1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI stresses compliance for FinTech and payment operators in the industry meet
The Reserve Bank of India (“RBI”) Governor Sanjay Malhotra, along with Deputy Governors, held an interactive session with non-bank Payment System Operators and Fintech firms, emphasising the need for regulatory compliance. While acknowledging its role in India’s financial growth, the RBI reinforced its commitment to responsible innovation and a consultative approach. Industry participants shared feedback on evolving trends, regulatory expectations, and the future of the payments and fintech ecosystem. RBI
1.1.2. RBI to inject INR 1 lakh crore via OMO & USD/INR swap to manage liquidity
RBI has announced liquidity infusion measures, including Open Market Operations (“OMO”) worth INR 1,00,000 Crore (Indian Rupee One Lakh Crore only) in two tranches on March 12, 2025 and 18, 2025, and a United States Dollar (“USD”) /INR Buy/Sell Swap auction of USD 10 Billion (United States Dollar Ten Billion only) on March 24, 2025. The RBI will continue monitoring market conditions and take necessary steps to maintain liquidity stability. RBI
National Payments Corporation of India (NPCI)
1.1.3. NPCI introduces numeric UPI ID mapper to enhance interoperability and reduce errors
The National Payments Corporation of India (“NPCI”) has issued a circular mandating banks and payment service providers to implement a numeric Unified Payments Interface (“UPI”) Identification (“ID”) mapper. This aims to improve interoperability and minimise errors caused by recycled or churned mobile numbers. Banks must update their databases weekly to ensure accurate records. Additionally, UPI apps must maintain clear, non-intrusive communication. Compliance with these directives is required by March 31, 2025. NPCI
Securities Exchange Board of India (SEBI)
1.1.4. SEBI extends the deadline for AIFs to report differential rights
The Securities and Exchange Board of India (“SEBI”) has extended the reporting deadline for Alternative Investment Funds (“AIFs”) regarding differential rights under amended AIF regulations. Initially set for February 28, 2025, the deadline is now March 31, 2025, following industry representations seeking more time. This applies to AIFs whose Private Placement Memorandums (PPMs) were filed on or after March 1, 2020, and issued rights not aligned with standard-setting forum norms. SEBI
1.1.5. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
Name of the Financial Institution | Penalty Imposed | Reasons |
INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention and non-compliance with directions issued by RBI on ‘KYC’. | |
INR 50,000/- (Indian Rupees Fifty Thousand only) | Contravention and non-compliance with directions issued by RBI on ‘Management of Advances – Urban Co-operative Banks (“UCBs”)’. | |
INR 2,00,000/- (Indian Rupees Two Lakh only) | Contravention and non-compliance with directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’, ‘Donations / Contributions for Public / Charitable Purposes out of Profits of UCBs’, and ‘KYC’. | |
INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention and non-compliance with directions issued by RBI on ‘Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016’ read with ‘Master Direction - RBI (NBFC-Scale Based Regulation) Directions, 2023’. | |
INR 10,00,000/- (Indian Rupees Ten Lakh only) | Contravention and non-compliance with certain provisions of the ‘Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by RBI. | |
INR 16,60,000/- (Indian Rupees Sixteen Lakh Sixty Thousand only) | Contravention and non-compliance with certain provisions of the ‘Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by RBI. | |
INR 40,00,000/- (Indian Rupees Forty Lakh only) | Contravention and non-compliance with certain provisions of the ‘Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by RBI. | |
INR 10,00,000/- (Indian Rupees Ten Lakh only) | Contravention and non-compliance with certain provisions of the ‘Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by RBI. |
1.2. Indonesia
1.2.1. Broad Money (M2) growth accelerates to 5.9 per cent in January 2025
Broad Money (M2) rose to Rp 9,232.8 trillion (Indonesian Rupiah Nine Quadrillion Two Hundred Thirty-Two Trillion Eight Hundred Billion only) in January 2025, with growth accelerating to 5.9 per cent (five point nine per cent) year-on-year from 4.8 per cent (four point eight per cent) in December 2024. The increase was driven by a 7.2 per cent (seven point two per cent) rise in narrow money (M1) and a 2.2 per cent (two point two per cent) uptick in quasi-money. Bank Indonesia
1.2.2. BI and RBA renewed the bilateral currency swap agreement
Bank Indonesia (“BI”) and the Reserve Bank of Australia (“RBA”) renewed their Bilateral Currency Swap Arrangement (BCSA) for five years, effective March 4, 2025. Signed by Governors Perry Warjiyo and Michele Bullock, the agreement allows currency exchanges of up to AUD 10 billion (Australian Dollars Ten Billion only) and the corresponding Rp. Bank Indonesia
1.3. Philippines
1.3.1. Bank lending in the Philippines rises in January 2025
BSP shows that loans by universal and commercial banks (U/KBs), net of Reverse Repurchase (RRP) placements, grew 12.8 per cent (twelve point eight per cent) year-on-year in January 2025, up from 12.2 per cent (twelve point two per cent) in December 2024. Loans to residents rose 13.3 per cent (thirteen point three per cent), while non-resident loans declined 3.5 per cent (three point five per cent). Bangko Sentral ng Pilipinas
1.3.2. Philippines domestic liquidity growth slows in January 2025
BSP indicates that domestic liquidity (M3) grew 6.8 per cent (six point eight per cent) year-on-year to PHP 18.1 trillion (Philippines Pesos Eighteen Trillion One Hundred Billion only) in January 2025, slowing from 7.7 per cent (seven point seven per cent) in December 2024. On a month-on-month basis, M3 declined 0.5 per cent (zero point five per cent). Bangko Sentral ng Pilipinas
