1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI prohibits prepayment penalty on business loans
The Reserve Bank of India ("RBI") has issued Reserve Bank of India (Pre payment Charges on Loans) Directions, 2025 ("Directions") instructing banks (excluding payment banks), Cooperative Banks, Non-Banking Financial Companies ("NBFCs") and All India Financial Institutions (AIF) to not to charge any prepayment penalty on floating rate loans for purposes other than business to individuals, and on business loans to individuals and Micro and Small Enterprises (MSEs) by most banks and NBFCs, with certain exceptions for loans above INR 50 Lakh (Indian Rupees Fifty Lakh only) in specific institutions. The direction shall be effective for all loans and advances sanctioned or renewed on or after January 01, 2026.
1.1.2. RBI releases the Financial Stability Report, June 2025
RBI, on June 30, 2025, issued Financial Stability Report 2025, which highlights that India's financial system is resilient, with banks and non-banks maintaining healthy balance sheets and financial conditions eased by an accommodative monetary policy. Scheduled Commercial Banks show robust capital growth, low non-performing loan ratios, and strong earnings. NBFCs and the insurance sector also remain sound, with adequate capital and improving asset quality.
1.1.3. RBI sets new guidelines for Gold Bond redemption
RBI has announced the premature redemption price for Sovereign Gold Bonds ("SGB") 2017-18 Series-XIV and 2018-19 Series-IV, scheduled for July 01, 2025. The redemption price is fixed at INR 9,628 (Indian Rupees Nine Thousand Six Hundred and Twenty-Eight only) per unit, calculated based on the simple average of the closing gold prices of 999 (nine hundred and ninety-nine) purity on June 26, 27, and 30, 2025, as published by the India Bullion and Jewellers Association. Investors in these bonds can redeem their holdings at this price, which allows premature redemption after five years from the issue date on interest payment dates.
1.1.4. Floating Rate Savings Bond Interest remain unchanged for July-December 2025
RBI on July 01, 2025, announced that the interest rate for the Floating Rate Savings Bond, 2020 (Taxable), will remain at 8.05 per cent (eight point zero five per cent) from July 01, 2025, to December 31, 2025. This rate is set at 0.35 per cent (zero point three five per cent) above the current National Savings Certificate (NSC) rate, as per government rules. The interest rate on these bonds is reviewed and reset every six months. The next interest payment at this rate will be made on January 01, 2026.
Securities And Exchange Board of India (SEBI)
1.1.5. SEBI extends adoption and implementation of Cybersecurity and Cyber Resilience Framework
On June 30, 2025, the Securities and Exchange Board of India ("SEBI") issued a Circular extending the timeline for adoption and implementation of the Cybersecurity and Cyber Resilience Framework ("CSCRF") for SEBI-regulated entities. The regulator has extended the compliance deadline for the adoption and implementation of the CSCRF by two months, now making the new deadline August 31, 2025, for all regulated entities except Market Infrastructure Institutions (MIIs), KYC Registration Agencies (KRAs), and Qualified Registrars to an Issue and Share Transfer Agents (QRTAs).
1.1.6. SEBI Opens Six-Month Window for Re-lodgement of Physical Share Transfer Requests
On July 02, 2025, the SEBI, through its Circular opened a six-month window, effective from July 07, 2025, to January 06, 2026, allowing investors to re-lodge transfer requests for physical shares that were originally submitted before April 01, 2019, but were rejected or left unattended due to incomplete documents. During this period, all re-lodged shares will be transferred only in demat form, following the required procedures. Listed companies, Registered Registrar and Share Transfer Agents (RTAs), and stock exchanges shall publicise, dedicate teams for efficient processing, and submit monthly reports to SEBI detailing the number of requests received, processed, approved, and rejected, along with average processing times.
