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1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI updates FAQs for NBFC–P2P platforms
Reserve Bank of India ("RBI") published a refreshed FAQs (Frequently Asked Questions) set for Non-Banking Financial Company ("NBFC") – Peer-to-Peer ("P2P") Lending Platform (Reserve Bank) Directions, 2017 on September 03, 2025, updating definitions, scope, and compliance references under the Foreign Exchange Management Act, 1999 (FEMA) and RBI directions. It clarifies that platforms acting only as Direct Selling Agents (DSA) or Business Correspondents (BC) for banks, Non-Banking Financial Companies or All India Financial Institutions (AIFIs) are not P2P; if retail lenders lend via them, they must register as a Non-Banking Financial Company–Peer-to-Peer ("NBFC-P2P"). Investible funds mean capital infused plus business surplus of the NBFC-P2P; escrow balances of lenders and borrowers are excluded.
1.1.2. RBI issues report on the lending and deposit rates of scheduled commercial banks
RBI reported in August 2025 that the weighted average lending rate on fresh loans rose to 8.8 per cent (eight point eight per cent) while the rate on outstanding loans fell to 9.38 per cent (nine point three eight per cent). The 1 (one) year Marginal Cost of the Fund Based Lending Rate (MCLR) eased to 8.6 per cent (eight point six per cent). Deposit rates also declined with fresh term deposits at 5.61 per cent (five point six one per cent) and overall term deposits at 6.92 per cent (six point nine two per cent).
1.1.3.RBI releases development in India's balance of payments during the first quarter of 2025 - 2026
RBI has released reports on the developments in India's Balance of Payments (BoP) for the first quarter (April-June) of 2025-2026. Highlights include a reduced current account deficit of USD 2.4 Billion (United States Dollar Two Billion Four Hundred Million only) increased merchandise trade deficit of USD 68.5 Billion (United States Dollar Sixty-Eight Billion Five Hundred Million only), higher net receipts from services and personal remittances, and robust foreign investments with net inflows in Foreign Direct Investment (FDI), portfolio investments, and external commercial borrowings. The foreign exchange reserves recorded an accretion of USD 4.5 Billion (United States Dollar Four Billion Five Hundred Million only), indicating stable external financial conditions.
Securities and Exchange Board of India (SEBI)
1.1.4 SEBI issues circular on framework for intraday position limits monitoring for equity index derivatives
The Securities and Exchange Board of India ("SEBI") issued a circular on September 01, 2025, introducing a framework for intraday monitoring of entity-level positions in equity index options. SEBI set an intraday net position limit of INR 5,000 Crore (Indian Rupees Five Thousand Crore only) and a gross position limit of INR 10,000 Crore (Indian Rupees Ten Thousand Crore only) (long and short separately). Stock exchanges will monitor these through at least four random intraday snapshots, including one near market close. The framework applies only to index options, effective October 01, 2025, with expiry-day penalty provisions effective December 06, 2025. Stock exchanges and clearing corporations must jointly issue a Standard Operating Procedure within 15 (fifteen) days.
1.1.5. SEBI eases InvIT investment norms, tightens disclosure and valuation requirements SEBI has amended the Infrastructure Investment Trusts ("InvIT") Regulations, 2014 through the Third Amendment Regulations, 2025, reducing the minimum subscription size from INR 1 crore (Indian Rupees One Crore only) to INR 25 lakh (Indian Rupees Twenty-Five Lakh only), tightening the definition of "public" to exclude sponsors, sponsor groups, investment managers and project managers, aligning reporting timelines with SEBI-mandated quarterly financial results, permitting holding companies with negative net distributable cash flows to repay debt using inflows from underlying SPVs with disclosures, and mandating quarterly valuations for InvITs with borrowings and deferred payments above 49 per cent (forty-nine per cent) of asset value.
1.1.6. SEBI streamlines Portfolio Managers disclosure framework
SEBI has amended the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 through the 2025 Amendment, revising Regulation 20 to directly reference Schedule IV, mandating under Regulation 22(3) that portfolio managers provide clients with a Disclosure Document in SEBI-specified format along with the Form C certificate before entering agreements, and deleting Schedule V to eliminate redundant provisions, thereby simplifying compliance and standardising disclosure practices.
