1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI provides clarification on PRAVAAH
The Reserve Bank of India (“RBI“) has directed all regulated entities, including banks, Non-Banking Financial Companies (NBFCs), and payment operators, to submit applications for regulatory authorisations, licenses, and approvals exclusively through the Platform for Regulatory Application, Validation and Authorisation (“PRAVAAH”) portal effective May 1, 2025.
1.1.2. RBI invites comments on the working group report on market timings
RBI had constituted a working group, chaired by Shri Radha Shyam Ratho, Executive Director, to undertake a comprehensive review of trading and settlement timings in RBI-regulated markets. The working group was tasked with evaluating existing market timings, identifying operational challenges, examining global practices, and recommending the way forward. The report has been submitted and placed on the RBI website. Comments from stakeholders and the public have been invited by May 30, 2025, via email. Feedback will be reviewed before a final decision is taken on the recommendations made by the Working Group.
1.1.3. Dr. Poonam Gupta takes charge as RBI Deputy Governor
Dr. Poonam Gupta took over as Deputy Governor of the RBI on May 02, 2025, following her appointment by the Government of India, for a term of three years or until further orders, whichever is earlier. She will oversee several departments, including Monetary Policy, Financial Markets Operations, Economic and Policy Research, Financial Stability, International Affairs, Statistics and Information Management, Corporate Strategy and Budget, and Communication.
National Payments Corporation of India (NPCI)
1.1.4. NPCI issues guidelines to curb excessive API queries
The National Payments Corporation of India (“NPCI“) has mandated Payment Service Provider (“PSP”)/Acquiring Banks to regulate “Check Transaction Status” Application Programming Interface (“API”) usage, limiting repeat queries to 3 (three) attempts within 2 (two) hours of transaction initiation, with a 45-60 (forty-five to sixty) second delay post-authentication. The directive aims to reduce system overload from repetitive API calls and requires banks to audit systems via CERT-In empanelled auditors. Non-compliance may attract penalties. Errors like U48 or HTTP 429 (Annexure-1) shall halt further queries. Feedback on implementation is sought within 4 weeks.
1.1.5. NPCI accelerates UPI transaction speeds with new response time standards
Effective June 16, 2025, NPCI has slashed Unified Payments Interface (“UPI”) API response times, cutting processing durations by 50-67 per cent (fifty to sixty-seven per cent) for key transactions. Critical updates include Request/Response Pay (15s, down from 30s), Check Transaction Status (10s), and Reversals (10s). Member banks must adapt systems to meet these benchmarks without increasing technical declines. The move aims to enhance customer experience across remitter/beneficiary banks and PSPs.
International Financial Services Centres Authority (IFSCA)
1.1.6. IFSCA removes net-worth rule for bullion market participants
The International Financial Services Centres Authority (“IFSCA“) has waived net-worth requirements for general customers trading on the India International Bullion Exchange (IFSC) Ltd. India International Bullion Exchange (IIBX), effective immediately, to boost participation while retaining criteria for Qualified Suppliers/Jewellers (per 2022-23 circulars). The move follows industry feedback and aligns with global standards.
Securities and Exchange Board of India (SEBI)
1.1.7. SEBI aligns margin collection timeline with T+1 settlement cycle
The Securities and Exchange Board of India (“SEBI“) has revised margin collection rules under its Master Circular for Stock Brokers (August 09, 2024), mandating Trading Members (TMs)/Clearing Members (CMs) to collect all margins (except Value at Risk (“VaR”) and Extreme Loss Margin (“ELM”) from clients by the settlement day (T+1) instead of T+2, effective immediately. This change aligns with the T+1 settlement cycle introduced in 2023 and follows industry representations for a robust risk framework. Upfront Value at Risk (VaR)/ (ELM) margins remain payable pre-trade.
1.1.8. SEBI eases norms for stock brokers to operate in GIFT-IFSC via separate business units
SEBI has removed the approval requirement for SEBI-registered stock brokers to undertake securities market activities in Gujarat International Finance Tec-City International Financial Services Centre (“GIFT-IFSC”), enabling them to operate through a Separate Business Unit (“SBU”) of the same entity. Brokers may also use qualifying branches or continue operating via subsidiaries. The regulatory framework including policy, risk management, and investor protection, will be issued by the relevant regulatory authority, under whose jurisdiction all SBU activities will fall. To clearly separate domestic operations from GIFT-IFSC activities, SEBI will introduce specific safeguards to ring-fence regulatory obligations.
