Banking & Finance Digest November 09, 2026
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1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI constitutes Technical Consultative Committee for financial markets
The Reserve Bank of India (“RBI”) has constituted the Technical Consultative Committee for Financial Markets (“TCCFM”) to facilitate structured engagement with market participants and stakeholders on policy and operational issues relating to money, government securities, foreign exchange and derivative markets. Chaired by the Deputy Governor in charge of the Financial Markets Regulation Department, the committee comprises representatives from academia, banks, market infrastructure institutions and industry bodies, including Ananth Narayan, Shamsher Singh, Neeraj Gambhir, Shailendra Jhingan, Aditya Bagree, Nand Kishore and Ridham Desai. The TCCFM will advise on market development, infrastructure, regulatory and operational issues, emerging risks and financial market innovations, and will meet at least once every quarter.
1.1.2. RBI amends FEMA Export and Import Regulations for low-value service transactions
RBI has issued the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026 under the Foreign Exchange Management Act, 1999 (“FEMA”), effective from 1 October 2026. The amendment simplifies compliance requirements for service exports and imports by introducing deemed submission of the Export Declaration Form (EDF) in specified cases. For service exporters, EDF submission will be deemed completed upon providing payment-related information to the Authorised Dealer (AD) bank, while non-individual exporters will be eligible for the relaxation where inward remittances do not exceed INR 10 lakh (Indian Rupees Ten Lakh only) or its foreign currency equivalent. Corresponding changes have also been made to service import reporting requirements under the Import Data Processing and Monitoring System (IDPMS), limiting reporting obligations to non-individual importers where the invoice or contract value exceeds INR 10 lakh (Indian Rupees Ten Lakh only) or its foreign currency equivalent.
1.1.3. RBI issues Consolidated Master Directions on cyber resilience for Non-Bank Payment System Operators
RBI has issued the Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators ("PSOs"), consolidating existing cyber security and system audit requirements into a single framework. The Directions prescribe comprehensive governance, cyber risk management, information security, digital payment security and system audit requirements for authorised non-bank PSOs, including Payment Aggregators, Prepaid Payment Instrument (PPI) issuers, White Label ATM Operators (WLAOs) and card payment networks. Key measures include Board-level oversight of cyber security, mandatory Cyber Crisis Management Plans, Security Operations Centres (SOCs), multi-factor authentication, vendor risk management, data protection controls, annual system audits, and cyber incident reporting to RBI within six hours of detection. The Directions also introduce enhanced security requirements for Application Programming Interfaces (APIs), mobile payments, card payments and third-party ATM Switch Application Service Providers (ASPs). The framework takes immediate effect for large and medium non-bank PSOs, while small non-bank PSOs must comply from 1 April 2028.
1.1.4. RBI releases Draft Directions on Priority Sector Lending Framework
RBI has released draft Directions proposing the consolidation of existing guidelines relating to Priority Sector Lending ("PSL") across various categories of regulated entities. As part of its ongoing regulatory rationalisation exercise, RBI has published separate draft Directions covering Commercial Banks, Small Finance Banks (SFBs), Local Area Banks, Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs). RBI has invited public comments on the proposed framework until 26 November 2026, following which the consolidated Directions are expected to replace the existing instructions presently governing PSL targets and classification.
Securities and Exchange Board of India (SEBI)
1.1.5. SEBI prescribes framework for issuance of depository receipts on REIT units
The Securities and Exchange Board of India (“SEBI”), through a circular dated November 2, 2026, has prescribed a framework for the issuance of depository receipts (“DRs”) on units of Real Estate Investment Trusts (“REITs”). The framework sets out eligibility conditions, disclosure requirements, pricing norms, investor eligibility criteria and compliance obligations for REITs issuing or facilitating the issuance of DRs on international exchanges. Under the framework, DRs may be issued on REIT units listed on recognised international exchanges in permissible jurisdictions, subject to compliance with applicable securities, foreign exchange and anti-money laundering laws. The circular came into force with immediate effect.
