Trade tariff threat and rising oil prices squeeze rupee, prompting investor outflows and currency depreciation.
The rupee depreciated notably as rising global crude oil prices and a stronger US dollar increased import-related dollar demand, while sustained buying by oil companies and importers and net equity selling by foreign institutional investors compounded selling pressure. Market concerns over potential additional US trade tariffs further triggered capital outflows, and contemporaneous rises in the dollar index and Brent crude futures coincided with the currency's wider trading range and weaker settlement.

Business loan reward scheme: cashback and vouchers for early app disbursals under timed campaign and wallet redemption.
Bajaj Finance's time limited 'Loan Utsav' ties business loan disbursal through the Bajaj Finserv App to tiered cashback and partner vouchers, limited to the first two hundred successful monthly disbursals; rewards require app based application, disbursal, and timely setup of the issuer's digital wallet, with loyalty coins as an alternate fulfilment route where wallet activation does not occur.

Exchange rate volatility: rupee pressured by capital outflows and tariff uncertainty, tempered by weaker dollar and reserves.
Exchange rate volatility saw the domestic currency weaken against the US dollar due to foreign institutional investor outflows and tariff-related trade uncertainty, while a softer dollar, lower crude prices, and increased foreign exchange reserves limited further depreciation; domestic liquidity behaviour-banks buying on dips and exporters selling on upticks-helped establish the intraday trading range.

Foreign exchange reserves rise, driven by changes in foreign currency assets, gold, SDRs and IMF reserve position.
Foreign exchange reserves rose in the reporting week due to increases in foreign currency assets, SDRs and the IMF reserve position, while gold reserves declined; valuation effects from non US currencies were noted in the dollar expressed foreign currency assets.

Personal loan pre-approval: instant digital access to tailored loans with transparent terms during limited Loan Utsav period.
The Loan Utsav promotion offers online personal loans via a fully digital application path with pre-approved offers for existing customers, rapid approvals with minimal documentation, personalised pricing and flexible repayment tenures, and use of an EMI calculator; all offers are subject to terms and conditions and limited-time availability. Bajaj Finance Ltd. is identified as a deposit-taking NBFC registered with the banking regulator and classified as an NBFC-ICC, engaged in lending and deposit acceptance across retail and corporate segments.

Deposit insurance supports app-booked FDs; digital KYC and RBI licensing ensure comparable security with enhanced convenience.
App platforms aggregate offerings from RBI licensed banks and NBFC partners, enabling online comparison and booking of fixed deposits while preserving Deposit Insurance coverage for bank placed deposits. Digital onboarding completes mandatory KYC by linking PAN via DigiLocker, and the app provides real-time tracking, maturity management, and options for early withdrawal and payout routing, thereby replacing in branch procedures with an electronically compliant lifecycle for FD investments.

Currency depreciation: central bank dollar demand and foreign outflows limit rupee gains amid trade and oil pressures.
The domestic currency depreciated amid global risk aversion and sustained foreign portfolio outflows; persistent net dollar demand by the central bank to manage maturities and rebuild intervention reserves constrained rupee appreciation and limited exchange-rate gains.

Pre-payment charges prohibition: lenders cannot levy penalties on floating-rate business and individual loans, with mandated disclosure.
The Reserve Bank mandates that regulated entities shall not levy any pre-payment charges on all floating-rate loans and advances to individuals and micro and small enterprises, including business-purpose loans, for loans sanctioned or renewed on or after January 1, 2026. The prohibition applies irrespective of the source of pre-payment funds and without any minimum lock-in period. Specific categories of banks and NBFCs are subject to tailored limits on when charges are barred, cash credit and overdraft facilities are exempted from charges if prior non-renewal notice is given and the facility is closed on the due date, and the applicability of any pre-payment charges must be disclosed in the sanction letter and loan agreement.

Fraud classification of loan account triggers RBI reporting and debarment risks under regulatory guidelines and insolvency rules.
SBI classified the pre CIRP loan account of Reliance Communications as fraud, naming the erstwhile director and reporting to the RBI after its Fraud Identification Committee found unexplained diversion of funds, related party transfers, inter corporate deposits and intraday cycling of funds; RBI guidelines require prompt reporting, law enforcement referral, and impose debarment and restrictions on restructuring for fraud accounts, while the loans must be addressed in any IBC resolution plan or liquidation.

Fraud classification triggers mandatory reporting to regulators and may bar borrower and promoters from institutional finance for a multi-year period.
SBI has classified Reliance Communications' loan account as fraud, reporting an erstwhile director to the banking regulator after concluding that loan proceeds were diverted across group entities through inter-corporate deposits, intraday cycling and non genuine transactions. The committee found sanctioned funds were used to repay other obligations and connected parties rather than for stated purposes, describing such transfers as misappropriation and breach of trust. RBI guidelines require prompt reporting of frauds, notification to law enforcement, and subject fraudulent borrowers and promoters to institutional debarment and restrictions on restructuring or fresh finance.

