1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI invites comments on draft Directions for Rupee Interest Rate Derivatives
The Reserve Bank of India (“RBI”) has released the Draft Master Direction – Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025 under Section 45W of the RBI Act, 1934. The proposed framework aligns with evolving market conditions, product innovation, and non-resident participation. Comments are invited by July 7, 2025, from the necessary stakeholders. Vide this draft master direction, reporting norms have been rationalised to reduce compliance burden.
1.1.2. RBI opens new Andhra Pradesh regional office in Vijayawada
The RBI has relocated its Andhra Pradesh Regional Office to Vijayawada. Inaugurated by Deputy Governor Shri T. Rabi Sankar, the office will house departments including IBD, FIDD, FED, and DoS, among others. Currency operations for the State will remain managed from Hyderabad. Shri Attah Omar Basheer has been appointed as the Regional Director.
1.1.3. MCA allows delayed filing of Form CSR-2 on V3 portal
The Ministry of Corporate Affairs (“MCA”), via circular dated June 16, 2025, has permitted stakeholders to file Form CSR-2 on the MCA V3 portal between July 14, 2025, and August 15, 2025, for filings falling under the transition from MCA 21 V2 to V3. Filing is to be done post submission of Form AOC-4, and with valid DSC.
Securities And Exchange Board of India (SEBI)
1.1.4. SEBI invites comments on periodic disclosure norms for SDIs
The Securities and Exchange Board of India (“SEBI”) has released a consultation paper proposing a draft circular mandating periodic disclosure requirement for Securitised Debt Instruments (“SDIs”). The draft aims to align disclosure obligations of trustees of Special Purpose Distinct Entities with the revised RBI Master Directions on securitisation of standard assets. Stakeholders may submit comments by July 07, 2025, preferably via SEBI’s online form.
The International Financial Services Centres Authority (IFSCA)
1.1.5. IFSCA notifies fee structure for KYC Registration Agencies
The International Financial Services Centres Authority (“IFSCA”) has specified the fee framework under the IFSCA (KYC Registration Agency) Regulations, 2025. Entities shall pay: Application Fee – USD 1,000 (United States Dollar One Thousand only), Registration Fee – USD 5,000 (United States Dollar Five Thousand only), and Annual Fee – USD 5,000 (United States Dollar Five Thousand only), on a pro rata basis post-registration.
Miscellaneous
1.1.6. IRDAI issues advisory to insurers post Air India AI171 crash
Following the tragic crash of Air India Flight AI171 on June 12, 2025, the IRDAI has issued an advisory to ensure prompt, transparent, and ethical claims processing by insurers. The directive emphasises support to bereaved families, strict adherence to policy terms, and clear communication. Insurers must handle aviation disaster claims with urgency and empathy.
1.1.7. TRAI initiates digital consent pilot with RBI and banks
The Telecom Regulatory Authority of India (“TRAI”) has launched a pilot project for digital consent management, prioritising the banking sector to curb spam and financial fraud. In collaboration with the RBI, select banks, and telecom service providers, the pilot project will test the enhanced consent registration function under a regulatory sandbox, aiming to establish a sector-wide digital consent framework.
Monetary Penalties
1.1.8. RBI imposes monetary penalty on Prathamik Shikshak Sahakari Bank Ltd.
RBI has imposed a monetary penalty on Prathamik Shikshak Sahakari Bank Ltd. amounting to INR 2,00,000/- (Indian Rupees Two Lakh only) for non-compliance with RBI directions on ‘Advances against Term Deposits of Non-members’ applicable to Salary Earners’ Primary (Urban) Co-operative Banks
2. Key Asian Markets – Indonesia & Philippines
2.1. Indonesia
2.1.1. Indonesia’s external debt rises 8.2 per cent remains within prudent limits
Bank Indonesia (“BI”) reported that Indonesia’s external debt stood at USD 431.5 Billion (United States Dollar Four Hundred Thirty-One Billion and Five Hundred Million only) in April 2025, as growth accelerated to 8.2% (YoY) from 6.4% (YoY) in March 2025. Government debt rose to USD 208.8 Billion (United States Dollar Two Hundred Eight Billion Eight Hundred Million), driven by foreign capital inflows and long-term borrowing, with 99.9% (ninety-nine per cent) of borrowings maturing long-term.
2.1.2. Indonesia retail sales expected to grow 2.6 per cent YoY in May 2025: BI survey
BI projects retail sales to grow 2.6 per cent (two point six per cent) year-on-year in May 2025, with the Real Sales Index (RSI) reaching 234 (two hundred thirty-four). The surge is led by cultural and recreational goods, food, beverages and tobacco, and clothing. The seasonal spike due to Vesak and Ascension Day is also driving sales recovery.
2.2. Philippines
2.2.1. BSP cuts policy rate amid moderating inflation outlook
The Monetary Board of the Bangko Sentral ng Pilipinas (“BSP”) has reduced the Target Reverse Repurchase (RRP) Rate by twenty-five basis points to 5.25 per cent (five point two five per cent). Corresponding adjustments were made to the overnight deposit and lending facility rates, now at 4.75 per cent (four point seven five per cent) and 5.75 per cent (five point seven five per cent), respectively. The decision reflects a sharp drop in the 2025 inflation forecast and signals a pivot toward a more accommodative policy stance amid weakening global economic momentum.
