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1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI issues Reserve Bank of India (Co-Lending Arrangements) Directions
Reserve Bank of India ("RBI") has issued theReserve Bank of India (Co-Lending Arrangements) Directions, 2025, effective from January 01, 2026, providing a regulatory framework for co-lending arrangements for banks, All-India Financial Institutions ("AIFIs"), and Non-Banking Financial Companies ("NBFCs"). The directions mandate formal agreements between regulated entities ("RE"), including originating RE and partner RE and require each party to retain at least 10 per cent (ten per cent) share of individual loans, prescribe operational, disclosure, and reporting requirements.
1.1.2. RBI issues statement on developmental and regulatory policies dated August 06, 2025
The Retail portal was launched in November 2021 to facilitate retail investors to open their Gilt accounts with the Reserve Bank under the Retail Direct Scheme. The scheme allows retail investors to buy Government Securities ("G-Secs") in primary auctions as well as buy and sell G-Secs in the secondary market. In May 2024. To enable investors to systematically plan their investments, an auto-bidding facility for Treasury bills ("T-bills"), covering both investment and reinvestment options, has been enabled in Retail Direct. The new functionality helps investors to mandate the automatic placement of bids in primary auctions of T-bills.
1.1.3. RBI permits Category-I Authorised Dealer Banks to open Special Rupee Vostro Accounts without prior approval
On August 05, 2025, the RBI issued a circular allowing Category-I Authorised Dealer ("AD") Banks to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without obtaining prior approval from the RBI. This modifies earlier guidelines outlined in the July 11, 2022, circular and is effective immediately. The circular directs Category-I AD banks to inform their constituents and customers about this change. The instructions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.
1.1.4. RBI releases report of the Internal Working Group to review the Liquidity Management Framework
RBI's Internal Working Group ("IWG") report, published on July 2025, evaluates the Liquidity Management Framework (LMF) to enhance monetary policy transmission. It recommends continuing the Weighted Average Call Rate (WACR) as the operating target, retaining a symmetric corridor around the policy repo rate, and using variable rate auctions for liquidity operations. The IWG advises discontinuing 14 (fourteen) day variable rate repo and reverse repo operations in favour of 7 (seven) day tenors to better manage intra-fortnight liquidity and reduce market uncertainty.
1.1.5. RBI issues Reserve of India (Non-Fund Based Credit) Directions, 2025
RBI has issued the Reserve Bank of India (Non-Fund Based Credit Facilities) Directions, 2025, effective from April 01, 2026, which consolidate and harmonise guidelines for Non-Fund Based ("NFB") credit facilities such as guarantees, letters of credit, and co-acceptances across REs including banks, cooperative banks, AIFIs, and NBFCs including Housing Finance Companies (HFCs). The Directions mandate that NFB facilities be issued primarily on behalf of customers with funded credit facilities, require guarantees to be irrevocable, unconditional, and emphasise strong internal controls and systems integration.
Securities and Exchange Board of India (SEBI)
1.1.6. SEBI introduces ease of doing business policy for joint annual inspection by MIIs
The Securities and Exchange Board of India ("SEBI") has mandated joint annual inspections of stockbrokers and associated entities by all Market Infrastructure Institutions ("MIIs") to reduce operational disruptions. Inspection criteria have been revised to prioritise entities with high penalties, investor complaints, or risk scores, with inspections for others at least once every three years. Special inspections may occur based on triggers like complaints or malpractices. MIIs must formulate a joint Standard Operating Procedure ("SOP") by November 01, 2025, and the circular is effective from December 01, 2025, replacing the 2017 circular.
1.1.7. SEBI issues consultation paper on review of regulatory framework for Registrars to an Issue and Share Transfer Agents
SEBI released a consultation paper dated August 07, 2025, proposing key amendments to the regulatory framework for Registrars to an Issue and Share Transfer Agents ("RTAs"). The proposals include, introduction of activity-based regulations to differentiate services provided to listed and unlisted companies, aiming to clarify regulatory scope, doing away with the current categorisation of RTAs and introducing a single uniform category with a minimum net worth requirement of INR 50 Lakh (Indian Rupees Fifty Lakh only), and establishment of a robust institutional mechanism for RTAs focusing on fraud prevention/detection, including senior management oversight, surveillance systems, escalation protocols, and whistleblower policy. Public comments on these proposals are invited by August 28, 2025.
