Page 10 - Banking Finance November 2025

RBI CORNER

especially startups and tech-driven RBI launches four digital innovations to boost UPI
companies.
ecosystem
Stakeholders have been invited to pro-
vide feedback by October 24, 2025. At the Global Fintech Festival 2025, the Reserve Bank of India (RBI) unveiled
The move is expected to reduce pro- four new digital initiatives under the Unified Payments Interface (UPI) plat-
cedural delays and align with India's form, aimed at enhancing speed, security, and accessibility of digital pay-
broader goal of improving ease of do- ments. These include IoT-based UPI Payments, Banking Connect, UPI Re-
ing business. serve Pay, and AI-powered UPI Help.
The IoT UPI Payments will enable users to make seamless transactions via
RBI grants SRO status to smart devices like connected cars and smart TVs for services such as fuel or
EV charging. Banking Connect enhances interoperability by allowing pay-
FIDC for NBFC sector regu- ment aggregators access to multiple banks through a single integration.

lation UPI Reserve Pay allows users to block credit limits or cards for recurring
The Reserve Bank of India (RBI) has purchases on e-commerce or cab apps, enabling smoother transactions. The
officially recognised the Finance Indus- AI-based UPI Help, powered by NPCI's Small Language Model (SLM), will
try Development Council (FIDC) as a support users with transaction tracking, complaint resolution, and mandate
self-regulatory organisation (SRO) for management.
the Non-Banking Financial Company Additionally, RBI introduced biometric authentication for UPI, allowing us-
(NBFC) sector. FIDC was among three ers to approve payments using fingerprint or face ID, eliminating the need
applicants for the role, but only its for PINs. The move is expected to deepen financial inclusion and increase
application met RBI's requirements UPI adoption across rural and urban India.
within the stipulated timeline.
RBI's move marks a major milestone generate synergies in corporate lend-
for the 21-year-old FIDC, which repre- RBL Bank eyes large-bank
ing and debt syndication. RBL will also
sents nearly 400 NBFCs, including in- status with $3 billion Emir-
frastructure, housing finance, and fac- tap into the cross-border payments
toring companies. FIDC CEO Raman ates NBD deal corridor between India and West Asia,
a high-growth segment in digital pay-
Aggarwal described the development RBL Bank aims to transition from a
as a "red-letter day" for the mid-sized to a large bank following the ments.
organisation and the industry. proposed $3 billion investment by UAE- Post-acquisition, RBL will become a
based Emirates NBD, which will ac- listed subsidiary of a foreign bank, and
As an SRO, FIDC will function as an
quire a 60% stake in the Indian lender. its capital adequacy ratio will rise to
extended arm of the regulator, help-
ing to promote discipline and compli- The strategic deal positions RBL Bank 40%, offering substantial headroom for
ance within the NBFC sector. It joins Sa- to strengthen its corporate banking, future lending and growth initiatives.
wealth management, and digital capa- The deal is subject to regulatory ap-
Dhan and MFIN, which serve
bilities while expanding into West Asian provals.
microfinance institutions, and FACE,
markets.
which serves fintechs, as RBI-
recognised SROs. "This provides us with an enormous RBI proposes broader
opportunity to scale into the league of
Aggarwal said the Council is now focus- powers, higher compensa-
ing on operationalising its role and ex- large banks," said R Subramaniakumar,
MD & CEO, RBL Bank. The bank plans tion in draft Ombudsman
panding membership. The RBI's recog-
to ramp up deposit mobilisation, ex- Scheme
nition is expected to bring more struc-
tured governance, industry-level dia- pand its physical footprint, and en- The Reserve Bank of India has re-
logue, and streamlined self-monitoring hance its retail and digital lending. leased the draft Ombudsman Scheme
mechanisms to the growing NBFC eco- Emirates NBD's strong wholesale bank- 2025, proposing a significant expansion
system. ing presence in India is expected to in both the powers and jurisdiction of

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