Miscellaneous
1.1.7. NPCI mandates adoption of standardised UPI IDs for SEBI payment collections
On July 03, 2025, the National Payments Corporation of India ("NPCI") has mandated the use of standardised, validated, and exclusive UPI IDs for payment collection by SEBI-registered intermediaries, effective from October 01, 2025. This follows SEBI's Circular dated June 18, 2025, to enhance transaction traceability and investor protection. Banks, UPI apps, and Third-Party App Providers (TPAPs) must ensure these UPI IDs are structurally distinct and exclusively used for investor-facing transactions. The IDs must comply with a defined format, incorporate SEBI-specific identifiers, and adhere to character limits, while also ensuring mandatory investor identity verification is completed.
1.1.8. NPCI issues addendum on NRP, PRD processes and arbitration guidelines
On June 30, 2025, the NPCI issued an addendum to OC-208 on the implementation of NRP ("New Resolution Process") for UPI disputes, effective from August 01, 2025, enhancing efficiency in arbitration and chargeback resolutions. Complaint options in the Unified Reconciliation and Settlement System (URCS) will now cover arbitration cases, and NRP verdicts will reflect directly in transaction search pages. The process introduces revised dispute flags, reason codes, and an exclusive AC/AT confirmation for P2M transactions to prevent delays.
Monetary Penalties
1.1.9. RBI imposes monetary penalty on District Central Co-operative Bank Ltd., Durg, Chhattisgarh
The RBI by an order dated June 30, 2025, imposed a monetary penalty of INR 1 Lakh (Indian Rupees One Lakh only) on District Central Co-operative Bank Ltd., Durg, Chhattisgarh, for non-compliance with KYC directions. Based on findings from an inspection conducted by the National Bank for Agriculture and Rural Development (NABARD), RBI observed that the bank: (a) failed to upload KYC records of customers in CKYCR; (b) failed to carry out KYC updation; (c) allotted multiple customer identification codes to individual customers.
1.1.10. RBI imposes monetary penalty on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara, Gujarat
The RBI by an order dated June 30, 2025, imposed a monetary penalty of INR 4 Lakh (Indian Rupees Four Lakh only) on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara, Gujarat, for non-compliance with directions on KYC. Key violations included failure: (a) to conduct periodic risk categorisation of accounts; (b) provide customers with 24x7 access to report unauthorised electronic banking transactions; (c) implement required RBI cyber security controls. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
1.1.11. RBI imposes monetary penalty on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat
The RBI by an order dated June 26, 2025, imposed a monetary penalty of INR 14.30 Lakh (Indian Rupees Fourteen Lakh Thirty Thousand only) on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat, for non-compliance with directions issued by RBI on 'Donations to Trusts and Institutions where Directors, their relatives hold position or are interested' and 'Management of Advances - UCBs'. Key violations included donation of funds to a trust linked to the bank's director's relative and failure to ensure the end-use of funds for sanctioned loans.
1.1.12. RBI imposes monetary penalty on Saibaba Nagari Sahakari Bank Maryadit, Sailu, Maharashtra
The RBI by an order dated June 24, 2025, imposed a monetary penalty of INR 50,000 (Indian Rupees Fifty Thousand only) on Saibaba Nagari Sahakari Bank Maryadit, Sailu, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on 'Know Your Customer ("KYC"). Key violations included failure to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed time and not conducting periodic KYC updates.
2. Key Asian Markets- Indonesia and Vietnam
2.1. Indonesia
2.1.1. Indonesia's inflation remains within target at 1.87 per cent in June 2025
The BI has reported that Consumer Price Index (CPI) inflation stood at 1.87 per cent (one point eight seven per cent) year-on-year in June 2025, well within the target corridor. Monthly inflation was supported by coordinated efforts under the National Movement for Food Inflation Control (GNPIP).
2.2. Vietnam
2.2.1. Vietnam unveils first banking regulatory sandbox
The State Bank of Vietnam ("SBV") has launched the country's first Regulatory Sandbox, under Decree 94/2025/ND-CP, to promote responsible fintech innovation. The sandbox covers credit scoring, data sharing via open APIs, and P2P lending, supporting digital transformation in banking. Backed by ADB and Switzerland's SECO, the initiative aims to expand financial access while strengthening oversight. With over 117 (one hundred seventeen) million bank accounts verified biometrically.