1.1.8. SEBI releases consultation paper on ease of doing business for Investment Advisers and Research Analysts
SEBI released a consultation paper dated August 07, 2025, proposing amendments to the regulatory framework for Investment Advisers ("IAs") and Research Analysts ("RAs"), aiming to facilitate ease of doing business and address practical challenges. The proposals include permitting IAs/RAs to provide past performance data to clients on specific request with disclaimers; allowing IAs to provide second opinion on pre-distributed assets with proper disclosure; easing the compulsory corporatisation process for individual IAs; relaxing the requirement of furnishing proof of address, credit reports, net worth details, and infrastructure particulars; and updating educational qualifications and certifications by allowing more inclusive criteria and exemptions. Public comments are invited by August 28, 2025.
1.1.9. SEBI issues consultation paper on introduction of a separate type of AIF scheme for only Accredited Investors
The SEBI consultation paper proposes introducing a separate category of AIF schemes exclusively for Accredited Investors, with a lighter-touch regulatory framework compared to regular AIFs. Currently, AIFs assess investor sophistication primarily through a minimum investment threshold of INR 1 Crore (Indian Rupees One Crore only), but SEBI aims for a gradual shift towards using accreditation status as the primary metric, recognising Accredited Investors as financially sophisticated and capable of informed decision-making. While both metrics may co-exist in the interim, SEBI suggests that "AI-only" schemes be allowed certain relaxations—such as exemption from pari-passu rights, ability to extend fund tenure up to 5 (five) years, removal of NISM certification for key personnel, no cap on investor numbers, and shifting trustee responsibilities to managers while retaining rules to address systemic risks and market integrity.
1.1.10. SEBI issues consultation paper on proposals to facilitate participation by resident Indians in Foreign Portfolio Investors
The SEBI consultation paper dated August 08, 2025, seeks public feedback on proposals to ease participation by resident Indians in Foreign Portfolio Investors ("FPIs"). It suggests: allowing retail schemes based in India's International Financial Services Centres ("IFSC"), with resident Indian non-individuals as sponsors/managers, to register as FPIs; aligning the contribution limits of such sponsors/managers under FPI Regulations with International Financial Services Centres Authority ("IFSCA") (Fund Management) Regulations, 2025—raising the cap to 10 per cent of corpus (or Asset Under Management for retail schemes) and replacing the "Sponsor/Manager" requirement with "Fund Management Entity or its associate" for IFSC FPIs; and permitting Indian mutual funds to be constituents of FPIs, enabling investment in overseas mutual funds/unit trusts with India exposure. Comments are invited by August 29, 2025.
1.1.11. SEBI issues consultation paper on introduction of Single Window Automatic and Generalised Access for Trusted Foreign Investors
SEBI's consultation paper dated August 08, 2025, proposes the introduction of Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework to ease investments and reduce compliance burdens for objectively verified low-risk foreign investors such as government/sovereign entities and appropriately regulated public retail funds (mutual funds, insurance, pension funds). The framework offers unified registration for both FPI and Foreign Venture Capital Investor (FVCI) routes without additional documentation, longer validity for registration and KYC review, removal of caps on NRI/OCI/Resident Indian participation in eligible mutual funds, and an optional single demat account for all investments. The aim is to simplify onboarding, lower costs, attract stable long-term capital, and align with global best practices while retaining regulatory safeguards. Public comments are invited by August 29, 2025.
1.1.12. SEBI issues consultation paper on providing flexibilities to Large Value Funds for Accredited Investors
SEBI's consultation paper dated August 08, 2025, proposes relaxations for Large Value Funds ("LVFs") for Accredited Investors under SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) to make them more attractive and accessible. Key suggestions include reducing the minimum investment threshold from INR 70 Crore (Indian Rupees Seventy Crore only) to INR 25 Crore (Indian Rupees Twenty Five Crore only), removing the cap on the number of investors, and exempting LVFs from requirements such as following the standard template of the Private Placement Memorandum ("PPM"), annual PPM audits, National Institute of Securities Markets (NISM) certification for key investment team members, and certain compliance responsibilities of investment committee members—without needing specific investor waivers. Public comments are invited by August 29, 2025.
