Banking Bulletin

  The Reserve Bank of India (RBI) released draft norms to tighten regulations on digital banking platforms. Key proposals include banning banks from selling third-party products via mobile/internet apps without explicit consent, enhancing cybersecurity standards, and appointing digital officers for compliance. This aims to improve customer protection amid rising fintech integrations.

  Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a 20% stake in Yes Bank, valued at around ₹1.35 lakh crore. This strategic deal, involving multiple Indian banks divesting their holdings, reflects growing foreign interest in India’s banking space. It marks one of the biggest global-bank participations in an Indian lender in recent years.

  RBI is drafting guidelines to reduce the mis-selling of financial products like insurance and investment plans by banks and NBFCs. This move targets aggressive sales practices that prioritize commission over client suitability. The proposed framework may require suitability checks, product disclosures, and penalties for repeated violations.

  Finance Minister Nirmala Sitharaman, in a meeting with heads of Public Sector Banks (PSBs) on Friday, urged them to leverage the Reserve Bank of India’s recent  50 basis points rate cut  to accelerate lending towards the productive sectors of the economy. Sources reported that the Finance Minister asked PSBs to maintain the profitability momentum in  FY26 , building on their strong performance last year. The cumulative net profit of 12 PSBs surged to  Rs 1.78 lakh crore in FY25 , marking a 26% rise compared to the previous fiscal. In absolute terms, this meant a profit increase of about  Rs 37,100 crore . Sitharaman also emphasised the importance of financial inclusion, directing banks to onboard more customers under government schemes to ensure broader credit outreach. On  June 6 , the RBI’s monetary policy committee, led by Governor Sanjay Malhotra, cut the benchmark repo rate by  50 basis points to 5.5% . The minister highlighted that PSBs sh...

  Blackstone Inc.’s ASK Group plans to strengthen its foothold in India’s  booming wealth management sector  by hiring  70 new private bankers . This expansion will increase the ASK Private Wealth unit’s total banker strength to  175 by March next year , up from about 105 at present, as confirmed by  Rajesh Saluja , CEO and co-founder of the business, in an interview this week. India is witnessing a sharp rise in its wealthy population, driving a surge in demand for wealth management services. This has led to the emergence of several new firms competing to manage these assets, while established players like ASK Private Wealth, Bain Capital-backed  360 One WAM Ltd , and PAG-backed  Nuvama Wealth Management Ltd  are rapidly expanding their teams to retain market leadership. Experts believe that the wealth management space in India will see intense competition in the coming years, with firms vying to acquire and retain high-net-worth individual ...

 1 February 2025 Analysts have recommended that the Reserve Bank of India (RBI) should inject up to  ₹1 trillion  (~US$11.5 billion) into the banking system by the end of March 2025 to address an ongoing liquidity deficit. As of  February 20 , the banking system faced a shortage of about  ₹1.7 trillion , despite prior liquidity injections via bond purchases and dollar–rupee swaps. The RBI has taken several steps, including long-term repo operations, interest rate reductions, bond purchases worth ₹1.39 trillion, and ₹440 billion via currency swaps. However, persistent system-level deficiency signals a need for further intervention. Analysts suggest that the RBI may expand its  open market operations (OMO) , increase non-resident Indian (NRI) deposit inflows, and roll over maturing repos. The central bank may also consider revising its  policy framework , including daily fixed funding windows or adopting the Secured Overnight Rupee Rate (SORR) as its ope...