We are delighted to share this week's AKP Banking & Finance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in. We shall now be hosting our weekly updates at Spotify!
1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI Updates Compounding Framework under FEMA, 1999
The Reserve Bank of India (RBI) has issued revised Master Directions for Compounding of Contraventions under FEMA, aligning with the Foreign Exchange (Compounding Proceedings) Rules, 2024. This update reaffirms RBI's power under Section 13 of FEMA (excluding Section 3(a)). [FEMA compounding rules India 2025].
1.1.2. Mandatory Migration to '.bank.in' Domain for Digital Banking Security
To enhance cybersecurity in Indian banking, the RBI has mandated all banks to migrate their websites to the '.bank.in' domain by October 31, 2025. Coordination will be through IDRBT under MeitY. [Digital banking cybersecurity India]
1.1.3. RBI Eases Export Norms for 'Bharat Mart' in UAE
Supporting Indian exports, the RBI now permits Indian exporters to repatriate export proceeds within nine months and open warehouses in the UAE without prior RBI approval. [Foreign Exchange Management India]
1.1.4. RBI Revises Basel III LCR Norms for Liquidity Management
RBI revised Liquidity Coverage Ratio (LCR) norms to align with global best practices, adding a 2.5 per cent (two point five per cent) run-off factor for internet/mobile banking deposits. [RBI liquidity guidelines 2025]
1.1.5. RBI Updates Guidelines for Minor Bank Accounts
From July 1, 2025, minors can independently open and operate savings accounts (above 10 years) as per bank policies, strengthening financial inclusion among youth. [Minor bank account rules India]
1.1.6. Monetary Policy Committee (MPC) Meeting Minutes - April 2025
The MPC assessed inflation, consumer confidence, and macroeconomic stability. A detailed monetary policy resolution has been adopted as per Section 45ZL of the RBI Act. [Monetary policy India April 2025]
1.1.7. RBI Re-Appoints T. Rabi Sankar as Deputy Governor
T. Rabi Sankar will continue as Deputy Governor, reinforcing continuity in RBI leadership and fintech policy advancement. [RBI Deputy Governor appointment]
1.1.8. RBI Cancels License of Imperial Urban Co-operative Bank
Citing inadequate capital and regulatory breaches, RBI revoked the license of Imperial Urban Co-operative Bank Ltd., Jalandhar, effective April 25, 2025. [Bank license cancellation India]
International Financial Services Centres Authority (IFSCA)
1.1.7. New Fee Structure for IFSC Entities
IFSCA revised fees for Fund Management Entities (FME), including scheme modifications and KMP changes charges. [IFSC entity compliance 2025]
1.1.8. Vault Manager Guidelines for IFSC Bullion Ecosystem
Vault Managers shall independently conduct Customer Due Diligence (CDD) and ensure end-to-end bullion custody integrity. [IFSC bullion ecosystem compliance]
1.2. Global Financial Updates
1.2.1. Vietnam Deepens Banking Ties with Czech Republic and China
Vietnam's Deputy Governor strengthens strategic finance cooperation with Czech and Chinese banks. [Vietnam banking cooperation 2025]
1.2.2. Philippines Posts March 2025 BOP Deficit; Launches BSP Mobile App
The Philippines reports a USD 2 billion deficit in Balance of Payments (BOP) for March. BSP launched the "BSP Mobile" app to enhance public access to banking services. [Philippines economy update 2025]
2. Trends in Fintech and Regulation
2.1. RBI Deputy Governor Advocates Tech-Driven Financial Inclusion
T. Rabi Sankar emphasises digital public infrastructure (DPI), vernacular fintech interfaces, and gender-inclusive banking at Bharat Inclusion Summit 2.0. [Fintech Trends India 2025]
2.2.CAIT Proposes Luxury Tax on Quick Commerce
A new luxury tax on instant delivery platforms is proposed to the Ministry of Commerce. [Quick Commerce India regulations]
2.3. India May Delay Digital Competition Law
India's draft Digital Competition Law, modelled after the EU framework, faces deferment due to US trade discussions. [Digital competition regulation India]
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