Government receipts and expenditure overview shows receipt composition and expenditure split with increased devolution to states.
Monthly consolidated accounts for April 2024 set out central government receipts-Tax Revenue (Net to Centre), Non Tax Revenue and Non Debt Capital Receipts-and note increased transfers to states under Devolution of Share of Taxes. Expenditure is presented as total outgo with a split between Revenue Expenditure and Capital Account expenditure; Revenue Expenditure is driven notably by Interest Payments and Major Subsidies, and totals are stated relative to the corresponding Budget Estimates for FY2024 25.

Governance in asset reconstruction companies strengthened through board independence and transparency to enhance resolution effectiveness.
Regulatory emphasis mandates that ARCs maintain adequate resources and ongoing investment in issued security receipts, conduct transfers with transparent price discovery and valuation, and follow specified resolution modalities. Governance requirements focus on a diverse, independent Board with an independent Chair, majority independent director presence in meetings, Audit and Nomination & Remuneration Committees, robust risk management, transparent disclosures, conflict-of-interest safeguards, and adherence to a fair practice code in borrower dealings.

Tone from the top: strong governance in ARCs ensures ethical conduct and effective asset resolution.
Establishing the tone from the top is central to governance in Asset Reconstruction Companies (ARCs): board chairs, directors and chief executives must lead by example to inculcate integrity, regulatory compliance and ethical conduct. Supervision should focus on the economic substance of transactions, and ARCs must adopt a "regulation plus" approach. Boards require competent leadership, sufficient independent directors, clear role delineation with management, and diligent review of supervisory and audit reports. Independent assurance functions with direct board access are essential; dual-hatting and warehousing of stressed assets or related-party disposals without arms-length scrutiny are governance failures requiring remediation.

Government securities auction using multiple price methods; non-competitive bids reserved and E-Kuber electronic bidding mandated.
Announcement of an auction for three central government securities to be conducted by the Reserve Bank of India on the stated date, using multiple price methods (yield based for two securities and price based for one), with the Government retaining an option for additional subscription. Up to five percent of each notified amount is reserved for eligible participants under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically on E-Kuber within prescribed time windows; auction results and settlement dates are specified and securities are eligible for When Issued trading under RBI guidelines.

Assurance function independence is crucial to bank governance; heads must proactively manage risks and ensure compliance.
Assurance functions - risk management, internal audit and compliance - are essential guardians of urban co operative banks, required to maintain Board approved policies aligned with the bank's risk tolerance, proactively manage emerging cyber and operational risks, investigate and remedy breaches of risk limits, and ensure internal audit provides independent, risk proportional coverage. Compliance must adopt a forward looking, regulation plus approach. Regulators' onsite examinations and Risk Assessment Reports are diagnostic; banks must address root causes and implement Risk Mitigation Plans within agreed timelines. The independence of assurance functionaries, via stature, direct reporting and prevention of dual hatting, is a critical governance requirement.

Assurance functions: strengthen independence and capabilities to manage cyber, credit, and liquidity risks in NBFCs.
NBFCs' rapid credit expansion requires strengthened assurance functions-risk management, internal audit and compliance-with preserved independence, direct board access and sufficient resourcing. Assurance must progress from box ticking to root cause analysis and capability building. Priority oversight areas include cybersecurity resilience, validation and calibration of rule based credit models, concentration and maturity mismatches leading to liquidity risk, and customer protection through transparent pricing and fair charging practices; supervisory review will assess substance over form to prevent regulatory circumvention.

Artificial intelligence governance in banking advances focus on adoption, risk mitigation and regulatory challenges for financial institutions.
A DFS-led workshop brought together senior officials from Public Sector Banks, financial institutions and industry experts to promote artificial intelligence adoption in banking through NASSCOM-led best practices and case studies, focusing on operational use-cases like customer service, credit decisioning, fraud detection and risk management, while highlighting governance priorities including data governance, cybersecurity, transparency and regulatory compliance.

Government securities auction re-issue: price-based multiple-price method with non-competitive allotment and retention option, electronic bidding.
Re-issue auction of two central Government securities via a price based auction using the multiple-price method, with GoI retaining an option to accept additional subscriptions up to a set ceiling for each security. Up to five percent of each notified amount is reserved for eligible applicants under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically on the RBI E-Kuber system within prescribed time windows on auction day. The securities are eligible for When Issued trading under RBI guidelines, with announced result and payment dates.

Prudential framework for project finance: draft directions issued to harmonise lending norms and seek stakeholder comments.
The draft Direction establishes a prudential framework for financing project loans-covering Income Recognition, Asset Classification and Provisioning for projects under implementation-to harmonise instructions across regulated entities, strengthen regulatory treatment for project finance, and provide an enabling framework that addresses credit and execution risks; stakeholder comments are invited by the specified deadline.

Local Currency Settlement System Agreement to be finalised to strengthen bilateral trade and payment cooperation and resolve market access issues
Agreement to finalise a Local Currency Settlement System Agreement and related payment cooperation measures was identified as a primary objective to strengthen bilateral trade and reduce reliance on third currency settlements. Both sides committed to early conclusion of this settlement framework, discussed integration with Unified Payments Interface-style mechanisms, and endorsed coordinated involvement of central banking, export finance and payment infrastructure institutions to operationalise cross border local currency flows and address market access obstacles.

