1. Regulatory Updates
1.1. India
1.1.1. Sanjay Malhotra appointed RBI governor
Shri Sanjay Malhotra, a 1990 batch IAS officer from the Rajasthan cadre, assumes office as the 26th (twenty-sixth) Governor of RBI for a three-year term starting December 11, 2024. Previously, he served as Secretary in the Department of Revenue and Department of Financial Services. With extensive experience in finance, taxation, Information Technology, and power sectors, Malhotra holds a Computer Science degree from Indian Institute of Technology, Kanpur and a Public Policy Master’s from Princeton University. RBI
1.1.2. RBI launches the handbook of Indian states
RBI has published the ninth edition of the Handbook of Statistics on Indian States, 2023-24. This comprehensive publication provides sub-national data on socio-demographics, health, state domestic product, agriculture, environment, industry, banking, and fiscal indicators across Indian states for periods from 1951 to 2024. The 2023-24 edition features eight new datasets, including the Gender Parity Index in school education, state-wise afforestation, power supply statistics, and school infrastructure details. By disseminating updated and extensive data, the handbook aims to support a deeper understanding of regional economies and facilitate informed decision-making at the state and national levels. RBI
1.1.3. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
| Name of the Financial Institution | Penalty Imposed | Reasons |
| The Halol Mercantile Co-operative Bank Ltd., Dist. Panchmahal, Gujarat | INR 1,00,000/- (Indian Rupees One Lakh only) | Non-compliance with specific directions issued by RBI under ‘Donations to Trusts and Institutions where Directors, their relatives hold position or are interested’ and ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. |
| Apani Sahkari Bank Ltd., Ahmedabad, Gujarat | INR 3,50,000/- (Indian Rupees Three Lakh and Fifty Thousand only) | Contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Know Your Customer (KYC)’. |
| The Ropar Central Co-operative Bank Ltd., Ropar, Punjab | INR 5,00,000/- (Indian Rupees Five Lakh only) | Contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949. |
| The Pondicherry Co-operative Urban Bank Ltd., Puducherry | INR 1,00,000/- (Indian Rupees One Lakh only) | Non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and certain directions issued by RBI on ‘Know Your Customer (KYC)’. |
| The Udumalpet Co-operative Urban Bank Ltd., Tamil Nadu | INR 75,000/- (Indian Rupees Seventy-Five Thousand only) | Non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’ and ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. |
| Mandya City Co-operative Bank Ltd., Mandya, Karnataka | INR 50,000/- (Indian Rupees Fifty Thousand only) | Non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. |
1.2. Sri Lanka
1.2.1. Submit Unique Identification Numbers before 31 December 2024
The Central Bank of Sri Lanka urges depositors to provide their Unique Identification Numbers to banks and finance companies as required by the Banking (Special Provisions) Act, No. 17 of 2023. Failure to do so may result in delays or loss of compensation under the Deposit Insurance Scheme. Identification requirements vary for individuals, companies, and other entities. Central Bank of Sri Lanka
1.3. Bangladesh
1.3.1. Bangladesh Bank partners with UNDP
Bangladesh Bank and the United Nations Development Programme (“UNDP”) have partnered to advance climate-resilient financing through a Memorandum of Understanding signed on December 9, 2024. This initiative aims to mitigate economic losses from climate-induced disasters by integrating climate considerations into financial policies. The partnership seeks to strengthen Bangladesh’s financial resilience and promote sustainable practices. UNDP
2. Trends
2.1. Prosus may lead USD 50 million jar funding
Prosus, the Dutch-listed investment arm of Naspers, is in talks to lead a USD 50 million (United States Dollar Fifty Million only) funding round in Jar, fintech startup. Jar recently raised USD 22.6 million (United States Dollar Twenty-Two Million and Six Hundred Thousand only) in a Series B round at a USD 300 million (United States Dollar Three Hundred Million only) valuation. The Economic Times
3. Sector Overview
3.1. India’s economy poised for resilience in 2025
Goldman Sachs Research forecasts India’s economy will remain resilient in 2025, with a projected growth of 6.3 per cent (six point three per cent), despite slowing credit growth and public spending. Inflation is expected to average 4.2 per cent (four point two per cent), driven by stable food prices. Indian equities may face near-term challenges due to high valuations but are poised for recovery by late 2025, with the NIFTY index projected to reach 27,000 (twenty-seven thousand). Structural strengths like favourable demographics and policy stability underpin India’s long-term growth, though external risks like United States trade policies remain potential concerns. Goldman Sachs
4. Business Updates
4.1. Snapmint secures USD 18 million funding
Mumbai-based fintech Snapmint Datalabs raises USD 18 (United States Dollar Eighteen Million only) in a Pre-Series B funding round led by Prashasta Seth of Prudent Investment Managers, with participation from Perpetuity Ventures and Pegasus Fininvest. The startup, offering Buy Now, Pay Later (BNPL) solutions in categories like electronics and wellness, plans to expand its product range, onboard merchants, and pilot offline Equated Monthly Installment (EMI) services. Inc42
4.2. Navanc secures USD 1 million in seed funding
Navanc, an innovative fintech startup founded in 2021, raised USD 1 million (United States Dollar One Million only) in seed funding led by Prarambh Ventures with participation from Inflection Point Ventures, Brigade REAP FirstPort Capital, and other angel investors. The funds will be used to expand operations across India and enhance its AI-driven property score solutions for secured lending and insurance. SME Street
4.3. RBI grants full authorisation to JP Morgan-backed fintech ISG as payment aggregator
RBI has granted full authorisation to In-Solutions Global (“ISG”), a fintech company backed by JP Morgan, to operate as a payment aggregator. The approval enables ISG to enhance digital payment services for merchants across various sectors, ensuring secure, fast, and reliable transactions. ISG, which currently processes over 28 (twenty-eight) billion transactions annually and serves more than 70 per cent (seventy per cent) of Indian banks, also holds a prepaid payment instrument (PPI) licence. The company’s new regulatory authorisation strengthens its capabilities in delivering integrated payment solutions for online platforms, retail, and transit payments. Business Standards
4.4. SMFG India secures EUR 91 million sustainability-linked loan from Deutsche Bank
SMFG India Credit, a NBFC, has secured an INR 813 crore (Indian Rupees Eight Hundred Thirteen Crore only) sustainability-linked loan from Deutsche Bank. The three-year loan will be used to support small businesses and women borrowers in underserved semi-urban areas, further promoting financial inclusion. The senior secured loan, facilitated through Deutsche Bank’s Gift City Branch, aligns with SMFG India’s commitment to sustainable growth. With over 1,000 (thousand) branches and assets under management (AUM) of INR 50,000 crore (Indian Rupees Fifty Thousand Crore only) as of September, the company is poised to enhance its support for sustainable finance in India. Yourstory
4.5. Pilani Investment seeks RBI approval to convert from NBFC to Core Investment Company
Pilani Investment and Industries Corporation Ltd has submitted an application to the RBI to convert the company from an NBFC to a core investment company (“CIC”). A CIC is a specialised NBFC with an asset size exceeding INR 100 crore (Indian Rupees One Hundred Crore only) and focuses on acquiring shares and securities in group companies. Under RBI regulations, a CIC must hold at least 90 per cent (ninety per cent) of its net assets in investments such as equity shares, bonds, and loans to group companies. CNBC TV18
Disclaimer
The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.
