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

🔥 PLATINUM SERIES 2.0 | VOL. 218

📅 MONDAY, 2 NOVEMBER 2026

🎯 TARGET READERS

🏦 PSBs • Private Banks • RRBs

🌾 StCBs • DCCBs • UCBs • PACS

📊 Finance Professionals • Banking Aspirants

📚 IBPS • SBI • RBI • NABARD • Regulatory Exams

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1. 🏛️ BANKING FOR VIKSIT BHARAT: HIGH-LEVEL COMMITTEE

The Government of India has constituted the High Level Committee on Banking for Viksit Bharat to recommend reforms that can strengthen India's banking system and support the vision of Viksit Bharat 2047.

Key details:

- Chairman: Suresh N. Patel, former Central Vigilance Commissioner.

- Tenure: Six months.

- Focus: Banking regulations, capital requirements, credit growth, priority-sector lending, digital innovation, cybersecurity and financial inclusion.

The review covers issues relevant to commercial banks and the wider banking system, including regional rural and cooperative banking.

🏦 Why it matters: The committee's recommendations could influence future banking policy, governance, technology adoption and financial inclusion.

IBR Exam Focus: Distinguish between a committee's recommendations and regulatory changes formally implemented by the Government or RBI.

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2. 🌾 COOPERATIVE BANKING: NCDC REPORTS STRONG PERFORMANCE

The National Cooperative Development Corporation (NCDC) reported substantial financial assistance to cooperative institutions.

📌 Key figures:

- Cumulative financial assistance: ₹4,14,586 crore up to 25 October 2026.

- FY 2025–26 disbursements: ₹1,27,596 crore.

- FY 2025–26 net profit: ₹1,475 crore.

- Loan recovery rate: 99.84%.

- Net NPA: Zero.

NCDC has also been encouraged to develop a long-term roadmap and strengthen consortium and co-financing arrangements with NABARD, State Cooperative Banks and commercial banks.

🌾 Why it matters:

- Creates scope for financing viable cooperative-sector projects.

- Supports agriculture, processing, storage and other cooperative-led enterprises.

- Encourages coordination among NCDC, NABARD, StCBs and DCCBs.

Action Point for PACS and DCCBs: Identify viable projects, prepare bankable proposals and explore eligible financing programmes.

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3. 🛡️ CYBERSECURITY: BANKS NEED STRONGER DIGITAL DEFENCES

Cybersecurity remains a major operational priority for banks as digital transactions, API integrations and third-party technology dependencies expand.

Key areas requiring attention:

- API security and access controls.

- Multi-factor authentication.

- Protection of privileged accounts.

- Monitoring of suspicious transactions.

- Third-party and vendor risk management.

- Incident response and business continuity.

🏦 Banking Action Points:

1. Review user access and revoke unnecessary permissions.

2. Strengthen authentication for critical systems.

3. Monitor unusual transactions and system activity.

4. Conduct periodic cybersecurity assessments.

5. Train employees to recognise phishing and social-engineering attacks.

Cooperative Banking Focus: Cybersecurity is a board-level governance responsibility—not merely an IT function. Smaller institutions should prioritise staff awareness, vendor controls and tested incident-response procedures.

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4. 📊 BANK CREDIT GROWTH OUTPACES DEPOSIT GROWTH

Banking-system data for the fortnight ended 15 October 2026 indicates continued expansion in credit and deposits.

Indicator| Amount| Year-on-year growth

Bank credit| ₹232.54 lakh crore| 17.94%

Bank deposits| ₹284.37 lakh crore| 16.60%

Credit growth exceeded deposit growth, highlighting the importance of sustained deposit mobilisation.

What bankers should monitor:

- Competition for retail and low-cost deposits.

- Cost of funds and deposit pricing.

- Credit-deposit ratio and liquidity.

- Asset-liability mismatches.

- Credit underwriting and asset quality.

