Urban Cooperative Banks: draft rules raise unsecured-advance limits, increase aggregate ceiling, deregulate certain housing loan terms, comments invited.
The draft Amendment Directions rationalise the definition of unsecured advances, increase individual loan limits and raise the aggregate ceiling for such advances to 20% of total advances, enhance the consumer durable lending limit to nominal members to Rs.2.5 lakh, deregulate housing loan tenor and moratorium for Tier 3 and Tier 4 UCBs, and impose additional disclosure requirements, with public comments invited by March 4, 2026 via Connect 2 Regulate or email.

Cooperative banks: loans to NCDC now qualify as priority sector; governance, deposit protection and digital support strengthened.
Loans sanctioned by banks to the National Cooperative Development Corporation (NCDC) for on lending to cooperative societies are eligible for classification as Priority Sector Lending under the respective categories, subject to the purposes and activities set out in the Master Direction on Priority Sector Lending, 2025; this applies to banks other than Regional Rural Banks, Urban Cooperative Banks, Small Finance Banks and Local Area Banks and is intended to facilitate greater credit flow to cooperative societies.

Corporate India is rapidly scaling net-zero strategies and turning to sustainable finance and carbon markets to fund decarbonisation.
Corporate India shows broad confidence in achieving net-zero objectives, with most surveyed firms adopting net-zero strategies and increasing investments in emissions-reduction solutions. Sustainable finance-particularly green and sustainability-linked bonds and loans-is identified as a primary mechanism to mobilise capital for the transition, while carbon markets are expected to complement direct emissions reductions. Significant additional annual investment will be required, and enablers include scaling local manufacturing, expanding government support, and strengthening the financial sector's role in offering sustainable finance.

PayU inFINity 3.0 accelerator offers fintech startups market access, compliance support, AWS credits, and investor connections.
inFINity 3.0 is a four-week fintech accelerator providing startups with structured access to PayU's payments infrastructure, merchant and banking partners, focused mentorship on Go To Market strategy and regulatory compliance, and Demo Day investor connections. Selected participants gain exposure to Atrium Ventures for potential early institutional capital and may receive up to $10,000 in AWS Activate credits subject to eligibility and credit-application timelines. Eligibility is limited to early-stage fintech startups seeking seed to Series A funding with less than $5 million raised.

Annual social justice report proposed to assess protections and disparities; tax exemption sought for the national rural development bank.
Institutionalise an annual social justice report to be tabled in Parliament reviewing constitutional equality obligations, evaluating legal and policy frameworks, and examining implementation of protections for disadvantaged groups, with focus on atrocities and welfare scheme impacts, budgetary allocations, affirmative action outcomes, and socioeconomic disparities in education, employment and income. A related proposal seeks tax exemption, higher budgetary support, and greater autonomy for the national rural development bank to bolster rural finance and infrastructure.

Rupee weakens to 90.77 as markets stay cautious after the India-US interim trade framework; RBI intervention expected.
The rupee fell to 90.77 against the US dollar as markets reacted cautiously to the India-US interim trade framework; concerns about continued US oversight of energy imports and possible penalties diminished initial optimism. Technical support around 90.00-90.20 is viewed as key, with RBI intervention via dollar purchases expected to anchor the currency, while FII inflows have improved sentiment but their durability is uncertain.

Artificial Intelligence in tackling mule accounts and telecom-enabled fraud via coordination and tech adoption for real-time tracing and victim protection.
The conference focuses on deploying Artificial Intelligence and data analytics to detect and disrupt mule accounts and laundering mechanisms, structured around three pillars: financial systems, telecommunications infrastructure, and human exploitation; it targets misuse of SIMs, eSIMs, VoIP and OTP interception, and emphasizes inter-agency and public-private coordination for faster fraud reporting, real-time fund tracing, evidence preservation and victim protection, alongside international cooperation and state-level investigation models.

Financial literacy for rural poor urged to prevent fraud and promote KYC updates in bank accounts.
Banks are urged to expand financial literacy efforts for poor, rural, and tribal populations to prevent small-value financial and cyber frauds, addressing language barriers and remote access constraints. The RBI's Financial Literacy Week emphasizes KYC as a foundational safeguard and calls for promotion of KYC updates and account-level awareness within literacy campaigns to secure deposit accounts and reduce exploitation of low-income customers.

MSME lending: collateral-free loan limit raised to Rs 20 lakh; banks may extend to Rs 25 lakh under internal policy.
RBI amended the Master Direction on MSME lending to raise the collateral-free loan limit for micro and small enterprises to Rs 20 lakh, mandating banks not accept collateral for loans up to that amount and advising the same limit for PMEGP units. Banks may, under internal policy and based on borrowers' track record and financial position, dispense with collateral up to Rs 25 lakh and may use Credit Guarantee Scheme cover where applicable; voluntarily pledged gold and silver within the threshold will not breach the mandate. The amendments aim to strengthen last mile credit delivery and align MSME lending with other regulatory changes.

Banks may extend collateral-free loans up to Rs 25 lakh to MSEs based on their track record.
Banks may dispense with collateral for loans to Micro and Small Enterprises up to a base limit of Rs 20 lakh and, based on the MSE unit's good track record and financial position, increase that dispensation up to Rs 25 lakh under their internal policy; banks may use Credit Guarantee Scheme cover where applicable and accepting voluntarily pledged gold and silver for loans within the collateral-free limit will not breach the mandate. The amended lending directions become effective April 1, 2026.

