1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI issues framework for SROs in the Account Aggregator ecosystem
The Reserve Bank of India (“RBI”) has issued a framework for recognising Self-Regulatory Organisations (“SRO-AA”) within the Account Aggregator (“AA”) Ecosystem. The SRO-AA will oversee Regulated Entities (REs) operating under multiple Financial Sector Regulators (FSRs), ensuring smoother coordination and dispute resolution. Applications for SRO-AA recognition must be submitted via the PRAVAAH PORTAL by June 15, 2025. Technical specifications will continue to be issued by Reserve Bank Information Technology Private Limited (ReBIT). RBI
1.1.2. RBI clarifies IndusInd Bank’s financial stability
RBI has addressed speculation surrounding IndusInd Bank Limited, affirming its well-capitalised and financially stabilised status. As of December 31, 2024, the bank maintained a Capital Adequacy Ratio of 16.46 per cent (sixteen point four six per cent), a Provision Coverage Ratio of 70.20 per cent (seventy point two zero per cent), and a Liquidity Coverage Ratio of 113 per cent (hundred and thirteen per cent) (above the 100 per cent regulatory requirement). RBI
National Payments Corporation of India (NPCI)
1.1.3. NPCI introduces process improvements for generic good faith debit adjustments in URCS
The National Payments Corporation of India (“NPCI”) has issued OC-206A, which supersedes OC-206 dated September 3, 2024, for BGGD only, introducing a streamlined process for handling offline Initial Public Offering (“IPO”)/ Mandate with block functionality executions. Sponsor/acquiring banks can now process such executions directly through the Unified Payments Interface (“UPI”) back-office system (URCS – UPI Real-Time Clearing System) without requiring NPCI intervention, eliminating the need for manual email-based adjustment requests. NPCI
1.1.4. NPCI exempts chargeback limits for fraudulent transactions under UPI
NPCI has issued OC-184A/2024-25, amending OC-184 dated December 5, 2023, to exempt the cap of 10 (ten) chargebacks (IFSC + Account Number) and 5 (five) chargebacks (Payer VPA to Payee VPA) for chargebacks raised on fraudulent transactions. This modification, based on member bank feedback, will be implemented in the URCS effective March 15, 2025. NPCI
Securities and Exchange Board of India (SEBI)
1.1.5. SEBI amends Insider Trading regulations
The Securities and Exchange Board of India (“SEBI”) has notified the SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2025, effective from June 9, 2025. As per the amendment, Unpublished Price-Sensitive Information (“UPSI”) not originating from within an organisation must be recorded in a structured digital database within two calendar days of receipt. Additionally, SEBI has clarified that for UPSI not emanating from within a listed company, the trading window may remain open. SEBI
1.1.6 SEBI streamlines rights issue process with revised timelines
SEBI has introduced revised timelines for Rights Issues, ensuring a faster and more efficient process. The Rights Issue shall remain open for a minimum of seven days and a maximum of thirty days. Stock Exchanges and Depositories, along with the Registrar, will validate application bids and finalise the basis of allotment. Additionally, SEBI has mandated the development of an automated validation system within six months to streamline investor applications. SEBI
International Financial Services Centres Authority (IFSCA)
1.1.7. IFSCA issues Framework for Registration of Factors and Assignment of Receivables
The International Financial Services Centres Authority (“IFSCA”) has notified the International Financial Services Centres Authority (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2025. The framework outlines the procedure for granting certificates of registration to Factors and mandates Trade Receivable Discounting System (TReDS) platforms to file transaction particulars with the Central Registry on behalf of the Factors. IFSCA
1.1.8. IFSCA issues Cyber Security and Cyber Resilience Guidelines for IFSCs
IFSCA has issued guidelines on cyber security and cyber resilience for regulated entities (REs) in International Financial Services Centres (“IFSCs”) under Circular No. IFSCA-CSD0MSC/13/2025-DCS dated March 10, 2025 (“Guidelines”). Effective April 01, 2025, the Guidelines aim to safeguard financial entities from advanced cyber threats by ensuring the confidentiality, integrity, and availability of IT systems, thereby strengthening trust in IFSC financial services. IFSCA
1.1.11. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
| Name of the Financial Institution | Penalty Imposed | Reasons |
| RBI imposes monetary penalty on JM Financial Products Limited | INR 3,10,000 (Indian Rupees Three Lakh Ten Thousand only) | Contravention/ non-compliance with directions issued by RBI on ‘Master Direction – Non-Banking Financial Companies (“NBFC“) – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’. |
