Page 3 - Indian Banking System

RBI, banks to launch DPIP platform to combat rising digital payment frauds

In a bid to rein in the increasing incidence of digital payment frauds, major public and private sector banks have been roped to develop Digital Payment Intelligence Platform (DPIP) as a Digital Public Infrastructure (DPI) under the supervision and guidance of the RBI. The proposed platform seeks to bolster fraud risk management by facilitating real-time intelligence sharing and gathering, thereby preventing fraudulent digital transactions, sources said. According to sources, the institutional structure of the proposed entity would be created with the help of both public sector and private sector lenders as fraud is a common monster. Earlier this month, a high-level meeting in this regard was convened to finalise the structure of the platform where senior bank officials, RBI officials and other stakeholders were present. Since the issue is one of the top agenda for both the government and the Reserve Bank of India (RBI), sources said the platform should become operational in the ne

K Ramachandran appointed part-time chairman of Tamilnad Mercantile Bank

TMB board appoints veteran banker K Ramachandran as Additional Director for three years and clears his name for part-time chairman, pending RBI approval

RBI imposed penalties on 353 banks, other regulated entities in FY25

The Reserve Bank took enforcement action against regulated entities (REs) and imposed 353 penalties aggregating to Rs 54.78 crore in the fiscal ending March 31, 2025 for contraventions with provisions of statutes. The contraventions/non-compliance were related to cyber security framework in banks; exposure norms and IRAC norms; know your customer directions; frauds classification and reporting directions; reporting information on CRILC; and submission of credit information to credit information companies (CICs). "During 2024-25, the Department undertook enforcement action against REs and imposed 353 penalties aggregating to Rs 54.78 crore for contraventions/non-compliance with provisions of statutes and certain directions issued by the Reserve Bank from time to time," according to the RBI's Annual Report for the Year 2024-25 released on Thursday. RBI data showed that as many as 264 penalties amounting to Rs 15.63 crore were imposed on cooperative banks. Moreover, the RBI imposed ..

RBI to prepare framework for ethical adoption of AI in financial sector

The Reserve Bank will prepare a framework for responsible and ethical adoption of artificial intelligence (AI) in the financial sector during the current financial year, the central bank's annual report said. Driven by rapid advances in computing power and the vast availability of digital data, AI and machine learning (ML) technologies have seen growing interest and significant progress in recent years, with financial institutions globally and domestically increasingly adopting these technologies. The Reserve Bank will prepare a framework for responsible and ethical adoption of AI in the financial sector, as per the agenda for 2025-26 spelt in the RBI's annual report for 2024-25. "The Reserve Bank is exploring and implementing AI/ML-driven solutions in its own functions," it said. It has constituted an external committee in December 2024, comprising experts with a mandate to recommend a Framework for Responsible and Ethical Enablement of AI in the financial sector. The Reserve Ban

FinMin asks sponsor banks to draft 5-year growth plan for RRBs

The finance ministry has also asked the sponsor banks of RRBs to submit action plans for expansion of branches and business of RRBs in the next five years

Biz correspondents' body to raise Atal Yojana renewal commission with banks

BCRC may take up the issue with the Indian Banks' Association; in January, it had raised the matter with the insurance regulator

Canara Bank Q4 net profit rises 33% to Rs 5,004 crore despite NIM drop

Canara Bank posts strong Q4 profit growth driven by other income as NII dips 1.44 per cent and net interest margin narrows to 2.73 per cent amid higher cost of funds

Credit growth to agriculture slows to 10.4% in March 2025: RBI data

The bank credit growth to the agriculture sector slowed to 10.4 per cent year-on-year for the fortnight ended March 21, while advances to the industry remained flat at 8 per cent, as per the RBI data released on Wednesday. The Reserve Bank of India (RBI) has released the data on sectoral deployment of bank credit collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all banks taken together. Credit to agriculture and allied activities registered a growth of 10.4 per cent (y-o-y) as of the fortnight ended March 21, 2025, against 20 per cent in the corresponding fortnight of the previous year. "Credit to industry expanded by 8.0 per cent (y-o-y) as on the fortnight ended March 21, 2025, same as in the corresponding fortnight of the previous year," the RBI said. Among major industries, outstanding credit to 'petroleum, coal products and nuclear fuels', 'basic metal and metal products', 'all engineering' and 'construction'

Indian banks outperform global peers in digital transition, daily services

Indian banks have introduced features like real-time and future-dated payments, app-based banking through messengers, and virtual card issuance for online transactions, outpacing global peers