1.1.13. SEBI issues circular on transaction charges paid to Mutual Fund Distributors
SEBI's circular dated August 08, 2025, removes the provisions in its Mutual Fund Master Circular that allowed Asset Management Companies ("AMCs") to pay distributors transaction charges for bringing in subscriptions of at least INR 10,000 (Indian Rupees Ten Thousand only). Following public consultation in 2023 and industry consultation in June 2025, SEBI decided that such charges or commissions, earlier permitted under paragraphs 10.4.1.b and 10.5, will be discontinued, as distributors are considered agents of AMCs and can be remunerated through other means. The amendments take immediate effect and are aimed at protecting investor interests, promoting market development, and ensuring fair regulatory oversight.
1.1.14. SEBI issues circular on review framework for conversion of Private Listed InvIT into Public InvIT
SEBI's circular dated August 08, 2025, revises the framework for converting a private listed Infrastructure Investment Trust ("InvIT") into a public InvIT. The changes streamline sponsor contribution norms by requiring sponsors and sponsor groups to maintain the minimum unitholding prescribed under InvIT Regulations at all times, with a lock-in period as specified in the regulations. Additionally, the procedure and disclosure requirements for such conversions are now aligned with those applicable to a follow-on offer, replacing earlier references to initial offers. These amendments take immediate effect and aim to ensure consistency, reduce procedural complexity, and maintain investor protection.
1.1.15. SEBI issues consultation paper on amendments to provisions relating to Related Party Transactions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
SEBI's consultation paper proposes to amend the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and circulars issued thereunder by replacing the flat INR 1,000 Crore (Indian Rupees One Thousand Crore only) or 10 per cent (ten per cent) threshold for Related Party Transactions ("RPTs") with a scale-based approach linked to turnover, easing compliance for large firms. It also suggests harmonising subsidiary thresholds and relaxing disclosures for small RPTs below 1 per cent (one per cent) or INR 10 Crore (Indian Rupees Ten Crore only).
International Financial Services Centres Authority (IFSCA)
1.1.16. IFSCA issues Master Circular on Regulation of Credit Rating Agencies in the IFSC
IFSCA has issued a Master Circular setting forth the regulatory framework for Credit Rating Agencies ("CRAs") operating within IFSCs in India. This circular consolidates all existing SEBI circulars related to CRAs in IFSC, superseding those issued before October 01, 2020. It covers aspects like registration requirements, permissible activities, including credit ratings, sovereign ratings, Environmental Social and Governance ("ESG") ratings, valuation services, and research.
1.1.17. IFSCA issues Master Circular on ESG Ratings and Data Products Providers
On August 05, 2025, IFSCA issued a Master Circular setting a regulatory framework for ESG Ratings and Data Products Providers in IFSCs, detailing registration, permissible activities, and governance requirements. It mandates the appointment of Principal and Compliance Officers, adherence to Know Your Customer ("KYC"), Anti-Money Laundering ("AML"), Counter-Terrorist Financing ("CFT") guidelines, and transparency in ESG rating processes. The circular also covers reporting obligations, cybersecurity, outsourcing policies, complaint handling, and registration surrender procedures.
1.1.18. IFSCA issues Master Circular for Distributors in the IFSC
IFSCA issued a Master Circular on August 05, 2025, outlining the regulatory framework for Distributors operating within the IFSC in India. The circular covers the registration process through the Single Window IT System ("SWIT"), validity of registration, permissible activities, and governance requirements, including having designated Principal and Compliance Officers. It mandates compliance with a code of conduct, defines responsibilities such as segregation of proprietary and client investments, and outlines rules on distribution fees, referral arrangements, and digital distribution. It also details obligations for issuers and service providers engaging distributors, KYC/AML/CFT guidelines, policies on outsourcing, and complaint handling mechanisms.