International Financial Services Centres Authority (IFSCA)
1.1.7. IFSCA issues public notice enabling SWIT applications for TechFin and Ancillary Services
The International Financial Services Centres Authority ("IFSCA") issued a public notice dated September 3, 2025, confirming that all new applications for registration under the IFSCA (TechFin and Ancillary Services) Regulations, 2025 must be submitted only via the Single Window IT System (SWIT), which is now enabled for TechFin and Ancillary Services (TAS).
1.1.8. IFSCA extends deadline for compliance officer and principal officer norms under Capital Market Intermediaries Regulations, 2025
The IFSCA issued a circular dated September 04, 2025, extending the deadline for existing capital market intermediaries registered under the IFSCA (Capital Market Intermediaries) Regulations, 2025, to comply with the revised requirements relating to the appointment of principal officer and compliance officer. The earlier deadline of October 01, 2025, has now been extended to December 31, 2025. The extension applies to compliance with sub-regulations (2), (3), and (8) of regulation 9 of the Capital Market Intermediaries Regulations, 2025, and has been issued under sections 12 and 13 of the IFSCA Act, 2019, read with regulation 9(4) and regulation 45 of the Regulations. The circular is effective immediately.
Monetary Penalties
1.1.9. RBI imposes penalties on nine banks for regulatory non-compliance
RBI has imposed monetary penalties on the following institutions -
|
Sr. No. |
Name of Bank |
Amount of Penalty |
Grounds for Penalty |
|
1. |
Jilla Sahakari Kendriya Bank Maryadit, Ujjain, Madhya Pradesh |
INR 1,00,000 (Indian Rupees One Lakh only) |
Contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949. |
|
2. |
The Surat People's Co-operative Bank Limited, Surat |
INR 18,30,000 (Indian Rupees Eighteen Lakh Thirty Thousand only) |
Non-compliance with certain directions issued by RBI on 'Reporting of Large Exposures to Central Repository of Information on Large Credits (CRILC) - UCBs'. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
3. |
Jilla Sahakari Kendriya Bank Maryadit, Damoh, Madhya Pradesh |
INR 50,000 (Indian Rupees Fifty Thousand only) |
Contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949. |
|
4. |
Jila Sahakari Kendriya Bank Maryadit, Narmadapuram, Madhya Pradesh |
INR 1,00,000 (Indian Rupees One Lakh only) |
Contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949. |
|
5. |
Dahanu Road Janata Co-operative Bank Ltd., Dahanu Road, Maharashtra |
INR 1,00,000 (Indian Rupees One Lakh only) |
Non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
6. |
The Urban Co-operative Bank Limited, Cuttack, Odisha |
INR 4,50,000 (Indian Rupees Four Lakh Fifty Thousand Only) |
Non-compliance with certain directions issued by RBI on Know Your Customer ("KYC"). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
7. |
The Pataliputra Central Co-operative Bank Limited, Bihar |
INR 2,02,000 (Indian Rupees Two Lakh Two Thousand Only) |
Non-compliance with certain directions issued by RBI on KYC and Membership of Credit Information Companies (CICs) by Co-operative Banks. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of 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. |
|
8. |
The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal |
INR 5,50,000 (Indian Rupees Five Lakh Fifty Thousand only) |
Non-compliance with certain directions issued by RBI on KYC. This penalty has been imposed in exercise of powers conferred on RBI under provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. |
|
9. |
The Rohika Central Co-operative Bank Limited, Bihar |
INR 5.50 lakh (Indian Rupees Five Lakh Fifty Thousand only) |
Contravention of provisions of Section 9 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with certain directions issued by RBI on 'Membership of Credit Information Companies (CICs) by Cooperative Banks' and KYC. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of 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. |
2. Key Asian Markets - Philippines and Indonesia
2.1. Philippines
2.2.1. BSP reports bank lending growth of 11.8 per cent in July
The Bangko Sentral ng Pilipinas ("BSP") issued a media release dated September 04, 2025, reporting that outstanding loans of universal and commercial banks grew by 11.8 per cent (eleven point eight per cent) year-on-year in July, compared with 12.1 per cent (twelve point one per cent) in June. On a seasonally adjusted basis, loans increased by 0.7 per cent (zero point seven per cent) month-on-month. Loans to residents expanded by 12.4 per cent (twelve point four per cent), while loans to non-residents declined by 8.1 per cent (eight point one per cent).
