INDIAN BANKING RADAR (IBR) - BANKING & ECONOMY INTELLIGENCE DAILY

PLATINUM SERIES 2.0 | VOL. 228

THURSDAY, 12 NOVEMBER 2026

TARGET READERS: Bankers • Cooperative Bank Professionals • IBPS • SBI • RBI • NABARD • UPSC • Other Competitive Examinations

1. TOP BANKING & ECONOMY DEVELOPMENTS

1. RBI Issues Domestic Money Transfer Directions, 2026

The Reserve Bank of India issued the RBI (Domestic Money Transfer) Directions, 2026 on 11 November 2026, consolidating the regulatory framework for domestic money transfers.

Key provisions:

- Effective immediately from 11 November 2026.

- Applicable to Scheduled Commercial Banks, including RRBs, UCBs, State Cooperative Banks, DCCBs and authorised payment system operators and participants.

- Card-to-card transfers are excluded.

- Maximum cash pay-out per transaction: ₹10,000.

- Monthly cash pay-out limit per beneficiary: ₹25,000.

- Walk-in cash remittance through a bank branch using NEFT: ₹50,000.

- Cash pay-in through BCs, ATMs and other permitted channels: ₹5,000 per transaction, subject to a monthly limit of ₹25,000 per remitter.

- Remitter registration requires a verified mobile number and self-certified Officially Valid Document (OVD).

- Additional Factor of Authentication (AFA) is mandatory for every transaction.

Operational safeguards:

- Transaction velocity checks and monitoring.

- Customer credit alerts.

- Investigation of unusual credit patterns.

- Reporting of suspicious transactions to appropriate authorities.

- Inter-bank settlement through RBI-approved payment systems.

The Directions are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007. They supersede the relevant 2011 and 2024 instructions.

Exam Focus: DMT, cash pay-in, cash pay-out, AFA and Payment and Settlement Systems Act, 2007.

2. Union Cabinet Extends Mudra Credit Guarantee Fund Until 2031

The Union Cabinet approved continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for five years up to 31 March 2031.

Key highlights:

- Approved corpus: ₹5,000 crore.

- Expected to facilitate PMMY loans of ₹12.6 lakh crore over five years.

- Annual guarantee fee for applicable PMMY loans reduced from 1% to 0.75%.

- Guarantee support covers eligible PMMY loans up to ₹20 lakh.

- Specified PMJDY overdrafts and eligible Self-Help Group loans are also covered.

As of September 2026, more than 60.36 crore Mudra loans amounting to ₹43.34 lakh crore had been sanctioned since the launch of PMMY.

Significance: Strengthening collateral-free credit, micro-enterprise development and financial inclusion.

3. Stand-Up India Scheme Extended Until March 2031

The Union Cabinet approved continuation of the Stand-Up India Scheme for five years up to 31 March 2031.

Key features:

- Credit guarantee corpus: ₹4,111 crore.

- Target: At least 2.5 lakh additional entrepreneurs.

- Beneficiaries: Women and Scheduled Caste/Scheduled Tribe entrepreneurs.

- Eligible loans: Above ₹10 lakh and up to ₹1 crore.

- Loan assistance: Up to 85% of project cost.

- Credit guarantee coverage: 85% of the loan amount.

- Eligible activities include manufacturing, services, trading and agriculture-allied activities.

Significance: Promoting greenfield enterprises, entrepreneurship and inclusive economic growth.

4. Government Approves ₹62,370 Crore Fertiliser Subsidy for Rabi 2026–27

The Union Cabinet approved the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi 2026–27 season.

- Estimated subsidy outlay: ₹62,370.02 crore.

- Previous Rabi season outlay: ₹37,952.29 crore.

- Increase: Approximately 64%.

- Applicable period: 1 October 2026 to 31 March 2027.

- Covers 28 grades of P&K fertilisers, including DAP and NPKS grades.

Significance: Ensuring affordable fertiliser availability, supporting agricultural production and reducing the input-cost burden on farmers.

5. Moody's Raises India's FY2026–27 GDP Growth Forecast to 7%

Moody's Ratings revised India's economic growth projection for FY2026–27 from 6.5% to 7%.

Major growth drivers include:

- Resilient domestic consumption.

- Improving investment activity.

- Manufacturing and capital expenditure.

- Strong services-sector activity.

Inflation, energy prices and geopolitical developments remain potential risks.

6. India's Net Direct Tax Collections Grow 11.8%

Net direct tax collections increased by approximately 11.8% year-on-year during 1 April–10 November 2026.

Key figures:

- Net direct tax collections: ₹14.41 lakh crore.

- Gross direct tax collections: ₹17.50 lakh crore.

- Gross collection growth: 14%.

- Refunds issued: Approximately ₹3.08 lakh crore.

The increase reflects improved tax mobilisation during the current financial year.

7. Life Insurance New Business Premium Grows 26%

Life insurance companies recorded strong growth in new business premium in October 2026.

- October 2026 premium: ₹42,914 crore.

