Banks

The Lucknow bench of the Allahabad High Court on Friday expressed displeasure over what it termed a growing tendency of banks to arbitrarily freeze accounts, observing that a bank acts as a trustee and not an investigative agency. A division bench of Justice Shekhar B Saraf and Justice Avadhesh Kumar Chaudhary imposed a cost of Rs 50,000 on Indian Overseas Bank for freezing a customer's account without valid justification, directing that the amount be paid to the account holder within four weeks. The order came while allowing a petition filed by M/s SA Enterprises, a company which deals in fishery machinery. In its plea, the company stated it had received Rs 23 lakh in its bank account through RTGS on January 16, 2026. The bank froze the account citing suspicion as the firm had declared an annual income of Rs 5.76 lakh at the time of opening the account. In its defence, the bank argued that the transaction appeared suspicious and the action was taken under provisions of the Prevent

Financial Services Secretary M Nagaraju on Friday said the High-Level Committee on Banking for Viksit Bharat announced in this year's Budget will look into public sector banks'balance sheet constraints, so that they can leverage their capital. The government is expected to announce the terms of reference for the panel. "This committee is expected to review the banking sector with a focus on making it more effective, more inclusive, and better aligned with India's growth needs, while maintaining financial stability," he said at the ICPP Growth Conference here. Finance Minister Nirmala Sitharaman had proposed setting up a high-level committee on banking to comprehensively review the banking sector. "I propose setting up a 'High Level Committee on Banking for Viksit Bharat' to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection," she had said in the Budget speech on February 1, ...

RBI has allowed banks to implement suo motu loan resolution for borrowers affected by natural calamities, setting timelines for invocation and completion

Excluding one-off gains, profit rises 11% YoY as margin strength, improved asset mix and steady loan growth support performance

RBI introduces expected credit loss framework for banks, to be implemented from April 2027, replacing incurred loss norms and strengthening credit risk provisioning

FY26 card spends up 12% to ₹23.62 trillion

Finance Minister Nirmala Sitharaman on Thursday met heads of banks on risks related to Artificial Intelligence (AI) following global concerns over Anthropic's Mythos model threatening data security of the financial systems. The meeting assumes significance in view of development of the Claude Mythos AI model by Anthropic claiming that it has found vulnerabilities in many major operating systems. According to sources, risks and measures needed to deal with AI were discussed at the meeting. The meeting chaired by the Finance Minister deliberated on various risks that AI posed on the financial sector, sources said, adding that banks have been urged to take preemptive measures to secure their systems, data and money of customers. The meeting was attended by top officials of banks, officials from Reserve Bank of India, and Ministry of Electronics and Information Technology. According to a senior finance ministry official, the ministry and the RBI are studying the extent of risks that t

Bank credit growth continued to exceed deposit mobilisation in FY26, highlighting persistent funding pressures for lenders despite a year-on-year improvement in both metrics

RBI has returned Ujjivan Small Finance Bank's application for universal bank conversion, citing the need for greater loan book diversification before reconsideration

When it came to banking, the turf on which foreign banks play in India saw dramatic developments last year; the lens through which the banking regulator viewed them also changed

RBI imposed limits on banks on ‌March 27, directing them to cap their net open positions in the rupee in the onshore market at $100 million, requiring that they comply by April 10

Banks need to put in place a straight-through process for crediting the inward payments to individual accounts

Central bank asks banks to immediately inform customers and reconcile nostro accounts frequently to ensure quicker credit of cross-border inward payments

Stress may show up in MSME portfolio of banks going forward, brokerage say

Attempts on Friday to limit VPN use could have sparked the disruption affecting banking apps, The Bell and other Russian media reported, citing industry sources who weren't identified

HDFC Bank and Bank of Baroda report robust loan growth in March 2026, with advances outpacing deposits even as time deposits continue to drive overall deposit expansion

State-owned banks PNB and Central Bank of India report strong double-digit credit growth in FY26, with advances rising faster than deposits across lenders

Karnataka Bank reported CASA deposits at ₹36,621 for the March 2026 quarter, up 10 per cent from ₹33,281 crore in the year-ago period

RBI's clampdown on rupee trades sparks market panic, volatility spikes, and banks scramble to unwind billions in arbitrage positions

Banks must submit certified ECB returns within seven days as RBI tightens compliance norms and revises late submission fee rules to streamline reporting