Saloni Shukla

Data from domestic rating agency India Ratings show public sector banks issued ?37,700 crore of CDs in the first 20 days of November compared with Rs 42,800 crore during October 1-31. CD issuances by private banks in this period, meanwhile, rose to Rs 19,100 crore from Rs 16,900 crore in October.

The company, which debuted in the unlisted market nearly a year ago at ₹300 apiece, has seen its valuations soar to ₹900 per share. Investment bankers attribute the surge to the successful listing of Tata Technologies and the uptick in NBFC valuations.

A Paisabazaar study reveals 70% of 80 lakh Indian MSME business loan applications in the last 10 months sought funds for immediate needs like working capital and raw materials. Less than 30% focused on growth initiatives. Demand concentrated in metros, but non-metro applications are rising.

This was being done to keep bad loan ratios under control and avoid adverse reporting to the regulator. HFCs would generally report key financial figures to the NHB by the 10th or 12th of each month, which the regulator is unhappy about. In the letter dated December 2, 2024, addressed to managing directors of all HFCs, the NHB raised the issue of non-submission of delinquent data as per the laid down procedures. ET has reviewed a copy of the letter.

RBI linked the FX-Retail platform with Bharat Connect. This move expands the platform's accessibility. Customers can now use banking and non-banking apps for foreign exchange transactions. Initially, individuals and sole proprietors can buy US dollars. The RBI plans to expand this to other transactions and users. The FX-Retail platform aims to improve transparency in foreign exchange pricing.

The Reserve Bank of India (RBI) has expanded the scope of UPI by allowing Small Finance Banks (SFBs) to offer pre-approved credit lines. This move aims to reduce costs and improve access to credit, particularly for 'new-to-credit' customers. SFBs' high-tech, low-cost model is expected to enhance financial inclusion by reaching underserved customers with small-ticket loans through the UPI platform.

The National Housing Bank (NHB) has urged housing finance companies to strengthen their risk and audit functions following a fraud at Aviom India Housing. NHB inspections are emphasizing stricter compliance after discovering manipulated mutual fund investments at Aviom. The regulator is also tightening bad loan reporting timelines for HFCs to prevent manipulation and maintain financial system stability.

Payment gateway operators are urging the finance ministry to reconsider an 18% GST levy on commissions from small-value digital transactions (up to ₹2,000). They argue that passing this tax burden onto merchants will hinder the growth of digital payments, especially in smaller towns. Tax authorities are seeking backdated GST from fiscal 2017-18, impacting major players like BillDesk and CCAvenue.

The RBI has expressed concerns over fintech companies' aggressive lending practices, particularly to first-time buyers of used vehicles. These practices, including excessive top-up loans, are increasing borrower vulnerability and impacting lender balance sheets. The regulator has warned against high loan-to-value ratios and has taken action against some lenders for non-compliance.

Facing tighter regulations on unsecured lending, digital lenders in India are shifting towards secured options like property and business loans. This transition involves increased physical verification and collateral checks, prompting some lenders to adopt 'feet-on-the-street' approaches and explore physical branches. The move follows RBI's concerns over risks in the unsecured lending segment, particularly personal loans.