Electronic trading platform regulation: draft master directions issued, inviting public consultation and feedback on operational and compliance standards.
Release of draft master directions proposes a regulatory framework for electronic trading platforms, specifying supervisory and operational requirements including governance, risk management, data integrity, reporting obligations and alignment with financial markets regulation. A public consultation invites comments from platform operators, banks, market participants and other interested parties to the Financial Markets Regulation Department by the stated deadline via postal submission or designated email.

Government securities auction: re-issue of multiple dated securities via price-based multiple-price method with non-competitive allotment.
A re-issue auction of three Government securities will be conducted by the Reserve Bank of India using the price-based multiple price method with reserved allotment of up to five percent for the Non-Competitive Bidding Facility; the Government may retain additional subscriptions up to a stated limit for each security. Bids must be submitted electronically on E-Kuber within specified windows on the auction date, with the auction result and payment scheduled on designated subsequent dates, and the securities eligible for When Issued trading under RBI guidelines.

Transparency in aggregation of loan products: draft circular open for consultation, stakeholders invited to submit comments by deadline.
The Reserve Bank has issued a draft circular proposing requirements to ensure transparency in aggregation of loan products by lending service providers aggregating offerings from multiple lenders, and has invited stakeholder comments by the specified deadline as part of a consultative rule making process.

Government securities auction: re-issue using multiple-price method with non-competitive allocation and when-issued trading eligibility.
Re-issue auctions for two dated Government securities will be held using a price based multiple price method, with the Government reserving the option to retain additional subscriptions. Up to 5% of each notified amount is reserved for allocation under the Non-Competitive Bidding Facility for eligible individuals and institutions. Bids-competitive and non-competitive-must be submitted electronically on the designated core banking auction platform within specified time windows; auction results, payment/settlement dates, and eligibility for When Issued trading follow the central bank's applicable guidelines.

Acquisition approval: additional shareholding in Thyssenkrupp Industries India by Protos and Paharpur cleared, subject to detailed order.
Approval was granted for acquisition of additional shareholding in Thyssenkrupp Industries India by Protos and Paharpur. Protos, the Target's sole selling agent, identifies customers (including in the sugar industry) and provides inspection and certification services. Paharpur manufactures industrial cooling systems, generates wind power and offers non-banking financial services; its group also engages in real estate and manufacture of packaging, valves and pumps. The Target conducts EPC turnkey projects, manufactures industrial products, and provides aftersales and plant operation and maintenance. A detailed order will follow.

Regulation of Payment Aggregators expands to cover physical point-of-sale operations and updates KYC and escrow requirements.
Regulation of Payment Aggregators is proposed via two draft directions: a new direction for Physical Point of Sale activities covering offline, proximity/face to face payments, and amendments to existing PA directions updating merchant KYC and due diligence, escrow account operations, and related operational standards; public comments are invited to the Reserve Bank of India by the stated deadline.

Government securities auction opens with price- and yield-based bids; non-competitive facility, when issued trading, results and settlement scheduled.
The Government announced auctions for two government securities using multiple price methods-one price-based and one yield-based-with government option to retain additional subscriptions, up to five percent allocation to eligible bidders under the Non-Competitive Bidding Facility, mandatory electronic bid submission on the RBI E-Kuber system with specified non-competitive and competitive windows, scheduled announcement of results and payment dates, and eligibility of the securities for When Issued trading per RBI guidelines.

Market liberalisation expands access and instruments, strengthening funding, hedging and market infrastructure for deeper financial markets.
The Reserve Bank has advanced statutory amendments, market rules and organisational reforms to deepen funding and hedging markets, broaden participant access and modernise market infrastructure. Reforms include benchmark issuance strategies, liberalised trading and securities lending in government securities, the Fully Accessible Route for foreign investor access, the RBI Retail Direct scheme for retail participation, legal recognition for bilateral netting, revamped credit-derivative and repo frameworks, expanded access to money markets, and principle-based OTC derivative rules coupled with enhanced market integrity, transparency and margining requirements.

Government securities auction: new and reissued bonds offered via price and yield auctions with non-competitive allocation available.
Sale of three Government of India securities will be conducted by the Reserve Bank of India using the multiple price method; specified issues will be price based or yield based as announced and the Government may retain additional subscriptions against each security. Up to five percent of each notified amount is reserved for eligible participants under the Non Competitive Bidding Facility. Competitive and non competitive bids must be submitted electronically on E Kuber within prescribed time windows on the auction date; results and payment will follow as notified. The securities are eligible for When Issued trading per RBI guidelines.

Policy repo rate decision unchanged; MPC emphasizes withdrawal of accommodation to align inflation with target.
The MPC decided to keep the policy repo rate unchanged and maintain related facility rates, while remaining focused on withdrawal of accommodation to ensure CPI inflation converges to the medium term target of 4 per cent 2 per cent, supporting growth. Real GDP for 2024-25 is projected at 7.0 per cent and CPI inflation for 2024-25 at 4.5 per cent, with risks from food price volatility, climate shocks, geopolitical tensions and financial market volatility. The majority voted to keep rates and pursue withdrawal of accommodation; one member dissented in favour of a rate reduction and neutral stance.