Digital frauds prompt RBI SoP adoption, bank alert duties and a framework for compensation to digital arrest victims.
Large-scale digital frauds requiring prevention, identification and redress necessitate that banks fulfil a bank fiduciary responsibility by issuing alerts for atypical transactions, using AI monitoring and placing temporary debit holds; regulators should adopt and implement a Standard Operating Procedure, coordinate RBI, telecommunications and other stakeholders to freeze and trace illicit transfers and identify mule accounts, and establish a framework for compensation while enabling unified investigations by a federal probe agency.

Gross NPAs of Scheduled Commercial Banks fell to 2.15% after reforms strengthening recognition, resolution and recovery.
Gross NPAs of Scheduled Commercial Banks fell to 2.15% as of September 30, 2025, driven by the Asset Quality Review, the Government's 4Rs strategy and reforms strengthening recognition, resolution and recovery. Public Sector Banks show larger declines (2.50% gross NPA) and improved slippage ratios (0.8% for PSBs versus 1.8% for PVBs). Measures cited include Early Warning Systems, the Insolvency and Bankruptcy Code, SARFAESI amendments, increased DRT jurisdiction, specialised stressed asset verticals, and the Prudential Framework for resolution of stressed assets.

IIFL Capital received SEBI nod to form an IFSC subsidiary to serve global investors and enable cross-border investment flows.
SEBI issued a No Objection for IIFL Capital to form a Wholly Owned Subsidiary at GIFT IFSC to carry out permitted financial services and capital market activities as a separate legal entity, subject to remaining statutory and regulatory approvals and operational clearances.

Rupee rises after US India interim trade framework; tariffs cut, RBI intervenes and reserves increase.
The rupee strengthened to 90.44 per US dollar after India and the US announced an interim trade framework featuring tariff reductions and planned bilateral purchases; the move was supported by a softer dollar index, positive domestic equity flows, a rise in foreign exchange reserves, and active Reserve Bank of India currency intervention selling on upticks and buying near specified levels to curb volatility.

High-Level Committee on Banking to recommend scaling banks and restructuring public sector NBFCs to meet development financing needs.
The government will set up a High-Level Committee on Banking for Viksit Bharat to recommend how to scale the banking sector to meet financing, credit and access needs while safeguarding financial stability, inclusion and consumer protection. The Budget also proposes restructuring public sector NBFCs, noting PFC's 2019 majority acquisition of REC and the PFC board's in-principle approval to merge REC into PFC to improve scale and efficiency.

Transcorp International receives RBI in principle approval for Centralized Payment Systems enabling RTGS, NEFT and an IFSC allotment.
RBI in principle approval authorises Transcorp International Limited to participate in Centralized Payment Systems, enabling the company to build and operate a payments ecosystem with RTGS and NEFT capabilities, hold and operate a Reserve Bank of India bank account, and receive an allotted IFSC code, thereby strengthening its regulated payments infrastructure and supporting operational independence and regulatory compliance.

Credit derivatives: draft enables derivatives on credit indices and total return swaps; public feedback invited by Feb 27.
The Reserve Bank has published a draft revised Master Direction consolidating provisions for credit derivatives, including credit default swaps, and proposing enabling provisions for derivatives on credit indices and total return swaps on corporate bonds; public comments are invited by February 27, 2026 by email or postal submission to the Chief General Manager, Financial Markets Regulation Department.

RBI invites comments on draft amendment removing prior approval for NBFC branch openings in India.
The Reserve Bank published Amendment Directions, 2026, removing the requirement of prior approval or intimation for NBFCs (including Housing Finance Companies) to open branches in India and inviting comments on the draft until February 27, 2026 via the 'Connect 2 Regulate' portal or by submission to the Registration and Authorisation Group; relevant provisions of the Directions on Acceptance of Public Deposits and Housing Finance Companies will be amended consequentially.

Reserve Bank keeps rates steady and caps digital fraud compensation at Rs 25,000 while courts weigh online right to be forgotten.
The Reserve Bank kept benchmark rates unchanged and announced a consumer compensation cap of Rs 25,000 for digital banking fraud victims; the Supreme Court will examine applying the right to be forgotten to online news while enhancing compensation awards in fatality cases; the election authority rescheduled final electoral rolls and extended objections periods; and the foreign ministry is coordinating with foreign authorities for the release of abducted nationals.

Rupee volatility amid RBI rate pause, geopolitical tensions and oil price rise; reserves surge supports market liquidity
Rupee depreciation against the US dollar was driven by external factors including geopolitical uncertainty over US-Iran talks and rising global crude prices; this weakened the currency to 90.65 despite an earlier intraday appreciation. The Reserve Bank maintained the repo rate, a monetary policy pause that temporarily supported the rupee but did not prevent losses caused by sustained foreign fund outflows; outcome: the rupee closed lower. Concurrently, foreign institutional investment flows and a substantial increase in the forex reserves to a record high materially affected market liquidity and exchange rate dynamics, reinforcing the interplay between capital flows and exchange rate movements.