| RBI imposes monetary penalty on Experian Credit Information Company of India Private Limited | INR 2,00,000 (Indian Rupees Two Lakh only) | Contravention/ non-compliance with provisions of the Credit Information Companies (Regulation) Act, 2005 (CIC (R) Act) and the Credit Information Companies Rules, 2006 (CIC Rules). |
1.2. Indonesia
1.2.1. Indonesia’s net liability IIP declines to USD 245.3 billion in Q4 2024
Indonesia’s International Investment Position (“IIP”) recorded a lower net liability of USD 245.3 billion (United States Dollar Two Hundred Forty-Five Billion Three Hundred Million only) in Quarter 4 (Q4) 2024, down from USD 270.4 billion (United States Dollar Two Hundred Seventy Billion Four Hundred Million only) in Q3, driven by an increase in Foreign Financial Assets (FFA) and a decrease in Foreign Financial Liabilities (FFL). Bank Indonesia
1.2.2. Fitch affirms Indonesia’s BBB credit rating with a stable outlook
Fitch Ratings has reaffirmed Indonesia’s Sovereign Credit Rating at ‘BBB’ with a stable outlook, citing strong economic growth and low government debt-to-GDP ratio. The agency projects robust domestic demand, increased public spending, and sustained private investment as key economic drivers in 2025. Bank Indonesia Governor Perry Warjiyo welcomed the rating, highlighting policy credibility and economic resilience. Bank Indonesia
1.2.3. BI and SBV strengthen cooperation
Bank Indonesia (“BI”) and the State Bank of Vietnam (“SBV”) have signed a Memorandum of Understanding (MoU) to enhance bilateral cooperation in central banking. The agreement, signed by BI Governor Perry Warjiyo and SBV Governor Nguyen Thi Hong on March 7, 2025, aligns with the 70th anniversary of Indonesia-Vietnam diplomatic ties. Bank Indonesia
1.3. Philippines
1.3.1. Philippines’ FDI net inflows drop by 85.2 per cent in December 2024
The Foreign Direct Investment (“FDI“) net inflows into the Philippines stood at USD 110 million (United States Dollar One Hundred Ten Million only) in December 2024, reflecting an 85.2 per cent (eighty-five point two per cent) decline from USD 743 million (United States Dollar Seven Hundred Forty-Three Million only) in December 2023. While non-residents’ net equity capital investments increased, the overall decline in FDI was primarily due to higher debt repayments by resident corporations to their non-resident direct investors. Bangko Sentral ng Pilipinas
2. Trends
2.1 Indian Government considers reintroducing MDR on UPI and RuPay debit card transactions
The government is evaluating a proposal to reintroduce the Merchant Discount Rate (“MDR“) on UPI and RuPay debit card transactions, as per media reports. Currently, no MDR is levied on these transactions, which are processed through the NPCI. According to the proposal, MDR could be reinstated for merchants with an annual turnover exceeding INR 40,00,000 (Indian Rupee Forty Lakh only) based on their Goods Service Tax (GST) filings. Business Standard
2.2. India advances 6G development with Bharat 6G Alliance
The Department of Telecommunications (DoT) has facilitated the establishment of the Bharat 6G Alliance to drive India’s leadership in 6G technology development. The initiative aligns with the Bharat 6G Vision, launched on March 23, 2023, which aims to position India as a key contributor to the global 6G landscape by 2030. The International Telecommunication Union (ITU) is currently studying frequency bands for 6G use, with final decisions expected at the World Radiocommunication Conference in 2027. PIB
2.3. RBI expands priority sector lending to renewable energy
RBI has included renewable energy financing under Priority Sector Lending (“PSL”) to accelerate India’s transition to a low-carbon economy. RBI Governor Sanjay Malhotra announced the initiative, emphasizing the need for directed lending strategies to support national climate goals. Under the revised PSL framework, banks can extend credit to solar, wind, biomass, and other non-conventional energy projects, enhancing access to green finance. Recognizing the high credit risk of emerging green technologies, Malhotra urged financial institutions to develop technical expertise for risk assessment. To address data gaps in climate risk modelling, the RBI will launch the Reserve Bank – Climate Risk Information System (RB-CRIS) this year, ensuring better risk evaluation and informed green financing decisions. KNN
3. Sector Overview
3.1. Digital payment transactions cross 18,000 crore in FY 2024-25
Digital payments, including UPI transactions, have seen a consistent rise over the last five financial years, reaching 18,120.82 (eighteen lakh one hundred twenty thousand and eighty-two) crore transactions till January 2025, per government data. PIB
3.2. Government advances industrial growth with investment initiatives