1.1.19. IFSCA issues Master Circular for Investment Advisers in the IFSC
IFSCA issued a Master Circular for Investment Advisers in IFSC on August 05, 2025. It provides the regulatory framework under the Capital Market Intermediaries Regulations, 2025, detailing registration via the SWIT system, fee payment, and validity of registration. The circular outlines permissible activities, governance requirements, including Principal and Compliance Officers, and mandates adherence to a Code of Conduct. It also covers KYC, AML, CFT compliance, conflict of interest management, reporting obligations, cyber security, grievance redressal, and procedures for change in control and surrender of registration.
1.1.20. IFSCA issues Master Circular for Investment Bankers in the IFSC
IFSCA issued the Master Circular on Investment Bankers in the IFSC on August 05, 2025. This circular provides the regulatory framework under the Capital Market Intermediaries Regulations, 2025, covering registration procedures via SWIT, fee payments, and validity of registration. It specifies permissible activities for investment bankers, governance requirements, including the appointment of Principal and Compliance Officers, and mandates compliance with KYC, AML, and CFT guidelines. The circular addresses responsibilities, conflict of interest management, prohibition on insider trading, underwriting limits, outsourcing policies, grievance redressal, etc.
1.1.21. IFSCA issues Master Circular for Debenture Trustees in the IFSC
IFSCA issued the Master Circular for Debenture Trustees in the IFSC on August 05, 2025. The circular provides a regulatory framework under the Capital Market Intermediaries Regulations, 2025, covering registration through the SWIT system, payment of fees, and perpetual validity of registration unless suspended or revoked. It specifies permissible activities, governance requirements, including Principal and Compliance Officers, and mandates adherence to KYC, AML, and CFT guidelines. The circular outlines responsibilities for due diligence, monitoring, dealing with defaults, conflicts of interest, and complaint redressal.
1.1.22. IFSCA issues circular on onboarding of Regulated Entities to CERSAI
The circular directs certain regulated entities operating within the IFSC, including IFSC Banking Units, Banking Companies, Finance Companies, Finance Units, and TReDS platforms, to onboard themselves with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India ("CERSAI") for the registration and satisfaction of assignment of receivables transactions. This compliance is mandated under Section 19 of the Factoring Regulation Act, 2011, and relevant IFSCA regulations.
Miscellaneous
Telecom Regulatory Authority of India (TRAI)
1.1.23. TRAI issues advisory on Fraudulent Activities Misusing TRAI's Name
Telecom Regulatory Authority of India ("TRAI"), in its press release dated August 06, 2025, has issued an advisory warning the public about rising cyber frauds misusing its name, including scams such as "digital arrest," SIM deactivation threats, fraudulent mobile tower installation offers, and forged TRAI letters or emails. In these schemes, fraudsters impersonate TRAI or law enforcement officials to threaten victims with telecom or financial violations, demand personal data, or coerce money transfers under false pretences. TRAI clarified that it never calls customers about mobile number disconnections, conducts investigations, or collects payments through calls or digital platforms, and has not authorised any third parties for such activities. Citizens are urged to stay vigilant, avoid sharing personal or banking details, independently verify suspicious communications, and report incidents to the National Cybercrime Helpline (1930) or cybercrime.gov.in, as well as flag numbers through the Chakshu facility or the TRAI DND app.
