29 April 2026
Bankopedia Banking Digest — 2026-04-29 #35
- #1economic_timespositive
SEBI Proposes FPI Tax Representative Workaround
SEBI has proposed that foreign portfolio investors (FPIs) be allowed to appoint 'authorised signatories' rather than 'authorised representatives' under the new income tax rule, reducing personal liability exposure for professionals. The alternative is designed to unblock FPI registration and renewal processes stalled by reluctance among chartered accountants, lawyers and fund employees to assume representative tax obligations.
SEBI's 'authorised signatory' proposal offers FPIs a lower-liability workaround to India's onerous new tax representative rule.
capital_marketsregulationforex - #2economic_timesnegative
IndusInd Bank Recovery Agent Assault Draws RBI Scrutiny
The Reserve Bank of India has sought an explanation from IndusInd Bank after its recovery agents allegedly assaulted a borrower in Pune's Hadapsar area, with the incident going viral on social media. Pune police have arrested three agents on charges of extortion, assault and criminal intimidation, while a separate case was registered against the borrower.
RBI demands explanation from IndusInd Bank over recovery agents' viral assault on a borrower in Pune.
npa_resolutionbanking_supervision - #3economic_timespositive
AI Collections Tools Counter Heatwave Lending Risks
Indian lenders are accelerating adoption of artificial intelligence-led collections tools to offset disruption from seasonal heatwaves, which weigh on field operations in cash-dependent segments such as microfinance and gold loans. Last year's heatwave caused collection efficiency to fall 50–200 basis points in the second quarter, and a similar dip of around 2 percentage points is anticipated this year.
Lenders expect heatwave-driven collection efficiency to dip ~2 percentage points, prompting rapid AI adoption.
fintechdigital_bankingcredit_markets - #4economic_timesneutral
Financial Inclusion Schemes Face Coverage Revision Review
The government is set to review its Financial Inclusion 2.0 road map this week, with proposals on the table to raise insurance cover under flagship Jan Suraksha schemes from ₹2 lakh to ₹5 lakh and double the Atal Pension Yojana guaranteed pension to ₹10,000 per month. The review will also assess claim settlement timelines and overall scheme progress.
Government may raise Jan Suraksha insurance cover to ₹5 lakh and double Atal Pension Yojana payout to ₹10,000 monthly.
financial_inclusioninsurance - #5moneycontrolnegative
Fino Payments Bank CEO Faces Fit-and-Proper Test
Fino Payments Bank's board met on April 29 to decide whether CEO Rishi Gupta, arrested in February for alleged GST evasion of up to ₹840 crore and currently on bail, can continue as managing director and chief executive. The RBI's 'fit and proper' criteria cast serious doubt over Gupta's tenure, with shareholders yet to ratify his reappointment.
Fino Payments Bank board decides CEO Gupta's fate after his arrest for alleged ₹840 crore GST evasion.
paymentsregulation - #6economic_timesneutral
EPFO Targets Firms Evading Social Security Coverage
India's Employees' Provident Fund Organisation (EPFO) plans a data-driven inspection scheme using GST and income-tax records to identify firms evading mandatory social-security registration. The initiative targets establishments that artificially keep headcount below 20 to dodge coverage, as formal workforce participation remains below 10% of 500 million workers.
EPFO will cross-reference GST and tax data to catch firms dodging mandatory provident-fund registration.
regulationfinancial_inclusion - #7reserve_bank_of_indianeutral
RBI Money Market Data Signals Liquidity Absorption
Reserve Bank of India's money market data for April 28, 2026 shows overnight segment volume at ₹7,18,025.58 crore with a weighted average rate of 5.05%. Net liquidity, including outstanding operations, reflects an absorption of ₹2,57,527.18 crore, signalling a tight systemic liquidity position.
RBI absorbed net liquidity of ₹2,57,527 crore on April 28, indicating tight banking system liquidity.
paymentsmonetary_policy - #8financial_expressneutral
Powell's Final FOMC Meeting Before Leadership Change
The US Federal Reserve is widely expected to hold its benchmark interest rate at 3.50%–3.75% at the April 28–29 FOMC meeting, with markets pricing in fewer than one cut through end-2027. The meeting is likely to be Fed Chair Jerome Powell's last press conference before he resigns in favour of Trump nominee Kevin Warsh.
Fed expected to hold rates at 3.50%–3.75%; Powell likely presides over his final FOMC press conference.
monetary_policyforex - #9economic_timespositive
Court Voids Insurance Time-Bar Clauses on Health Claims
The Bombay High Court has ruled that contractual time-bar clauses in health insurance policies are void under Section 28(b) of the Indian Contract Act, preventing insurers from rejecting legitimate claims solely on grounds of delayed filing. The judgment, arising from a rejected ₹1.13 lakh claim, is expected to force insurers to overhaul their standard claim-rejection practices.
Bombay High Court voids insurance policy time-bar clauses, barring insurers from rejecting delayed but valid claims.
insuranceregulation - #10financial_expressneutral
Amended IBC Empowers Creditor-Led Out-of-Court Restructuring
The Insolvency and Bankruptcy Code (Amendment) Act 2026 introduces a creditor-initiated insolvency resolution process (CIIRP) that allows lenders to restructure distressed companies without court intervention, while existing management continues to run the business. Draft CIIRP regulations prescribe a 150-day timeline, require at least 51% creditor approval by value, and cap dissenting creditors' payouts to curb holdout behaviour.
Amended IBC lets creditors restructure distressed firms outside court with 51% approval and a 150-day timeline.
regulationnpa_resolutioncorporate_finance