1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI issues forward contracts directions for government securities
The Reserve Bank of India (“RBI”) has finalized and issued the Forward Contracts in Government Securities Directions, 2025 following public feedback. The update amends earlier notifications and aligns with the RBI’s Master Directions on OTC derivatives market-making and margining for non-centrally cleared contracts. Issued under Section 45W and 45U of the RBI Act, these revised guidelines facilitate forward transactions in government securities for all eligible market participants. RBI
1.1.2. RBI seeks feedback on draft circular for responsible lending conduct
The Reserve Bank of India has released a draft circular on ‘Responsible Lending Conduct – Levy of Foreclosure Charges/Pre-payment Penalties on Loans’, inviting stakeholder and public comments until March 21, 2025. This follows the RBI’s October 2024 policy statement on reviewing existing foreclosure and pre-payment penalty guidelines. The final circular will be issued after considering the feedback received. RBI
1.1.3. RBI rejects bids for 91-Day and 182-Day T-Bills amid tight liquidity
RBI rejected all bids for the 91-day and 182-day Treasury Bills (“T-Bills”) at its February 20 auction, marking a rare occurrence. This decision, attributed to higher yields demanded by investors amid tight liquidity conditions, last occurred nine years ago for 182-day T-Bills and 23 months ago for 91-day T-Bills. RBI
1.1.4. RBI amends prudential regulations for AIFIs on investment classification
RBI has amended its Prudential Regulations on Basel III Capital Framework for All India Financial Institutions (“AIFIs”). Effective April 1, 2025, long-term investments (minimum three-year residual maturity) made by AIFIs in non-financial entities’ bonds and debentures will be excluded from the 25 per cent (twenty-five per cent) ceiling under the Held to Maturity (HTM) category. RBI
1.1.5. RBI permits Gilt account transactions on the NDS-OM platform
RBI has allowed government securities transactions between a Primary Member (PM) of Negotiated Dealing System – Order Matching (“NDS-OM”) and its Gilt Account Holders (“GAHs”) or between two GAHs of the same PM to be matched on the NDS-OM platform. These transactions will now be cleared and settled through Clearing Corporation of India Limited (“CCIL”), ensuring better transparency and efficiency. RBI
1.1.6. RBI launches ‘RBIDATA’ mobile app for economic and financial data
RBI has launched RBIDATA, a mobile app offering macroeconomic and financial statistics in a user-friendly and visually engaging format. The app provides access to over 11,000 economic data series, interactive graphs/charts, a search function, and a ‘Popular Reports’ section. It also includes a ‘Banking Outlet’ locator and South Asian Association for Regional Cooperation (SAARC) Finance data. RBI
International Financial Services Centres Authority (IFSCA)
1.1.7. IFSCA notifies Fund Management Regulations, 2025
The International Financial Services Centres Authority (“IFSCA”) has notified the Fund Management Regulations, 2025 (FM Regulations 2025) in the Official Gazette on February 19, 2025, replacing the 2022 regulations. The review aligns with the Government of India’s vision to simplify regulations and reduce compliance costs, as announced in the Financial Year (“FY”) 2023-24 Union Budget. The revised framework was developed through extensive consultations with the Fund Management Advisory Committee (FMAC), industry leaders, and public feedback. IFSCA
1.1.8. IFSCA sets guidelines for appointment and change of KMPs in IFSCs
IFSCA has issued a circular outlining the procedure for the appointment and change of Key Managerial Personnel (“KMPs”) by Fund Management Entities (“FMEs”) in International Financial Services Centres (“IFSCs”). FMEs must notify IFSCA about proposed KMP appointments or changes in the prescribed format along with the applicable fee. The regulator will provide comments within seven working days, and FMEs must ensure compliance with eligibility criteria. IFSCA
1.1.9. IFSCA revises guidelines on SNRR account transactions
IFSCA has amended its January 29, 2025, circular on Special Non-Resident Rupee (“SNRR”) accounts of IFSC units, refining permissible transactions. The update clarifies that under the Foreign Exchange Management Act (FEMA) (Deposit) Regulations, 2016, SNRR accounts can be used for business-related transactions, including administrative expenses, the sale of scrap, and government incentives. These amendments enhance regulatory clarity and streamline transactions for IFSC entities. IFSCA
1.1.10. IFSCA notifies Bullion Market Regulations, 2025