1.1.9. SEBI revises cybersecurity framework categorisation for REs
SEBI has issued clarifications and granted extension for the implementation of its Cybersecurity and Cyber Resilience Framework (CSCRF) through circulars dated December 31, 2024, and March 28, 2025. Following industry feedback, SEBI has revised the categorisation thresholds for its Regulated Entities (“REs”), effective annually based on the prior financial year’s data. Once assigned, the category will remain unchanged for that year, regardless of mid-year changes. The respective reporting authority will validate categorisation during the compliance review. SEBI will continue updating category thresholds to ensure effective and proportionate cybersecurity compliance.
1.1.10. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
| Name of the Financial Institution | Penalty Imposed | Reasons |
| RBI imposes monetary penalty on Axis Bank Limited | INR 29,60,000/- (Indian Rupees Twenty-nine lakh sixty thousand only) | Contravention and non-compliance with provisions of the Banking Regulation Act, 1949, and RBI directions on Unauthorised Operation of Internal / Office Accounts. |
| RBI imposes monetary penalty on ICICI Bank Ltd | INR 97,80,000/- (Indian Rupees Ninety-seven lakh eighty thousand only) | Contravention and non-compliance with provisions of the Banking Regulation Act, 1949, and RBI directions on Cyber Security Framework, KYC), and Credit and Debit Card Issuance and Conduct. |
| RBI imposes monetary penalty on Bank of Maharashtra | INR 31,80,000/- (Indian Rupees Thirty-one lakh eighty thousand only) | Contravention and non-compliance with provisions of the Banking Regulation Act, 1949, and RBI directions on KYC. |
| RBI imposes monetary penalty on IDBI Bank Limited | INR 31,80,000/- (Indian Rupees Thirty-one lakh eighty thousand only) | Contravention and non-compliance with provisions of the Banking Regulation Act, 1949, and RBI directions on Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities through KCC. |
| RBI imposes monetary penalty on Bank of Baroda | INR 61,40,000/- (Indian Rupees Sixty-One Lakh Forty Thousand only) | Contravention and non-compliance with provisions of the Banking Regulation Act, 1949, and RBI directions on Financial Services provided by Banks, Customer Service in Banks, and Interest Rate on Deposits. |
1.2. Global Financial Updates
1.2.1. Green credit and ESG, paving the way for sustainable development
Deputy Governor Dao Minh Tu emphasised green credit as vital for sustainable development, enhancing competitiveness and supporting green production. State Bank of Vietnam (SBV) has driven green credit initiatives through credit policy management, the Banking Sector’s Action Plan for 2021-2030, legal framework improvements, and support for vulnerable groups.
1.2.2. BSP and CIMB address unauthorised fund transfers with a customer focus
The Bangko Sentral ng Pilipinas (“BSP”) is coordinating with Commerce International Merchant Bankers (“CIMB”) to resolve unauthorised fund transfers affecting some customers. CIMB has begun restoring balances and assured account owners of funds return. BSP continues to monitor the situation, emphasising its commitment to financial system security, consumer protection, and public trust.
1.2.3. Fitch reaffirms Philippines’ “BBB” credit rating amid strong economic stability
Fitch Ratings maintained the Philippines’ “BBB” credit rating with a stable outlook, citing success in managing inflation, which eased to 1.8 per cent (one point eight per cent) in March 2025. The BSP’s credible inflation-targeting framework is expected to keep inflation at 2 per cent (two per cent) through 2026.
1.2.4. Quarterly and annual trends in domestic claims and net foreign assets of OFCs (Q4 2024)
The domestic claims of Other Financial Corporations (“OFCs”) increased by 2 per cent (two per cent) quarter-on-quarter and 12.6 per cent (twelve point six per cent) YoY in Q4 2024, reaching PHP 10.07 Trillion (Philippine Peso Ten Trillion Seventy Billion only). Growth was driven by higher claims on depository corporations, tempered by declines in central government and other sectors.
2. Trends in Fintech and Regulation
2.1. Starlink accelerates India entry through local partnerships
Starlink, Elon Musk’s satellite internet venture, is in advanced talks with Bharat Sanchar Nigam Ltd (BSNL), Nelco, and Hughes Communications to launch services in India, adopting a multi-partner model for rapid market penetration. The company plans to establish three gateway stations (Mumbai, Pune, Indore) and a Mumbai Point of Presence (PoP), leveraging its 7,000+ (seven thousand plus) satellite fleet (Gen-1 and Gen-2) with 80–90x (eighty to ninety) bandwidth advantage over rivals like Jio-SES. Recent discussions with Commerce Minister Piyush Goyal highlighted Starlink’s focus on serving remote regions, including Northeast India.