- October 2025 premium: ₹34,007 crore.

- Growth: Approximately 26%.

- LIC premium: ₹25,316 crore, growth of 31%.

- Private insurers' premium: ₹17,599 crore, growth of approximately 20%.

Despite premium growth, the number of policies and schemes issued declined, indicating that premium growth should not be interpreted as equivalent growth in policy volumes.

2. RBI & FINANCIAL REGULATORY RADAR

8. RBI Releases FLA Census 2025–26

RBI released the provisional results of the Census on Foreign Liabilities and Assets (FLA) of Indian Direct Investment Entities on 6 November 2026.

Key findings:

- Approximately 97% of reporting entities with FDI and/or ODI were unlisted.

- USA was the largest source of outstanding FDI: 16.5%.

- Mauritius: 14.5%.

- Singapore: 13.7%.

- United Kingdom: 10.8%.

- Manufacturing accounted for 50.1% of outstanding FDI equity at market value.

- Services accounted for 45%.

- Inward FDI/ODI ratio moderated to 4.2 times from 5.5 times.

Exam Focus: FDI, ODI, foreign liabilities and external-sector statistics.

9. RBI Constitutes Technical Consultative Committee for Financial Markets

RBI constituted the Technical Consultative Committee for Financial Markets (TCCFM) on 4 November 2026.

The committee provides a structured consultation platform with market participants on:

- Money markets.

- Government securities markets.

- Foreign exchange markets.

- Derivatives markets.

- Financial market infrastructure.

The committee is chaired by the RBI Deputy Governor in charge of the Financial Markets Regulation Department and is expected to meet at least once every quarter.

Objective: Promote orderly functioning, efficiency and resilience of Indian financial markets.

10. RBI Releases Draft Priority Sector Lending Directions, 2026

On 5 November 2026, RBI released five separate draft PSL Directions for public comments.

The proposed directions cover:

1. Commercial Banks.

2. Small Finance Banks.

3. Local Area Banks.

4. Regional Rural Banks.

5. Urban Cooperative Banks.

Proposed PSL targets:

Bank category| Proposed target

Commercial Banks| 40%

Small Finance Banks| 60%

Local Area Banks| 40%

RRBs| 75%

UCBs| 60%

Last date for submission of comments: 26 November 2026.

These are draft proposals and must not be treated as final regulatory requirements.

11. Non-Food Bank Credit Growth Reaches 19.1%

RBI's September 2026 sectoral deployment of bank credit data reported:

- Non-food bank credit growth: 19.1%.

- Corresponding growth in September 2025: 11.2%.

- Agriculture and allied activities: 19.5%.

- Industry: 19.5%.

The data indicate stronger credit deployment across productive sectors.

12. Expected Credit Loss Framework Effective from April 2027

RBI's Expected Credit Loss (ECL) provisioning framework for applicable commercial banks will become effective from 1 April 2027.

Important features:

- Forward-looking provisioning based on expected credit losses.

- Three-stage classification framework.

- Effective Interest Rate (EIR) methodology.

- Recognition of expected credit losses at an earlier stage.

- Existing NPA classification norms retained.

Exam Focus: Difference between the incurred-loss approach and the expected-credit-loss approach.

13. RBI Advances Account Aggregator Interoperability

RBI announced measures to improve interoperability among NBFC-Account Aggregators and facilitate inclusion of bank deposit information in the Consolidated Account Statement (CAS).

The initiative aims to provide customers with a consolidated view of their financial holdings.

Expected implementation: 31 December 2026.

14. DGFT Prohibits Export of Lithium-Ion Battery Black Mass

The Directorate General of Foreign Trade (DGFT) prohibited the export of Lithium-Ion Battery Black Mass through Notification No. 49/2026-27 dated 10 November 2026.

- Relevant ITC(HS) code: 85491400.

- Export policy changed from Free to Prohibited.

- Effective immediately until further orders.

Objective: Encourage domestic recovery and recycling of valuable materials such as lithium, cobalt, nickel and manganese.

3. COOPERATIVE BANKING & RURAL FINANCE RADAR

15. NCDC Disburses ₹10,005 Crore to 56 Cooperative Sugar Mills

According to a report by Indian Cooperative, the National Cooperative Development Corporation (NCDC) has provided financial assistance of ₹10,005 crore to 56 cooperative sugar mills under the scheme for strengthening cooperative sugar mills.

Purpose| Financial assistance

Ethanol plants| ₹251.40 crore

Cogeneration projects| ₹97.12 crore

Working capital| ₹9,656.90 crore

Total| ₹10,005 crore

Key developments:

- Central Government provided a ₹1,000 crore grant to NCDC.

- 56 cooperative sugar mills benefited.

- Ethanol project financing pattern: 90:10, subject to project viability.

- Multi-feedstock facilities can use maize and damaged food grains.

- Bagasse-based cogeneration supports electricity generation and surplus power sales.

- 102 of the country's 312 cooperative sugar mills were reported as non-functional.