Monetary Penalties
1.1.24. RBI imposes penalties on seven banks for regulatory non-compliance
RBI has imposed monetary penalties on the following institutions:
|
Name of Bank |
Amount of Penalty |
Grounds for Penalty |
|---|---|---|
|
Sonepat Central Cooperative Bank Limited, Haryana |
INR 25,000 (Indian Rupees Twenty-Five Thousand only) |
The penalty was levied because the bank failed to submit borrower credit information to all four Credit Information Companies ("CICs"). This action follows National Bank for Agriculture and Rural Development ("NABARD's") supervisory inspection and is imposed under Section 25, read with Section 23 of the Credit Information Companies (Regulation) Act, 2005. |
|
Gomti Nagariya Sahakari Bank Limited, Jaunpur, Uttar Pradesh |
INR 2,00,000 (Indian Rupees Two Lakh only) |
The penalty is based on findings related to the bank's financial position as of March 31, 2024. The violations include sanctioning fresh loans and advances with risk weights exceeding 100 per cent (hundred per cent) and offering higher interest rates on term deposits than those offered by the State Bank of India. The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
The Katihar District Central Co-operative Bank Limited, Bihar |
INR 3,30,000 (Indian Rupees Three Lakh Thirty Thousand only) |
The penalty was imposed because the bank sanctioned loans to its director and failed to submit customer credit information to two CICs, violating directions on membership of CICs by co-operative banks. This action follows RBI's supervisory review and is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005. |
|
The Chanasma Nagrik Sahakari Bank Limited, Chanasma, Dist. Patan, Gujarat |
INR 1,00,000 (Indian Rupees One Lakh only) |
The penalty was imposed because the bank failed to provide customers with 24/7 access to report unauthorised electronic banking transactions through multiple channels and did not enable customers to instantly "Reply" to SMS alerts to object to such transactions. The penalty was enforced under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
Raiganj Central Co-operative Bank Limited, West Bengal |
INR 3,10,000 (Indian Rupees Three Lakh Ten Thousand only) |
The penalty was imposed due to the bank's failure to upload KYC records of customers onto the Central KYC Registry within the prescribed timeline and for assigning multiple customer identification codes to some customers instead of a single Unique Customer Identification Code (UCIC). These violations were found during NABARD's statutory inspection and are imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
Andaman & Nicobar State Co-operative Bank Limited |
INR 16,00, 000 (Indian Rupees Sixteen Lakh only) |
The penalty was imposed because the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed deadline and did not conduct periodic reviews of account risk categorisation at least once every six months, as required under KYC norms. This non-compliance was identified during RBI supervision and is penalised under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
ICICI Bank Limited |
INR 75,00,000 (Indian Rupees Seventy-Five Lakh only) |
The penalty was imposed because the bank failed to carry out valuation of properties by independent empanelled valuers for certain mortgage loans and opened or maintained current accounts in contravention of regulatory requirements. This non-compliance was identified during RBI's inspection and is penalised under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. |
2. Key Asian Markets- Philippines and Vietnam
2.1. Philippines
2.1.1. BSP implements new safeguards for online gambling to protect consumers
The Bangko Sentral ng Pilipinas ("BSP") is introducing new rules to protect consumers from online gambling risks, requiring banks and e-wallets to implement strict identity verification, including biometric checks. The measures include daily limits on gambling-related transfers, time-based restrictions to curb impulsive behaviour, and tools for users to set spending caps or self-exclude. These aim to reduce addiction, fraud, and financial harm while promoting responsible digital finance use. Payment providers must comply with stringent regulations or risk losing authorisation.
2.1.2. BSP issues a reminder for submission of the foreign borrowings plan for quarter four 2025 and 2026
BSP has issued a reminder for resident entities planning medium- and long-term foreign borrowings, including offshore debt issuances or onshore foreign currency debt instruments, for the fourth quarter of 2025 and the entire year 2026, to submit their Foreign Borrowings Plan ("FBP") by September 30, 2025. This submission, mandated under the BSP's Manual of Regulations on Foreign Exchange Transactions (FX Manual), helps the BSP monitor and manage the country's foreign funding needs and ensure orderly debt servicing aligned with the economy's capacity. Entities can submit the FBP via designated email addresses for public or private sector loans or through an online form, with all data treated confidentially as per Philippine law.
2.2. Vietnam
2.2.1. SBV issues circular on approval procedures for key personnel in banking and credit institutions
State Bank of Vietnam ("SBV") Governor has issued Circular No. 20/2025/TT-NHNN, which updates and replaces previous regulations on the approval process and documentation requirements for the proposed key personnel lists of commercial banks, foreign bank branches, and non-bank credit institutions. This new circular, effective as of July 31, 2025, comprises four chapters and 18 articles, along with five appendices, detailing the procedures and responsibilities of both the financial institutions and the SBV-related entities. It replaces Circular No. 22/2018/TT-NHNN and subsequent amendments, aiming to streamline and clarify the approval process for key personnel in the banking sector.