The Government of India, through the Department for Promotion of Industry and Internal Trade (DPIIT), has launched multiple initiatives to drive industrial growth, including Make in India, Start-up India, PM GatiShakti, and PLI Schemes. A Cabinet Committee has approved 12 (twelve) new projects under the National Industrial Corridor Development Programme with an investment of INR 28,602 crore (Indian Rupees Twenty-Eight Thousand Six Hundred and Two Crore only). Additionally, the Union Budget 2025 has proposed raising the FDI cap in the insurance sector to 100 per cent (hundred per cent), further strengthening India’s investment ecosystem. PIB
3.3. RBI clarifies IndusInd Bank’s financial stability
RBI has addressed speculation surrounding IndusInd Bank Limited, affirming its well-capitalised and financially stabilised status. As of December 31, 2024, the bank maintained a Capital Adequacy Ratio of 16.46 per cent (sixteen point four six per cent), a Provision Coverage Ratio of 70.20 per cent (seventy point two zero per cent), and a Liquidity Coverage Ratio of 113 per cent (hundred and thirteen per cent) (above the 100 per cent regulatory requirement). Equity bulls
3.4. RBI revises bank lending norms to NBFCs
RBI has eased lending norms for banks by reducing the risk weight on microfinance loans by 25 percentage (twenty five per cent) points to 100 per cent (hundred per cent), effectively restoring the previous framework. This move is expected to boost bank lending to NBFCs, prompting them to revise their funding strategies. With banks prioritizing top-rated NBFCs, the sector may see increased access to credit at competitive rates. Industry leaders, including Muthoot Finance, anticipate greater capital availability for NBFCs, reinforcing their role in the financial ecosystem. Business Standards
4. Business Updates
4.1. No more UPI misuse with inactive numbers
NPCI has issued a directive requiring banks and Payment Service Providers (PSPs) to update their internal databases weekly, starting March 31, 2025, to correctly map mobile numbers with UPI users. This move aims to minimise errors from recycled or churned numbers and enhance security. Additionally, explicit user consent will now be required for porting UPI-linked numbers, ensuring accurate financial transactions. Economic Times
4.2. Flipkart-backed Super. money becomes the fifth-largest UPI third-party player
Bengaluru-based fintech Super. money has emerged as the fifth-largest third-party player on the Unified Payments Interface UPI, processing 139.10 (one hundred and thirty-nine point one zero) million transactions in February 2025, as per NPCI data. The platform, known for offering cashback on UPI transactions, surpassed CRED, which processed 126.48 (one hundred and twenty-six point four eight) million transactions during the same period, marking significant growth within a year of operations. Inc42
4.3. SBI to launch project finance unit for AI, Fintech, and E-Commerce
State Bank of India (“SBI”), the country’s largest lender, is establishing a dedicated project financing unit for new-age industries such as Artificial intelligence (“AI”), e-commerce, and fintech. The initiative, expected to be completed within a year, will involve hiring specialised professionals and appointing an external consultant. This move will diversify SBI’s project finance and structuring unit, which traditionally focuses on large infrastructure projects, by increasing lending exposure to emerging industries and renewable energy sectors. Business Standard
4.4. InCred Finance secures USD 30 Million debt ahead of IPO
InCred Finance has raised USD 30 million (United States Dollar Thirty Million only) in debt funding from Neo Group and others, ahead of its planned IPO in late 2025. The funding was structured via 25,800 (twenty five thousand eight hundred) non-convertible debentures, with key investors including Neo Asset Management, MAS Financial Services, and Cred Avenue Securities. INC42
4.5 Vayana secures NBFC licence
VAYANA, a Pune-based supply chain finance startup, has obtained an NBFC license from the RBI, enabling it to expand its lending business. Following this, Vayana is looking to raise USD 20 Million (United States Dollar Twenty Million only), primarily to capitalise on its NBFC operations. BFSI
4.6 Kuhoo Finance secures NBFC license
Kuhoo Finance has received approval from the RBI to operate as a NBFC, enabling it to offer student loans of up to INR 2 crore (Indian Rupees Two Crore only) for higher education programs, including management, engineering, medical, and executive education courses. The fintech firm aims to address funding gaps for Indian students by offering timely and flexible financing solutions. With this regulatory milestone, Kuhoo Finance strengthens its position in India’s education lending market, expanding access to student loans amid increasing demand for upskilling and professional education. ISN
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.
