1. Regulatory Updates
1.1. India
1.1.1. Six NBFCs surrender RBI licences
The Reserve Bank of India (“RBI”) has cancelled the Certificates of Registration (“CoR”) of six Non-Banking Financial Companies (“NBFCs”) following their surrender. Bellona Dealcom Pvt Ltd, Sonata Finance Pvt Ltd, and Stanley Vyapaar Pvt Ltd exited the financial business, while Mayur Barter Pvt Ltd, Sakthi Consultants Pvt Ltd, and C L Developers Pvt Ltd ceased operations due to amalgamation, merger, or dissolution. RBI
1.1.2. RBI cancels two NBFC licences
RBI has cancelled the CoR of Ulhas Securities Private Limited and Sikar Investment Co Ltd under Section 45-IA (6) of the RBI Act, 1934. The cancellations, dated September 24, 2024, and October 7, 2024, respectively, bar these entities from conducting NBFC business as defined under the RBI Act, 1934. RBI
1.1.3. RBI releases September 2024 bank credit data
RBI has published the “Quarterly BSR-1: Outstanding Credit of Scheduled Commercial Banks (SCBs)” report for September 2024. Bank credit growth moderated to 12.6 per cent (twelve point six per cent) year-on-year, with metropolitan branches accounting for 60.6 per cent (sixty point six per cent) of loans. Notably, private corporate sector credit grew by 16.5 per cent (sixteen point five per cent), while loans to female borrowers rose to 23.6 per cent (twenty-three point six per cent). RBI
1.1.4. RBI releases September 2024 deposit data
RBI has released the “Deposits with Scheduled Commercial Banks – September 2024” report. Bank deposit growth stood at 11.7 per cent (eleven point seven per cent) year-on-year. Individuals held 51.4 per cent (fifty-one point four per cent) of total deposits, with female depositors owning nearly 40 per cent (forty per cent). Term deposits offering over 7 per cent (seven per cent) interest surged to 68.8 per cent (sixty-eight point eight per cent), outpacing Current Account and Savings Account (CASA) deposits. RBI
1.1.5. Lending and deposit rates overview
Data on lending and deposit rates of Scheduled Commercial Banks (excluding regional rural and small finance banks) for November 2024 reveals an increase in the weighted average lending rate on fresh rupee loans to 9.54 per cent (nine point five four per cent) in October 2024. The 1 (one) – year median Marginal Cost of Funds-based Lending Rate (MCLR) rose to 9.00 per cent (nine per cent) in November 2024. Deposit rates showed a slight decline in the Weighted Average Domestic Term Deposit Rate (WADTDR) on fresh term deposits to 6.44 per cent (six point four per cent) in October 2024. RBI
1.1.6. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
| Name of the Financial Institution | Penalty Imposed | Reasons |
| GPT Sons Pvt Ltd. | INR 25,000/- (Indian Rupees Twenty Five Thousand only) | Non-compliance with the provisions of Section 45IC of the Reserve Bank of India Act, 1934. |
| Anandeshwari Nagrik Sahkari Bank Maryadit, Ujjain, Madhya Pradesh | INR 50,000/- (Indian Rupees Fifty Thousand only) | Non-compliance with certain directions issued by RBI on ‘Know Your Customer’. |
| The Kapadwanj Peoples Co-operative Bank Limited, Kheda, Gujarat | INR 3,00,000/- (Indian Rupees Three Lakh only) | Contravention of/non-adherence with certain directions issued by RBI on ‘Interest Rate on Deposits’ and ‘Know Your Customer (KYC)’. |
| The Kheda People’s Co-operative Bank Ltd., Kheda, Gujarat | INR 2,10,000/- (Indian Rupees Two Lakh and Ten Thousand only) | Non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks’ and ‘Priority Sector Lending (“PSL”) – Targets and Classification’ and specific directions issued by RBI on making contribution to Micro and Small Enterprises (MSE) Refinance Fund due to shortfall in achievement of PSL. |
| The Lunawada Nagrik Sahakari Bank Limited, Lunawada, Gujarat | INR 2,10,000/- (Indian Rupees Two Lakh and Ten Thousand only) | Contravention of/non-adherence with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’; ‘Area of Operation, Branch Authorisation Policy, Opening/Up-gradation of Extension Counters, ATMs and Shifting/Splitting/Closure of Offices’ and ‘Know Your Customer (KYC)’. |
| The Raichur District Central Co-operative Bank Ltd., Karnataka | INR 50,000/- (Indian Rupees Fifty Thousand only) | Contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (“BR Act”). |
| The Kanara District Central Co-operative Bank Ltd., Karnataka | INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention of provisions of Section 20 read with Section 56 of the BR Act. |
