Banking

The Reserve Bank of India (RBI) has introduced a comprehensive revision of its liquidity management framework, signaling a more agile and market-responsive approach to monetary operations. The changes, aimed at improving alignment between liquidity conditions and policy objectives, emphasize flexibility, predictability, and transparency in managing short-term market fluctuations.

Union Bank of India and Central Bank of India have appointed new Managing Directors (MDs), marking a significant leadership transition within two of India’s major public sector banks. The appointments aim to strengthen governance, enhance operational efficiency, and support strategic growth initiatives. The new MDs bring extensive experience in banking, finance, and risk management, positioning both banks to navigate evolving market dynamics, regulatory requirements, and digital transformation efforts.

The Asian Development Bank (ADB) has projected India’s economy to expand by 6.5% in the fiscal year 2025-26, reflecting robust domestic demand, resilient investment activity, and structural reforms. Despite global headwinds such as slowing international trade and elevated commodity prices, India’s growth outlook remains strong due to government initiatives in infrastructure, manufacturing, and digital economy expansion. The ADB highlights that sustainable growth will depend on policy continuity, inflation management, and financial sector stability.

The Reserve Bank of India (RBI) has introduced measures to simplify and expedite the settlement of claims for deceased account holders, aiming to enhance efficiency, reduce procedural delays, and ensure timely access to funds by legal heirs. The new framework standardizes documentation requirements, clarifies bank responsibilities, and leverages digital solutions to minimize disputes. This initiative reinforces RBI’s commitment to consumer protection and operational transparency, while reducing administrative burdens for banks and heirs.

The Chairman of the State Bank of India (SBI) has underscored the crucial role of innovation and financial expertise in realizing the government’s vision of “Viksit Bharat” by 2047. Speaking at a high-level forum, he highlighted that India’s economic transformation hinges not only on capital and infrastructure but also on nurturing skilled financial talent capable of steering the country through a rapidly evolving global economy.

Bank of Baroda has officially migrated its online presence to the .bank.in domain, signaling a strategic move to enhance its digital security and brand credibility. This transition aligns with global best practices in banking cybersecurity, offering customers greater confidence in online transactions and communications. Analysts highlight that the move not only mitigates phishing and fraud risks but also underscores the bank’s commitment to modernizing its digital infrastructure.

The Reserve Bank of India (RBI) has finalized a significant land acquisition in Mumbai's Nariman Point area, purchasing a 4.2-acre plot from the Mumbai Metro Rail Corporation Ltd (MMRCL) for ₹3,472 crore. This strategic move aims to consolidate RBI's operations, currently spread across various rented premises, into a single, owned facility. The deal, registered on September 5, 2025, is among the largest institutional land transactions in Mumbai's recent history, with the land offering a buildable area of approximately 1.6 million square feet.

The Competition Commission of India (CCI) has granted approval to Sumitomo Mitsui Banking Corporation (SMBC) for acquiring a significant stake in Yes Bank, paving the way for deeper strategic collaboration between the two financial institutions. The acquisition strengthens Yes Bank’s capital base and aligns with its efforts to enhance financial stability and corporate governance. For SMBC, the investment provides a foothold in India’s expanding banking sector, complementing its global portfolio.

In a strategic move to capture festive demand, Bank of Baroda has announced a reduction in interest rates on car loans, making vehicle financing more accessible for prospective buyers. The cut aims to stimulate retail lending during a period traditionally marked by increased consumer spending on automobiles. By offering competitive rates, the bank seeks to strengthen its market share in the automotive loan segment while supporting customers in acquiring new vehicles at a lower cost of borrowing.

Former Reserve Bank of India (RBI) governor Urjit Patel has been appointed as an Executive Director at the International Monetary Fund (IMF), marking a significant development for India’s representation in the multilateral financial institution. Patel, an accomplished economist with extensive experience in monetary policy, fiscal management, and institutional reforms, is expected to play a pivotal role in shaping policy discussions at the global level.