Significance: Cooperative-sector revival, ethanol production, rural industrialisation, agricultural value addition and timely payments to sugarcane farmers.

16. RBI Extends Board Supersession of Abhyudaya Cooperative Bank

RBI extended the supersession of the Board of Directors of Abhyudaya Co-operative Bank Ltd., Mumbai, for another year with effect from 24 November 2026.

- Shri Satya Prakash Pathak will continue as Administrator.

- The existing Committee of Advisors will continue to assist the Administrator.

17. RBI Extends Directions on Three Urban Cooperative Banks

RBI extended regulatory directions applicable to:

- Urban Co-operative Bank Ltd., Dehradun – up to 10 February 2027.

- The Pusad Urban Co-operative Bank Ltd., Maharashtra – up to 7 February 2027.

- Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru – up to 10 May 2027.

Such extensions are subject to RBI's regulatory review and should not be interpreted as confirmation of the banks' financial soundness.

18. Cooperative Banking: Key Areas Requiring Attention

Cooperative banks should strengthen:

- Board governance and accountability.

- Internal controls, audit and compliance.

- Cybersecurity and digital payment security.

- NPA recovery and credit monitoring.

- KYC and AML-CFT compliance.

- Priority sector lending.

- Business continuity and technology resilience.

4. BANKING SECTOR PERFORMANCE

19. Public Sector Banks Record ₹53,771 Crore Net Profit in Q2 FY27

Twelve listed public sector banks recorded combined net profits of ₹53,771 crore during Q2 FY2026–27.

- Year-on-year net profit growth: 17%.

- Net Interest Income (NII): ₹1.26 lakh crore.

- NII growth: 16% year-on-year.

- Advances growth: 18.8%.

- Net NPAs: ₹44,092 crore, down 13.3% year-on-year.

The performance reflects improved profitability, credit growth and asset quality.

5. QUICK REVISION CAPSULE

1. RBI Domestic Money Transfer Directions issued – 11 November 2026.

2. Maximum cash pay-out per DMT transaction – ₹10,000.

3. Monthly cash pay-out ceiling per beneficiary – ₹25,000.

4. Walk-in branch cash remittance through NEFT – ₹50,000.

5. Cash pay-in through BCs/ATMs per transaction – ₹5,000.

6. DMT authentication requirement – AFA.

7. CGFMU corpus – ₹5,000 crore.

8. Stand-Up India credit guarantee corpus – ₹4,111 crore.

9. Mudra and Stand-Up India extensions – 31 March 2031.

10. Rabi 2026–27 P&K fertiliser subsidy – ₹62,370.02 crore.

11. NCDC assistance to cooperative sugar mills – ₹10,005 crore.

12. Number of sugar mills assisted – 56.

13. Ethanol project financing pattern – 90:10.

14. Moody's FY27 India GDP forecast – 7%.

15. Net direct tax collections – ₹14.41 lakh crore.

16. October life insurance new business premium – ₹42,914 crore.

17. FLA Census released by – RBI.

18. Largest source of outstanding FDI – USA.

19. USA's share in outstanding FDI – 16.5%.

20. Manufacturing share in outstanding FDI equity – 50.1%.

21. TCCFM relates to – Financial Markets.

22. Non-food bank credit growth in September 2026 – 19.1%.

23. Draft PSL Directions feedback deadline – 26 November 2026.

24. ECL framework effective from – 1 April 2027.

25. Account Aggregator implementation deadline – 31 December 2026.

26. Lithium-Ion Battery Black Mass export policy – Prohibited.

6. KNOWLEDGE CHECK – 5 MCQs

Q1. Under RBI's Domestic Money Transfer Directions, 2026, what is the maximum cash pay-out permitted per transaction:

A. ₹5,000

B. ₹10,000

C. ₹15,000

D. ₹20,000

E. ₹25,000

Q2. What is the approved corpus of the Credit Guarantee Fund for Micro Units (CGFMU):

A. ₹2,500 crore

B. ₹3,000 crore

C. ₹4,111 crore

D. ₹5,000 crore

E. ₹10,000 crore

Q3. Which organisation has reportedly disbursed ₹10,005 crore to 56 cooperative sugar mills:

A. NABARD

B. SIDBI

C. NCDC

D. NHB

E. EXIM Bank

Q4. What is the estimated P&K fertiliser subsidy outlay approved for Rabi 2026–27:

A. ₹37,952 crore

B. ₹45,000 crore

C. ₹50,000 crore

D. ₹55,000 crore

E. ₹62,370 crore

Q5. What is the last date for submission of comments on RBI's draft Priority Sector Lending Directions, 2026:

A. 10 November 2026

B. 20 November 2026

C. 26 November 2026

D. 30 November 2026

E. 15 December 2026

ANSWER KEY

Q1.B

Q2.D

Q3.C

Q4.E

Q5.C

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Disclaimer: This bulletin is intended for educational and informational purposes. Draft regulatory proposals are clearly identified as proposals. Readers should refer to original RBI, SEBI, Government and other regulatory notifications for authoritative details.