2.2.2. BSP reports domestic liquidity growth of 6.2 per cent (six point two per cent) in July
The Bangko Sentral ng Pilipinas ("BSP") announced on September 04, 2025, that domestic liquidity (M3) grew by 6.2 per cent (six point two per cent) year-on-year in July to PHP 18.6 Trillion (Philippine Pesos Eighteen Trillion Six Hundred Billion only), accelerating from 5.9 per cent (five point nine per cent) in June. On a seasonally adjusted basis, M3 increased by 0.9 per cent (zero point nine per cent) month-on-month. Growth was driven by a 10.5 per cent (ten point five per cent) rise in claims on the domestic sector, including 11 per cent (eleven per cent) growth in claims on the private sector and 7.1 per cent (seven point one per cent) growth in net claims on the central government. Meanwhile, net foreign assets fell by 0.6 per cent (zero point six per cent) in peso terms, with BSP's net foreign assets down 1.2 per cent (one point two per cent) due to lower international reserves.
2.3. Indonesia
2.3.1. Bank Indonesia reports Indonesia's July 2025 trade surplus
Bank Indonesia ("BI") announced that Indonesia recorded a trade surplus of USD 4.17 Billion (United States Dollar Four Billion One Hundred Seventy Million only) in July 2025, up from USD 4.10 billion (United States Dollar Four Billion One Hundred Million only) in June 2025. The surplus was driven mainly by a wider non-oil and gas surplus of USD 5.75 billion (United States Dollar Five Billion Seven Hundred Fifty Million only), supported by higher exports of mineral fuels, animal/vegetable fats and oils, machinery, mechanical appliances, and iron and steel, with China, the United States, and India as key markets.
2.3.2. Bank Indonesia maintains inflation within the target in August 2025
BI has reported that Consumer Price Index (CPI) inflation in August 2025 was maintained within the target corridor, recording an annual inflation rate of 2.31 per cent (two point three one per cent) despite a slight month-on-month deflation of 0.08 per cent (zero point zero eight per cent). The deflation was mainly driven by volatile food and administered prices. Core inflation rose moderately to 0.06 per cent (zero point zero six per cent) month-on-month, influenced by increases in tuition fees and gold jewellery prices due to seasonal factors and global trends. Volatile food prices fell, mainly due to increased supply of key horticultural products and garlic imports. Administered prices declined slightly, affected by discounted airfares and changes in non-subsidised fuel prices.
3. Trends
3.1. Brevan Howard and Point72 to set up Bengaluru tech centres
Two global asset managers plan Bengaluru technology hubs to build India GCC capability. Hiring will focus on engineering for trading and data platforms, signalling fresh BFSI tech demand.
3.2. Deutsche Bank explores sale of India retail banking operations
Deutsche Bank is exploring the sale of its Indian retail banking assets and has invited bids from domestic and foreign lenders.The bank invited bids for its India retail unit as part of a portfolio refocus. A sale would mark another foreign lender's retreat from Indian consumer banking. According to its annual report, the bank generated USD 1 Billion (United States Dollar One Billion only) in net revenue from India in 2024, roughly on par with Singapore but trailing countries like Germany, the U.S. and Britain.
3.3. Reliance Jio to invite banker pitches for India's biggest IPO
Jio will seek formal proposals from banks this month for a planned listing that could be the country's largest. Existing investors may use the initial public offering (IPO) to partially exit.
3.4. JPMorgan to expand corporate banking in India
JPMorgan Chase & Co. is strengthening its corporate banking presence in India, focusing on sectors such as electric vehicles, data centers, and solar energy, as firms in these industries ramp up capital spending in the world's fastest-growing major economy. The build-out targets onshore lending and transaction banking.