2.2.2. SBV strengthens monetary policy to boost credit growth and lower lending rates
SBV raised the 2025 credit growth target to 16 per cent (sixteen per cent), with loans already up 9.64 per cent (nine point six four per cent) by July. It directed banks to maintain stable deposit rates and lower lending rates through cost-cutting and digitalisation. These measures aim to expand credit in priority sectors such as manufacturing, business, and core industries, while closely monitoring lending to high-risk areas.
3. Trends
3.1. Ant Group to exit India's Paytm with USD 433 Million stake sale
China's Ant Group is set to fully exit Indian payments firm Paytm by selling its remaining 5.84 per cent (five point eight four per cent) stake through block deals totalling USD 433.72 Million (United States Dollar Four Hundred Thirty-Three Million Seventy-Two Thousand only) at a floor price of INR 1,020 (Indian Rupees One Thousand Twenty only) per share. Goldman Sachs India Securities and Citigroup Global Markets India are leading the sale.
3.2. Government to launch a common portal for startups' financial needs
The government has directed Public Sector Banks ("PSBs") to create a unified digital portal to streamline startup loan applications, sanctions, and information-sharing, expected to launch by October 2025. This common startup hub portal will feature a single application form accessible to all PSBs, enabling easier access to loans for startups and faster approvals. In 2024-2025, loans to startups by PSBs amounted to INR 956 Crore (Indian Rupees Nine Hundred Fifty-Six Crore only). The portal aims to provide end-to-end digital sanction and approval, linked with the Jan Samarth Portal, and will be managed through the PSB Alliance.
3.3. Federal Bank to focus on mid-corporates over top-tier borrowers, 8-10 per cent growth target for the financial year 2026
Federal Bank is shifting its corporate lending focus towards mid-market and medium-yield segments as demand from top-tier corporate borrowers remains muted, targeting 8-10 per cent (eight to ten per cent) corporate loan growth for the financial year 2026. The bank continues to support microfinance but is cautious on fresh lending, preferring to monitor sector trends before expanding.
4. Sector Overview
4.1.Bank credit growth slows; deposit stays steady in the financial year 2026
Bank credit growth in India has slowed to 1.4 per cent (one point four per cent) so far in financial year 2026 compared to 2.3 per cent (two point three per cent) a year ago, while deposit growth has remained steady at around 3.4 per cent (three point four per cent) compared to 3.5 per cent (three point five per cent) previously. On a year-on-year basis, deposits increased by 10.2 per cent (ten point two per cent) and bank advances grew by 10 per cent (ten per cent) in late July 2025. The slower credit expansion is primarily attributed to weaker corporate demand as companies have favourably used market instruments like bonds and commercial papers. Banks expect credit growth to pick up from the second quarter onward, with retail demand rising due to the festive season.
4.2. India's inflation hits eight-year low at 1.76 per cent in July
India's retail inflation fell to an eight-year low of 1.76 per cent (one point seven six per cent) in July, driven mainly by cooling food prices and a strong spring harvest, which helped keep food inflation in check despite uneven monsoons. These drops placed inflation below the RBI tolerance band of 2 per cent (two per cent) to 6 per cent (six per cent) for the first time in over 6 (six) years and continued a disinflationary trend for the ninth consecutive month. The RBI kept interest rates steady at 5.5 per cent (five point five per cent), describing the inflation outlook as benign. Inflation for the fiscal year is expected to average around 3.4 per cent (three point four per cent), slightly above the RBI's forecast of 3.1 per cent (three point one per cent).
4.3. Indian funds cushion market with the heaviest buying since April
Indian domestic institutions made their largest stock purchases since April 2025, buying INR 108.6 Billion (Indian Rupees One Hundred Eight Billion Six Hundred Million only) worth of shares in one day. This buying helped offset foreign investor outflows amid tariff concerns triggered by US actions, supporting market stability. The purchases included significant block deals in Kotak Mahindra Bank Ltd. and Eternal Ltd. Domestic funds have played a critical role in cushioning the Indian market, having bought shares worth about USD 50 Billion (United States Dollar Fifty Billion only) in 2025, far exceeding the more than USD 11 Billion (United States Dollar Eleven Billion only) net sales by foreign investors this year.