1.1.6. SEBI constitutes working group to review IGP framework
SEBI has constituted a working group to review the regulatory framework governing the Innovators Growth Platform (“IGP”), with a focus on improving capital market access for innovation-led enterprises, including businesses operating in deep-tech, biotechnology, semiconductor and space sectors. The working group will review listing eligibility requirements, investor participation norms, public issue and offer-for-sale requirements, pricing and disclosure obligations, and migration from the IGP to the main board. The group will also benchmark India's framework against international practices and recommend regulatory changes to facilitate access to capital markets for research-stage, pre revenue and technology-driven enterprises.
1.1.7. SEBI and DIBD sign MoU to expand access to securities market information in regional languages
SEBI has entered into a memorandum of understanding (“MoU”) with the Digital India BHASHINI Division (“DIBD”) to facilitate access to SEBI’s services and information in regional languages. The collaboration will enable SEBI to utilise BHASHINI’s language technology tools, including automatic speech recognition, text-to-speech, machine translation and optical character recognition. The collaboration will also support the enhancement of BHASHINI’s language models with securities market-related terminology to improve multilingual access to securities market information and services. The MoU came into effect on November 3, 2026.
International Financial Services Centres Authority (IFSCA)
1.1.8. IFSCA reviews SCC framework for trading on IIBX
The International Financial Services Centres Authority (“IFSCA”) has issued a circular reviewing the Special Category Client (SCC) framework applicable to trading on the India International Bullion Exchange (“IIBX”). The review forms part of IFSCA's ongoing efforts to enhance operational efficiency, improve market participation and strengthen the regulatory framework governing bullion trading within the International Financial Services Centre (“IFSC”). The revised framework seeks to facilitate a more streamlined participation mechanism for eligible market participants while supporting the continued development of the bullion ecosystem at IIBX.
1.1.9. IFSCA prescribes financial soundness criteria for Payment System Operators
The IFSCA has issued a circular prescribing financial soundness criteria applicable to existing Payment System Operators (PSOs) and applicants seeking authorisation to commence payment system operations within the IFSC. The framework aims to strengthen prudential oversight by establishing minimum financial eligibility and ongoing financial soundness requirements for regulated entities operating payment systems. The initiative forms part of IFSCA's broader efforts to promote a resilient, well-governed and stable payments ecosystem within the IFSC.
Miscellaneous
Ministry of Electronics and Information Technology
1.1.10. CERT-In warns of escalating AI-driven cyberattacks targeting BFSI entities
The Indian Computer Emergency Response Team (CERT-In), through Advisory No. CIAD-2026-0058 dated 4 November 2026, warned of an escalation in AI-driven cyberattacks targeting banking, financial services and insurance (BFSI) entities. The advisory identified the threat actor as "CRAFTY FALCON", which uses artificial intelligence and autonomous offensive security tools to identify vulnerabilities and execute attacks targeting payment and disbursement APIs.The attacks have reportedly affected non-banking financial companies (NBFCs), digital lending platforms, fintech entities, payment aggregators, payment service providers and cryptocurrency exchanges. CERT-In identified attack techniques including exploitation of cloud infrastructure, compromise of non-production environments, unauthorized API calls, manipulation of merchant settlement APIs and fraudulent fund transfers. BFSI entities have been advised to strengthen real-time transaction monitoring, cloud security, API authentication, access controls, incident response and continuous security monitoring.
Telecom Regulatory Authority of India (TRAI)
1.1.11. TRAI issues the Telecom Consumers Complaint Redressal (Fourth Amendment) Regulations, 2026
On 2 November 2026, the Telecom Regulatory Authority of India (TRAI) issued the Telecom Consumers Complaint Redressal (Fourth Amendment) Regulations, 2026, introducing changes to the consumer grievance redressal framework applicable to telecom service providers. The amended regulations apply to access service providers and to Internet Service Providers (ISPs) having more than 10,000 subscribers as on the last day of the preceding financial year, replacing the earlier turnover-based test for ISPs. The amendments enable consumers to register complaints, appeals and service requests through service providers' mobile applications, in addition to existing channels. Complaint Centre support must be available round the clock, with human assistance available for at least 16 hours daily and appropriate human oversight over technology-based solutions. The amendments also introduce dedicated assistance arrangements for persons with disabilities, accessibility requirements for service-provider applications and websites, and reduce the period for filing an appeal against complaint disposal from 30 days to 15 days. TRAI has additionally introduced regulatory reviews and financial disincentives for specified non-compliance, including delayed submission of quarterly performance reports.
