Saloni Shukla

Overseas money transfers via India's Liberalised Remittance Scheme have stabilized recently, with outflows hovering around $30 billion. While education remittances have significantly dropped due to international restrictions, investments in foreign equity and debt markets are booming, nearly doubling in three years. This shift highlights a changing pattern in how Indians are sending money abroad.

Axis Bank added 63,446 cards in April, less than half its February tally. Kotak Mahindra Bank remained steady at 33,038 additions. "We are focused on growing the business and growing it with the right set of customers in a profitable way," said ICICI Bank Group chief financial officer Anindya Banerjee. "We have been seeing reasonably steady new customer acquisition and would hope to see better numbers in terms of growth."

Cash logistics firms are urging banks for higher ATM replenishment fees due to escalating operational costs. Soaring fuel prices and increased minimum wages are pushing expenses up by an estimated 15-20%. A surge in replenishment trips, driven by demand-supply gaps, further inflates fuel expenses. The industry is exploring ways to optimize trips to manage these rising costs.

IDFC First Bank has successfully secured a substantial allocation of over Rs 500 crore from the Credit Guarantee Fund for Micro Units. This funding is targeted at eligible microfinance loans and is expected to enhance the bank's financial performance by allowing it to reverse previously set aside provisions for defaults.

Indian banks and telecom firms are preparing for a new AI model called Mythos. This AI can find software flaws very quickly. Companies are testing their systems now. They worry cyber attackers could use these flaws. A shortage of cybersecurity experts adds to the challenge. This situation requires urgent attention to protect critical services.

Companies are testing their public-facing assets using existing AI models such as Opus 4.7 and GPT 5.5 and have also asked their suppliers to identify possible gaps, executives and consultants told ET. The Data Security Council of India (DSCI), an industry think-tank under software industry body Nasscom, is helping organisations prepare for the challenge.

Fake currency detection in India increased in 2025-26. The Rs 500 note became the primary target for counterfeiters, showing a significant rise in fake detections. This trend contrasts with the decline in fake Rs 2,000 notes. Detection at commercial banks improved, indicating stronger frontline capabilities. The RBI is enhancing security features on banknotes.

Reserve Bank of India's spending on printing money dropped significantly. This happened even as the total value of currency in circulation grew. Higher denomination notes, especially the Rs 500 note, met this demand. Cash usage remains strong despite digital growth. The RBI plans to enhance banknote security and durability.

Indian banks aggressively cut fresh deposit rates in April 2026 to protect margins, with the weighted average falling to 5.77%. Simultaneously, lending rates saw a slight increase, widening the gap and signaling efforts to rebuild net interest margins. This trend, however, raises concerns about the equitable transmission of monetary policy to borrowers.

Indian banks anticipate asset quality stress from the second quarter due to the West Asia conflict. Rising fuel prices will reduce consumer spending. Higher input costs will impact corporate profits. Small and medium enterprises face significant pressure. Lenders are becoming cautious about lending to this segment. This situation will be visible in upcoming financial results.