3. Trends
3.1. Kissht initiates IPO process with corporate conversion to public limited company
Fintech startup Kissht has formally commenced its Initial Public Offering ("IPO") journey by converting from a private limited to a public limited company pursuant to a shareholder resolution passed on June 17, 2025. As per filings with the Registrar of Companies (RoC), the IPO will include a fresh issue of equity shares and an offer for sale. Market reports suggest a potential issue size of USD 225 Million (United States Dollar Two Hundred Twenty-Five Million only), with the draft red herring prospectus expected by the end of July..
4. Sector Overview
4.1. Telangana to launch India's first state-led AI digital public infrastructure
The Government of Telangana, in collaboration with the Japan International Cooperation Agency ("JICA"), is set to launch the Telangana Data Exchange ("TGDeX"), India's first state-driven Digital Public Infrastructure (DPI) for artificial intelligence on July 02, 2025. Developed by IISc Bengaluru, TGDeX aims to facilitate cross-domain AI innovation through access to datasets and collaboration tools for startups, industry, and academia. JICA's DXLab is providing strategic and technical support.
4.2. UPI transactions marginally decline to 18.40 Billion in June 2025
The Unified Payments Interface (UPI) recorded 18.40 Billion (Eighteen Billion Four Hundred Million) transactions in June 2025, reflecting a 1.5 per cent (one point five per cent) month-on-month decline from May's all-time high of 18.68 Billion(eighteen billion six hundred eighty million). However, the volume marks a 2.9 per cent (two point nine per cent) increase over April 2025 and a thirty-two per cent year-on-year rise. The total transaction value for June stood at INR 24.04 Lakh Crore (Indian Rupees Twenty-Four Lakh Four Crore only).
4.3. Union Cabinet approves INR 1 Lakh Crore RDI fund to support deep tech sector
The Union Cabinet has approved the Research, Development and Innovation ("RDI") scheme with a total outlay of INR 1 Lakh Crore (Indian Rupees One Lakh Crore only), aimed at catalysing private sector investment in deep tech and sunrise sectors. The scheme will offer long-tenure financing or refinancing at low or nil interest rates. It includes a deep tech Fund of Funds (FoF), first announced in the 2025–26 Budget. The ANRF Executive Council will oversee guidelines, second-level fund manager selection, and project eligibility.
5. Business Updates
5.1. CIMware raises USD 2.3 Million in round led by Transition VC
Bengaluru based Data Centre Infrastructure Management ("DCIM") startup CIMware has secured USD 2.3 Million (United States Dollar Two Million Three Hundred Thousand only) in a Pre-Series A round led by Transition VC. The company had earlier received INR 1.5 Crore (Indian Rupees One Crore Fifty Lakh only) as grants from the Department of Telecommunications (DoT). The proceeds will be deployed toward hardware production, software team expansion, and operating costs.
5.2. India's FinTech funding dips to USD 889 million
India's FinTech sector raised USD 889 million (United States Dollar Eight Hundred Eighty-Nine Million only) in the first half of 2025, a 26 per cent (twenty-six per cent) drop from the previous half and a 5 per cent (five per cent) decrease year-on-year. Late-stage funding fell by 41 per cent (forty-one per cent) and seed-stage by 33 per cent (thirty-three per cent). Only three new Soonicorns and one unicorn emerged, with no IPOs. There were 16 (sixteen) acquisitions, led by Groww's USD 150 million (United States Dollar One Hundred Fifty Million only) purchase of Fisdom. Investment was mainly from Peak XV, Accel, Blume Ventures, and SoftBank. Bengaluru remained the top hub, attracting 55 per cent (fifty-five per cent) of total funding.
5.3. PBS waive the minimum balance charge to retain depositors
Public Sector Banks (PSB) are waiving penal charges for non-maintenance of average monthly balance (AMB) in savings bank accounts as part of a broader strategy to retain existing customers and attract new ones amid a falling interest rate regime. Banks, including Canara Bank, Punjab National Bank and Indian Bank, have removed charges for not maintaining the AMN. This raises the risk of a rise in dormant accounts as customers no longer face penalties for inactivity or maintaining low balances.
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