1.1.12. TRAI releases the Telecom Commercial Communications Customer Preference (Fourth Amendment) Regulations, 2026
On 4 November 2026, TRAI released the Telecom Commercial Communications Customer Preference (Fourth Amendment) Regulations, 2026, amending the regulatory framework governing commercial communications and customer preferences. The amendment forms part of TRAI's continuing regulatory framework under the Telecom Commercial Communications Customer Preference Regulations, 2018. It provides that regulation 35A, inserted by the Telecom Commercial Communications Customer Preference (Third Amendment) Regulations, 2026, will come into force on a date that TRAI will appoint by notification in the Official Gazette. The Fourth Amendment itself comes into force on its publication in the Official Gazette.
The Insurance Regulatory and Development Authority of India (IRDAI)
1.1.13. IRDAI issues exposure draft on Subsidiary Instructions and Consultative Committees Regulations, 2026
The Insurance Regulatory and Development Authority of India (“IRDAI”) has issued an exposure draft of the IRDAI (Subsidiary Instructions and Consultative Committees) Regulations, 2026, pursuant to the framework introduced under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The proposed Regulations seek to establish a structured framework for issuing subsidiary instructions under Sections 114B and 114C of the Insurance Act, 1938, and for constituting Consultative Committees. The draft provides for the scope and issuance of subsidiary instructions to clarify ambiguities in regulations and prescribe ancillary procedural requirements, constitution and functioning of Consultative Committees, periodic review and amendment of subsidiary instructions, and issuance of urgent subsidiary instructions where prior consultation is not practicable, subject to recording reasons. It also identifies the subject areas for which Consultative Committees are to be constituted, including policyholder protection, sectoral development, market conduct, financial stability, insurance distribution and reinsurance. IRDAI has invited comments and suggestions from stakeholders on the exposure draft, to be submitted in the prescribed format to the designated officials on or before 23 November 2026.
1.1.14. IRDAI issues Master Circular on Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers, 2026
The IRDAI has issued clarifications and prescribed application formats under the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024, as amended in 2026. The Master Circular specifies the procedures and documentation requirements for applications relating to issuance of No-Objection Certificates, registration of insurers, transfer of shares and amalgamation or transfer of insurance business. It also clarifies requirements concerning employee stock options, including prior approval for exercise of options by key managerial personnel or directors beyond the prescribed threshold, and requires insurers proposing to list their equity shares to furnish details of the proposed initial public offering and shareholding pattern. Further, insurers issuing other forms of capital are required to submit prescribed details to IRDAI within 15 days of allotment, while transferee insurers are required to submit specified post-implementation documents within 30 days of implementation of an amalgamation or transfer scheme.
2. Key Asian Markets – Bangladesh & Indonesia
2.1. Bangladesh
2.1.1. BB issues guidelines for issuance, conversion and redemption of preference shares in favour of non-resident investors
Bangladesh Bank (“BB”) has issued instructions on the issuance, conversion, and redemption of preference shares by resident companies to non-resident investors, and on the repatriation of dividends and redemption proceeds. Resident manufacturing or services companies may issue preference shares to non-residents subject to the Companies Act 1994, Bangladesh Securities and Exchange Commission (BSEC) rules, and their Memorandum and Articles of Association against foreign currency remitted through official banking channels. No prior BB approval is needed if the dividend rate is less than or equal to 5 per cent (five per cent) of face value. Higher, participating, or adjustable rates require prior Foreign Exchange Investment Department (“FEID”) approval via the nominated Authorised Dealer (“AD”) bank, with justification. Shares must be issued at par. Conversion into ordinary shares requires fair-value determination on 8 March, 2026. AD banks must report issuance to FEID within 14 days. Nominated AD banks may remit dividends, and redemption proceeds without prior approval with a post-facto report to FEID within 30 days of each instalment. Fully convertible and irredeemable preference shares are treated as equity capital.