3. Sector Overview
3.1. UPI transactions dip slightly in April after record March performance
UPI transactions saw a 2 per cent (two per cent) decline in volume to 17.89 (seventeen point eight nine) billion and a 3 per cent (three per cent) drop in value to INR 23.95 Lakh Crore (Indian Rupees Twenty-Three Trillion Nine Hundred Fifty Billion only) in April 2025, following a strong March driven by year-end sales. Despite the monthly dip, April figures rose 34 per cent (thirty-four per cent) in volume and 22 per cent (twenty-two per cent) in value year-on-year. Daily transactions stabilised at 596 (five hundred ninety-six) million, while Immediate Payment Service (IMPS) also saw a 3-7 per cent (three to seven per cent) decline. Experts anticipate a rebound in May as digital payments become entrenched in India’s economy.
3.2. Tamil Nadu launches electronics components scheme to boost global footprint
Tamil Nadu unveiled its ‘Tamil Nadu Electronics Components Manufacturing Scheme’ on April 30, 2025, targeting INR 30,000 Crore (Indian Rupees Thirty Thousand Crore only) in investments and 60,000 (sixty thousand) jobs. The scheme offers dual subsidies (matching central incentives) and strategic land allocations to foster an integrated ecosystem. This follows Tamil Nadu’s USD 14.65 Billion (United States Dollar Fourteen Billion Six Hundred Fifty Million only) electronics exports in FY 2024-25 and its 2024 Semiconductor Policy, reinforcing its ambition to lead India’s tech supply chain.
3.3. India boosts AI infrastructure with subsidised GPU access under the India AI mission
The Ministry of Electronics and Information Technology (MeitY) has allocated 11,657 (eleven thousand six hundred fifty-seven) Graphics Processing Unit (“GPUs”) to three companies under the IndiaAI Mission, offering the world’s lowest usage rate (under USD 1/hour). The INR 10,000 Crore (Indian Rupees Ten Thousand Crore Only) initiative aims to strengthen India’s Artificial Intelligence (“AI”) ecosystem through local language models and Research and Development (R&D) incentives. Proposals for foundation models are open until April 30, 2025.
3.4. Finance Minister directs NPCI to strengthen UPI infrastructure
Finance Minister Nirmala Sitharaman has instructed the NPCI and RBI to enhance UPI’s resilience following four technical disruptions in April 2025. During a high-level meeting on April 28, 2025, stakeholders were directed to address infrastructure gaps, improve real-time monitoring, and fortify cybersecurity measures to ensure uninterrupted service. The move aims to restore user trust in India’s flagship payment system.
4. Business Updates
4.1. MobiKwik’s Zaakpay secures RBI nod to operate as payment aggregator
The RBI has granted Zaak ePayment Services Private Limited (Zaakpay), a subsidiary of One MobiKwik Systems, authorisation to function as an Online Payment Aggregator. The approval, disclosed under SEBI Listing Regulations (2015), enables Zaakpay to expand its digital payments business under RBI’s regulated framework. This milestone strengthens MobiKwik’s position in India’s fintech ecosystem, aligning with its growth strategy.
4.2. Meesho rebrands parent company as IPO plans accelerate
E-commerce major Meesho has initiated the rebranding of its parent entity from Fashnear Technologies Private Limited to Meesho Private Limited, approved by shareholders on April 23, 2025. The move precedes its planned USD 1 Billion (United States Dollar One Billion) Initial Public Offering (“IPO”), with Morgan Stanley, Kotak Mahindra Capital, and Citi advising. Co-founders recently exercised Employee Stock Ownership Plan (ESOP) worth INR 1,023 Crore (Indian Rupees One Thousand Twenty-Three Crore only), converting options into equity.
4.3. PayU secures INR 1,013 Crore from parent Prosus ahead of planned 2025 IPO
PayU has raised INR 1,013 Crore (Indian Rupees One Thousand Thirteen Crore only) through a rights issue from its parent company Prosus, as the digital payments firm prepares for its anticipated 2025 IPO. The funding involved issuing 13 crore (thirteen crore) equity shares at INR 77.96 per share (Indian Rupee Seventy-Seven Rupee Ninety-Six Paisa only).
4.4. Amazon boosts Indian digital payments arm with USD 41 Million investment
Amazon has invested USD 41 Million (United States Forty-One Million only) into Amazon Pay India, following an INR 600 Crore (Indian Rupees Six Hundred Crore only) infusion earlier in 2024, totalling INR 950 Crore (Indian Rupees Nine Hundred Fifty Crore only) by 2025. Competing with PhonePe, Google Pay, and Paytm, Amazon Pay processed 68 (sixty-eight) Million UPI transactions worth INR 7,419 Crore (Indian Rupees Seven Thousand Four Hundred Nineteen Crore in May 2024.
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.