3.5. National Bank Jana and Ujjivan SFBs may get flexibility on promoter ring-fencing in universal bank transition
Jana and Ujjivan banks are likely to bypass the RBI's promoter ring-fencing requirement as they transition to universal banks. Jana already has a listed holding company as its promoter, while Ujjivan fully merged its holding company into the bank, resulting in zero promoter holding, which exempts it from creating a new holding company. AU Small Finance Bank, on the other hand, must set up a holding company to comply with this regulation. This transition to universal banking will reduce capital adequacy requirements from 15 per cent (fifteen per cent) to about 11.5 per cent (eleven point five per cent) and lower the priority sector lending target from 60 per cent (sixty per cent) to 40 per cent (forty per cent).
4. Sector Overview
4.1. Manufacturing PMI hits 59.3 in August, a 17-year high
HSBC-S&P Global's India Manufacturing PMI (Purchasing Manager Index) rose to 59.3 (fifty-nine point three) in August, the fastest since February 2008, led by stronger output and new orders. Firms reported firm pricing power alongside robust demand.
4.2. Rupee hits record low near 88.33/USD, outlook stays weak
The rupee touched a lifetime low of 88.33 (eighty-eight point three-three) per United States Dollar on September 01, 2025, amid tariff-driven risk sentiment and outflows; strategists see continued pressure despite RBI smoothing.
4.3. PCI SSC launches India–South Asia regional board for payment security
The PCI Security Standards Council has established its first Regional Engagement Board (REB) for India and South Asia, bringing together 27 (twenty-seven) leading organisations from the payments industry, including banks, service providers, merchants, and technology firms. This board will advise the Council on local payment security challenges, promote education and awareness of PCI standards, and regularly discuss cybersecurity trends and best practices.
4.4. IRDAI shuts door to VC-backed fintechs for insurance licences
The Insurance Regulatory and Development Authority of India (IRDAI) has tightened its stance and is declining insurance manufacturing licence applications from venture capital-backed fintech startups that lack promoter-driven business models. The regulator prefers startups in distribution rather than manufacturing, citing concerns over holding structures, convertible share arrangements, and offshore funding sources. Only a handful of startups like Acko and Navi have secured licences, primarily because they're industry veteran-led or gained licences by acquisition.
4.5. GST Council clears broad rate cuts; two-slab structure signalled
The GST Council approved sweeping rate rationalisation, collapsing slabs to 5 per cent (five per cent) and 18 per cent (eighteen per cent) and cutting levies on select consumer items; detailed notifications awaited.
5. Business Updates
5.1. Amazon acquires Axio and secures NBFC license in India
Amazon has completed its acquisition of Axio (formerly Capital Float), a Bangalore-based Buy Now Pay Later ("BNPL") firm and Reserve Bank of India-registered NBFC. This marks one of Amazon's largest acquisitions in India, reinforcing its commitment to expanding digital lending and financial services in the country, especially in underserved regions. Axio, which has served over 10 (ten) million customers and powered BNPL services for Amazon Pay for more than 6 (six) years, will continue to operate under its current leadership as an Amazon subsidiary. The deal Grants Amazon access to an NBFC license in India.
5.2. Mastercard CCI clears SMBC's 20 per cent investment in Yes Bank
India's competition regulator, the Competition Commission of India, approved Sumitomo Mitsui Banking Corporation's purchase of a 20 per cent (twenty per cent) stake in Yes Bank, moving the USD 1.6 Billion (United States Dollars One Billion Six Hundred Million only) deal toward closure.
5.3. Muthoot Finance raises USD 600 Million via 2030 notes
India's largest gold-loan company, Muthoot Finance, has raised USD 600 Million (United States Dollar Six Hundred Million only) in secured notes at a 6.375 per cent (six point three seven five per cent) coupon. The company's board has approved the settlement and allotment of the issue maturing in 2030 under its USD 2 Billion (United States Dollar Two Billion only) global medium-term note programme.
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