5. Business Updates
5.1. Mitigata raises USD 5.9 Million to accelerate cybersecurity and insurance solutions
Cyber resilience startup Mitigata has raised USD 5.9 Million (United States Dollar Five Million Nine Hundred Thousand only) in a Series A funding round led by Nexus Venture Partners, with participation from Titan Capital and WEH Ventures. The Bengaluru-based company provides an AI-powered platform that integrates cybersecurity, risk management, compliance, and cyber insurance solutions. The funds will be used to enhance Mitigata's platform, expand its managed security services with new security operations centers in Bengaluru, Mumbai, and Delhi, and scale operations both in India and internationally.
5.2. Banks start charging payment aggregators for UPI transactions
ICICI Bank, following Axis and Yes Bank, have begun charging payment aggregators, such as Razorpay, Cashfree, and PayU, for Unified Payments Interface ("UPI") merchant transactions at the point where the aggregator connects to the bank's UPI switch to access National Payments Corporation of India (NPCI) rails. These fees are not levied on end consumers but directly on payment aggregators, who often pass the charges to merchants through platform fees or per-transaction charges.
5.3. Indian FinTechs raised USD 119.8 Million in July 2025
Indian FinTech funding showed a peak early in 2025, reaching nearly USD 239 Million (United States Dollar Two Hundred Thirty-Nine Million only) in April, followed by a downward trend to USD 210 Million (United States Dollar Two Hundred Ten Million only) in May, USD 156.9 Million (United States Dollar One Hundred Fifty-Six Million Nine Hundred Thousand only) in June, and USD 119.8 Million (United States Million One Hundred Nineteen Million Eight Hundred Thousand only) in July. The largest funding round in July came from Mumbai-based InCred, raising USD 46.8 Million (United States Dollar Forty-Six Million Eight Lakh only) from global investors, including Morgan Stanley. Funding rounds throughout the first seven months of 2025 have spanned seed to growth stages with a mix of FinTech startups focused on lending, digital financial services, payments, and financial supply chain platforms.
5.4. NBFCs embark on INR 45,000 Crore fundraising spree ahead of RBI listing deadline
Tata Capital plans to raise INR 17,200 Crore (Indian Rupees Seventeen Thousand Two Hundred Crore only), Jio Financial Services INR 15,830 Crore (Indian Rupees Fifteen Thousand Eight Hundred Thirty Crore only), and HDB Financial Services INR 12,500 Crore (Indian Rupees Twelve Thousand Five Hundred Crore only), marking one of the largest equity mobilisations in India's financial sector. Mid-sized NBFCs, including SK Finance, Avanse Financial Services, and Veritas Finance, are also raising capital, leveraging relaxed norms like reduced infrastructure risk weights and avoiding bank-specific constraints.
5.5. ICICI Bank raises minimum balance requirement for savings account
ICICI Bank has raised the Minimum Average Monthly Balance (MAB) for new savings accounts opened from August 01, 2025. INR 50,000 (Indian Rupees Fifty Thousand only) for metro/urban, INR 25,000 (Indian Rupees Twenty-Five Thousand only) for semi-urban, and INR 10,000 (Indian Rupees Ten Thousand only) for rural branches. This hike applies only to new accounts; existing accounts retain previous limits. For non-compliance, a penalty of 6 per cent (six per cent) of the shortfall or INR 500 (Indian Rupees Five Hundred only) will be levied. Customers receive 3 (three) free cash transactions monthly; beyond this, an INR 150 (Indian Rupees One Hundred Fifty only) charge applies, with additional charges for cash transactions exceeding INR 1,00,000 (Indian Rupees One Lakh only) per month.
5.6. Equitas Small Finance Bank posts INR 224 Crore quarter one loss on microfinance provisions
Equitas Small Finance Bank reported a net loss of INR 224 Crore (Indian Rupees Two Hundred Twenty-Four Crore only) in quarter one of the financial year 2026, primarily due to higher provisions in its microfinance portfolio. The bank took a one-time standard asset provision of INR 185 Crore (Indian Rupees One Hundred Eighty-Five Crore only) for microfinance and an additional INR 145 Crore (Indian Rupees One Hundred Forty-Five Crore only) for non-performing assets (NPA) due to changes in provisioning norms, aiming to buffer future stress.
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