2.1.2. BB permits foreign currency custodial account facilities for licensed money changers
BB has permitted AD banks to provide foreign currency custodial account facilities to licensed money changers to enhance cash management, mitigate transit risks and facilitate the secure movement of physical foreign currency. These accounts are solely for the safe custody, deposit and withdrawal of physical foreign currency notes and are not interest-bearing. Deposits may exceed prescribed ceilings where supported by documented business turnover and transaction profiles. Surplus currency may be deposited during banking hours and withdrawn the next business morning, subject to available balances. Money changers must maintain valid Cash-in-Transit (“CIT”) insurance. Movements above AD bank limits must use licensed CIT services or escorted transport. AD banks may offer cheque or withdrawal-slip facilities to authorised representatives after verifying and recording their signatures, photographs and credentials. Withdrawals are limited to available balances; overdrafts and credit facilities are prohibited.
2.2. Indonesia
2.2.1. Indonesia revises Export Proceeds Framework to encourage conversion into Rupiah
The Government of Indonesia is preparing amendments to the Domestic Foreign Exchange Earnings from Natural Resource Exports ("DHE SDA") framework to encourage exporters to convert a larger portion of their United States dollar export proceeds into Indonesian rupiah. The proposed changes are intended to strengthen domestic financial markets by increasing the flow of foreign currency earnings into the local economy. The proposal builds on Government Regulation No. 21 of 2026, which requires non-oil and gas exporters to retain 100 per cent (one hundred per cent) of their DHE SDA in designated domestic accounts for at least 12 months, while oil and gas exporters must maintain 30 per cent (thirty per cent) of export proceeds domestically for a minimum of three months.
2.2.2. BI reports trade surplus of USD 3.36 billion in September 2026
Bank Indonesia ("BI") reported that Indonesia recorded a trade surplus of USD 3.36 billion (United States Dollars Three Billion Three Hundred Sixty Million only) in September 2026, following a surplus of USD 3.55 billion (United States Dollars Three Billion Five Hundred Fifty Million only) in August 2026. The surplus was driven by a robust non-oil and gas trade surplus of USD 5.67 billion (United States Dollars Five Billion Six Hundred Seventy Million only), supported by higher exports of commodities and manufactured goods, particularly to China, the United States and India. The oil and gas trade deficit also narrowed to USD 2.32 billion (United States Dollars Two Billion Three Hundred Twenty Million only). Indonesia's cumulative trade surplus for January-September 2026 reached USD 10.61 billion (United States Dollars Ten Billion Six Hundred Ten Million only).
3. Trends
3.1. NBFCs face potential Rural Credit Stress amid weak monsoon and declining farm incomes
NBFC are monitoring potential deterioration in asset quality in rural lending portfolios following deficient monsoon rainfall and concerns over agricultural incomes. According to an assessment reported by The Financial Express, the southwest monsoon ended at approximately 87% of the long-period average, with drought conditions reported in parts of Maharashtra, Karnataka and Telangana. The developments have raised concerns regarding borrowers’ repayment capacity, particularly in regions where lending is concentrated in agriculture-linked activities, vehicle finance, personal loans and microfinance.
4. Business Updates
4.1. SBI identifies potential agricultural loan pool of INR 10,000 crore for restructuring across three drought-hit states
State Bank of India (“SBI”) has identified a potential agricultural loan portfolio of INR 10,000 crore (Indian Rupees Ten Thousand Crore only) across three drought-hit states for restructuring, following the resolutions passed by the respective State Level Bankers’ Committees ("SLBCs") to extend relief to affected borrowers. However, the actual uptake is expected to remain limited, as restructuring would depend on farmers opting for the facility and providing their consent. SBI Chairman C.S. Setty noted that the bank’s experience indicated that relatively few borrowers availed of such relief. SBI’s agricultural advances stood at INR 4,51,438 crore (Indian Rupees Four Lakh Fifty-One Thousand Four Hundred and Thirty-Eight Crore only) as of September 2026, registering a growth of 22.64 per cent (twenty-two point six four per cent) year-on-year.