IFSCA has notified the Bullion Market Regulations, 2025, replacing the Bullion Exchange Regulations, 2020. The new regulations broaden the scope beyond exchanges to include all bullion market participants. Key updates include a minimum net worth of USD 10 million (United States Dollar Ten Million only) for bullion exchanges and clearing corporations, enhanced risk management provisions, and a clear definition of Key Management Personnel (KMP), strengthening the regulatory framework for the bullion ecosystem. IFSCA
1.1.9. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
| Name of the Financial Institution | Penalty Imposed | Reasons |
| Pinnacle Capital Solutions Pvt. Ltd., Jharkhand | INR 2,00,000/- (Indian Rupees Two Lakh only) | Contravention of/ non-compliance with directions issued by RBI on ‘Credit Card and Debit Card – Issuance and Conduct Directions’ and ‘Digital Lending’. |
| The Muzzafarpur Central Co-operative Bank Ltd | INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention of/non-compliance with directions issued by RBI on ‘Know Your Customer (“KYC”)’. |
| The Dhule and Nandurbar District Central Co-operative Bank Ltd., Dhule, Maharashtra | INR 25,000/- (Indian Rupees Twenty-Five Thousand only) | Contravention of/ non-compliance with directions issued by RBI on ‘Membership of Credit Information Companies (“CICs”) by Co-operative Banks’. |
| Laxmibai Mahila Nagrik Sahakari Bank Maryadit, Gwalior, Madhya Pradesh | INR 4,20,000/- (Indian Rupees Four Lakh Twenty Thousand only) | Contravention of/ non-compliance with directions issued by RBI on ‘Loans and Advances to Directors, their Relatives, and Firms/Concerns in which they are Interested’ and ‘Priority Sector Lending (“PSL”) – Targets and Classification’. |
| Shree Balaji Urban Co-operative Bank Ltd., Satna, Madhya Pradesh | INR 1,10,000/- (Indian Rupees One Lakh Ten Thousand only) | Contravention of/ non-compliance with directions issued by RBI on PSL – Targets and Classification’. |
| Citibank N.A. | INR 39,00,000/- (Indian Rupees Thirty-Nine Lakh only) | Contravention of/ non-compliance with certain directions issued by RBI on ‘Large Exposures Framework’ and ‘Furnishing of Credit Information to Credit Information Companies (CICs). |
| RBI imposes monetary penalty on Ujjivan Small Finance Bank Limited | INR 6,70,000/- (Indian Rupees Six Lakh Seventy Thousand only) | Contravention of/non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’. |
| JM Financial Home Loans Limited | INR 1,50,000 (Indian Rupees One Lakh Fifty Thousand only) | Contravention of/ non-compliance with certain provisions of the ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’ issued by RBI/. |
| Asirvad Micro Finance Limited | INR 6,20,000 (Indian Rupees Six Lakh Twenty Thousand only) | Contravention of/ on-compliance with certain provisions of the ‘Master Direction – Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022’, and ‘Appointment of Internal Ombudsman by Non-Banking Financial Companies’ issued by RBI. |
1.2. Indonesia
1.2.1. Indonesia’s BOP surplus rises to USD 7.9 billion in Q4 2024
Indonesia’s Balance of Payments (“BOP”) showed improvement in Quarter 4 (“Q4”) 2024, with a USD 7.9 billion (United States Dollar Seven Billion Nine Million only) surplus, up from USD 5.9 billion (United States Dollar Five Billion Nine Hundred Million only) in Quarter 3 (“Q3”). Bank Indonesia
1.2.2. BI adopts a harmonised currency transaction framework
Bank Indonesia (“BI”), Bank Negara Malaysia (BNM), and the Bank of Thailand (BOT) have adopted a harmonised Local Currency Transaction Framework Operational Guidelines (LCTF OG), enhancing efficiency and transparency in cross-border transactions. Bank Indonesia
1.2.3. Indonesia’s external debt decreased in Q4 2024, strengthening economic stability
Indonesia’s external debt decreased to USD 424.8 billion (United States Dollar Four Hundred Twenty-Four Eight Hundred Million only). The decline was driven by both public and private sectors, with the external debt growing 4.0 per cent (four per cent) year-on-year, slowing from 8.3 per cent (eight point three per cent) in Q3. Bank Indonesia
1.2.4 BI maintains a BI rate of 5.75 per cent to support economic growth
BI maintained the Bank Interest (“BI”)-rate at 5.75 per cent (five point seven five per cent) to control inflation and support economic growth amid global uncertainties. The bank is focused on stabilising the Rupiah and fostering investment while strengthening its pro-market monetary operations strategy. Bank Indonesia
1.3. Bangladesh
1.3.1. BB allows continuous applications for wage remittance services
Bangladesh Bank (“BB”) is focusing on five merger proposals and won’t accept new ones for now. Sonali Bank aims to acquire Bangladesh Development Bank Ltd (BDBL), Bangladesh Krishi Bank (BKB) to take over Rajshahi Krishi Unnayan Bank (Rakub), City Bank to acquire BASIC Bank, United Commercial Bank Limited (UCBL) to buy National Bank, and Exim Bank to absorb Padma Bank. The Daily Star