Fraud classification: loan account reported and former director named to RBI under banking regulatory reporting rules.
Classification of the loan account as fraud and corresponding reporting obligations follow the committee's finding that loans were diverted from sanctioned purposes through complex intra group movements, inter corporate deposits and intraday cycling, with payments to connected parties and partial traceability of transactions indicating potential misappropriation, breach of trust and manipulation of books.

UPI credit integration expands formal credit access via a UPI-enabled credit card, branch and ATM for streamlined onboarding and deposits.
slice launched a UPI-integrated credit card enabling QR and UPI payments drawn from a credit line, with an option to convert spends into three interest-free instalments and cashback rewards. Concurrently, slice opened a UPI-first physical bank branch and a UPI ATM that accepts cash deposits and withdrawals, offering instant onboarding, self-service kiosks, account opening, and full UPI integration, leveraging its post-merger status as a full-stack bank owning core infrastructure and underwriting capabilities.

Government securities auction: yield- and price-based offerings with reserved non-competitive allocation and when-issued trading.
The Government announced multiple-price auctions for New Government Security 2040 (yield-based) and 6.90% Government Security 2065 (price-based), each with notified nominal amounts and an option to retain additional subscription. Both auctions will be conducted electronically on the E-Kuber system with competitive and non-competitive bids; up to 5% of each issue is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Auction results will be announced the same day and securities will be eligible for When Issued trading under existing RBI guidelines.

Failure to file Suspicious Transaction Reports triggers FIR alleging bank officials enabled mule-account laundering network nationwide.
The investigation alleges widespread non-compliance with anti-money-laundering obligations: branches failed to file Suspicious Transaction Reports, neglected Customer Due Diligence and Enhanced Due Diligence on high-risk accounts, and omitted address verification. Middlemen and banking correspondents are accused of procuring accounts-sometimes with forged documents or without consent-into which illicit proceeds from digital frauds were routed, prompting an FIR naming multiple accused and arrests for alleged complicity in operating a large mule-account laundering network.

Rupee weakness driven by oil rebound and weak equities pressures markets, while dollar softness caps sharp moves.
The rupee fell against the US dollar after intra day gains were reversed by weak domestic equities, a rebound in crude oil prices, and month end dollar demand; a softer dollar limited larger losses. Analysts cited a defined trading range for the spot currency. Market indicators referenced included the dollar index, Brent crude futures, declines in major equity indices, net foreign institutional investor purchases, slowed industrial production attributed to early monsoon effects, a reduced fiscal deficit due to a central bank dividend, and a small weekly fall in foreign exchange reserves.

Fiscal deficit reduction follows large central bank dividend, sharply lowering government's budget gap for the period.
Fiscal deficit narrowed at May-end 2025 principally due to a large central bank dividend recorded under 'dividends and profits', which boosted non-tax revenue and reduced the reported gap between government expenditure and receipts against the Budget Estimates; receipts included tax revenue net to the centre, non-tax revenue and non-debt capital receipts, and a material devolution of tax share to states.

Gross non-performing assets outlook: decline reported with a projected modest uptick by March 2027 for bank asset quality.
The banking-system gross non-performing assets fell to 2.3 per cent in March 2025 from 2.6 per cent in September 2024; the half-yearly Financial Stability Report projects that GNPAs for 46 banks may rise to 2.6 per cent by March 2027, framing improved recent asset quality alongside a potential medium-term uptick.

Financial stability as a prerequisite for growth, requiring vigilant regulators balancing innovation and safety amid global shocks.
Financial stability is a necessary condition for growth, requiring vigilant, agile central banks and regulators to balance customer protection, competition, innovation and safety and soundness. The domestic financial system's resilience is strengthened by strong capital buffers, low non-performing loans and robust profitability, with stress tests projecting capital above regulatory minimums; however, elevated geopolitical risks, recent market turbulence, high public debt and potential asset price corrections increase near-term global financial stability risks.

Government accounts review shows receipts composition and higher devolution to states, with revenue and capital expenditure highlighted.
Monthly review up to May 2025 shows total receipts-comprising Tax Revenue, Non-Tax Revenue and Non-Debt Capital Receipts-reported as a proportion of the 2025-26 budget estimate, with Devolution of Share of Taxes to states noted as higher year-on-year. Total expenditure is presented with a Revenue/Capital split and major revenue components identified, including Interest Payments and Major Subsidies.

Financial system resilience affirmed by RBI report, noting adequate bank capital buffers and robust stress-test outcomes.
The FSR states the domestic financial system is resilient, with scheduled commercial banks holding robust capital buffers, low non performing loan ratios and strong earnings. Macro stress tests show most banks retain capital above regulatory minima even in adverse scenarios, and stress testing validates the resilience of mutual funds and clearing corporations. The report also warns that global policy uncertainty, market volatility, high public debt and elevated asset valuations could amplify shocks despite supportive monetary conditions.