| Maxvalue Credits and Investments Limited, Thrissur, Kerala | INR 4,50,000/- (Indian Rupees Four Lakh Fifty Thousand only) | Non-compliance with certain directions issued by RBI on ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ read with ‘Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016’. |
| The Periyakulam Co-operative Urban Bank Ltd., Tamil Nadu | INR 2,00,000/- (Indian Rupees Two Lakh only) | Non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and certain directions issued by RBI on ‘Issue and regulation of share capital and securities − Primary (Urban) Co-operative Banks’ and ‘Prudential Norms on Capital Adequacy – UCBs’. |
1.2. Sri Lanka
1.2.1. Sri Lanka adopts single policy rate
Central Bank of Sri Lanka has implemented a single policy interest rate mechanism by introducing the Overnight Policy Rate (“OPR”). This shift, moving away from the previous dual rate system, is part of the bank’s efforts to strengthen its Flexible Inflation Targeting (FIT) framework. The OPR will serve as the primary tool to signal monetary policy changes, with periodic adjustments made as needed. Central Bank of Sri Lanka
1.3. Bangladesh
1.3.1. Bangladesh revises loan classification rules
Bangladesh Bank introduced the updated guidelines on loan classification and provisioning. The revisions incorporate global best practices, including Expected Credit Loss (ECL) under International Financial Reporting Standard (IFRS) 9 (nine), and define loan categories, classification criteria, and provisioning rates. Effective April 1, 2025, these measures aim to strengthen risk management, transparency, and compliance across all scheduled banks in Bangladesh. Bangladesh Bank
2. Trends
2.1. Yubi eyes USD 200 million funding
Yubi, a digital lending unicorn, plans to raise USD 150 million (United States Dollar One Hundred and Fifty Million only) to USD 200 million (United States Dollar Two Hundred Million only) in the first quarter of 2025. Despite a net loss reduction of 22 per cent (twenty-two per cent) to INR 395.8 crore (Indian Rupees Three Hundred Ninety-Five Crore and Eighty Lakh only) in Fiscal Year (“FY”) 2024, the company saw a 47 per cent (forty-seven per cent) rise in revenue. Inc42
3. Sector Overview
3.1. Embedded finance to transform India’s fintech
Embedded finance is revolutionising India’s fintech landscape by integrating financial services like payments, lending, and insurance into non-financial platforms. This trend enhances user convenience and expands access to financial tools across sectors such as e-commerce, healthcare, and transportation. A report by Elevation Capital predicts that embedded finance could represent a USD 25 billion (United States Dollar Twenty-Five Billion only) opportunity for India’s digital and financial platforms by 2030. Electronic Payments International
4. Business Updates
4.1. SEBI approves Angel One mutual fund
Angel One Asset Management Company has received Securities and Exchange Board of India (“SEBI”) approval to manage Angel One Mutual Fund, focusing exclusively on passive investment solutions like index funds and exchange-traded funds (ETFs). The fintech firm aims to offer low-cost, transparent, and accessible products for wealth creation, leveraging its digital infrastructure and wide distribution network. The Hindu BusinessLine
4.2. Pine Labs chooses banks for IPO
Pine Labs, a fintech major, has selected Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies to manage its USD 1 billion (United States Dollar One Billion only) Initial Public Offering (“IPO”), scheduled for the first half of FY26. The IPO will include a secondary deal worth USD 100 million (United States Dollar One Hundred Million only) for share transfers between existing investors and new venture capital firms. The company, valued at over USD 6 billion (United States Dollar Six Billion only), has raised around USD 1.6 billion (United States Dollar One Billion and Six Hundred Million only) in funding. Money Control
4.3. OneCard raises INR 239.4 crore
OneCard has secured INR 71.4 crore (Indian Rupees Seventy-One Crore and Forty Lakh only) as part of a larger funding round targeting INR 239.4 crore (Indian Rupees Two Hundred Thirty-Nine Crore and Forty Lakh only). The funding comes from investors, including Better Tomorrow Ventures (BTV), Peak XV, and Z47. The funds will be used to scale operations, enhance customer experience, and develop innovative products. This follows previous investments from Alteria Capita. The Economic Times
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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.