4.2. MobiKwik reports record quarterly profit of INR 11.8 crore in Q2 FY27; shares rise nearly 10 per cent
One MobiKwik Systems Limited (“MobiKwik”) reported a consolidated net profit of INR 11.8 crore (Indian Rupees Eleven Crore and Eighty Lakh only) in Q2 FY27, compared to a net loss of INR 28.6 crore (Indian Rupees Twenty-Eight Crore and Sixty Lakh only) in the corresponding quarter of the previous financial year. The profit increased by over 55 per cent (fifty-five per cent) sequentially from INR 7.6 crore (Indian Rupees Seven Crore and Sixty Lakh only) in Q1 FY27, while revenue from operations increased by 9 per cent (nine per cent) year-on-year to INR 1,082.6 crore (Indian Rupees One Thousand and Eighty-Two Crore and Sixty Lakh only). Its gross merchandise value increased by 35 per cent (thirty-five per cent) year-on-year to INR 59,677 crore (Indian Rupees Fifty-Nine Thousand Six Hundred and Seventy-Seven Crore only), while lending disbursements increased by 34 per cent (thirty-four per cent) to INR 1,083 crore (Indian Rupees One Thousand and Eighty-Three Crore only). Following the announcement, MobiKwik’s shares rose nearly 10 per cent on the National Stock Exchange (NSE) to INR 234.99 per share.
4.3. Razorpay receives SEBI approval for proposed INR 5,000–6,000 crore IPO
Digital payments company Razorpay has received approval from the SEBI for its proposed initial public offering (“IPO”) of INR 5,000–6,000 crore (Indian Rupees Five Thousand to Six Thousand Crore only). The Bengaluru-based fintech company is working towards a stock market listing in the January–March quarter of 2027, although the final timeline will depend on prevailing market conditions and investor demand.
5. Sector Overview
5.1. Banks work towards coordinated response to rising cybersecurity risks
The Indian Banks’ Association (“IBA”) is working on a structured mechanism for sharing information on cyber incidents and an industry-level sandbox to test advanced artificial intelligence (“AI”) models in a regulated environment, as part of efforts to strengthen the banking sector’s response to rising cybersecurity risks. State Bank of India Chairman C.S. Setty stated that the proposed information-sharing mechanism would enable banks and financial institutions to alert one another promptly about cyber incidents and take preventive measures. He further indicated that the IBA was developing a framework to address AI-related cybersecurity concerns and that the proposed sandbox would facilitate testing of advanced AI models in a controlled environment, ensuring regulatory compliance and safe adoption. The initiatives are being pursued through coordinated efforts involving government bodies, public sector institutions and private entities to strengthen confidence in digital operations.
5.2. NBFC bond fundraising declines 19 per cent in October amid rising yields and borrowing costs
Non-banking financial companies (“NBFCs”) raised INR 24,457 crore (Indian Rupees Twenty-Four Thousand Four Hundred and Fifty-Seven Crore only) through private placements of corporate bonds in October 2026, registering a decline of 19 per cent (nineteen per cent) from INR 30,034 crore (Indian Rupees Thirty Thousand and Thirty-Four Crore only) in September 2026. Bajaj Finance, Poonawalla Fincorp, Sundaram Finance, Muthoot Capital Services and Jio Credit were among the major borrowers during the month. Overall corporate bond fundraising through private placements declined by nearly 37 per cent (thirty-seven per cent) month-on-month to INR 80,500 crore (Indian Rupees Eighty Thousand Five Hundred Crore only), although it remained 19 per cent (nineteen per cent) higher year-on-year. The decline was attributed to rising bond yields, tighter banking system liquidity and expectations of further monetary tightening, which increased borrowing costs. The yield on the 10-year benchmark government bond rose to 7.4983 per cent (seven point four nine eight three per cent), its highest level since October 2022, while yields on three-year, five-year and 10-year National Bank for Agriculture and Rural Development bonds also increased during October.
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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