1.3.2. BB regulates service payment remittances by foreign subsidiaries
BB issued FE Circular No. 12 on February 19, 2025, permitting Authorized Dealers (“ADs“) to process outward remittances for service payments by subsidiaries of foreign companies under specific conditions. The remittances are allowed if: (i) the services are not available locally, (ii) the parent company holds more than 50 per cent shares, and (iii) the remittance does not exceed 10 per cent of net profit in an accounting year. ADs must ensure competitive pricing, tax compliance, and audit-certified profit estimates before allowing payments. BB
2. Trends
2.1. Fintech startup Pop is set to raise USD 10-15 million from Razorpay, others
Bengaluru-based fintech startup Pop is in discussions to raise USD 10-15 million (United States Dollar Ten Million – Fifteen Million only), with Razorpay Ventures leading the investment. Backed by India Quotient, Pop is also considering a potential acquisition at a USD 50 million (United States Dollar Fifty Million only) valuation. Business Review
2.2. S&P Global Ratings suggest that US Tariffs will have a minimal impact on India’s economy
Standard and Poor’s (“S&P”) Global Ratings expects India’s economy to remain resilient, with Gross Domestic Product (“GDP”) growth of 6.7 per cent (six point seven per cent) to 6.8 per cent (six point eight per cent) over the next two years, despite United States (“US”) reciprocal tariffs. S&P maintains a Better Business Bureau (BBB)- rating and projects the government will meet its fiscal deficit targets of 4.8 per cent (four point eight per cent) and 4.4 per cent (four point four per cent) for FY 2024-25 and FY 2025-26, respectively. Business Standard
3. Sector Overview
3.1. Equity market slump deepens amid economic slowdown
India’s Nifty 50 index has fallen 13 per cent (thirteen per cent) since its peak in September 2024, outpacing declines in other emerging markets. The downturn is driven by slowing corporate profit growth, weak urban demand, and foreign investor exits with USD 12.31 Billion (United States Dollar Twelve Billion Thirty-One Million only) withdrawn since 2025 began. Analysts expect market weakness to persist until March, as uncertainty over US tariffs and economic slowdown weigh on sentiment. Business Standard
3.2. Eurobank partners with LTI Mindtree for global delivery centre in India
Eurobank has partnered with LTI Mindtree to establish a global delivery centre in Pune, India, aiming to modernise banking technology and enhance digital services. The initiative, set up with Fairfax Digital Services, will focus on IT infrastructure, digital innovation, and banking application maintenance. Fintech Futures
3.3. Citigroup India set to triple asset-backed securities holdings
Citigroup Inc.’s India unit plans to increase its asset-backed securities to over USD 1 billion (United States Dollar One Billion only) by the end of the fiscal year, driven by the need for liquidity amid slow deposit growth. Citi expects India’s total securitisation volume to reach USD 30 billion (United States Dollar Thirty Billion only) by March 31, 2026. The country’s securitisation market, though still small, is growing rapidly, with volumes increasing by over 80 per cent (eighty per cent) to INR 680 billion (Indian Rupees Six Hundred Eighty Billion only) in Quarter 3 (Q3). Money Control
3.4. Credit Fair secures USD 5 million in debt for expanding rooftop solar financing
Credit Fair has raised USD 5 million (United States Dollar Five Million only) in debt from Symbiotics Investments, sourced from a USD 75 million (United States Dollar Seventy-Five Million only) green basket bond subscribed to by the British International Investment. The funds will be used to expand its presence in rooftop solar financing, targeting residential and Micro, Small, and Medium Enterprises (“MSME”) customers in tier II and III cities. Co-founder Vikas Agarwal announced plans to fund 2,500 (twenty-five hundred) new projects aiming to reduce carbon emissions. INC42
4. Business Updates
4.1 PhonePe begins the IPO process
Fintech giant PhonePe has initiated preparations for an Initial Public Offering (“IPO”), marking its potential debut on Indian stock exchanges. This move comes two years after redomiciling from Singapore to India, making it the third fintech IPO in five years, following Paytm and MobiKwik. PhonePe
4.2. Paytm unveils India’s first solar-powered soundbox for merchants
Paytm has launched the Paytm Solar Soundbox, India’s first solar-powered payment alert device, catering to small merchants in rural and remote areas facing power shortages. The device features a solar panel and dual batteries—solar-powered and electricity-powered—allowing for continuous operation. CNBC
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.