RBI direct banks to switch to '.bank.in' domain by Oct to boost security

The Reserve Bank on Tuesday directed banks to start migration of their existing domains to the '.bank.in' domain and complete the process by October 31 this year, aimed at combating increasing instances of fraud in digital payments. In the wake of fraud in digital payments, the Reserve Bank of India (RBI) has decided to introduce the 'bank.in' exclusive internet domain for Indian banks. The initiative aims to reduce cybersecurity threats and malicious activities like phishing; and, streamline secure financial services, thereby enhancing trust in digital banking and payment services. "It has now been decided to operationalise the '.bank.in' domain for banks through the Institute for Development and Research in Banking Technology (IDRBT), which has been authorised by National Internet Exchange of India (NIXI), under the aegis of the Ministry of Electronics and Information Technology (MeitY), to serve as the exclusive registrar for this domain," it said in a statement. Banks may conta

FinMin to implement 'one state, one RRB' soon to improve efficiency

The finance ministry will soon implement the 'One State-One RRB' plan to achieve operational efficiency and cost rationalisation and consolidation of 43 regional rural banks (RRBs) to 28. Most of the work related to the issue of consolidation have been completed and the fourth round would happen soon, according to sources. As per the roadmap prepared by the finance ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, sources said, the issue related with bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank have concluded. As a precursor to consolidation, the capital infusion was done in these RRBs. The financial yea

Women hold 39.2% of bank accounts in India, 42.2% in rural areas: Mospi

Women own 39.2 per cent of bank accounts in the country and the proportion is even higher at 42.2 per cent in rural areas, according to a government report. The Statistics and Programme Implementation Ministry (MoSPI) released the 26th edition of its publication titled Women and Men in India 2024: Selected Indicators and Data on Sunday. The publication offers a comprehensive overview of the gender landscape in India, presenting selected indicators and data across key areas like population, education, health, economic participation, and decision-making, all sourced from various Ministries/ Departments/Organizations. A MOSPI statement said that the report highlights that women own 39.2 per cent of all bank accounts and contribute to 39.7 per cent of total deposits. Their participation is the highest in rural areas, where they make up 42.2 per cent of account holders. It stated that there is a rise in DEMAT accounts over the years, indicating growing participation in the stock market

BJP's loan write-offs hurting banking sector, economy, claims Rahul Gandhi

Leader of Opposition Rahul Gandhi highlighted the impact on junior banking employees, stating that they bear the consequences through workplace stress and toxic conditions

Indian banks' loan growth slows for 8th straight month in Feb: RBI data

The data showed that banks' credit increased by 12 per cent year-on-year last month, slower than the 16.6 per cent rise a year earlier

IndusInd Bank appoints independent firm to probe accounting discrepancies

The independent firm, which the bank did not name, will identify the root cause of the discrepancies, assess the correctness of the accounting treatment of the derivative contracts

Credit-deposit growth gap likely to dip sharply in FY26: India Ratings

Rating agency says this would be in wake of sharp moderation in incremental LDR in February

Bank unions to hold nationwide strike on March 24, 25 after talks fail

The United Forum of Bank Unions (UFBU) on Thursday said its two-day nationwide strike on March 24 and 25 will be observed as scheduled since discussions with the Indian Banks' Association (IBA) over key demands failed to yield any positive outcome. In a meeting with the IBA, all UFBU constituents raised issues, including recruitment in all cadres and a five-day workweek. Still, the key issues remained unresolved, National Confederation of Bank Employees (NCBE) General Secretary L Chandrasekhar said. The UFBU, an umbrella body of nine bank employees' associations, earlier announced the strike to press for these demands which included filling up the workmen and officer director posts in public sector banks. The unions have also sought the withdrawal of recent directives from the Department of Financial Services (DFS) regarding performance reviews and performance-linked incentives, alleging that such measures threaten job security and create employees. The UFBU has further opposed wha

Kotak Mahindra Bank Q3 results: Consolidated net up 10% at Rs 4,701 crore

Net interest income grew by 10 per cent Y-o-Y to Rs 7,196 crore, while fees and services for Q3FY25 also grew 10 per cent to 2,362 crore

Flat benchmark yields to weigh on banks' treasury gains in Q3FY25

While a softening of yields was observed on expectations of a rate cut, yields climbed again, tracking the rise in US Treasury yields

Bank of Baroda to UCO Bank: Loan growth of banks picks up pace in Q3

Meanwhile, Yes Bank reported a marginal contraction in deposits during the October-December period (Q3FY25) over the previous quarter