigation, maharashtra

Maharashtra News: CBI Initiates Probe Against Pune Firm For ₹16 Crore SBI Fraud

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**CBI Initiates Probe Against Private Firm for Rs 16 Crore Fraud on State Bank of India**

*Mumbai:* The Central Bureau of Investigation (CBI) has launched an investigation against a private firm for allegedly causing a loss of over Rs 16 crore to the State Bank of India (SBI).

**Complaint Filed by SBI**

According to the CBI, a complaint was received from Kumar Parimal Prem, Deputy General Manager of SBI’s Administrative Office in Pune. The complaint alleges that a Pune-based borrower company—a registered partnership firm engaged in real estate and construction activities—and its partners, in criminal conspiracy with unknown bank officials and other private individuals, cheated the bank to the tune of Rs 16.35 crores by fraudulently availing credit facilities.

**Modus Operandi**

The complaint reveals that between 2017 and 2023, the accused conspired to cheat SBI’s Small Industries Branch in Pune by availing loans through misrepresentation of data and fraudulent diversion of funds disbursed under credit facilities. These funds were sanctioned for the construction of residential apartments in Pune.

The borrower company and its partners submitted false financial statements, misrepresented their net worth and sources of margin money for the project, and provided bogus CA and engineer certificates to secure the disbursement of credit facilities, the CBI stated.

**Misappropriation of Funds**

The accused individuals allegedly diverted the disbursed funds for purposes other than those for which they were sanctioned. By doing so, they misappropriated the bank’s money, causing a wrongful loss amounting to Rs 16.35 crores to SBI while gaining illegally for themselves.

Furthermore, the partners defaulted on loan installments and interest payments. Consequently, the company’s loan account was classified as a Non-Performing Asset (NPA) on March 31, 2023. The account was further declared as fraudulent on February 28, 2024, a CBI official confirmed.

**FIR Registered**

Based on the SBI’s complaint, the CBI has registered a First Information Report (FIR) on charges of bank fraud under the relevant sections of the Indian Penal Code and the Prevention of Corruption Act.

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https://www.freepressjournal.in/mumbai/maharashtra-news-cbi-initiates-probe-against-pune-firm-for-16-crore-sbi-fraud

banking, crime, cybersecurity, india, law enforcement

78-year-old former banker loses Rs 23 crore after being under `digital arrest`

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On August 1, Malhotra received a call from a man claiming to represent a mobile connection company. The caller alleged that his Aadhaar Card had been misused in Mumbai to obtain a connection linked to terror funding cases.

“They told me I needed to speak with the Mumbai Police, and if the authorities approved, the connection would continue; otherwise, it would be disconnected and the matter reported,” Malhotra told PTI.

The scammers pressured him, claiming his Aadhaar was linked to terror funding, terror activities, and other serious offences. “They warned me not to inform anyone, including my family, or they too would be treated as co-accused,” he said.

Initially, the imposters sought information about Malhotra’s savings. “They asked how much I had in my bank accounts. I said around Rs 14 lakh. They told me to transfer it for verification, assuring me it would be returned,” he recounted.

After each transfer, the fraudsters sent him forged certificates purporting to be from the Reserve Bank of India (RBI), PTI reported. As their demands grew, they asked about his mutual funds, systematic investment plans (SIPs), and other assets, claiming they were verifying them under Bombay High Court guidelines.

“They said they would verify 25 per cent of my assets first, then proceed with the rest. They threatened that my family would be named co-accused if I didn’t comply,” Malhotra said.

Under constant pressure, he visited three banks, liquidated his investments, and transferred the proceeds to accounts provided by the scammers. Each time, they issued more fake RBI certificates. Between August 1 and September 4, Malhotra was confined to his home, venturing out only to visit banks.

On September 14, the fraudsters claimed that the Mumbai Police officer investigating his case was compromised and demanded another Rs 5 crore, allegedly on behalf of the Supreme Court, to be deposited into a private bank in West Bengal. Malhotra refused, saying he would approach the police directly. After this, the calls abruptly stopped.

Realising he had been defrauded, Malhotra approached the authorities on September 19. “I spent my life savings building security for my old age. In one month, it all disappeared because I trusted the wrong people. I hope my story serves as a warning,” he said, holding back tears.

The Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi Police, which handles cyber fraud cases, is investigating. Police have so far frozen Rs 2.67 crore in several accounts.

“The funds were layered across multiple accounts and withdrawn from different parts of the country to evade detection. Over 4,000 accounts were used to siphon off the money,” an officer privy to the investigation said. “We will crack the case soon and arrest those behind the scam.”
https://www.mid-day.com/news/india-news/article/78-year-old-ex-banker-loses-rs-23-crore-to-cyber-fraudsters-was-held-under-digital-arrest-23595438