2.2.2. Philippines records USD 298 Million BOP deficit in May 2025
The BSP reported a Balance of Payments (“BOP”) deficit of USD 298 million (United States Dollar Two Hundred Ninety-Eight Million only) for May 2025, reversing the USD 2 Billion (United States Dollar Two Billion only) surplus recorded in May 2024. The deficit was attributed to foreign currency withdrawals by the National Government to service external debt.
2.2.3. Personal remittances increase to USD 3 Billion in April 2025
BSP reported that personal remittances from Overseas Filipinos rose by 4.1 per cent (four point one per cent) year-on-year to USD 2.97 Billion (United States Dollar Two Billion Nine Hundred Seventy Million only) in April 2025.
2.2.4. BSP launches ‘BSP Hub’ to streamline public-facing services
BSP inaugurated the “BSP Hub” on 05 June 2025, operational from 09 June 2025, at its head office in Manila. Positioned as a one-stop shop, the BSP Hub provides the public with access to services relating to regulated financial institutions, BSP-acquired properties, commemorative currency, publications, and more. It also houses the Museo BSP, BSP library, and public event spaces. Governor Eli M. Remolona, Jr., noted the hub enhances BSP’s engagement with the public.
2.2.5. Philippines posts USD 3 Billion BOP deficit in Q1 2025 amid widening current account gap
BSP reported a BOP deficit of USD 3 Billion (United States Dollar Three Billion only) for Q1 2025, reversing the USD 238 million surplus in Q1 2024. The deterioration is primarily attributed to a widening current account deficit, reflecting higher net outflows in trade and services. While financial account inflows—including foreign direct and portfolio investments—provided some relief, they were insufficient to offset the negative current account balance.
2.2.6. Philippines’ external debt rises to USD 146.74 Billion in Q1 2025; remains within manageable levels
BSP reported that the Philippines’ external debt rose to USD 146.74 Billion (United States Dollar One Hundred Forty-Six Billion Seven Hundred Forty Million only) as of end-March 2025. The rise is attributed to increased sovereign and banking sector borrowings.
3. Trends
3.1. Indian startups seek higher thresholds in Draft Digital Competition Bill
Indian digital startups and product companies have urged a parliamentary panel to revise the Draft Digital Competition Bill (“DCB”) to increase the threshold for ex ante regulatory triggers, citing concerns that the current framework could stifle domestic innovation. MCA has been asked to examine these submissions. Inspired by the European Union’s regulatory model, the DCB seeks to curb anti-competitive conduct by designating large digital entities as Systemically Significant Digital Enterprises (SSDEs), based on revenue, gross merchandise value, and user metrics.
4. Sector Overview
4.1. India’s economy grows by 6.5 per cent in FY25, beating forecasts
India’s real Gross Domestic Products (“GDP“) expanded by 6.5 per cent (six point five per cent) in FY25, outperforming projections amid a global slowdown, as per CareEdge Ratings. Growth was led by strong construction, resilient services, and robust investment momentum. Despite a decline in household savings and a rise in financial liabilities, retail inflation cooled to 3.2 per cent (three point two per cent) in April, lowest in five years.
4.2. RBI approves voluntary amalgamation of The Dhinoj Nagrik Sahakari Bank Ltd. with Akhand Anand Co-operative Bank Ltd.
RBI has sanctioned the scheme of amalgamation of The Dhinoj Nagrik Sahakari Bank Ltd., Dhinoj, Gujarat with Akhand Anand Co-operative Bank Ltd., Surat, Gujarat under Section 44A(4) read with Section 56 of the Banking Regulation Act, 1949. The amalgamation shall be effective from June 16, 2025, and consequently, all branches of The Dhinoj Nagrik Sahakari Bank Ltd. will operate as branches of Akhand Anand Co-operative Bank Ltd. from the said date.
5. Sector Overview
5.1. Google launches “Safety Charter” to strengthen India’s digital resilience
At the Safer with Google Summit in Delhi, Google unveiled its “Safety Charter” focused on user protection, cybersecurity enhancement, and responsible Artificial Intelligence (“AI”) development. With India’s cybercrime threat expected to hit INR 20,000 Crore (Indian Rupees Twenty Thousand Crore only) by 2025, Google’s AI-powered initiatives aim to pre-empt scams and ensure trust in digital ecosystems.
5.2. MakeMyTrip to raise USD 2.6 Billion to cut Trip.com stake below 20 per cent
MakeMyTrip Limited will raise over USD 2.6 Billion (United States Dollar Two Billion Six Hundred Million only) through equity and convertible bonds to reduce Chinese investor Trip.com Group’s stake from 45.34 per cent (forty-five three four per cent) to below 20 per cent (twenty per cent). The funds will be used to repurchase Class B shares. The move follows strong FY25 performance.
5.3. NPCI infrastructure upgrade to reduce UPI transaction time to 8 seconds
The National Payments Corporation of India (“NPCI”) has implemented a key infrastructure upgrade, bringing down the response time for Unified Payments Interface (“UPI”) transactions from 15–30 seconds to as low as 8 seconds. This upgrade follows a circular dated April 26, 2025, introducing new Turn Around Time (TAT) benchmarks for core Application Programming Interfaces (APIs) that facilitate UPI processing. The measure is expected to enhance user experience, particularly during peak traffic, and strengthen reliability across 350 (three hundred fifty) million users.
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.