2. Trends
2.1. India gears up for satellite internet rollout by June 2025
India is set to launch satellite internet services as early as June 2025, with the Telecom Regulatory Authority of India (TRAI) finalising its long-pending recommendations on spectrum allocation, pricing, and revenue-sharing models. Major players in this space include Reliance Jio, Bharti Airtel-OneWeb, and Elon Musk’s Starlink. Press Insider
2.2. PM Modi announces national LLM for AI research
Prime Minister Narendra Modi announced that India will develop a national Large Language Model (“LLM”) to boost Artificial Intelligence (“AI”) research and called for increased investment in the sector. Business Standard
2.3. Government is likely to release finalised DPDP Rules in next eight weeks
The Ministry of Electronics and Information Technology (“MeitY”) has closed the public consultation window for the draft Digital Personal Data Protection Rules, 2025 (“DPDP Rules”) after a two-month review period. While no further extensions were granted, the government is expected to finalise the rules within the next eight weeks, with no major changes anticipated. Inc42
3. Sector Overview
3.1. MeitY Unveils AI Kosha and Compute Portal to drive AI development
MeitY launched AI Kosha, a non-personal data platform, and the IndiaAI Compute Portal to enhance AI development in India. The move aims to accelerate AI innovation, strengthen India’s AI ecosystem, and position the country as a global AI leader. PIB
3.2. Govt to Launch UPI-powered digital lending for MSMEs
Finance Minister Smt. Nirmala Sitharaman is set to launch a UPI-powered digital lending facility for Micro, Small, and Medium Enterprises (“MSMEs”), enabling them to borrow based on digital transactions. A dedicated portal will onboard major PSU and private banks. This follows a pilot by SBI and Bank of Maharashtra. The Union Budget 2025 doubled the MSME credit guarantee to INR 10 crore (Indian Rupees Ten Crore only), unlocking INR 1.5 lakh crore (Indian Rupees One Lakh Fifty Thousand Crore only) in credit over five years. Additionally, 10 lakh (ten lakh) MSME credit cards with an INR 5 lakh (Indian Rupees Five Lakh only) limit will be issued in the first year. ZEE
3.3. IIFL Finance to raise USD 150 million via reissuance of dollar bonds
IIFL Finance plans to raise up to USD 150 million (United States Dollar One Hundred Fifty Million only) million by reissuing its 8.75 per cent (eight point seven five per cent) 2028-dollar bonds, with expected yields of 8.30 per cent to 8.40 per cent (eight point three zero per cent to eight point four zero per cent). The proceeds will be used for lending as the firm looks to expand post-RBI’s removal of restrictions on its gold loan business. Earlier in January, IIFL raised USD 325 million (United States Dollar Three Hundred Twenty-Five Million only) through similar notes. Reuters
4. Business Updates
4.1. Fintech acquires Mad Street Den to enhance AI capabilities
M2P Fintech has announced the acquisition of AI startup Mad Street Den (MSD) in a cash-and-stock deal worth USD 15 Million (United States Dollar Fifteen Million only). The deal, structured as an asset purchase, will see M2P integrate MSD’s AI-powered platform, Vue.ai, into its banking technology suite. Your Story
4.2. Paytm launches UPI trading blocks for seamless stock investments
Paytm UPI now supports UPI Trading Blocks, enabling auto-payment deductions directly from bank accounts for equity trading. Investors can block funds without transferring money to broker apps, ensuring security and liquidity. Business Standard
4.3. ED issues INR 611 crore notice to OCL
The Enforcement Directorate (“ED”) has issued INR 611 Crore (Indian Rupees Six Hundred Eleven Crore only) show cause notice to One97 Communications Ltd (“OCL”), Paytm’s parent company, and its subsidiaries for alleged violations under the Foreign Exchange Management Act (FEMA), 1999. The Hindu
4.4. India’s UPI set for a full rollout in Qatar
India’s UPI is set for a full-fledged rollout in Qatar, following its integration with Qatar National Bank’s (QNB) Point-Of-Sale (PoS) systems in July 2024. This fintech partnership aims to simplify transactions for 8,00,000+ (eight lakh) Indian residents in Qatar and strengthen India-Qatar digital payment collaboration. The move aligns with the RBI vision to expand UPI globally, enhancing cross-border payments and economic ties. Medianama
4.5. InsuranceDekho secures USD 70 million to expand tech and reach
InsuranceDekho has raised USD 70 million (United States Dollar Seventy Million only) from Beams Fintech, MUFG, and BNP Paribas Cardif, with funds managed by Eurazeo. The company plans to use the capital to expand its footprint and enhance its tech-driven offerings. Business Standard
4.6. Shriram Finance eyes USD 250 million offshore loans to fuel credit growth
Shriram Finance Ltd., India’s largest truck financier, is in talks to raise up to USD 250 million (United States Dollar Two Hundred Fifty Million only) via a three-year offshore loan, adding to its USD 2 billion (United States Dollar Two Billion only) borrowing this fiscal year. The move supports its 25 per cent (twenty-five per cent) credit growth target, driven by strong demand from Tier 2 and Tier 3 cities. Shriram’s loan book grew 19 per cent (nineteen per cent) Year-on-Year (YoY) to INR 2.5 trillion (Indian Rupees Two Trillion Five Hundred Billion only), with profits doubling in the December quarter. Business Standard
Disclaimer
The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.
For further queries or details, you may contact:
Mr Anuroop Omkar
Partner, AK & Partners
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