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Two separate regulatory notes put out on Wednesday have assuaged concerns over a new norm that could have ended up questioning the autonomy exercised by the International Financial Services Centres Authority (IFSCA), a unified regulator, over GIFT IFSC entities. An FAQ issued on Wednesday has clarified that regulated entities operating out of GIFT IFSC will be required to file their Foreign Liabilities and Assets (FLA) return with the IFSCA, instead of with the Reserve Bank of India (RBI). Similarly, subsidiaries of foreign entities set up in GIFT IFSC will also have to file their FLA returns with the IFSCA.
The Reserve Bank of India (RBI) has rejected calls by stakeholders to continue case-specific exemptions from concentration norms for government-owned NBFCs, saying that doing so goes against a principles-based framework and creates avoidable regulatory uncertainty. In amended directions published Wednesday, the central bank also rejected requests for an increase in single counterparty limits for exposures to public sector enterprises. "While a case-by-case exemption was permitted earlier, most of such exemptions had a sunset clause which has since expired, and the exposure of these entities have been brought within limits," the RBI said.
The Reserve Bank of India on Tuesday relaxed the onboarding rules for small businesses using trade receivables discounting system (TReDS) platform. Under the new guidelines, the central bank also plans to streamline capital requirements for authorised entities with those for other non-bank payment system operators (PSOs), and allow financiers to obtain credit guarantee cover for exposures taken on TReDS. TReDS is an online platform that enables small businesses to sell their invoices or trade receivables to banks and financial institutions to access working capital. The RBI said that the platform must implement necessary validation checks to confirm the seller is an MSME, and ensure funds owed to the seller are credited only to the seller’s bank account. Applicants seeking to operate a TReDS platform must have a minimum net worth of Rs 25 crore, the regulator said. The RBI has given time till March 31, 2028, for existing entities to meet this net-worth requirement.
Timelines for an interest-rate increase by the Reserve Bank of India (RBI) are gradually being pushed further back, with economists now visibly tilting toward the second half of FY27 for any rate tightening instead of earlier expectations of a decision by monetary policymakers in the August review itself. This assessment by economists, despite some concerns about wholesale prices, inflationary pressures and rate increases by several other central banks, is driven by two key factors. First, coordinated measures announced by the government and the RBI are expected to attract sizable foreign currency inflows, likely easing the pressure on the rupee. Second, the recent moderation in crude oil prices, after the US and Iran agreed to a broad peace framework, has reduced upside risks to inflation while also underpinning growth, economists said.
India's central bank is not looking to enable direct settlement of government securities via offshore settlement platforms like Euroclear -- one of the world's largest securities settlement systems -- despite recent tax changes aimed at attracting foreign investors, three sources familiar with the matter said. The Reserve Bank of India (RBI) wants overseas investors to participate directly on the domestic Negotiated Dealing System-Order Matching (NDS-OM) platform, an electronic system for secondary market trading in government bonds, the sources said. India has gradually opened up its bond markets to foreign investors over the last six years, by creating a pool of securities with no foreign investment limits and more recently by scrapping taxes on capital gains for overseas investors in these securities.
The Reserve Bank of India (RBI) has amended the rules on how Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and other residents outside India can make investments, receive sale proceeds and how such transactions can be reported to the central bank. One of the major changes is that a person residing outside India (NRIs and OCIs) can now maintain a designated repatriable rupee account for investments made on a repatriable basis. These regulations, known as Foreign Exchange Management (Mode of Payment and Reporting of NonDebt Instruments) (Amendment) Regulations, 2026, came into force on June 13, 2026 .
The Reserve Bank has issued final amendment directions permitting commercial banks to lend to Real Estate Investment Trusts and InvITs, while retaining key prudential safeguards on exposure limits, asset quality, and repayment structures. The final directions were issued after incorporating feedback received from stakeholders on the draft norms. Major changes and conditions Among major changes, the Reserve Bank of India (RBI) said overseas branches of Indian banks may participate in Real Estate Investment Trusts (REITs) financing under syndication arrangements, subject to a 20 percent cap on contribution and a 150 percent risk weight.
The Reserve Bank of India (RBI) on Wednesday announced the launch of payment systems connectivity between India and Cambodia, allowing Indian travellers to make UPI-based QR code payments at merchants across the Southeast Asian nation. The facility, launched in Phnom Penh on Tuesday, marks the first phase of collaboration between NPCI International Payments Ltd (NIPL) and Acleda Bank Plc under the aegis of the RBI and the National Bank of Cambodia. Under the arrangement, Indian users can make real-time merchant payments at more than 4.5 million merchants enabled with Cambodia’s KHQR, the country’s national QR code standard, using UPI-enabled applications.
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday said the capital markets regulator and the Reserve Bank of India (RBI) are jointly working on introducing derivatives on corporate bond indices as part of efforts to deepen India's corporate bond market. Addressing the ICICI Securities India Investor Conference 2026 in Mumbai, Pandey said the architecture of the corporate bond market has been significantly strengthened in recent years. "The Electronic Book Provider platform has been expanded to include issuances by REITs and InvITs, improving transparency and efficiency in the debt market," he said. In line with the Union Budget announcement, a working group is currently finalising operational details for a market-making framework aimed at improving liquidity in the corporate bond market. "Additionally, SEBI and RBI are working together to introduce derivatives on corporate bond indices," Pandey said.
The Reserve Bank of India (RBI) on Friday unanimously voted to keep the benchmark repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) retaining its neutral stance as policymakers weighed mounting inflation risks from elevated crude oil prices, a weakening rupee, and concerns over a below-normal monsoon against the need to support economic growth. The six-member MPC, chaired by RBI Governor Sanjay Malhotra, also left the Standing Deposit Facility (SDF) rate unchanged at 5 per cent and the Marginal Standing Facility (MSF) rate and Bank Rate at 5.5 per cent. The committee decided to continue with the neutral policy stance, signalling flexibility to respond to evolving inflation and growth dynamics.
Even though the rupee has approached a critical depreciation threshold, India is unlikely to reopen a special Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit window similar to the one introduced during the 2013 “taper tantrum”, as the country’s forex reserves remain strong and US dollar interest rates are now at record highs. During the 2013 “taper tantrum”, the US Federal Reserve’s benchmark interest rate was near 0.25%, as the Fed was still following an ultra-loose post-global financial crisis monetary policy. In contrast, the federal funds rate is currently around 4%, following an aggressive tightening cycle to combat inflation. US bond yields are also hovering around record highs of nearly 5%. Costly NRI deposits FCNR(B) deposit rates offered by public sector banks currently range between 5.5% and 6%. Any move to mobilise dollar deposits from NRIs would therefore be extremely costly for Indian banks and would likely require substantial subsidisation by the Reserve Bank of India (RBI).