IBR Insight: Strong credit demand is positive, but sustainable lending requires stable funding and prudent risk management.

For DCCBs and PACS, local deposit mobilisation, customer retention and timely recovery remain important priorities.

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5. 📑 RBI REVISES BANK LEVERAGE-RATIO FRAMEWORK

The RBI has revised the leverage-ratio framework for applicable banks, with the revised requirements scheduled to take effect from 1 April 2027.

📌 Reported minimum requirements:

- Domestic Systemically Important Banks (D-SIBs): 4%.

- Other applicable banks: 3.5%.

The framework addresses the measurement of exposures, including on-balance-sheet assets and specified off-balance-sheet and market-related exposures.

Why it matters: The leverage ratio provides a non-risk-based safeguard against excessive balance-sheet leverage and complements risk-weighted capital requirements.

IBR Exam Focus:

- Leverage ratio is different from the Capital Adequacy Ratio.

- The leverage ratio does not depend solely on risk weights.

- Effective date: 1 April 2027.

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6. 📈 SEBI RATIONALISES FPI KYC REVIEW REQUIREMENTS

SEBI issued a circular on 30 October 2026 rationalising the periodicity of Know Your Customer (KYC) reviews for Foreign Portfolio Investors (FPIs).

The measure aims to reduce repetitive compliance requirements while retaining applicable investor-identification and risk-based safeguards.

Why it matters:

- May reduce compliance burdens for eligible FPIs.

- Can improve operational efficiency for market intermediaries.

- Reinforces the importance of applying KYC requirements according to the relevant investor category and regulatory conditions.

Compliance Reminder: Rationalising review periodicity does not abolish KYC obligations. Market participants should follow the applicable circular and implementation instructions.

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7. ♿ SEBI EXTENDS DIGITAL-ACCESSIBILITY COMPLIANCE TIMELINE

SEBI issued a circular on 30 October 2026 extending the compliance timeline relating to its digital-accessibility requirements.

The reported revised deadline is 31 January 2027.

Regulated entities should review their websites, mobile applications and investor-facing digital services against the applicable accessibility requirements.

Suggested action points:

- Conduct an accessibility gap assessment.

- Identify barriers affecting users with disabilities.

- Prioritise improvements to critical digital services.

- Assign responsibility and document progress.

- Confirm the revised deadline and applicable requirements from the relevant circular.

IBR Insight: Digital accessibility supports inclusive participation in financial markets and should be treated as an ongoing compliance priority.

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8. 💻 UPI RECORDS STRONG TRANSACTION ACTIVITY IN OCTOBER

India's Unified Payments Interface (UPI) recorded substantial transaction activity in October 2026.

📌 October figures:

- Transactions: 25.47 billion.

- Transaction value: ₹31.53 lakh crore.

- Average daily transaction value: More than ₹1 lakh crore.

The figures highlight the growing importance of digital payments in everyday commerce and financial services.

Banking implications:

- Payment systems must remain reliable under high transaction volumes.

- Fraud monitoring and customer awareness are essential.

- Banks and payment service providers need effective incident-response mechanisms.

- Digital-payment growth should be accompanied by strong grievance redressal.

For cooperative banks and PACS: Support digital adoption through customer education, employee training and secure transaction practices.

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9. 🧾 GST CHANGES EFFECTIVE FROM 1 NOVEMBER 2026

Specified amendments to the GST framework took effect on 1 November 2026.

Key areas include:

A. Post-supply discounts

The revised framework addresses the treatment of eligible post-supply discounts through the prescribed credit-note mechanism, subject to applicable conditions.

B. Provisional refunds

The revised framework provides for provisional refunds of up to 90% of eligible claims in specified cases, subject to risk assessment and prescribed conditions.

C. Export refunds

The minimum-threshold treatment relating to refunds for exports of goods made with payment of tax has been amended.

Why it matters: The changes are intended to improve compliance clarity and help eligible businesses manage working capital.

Important: Refunds are not automatic. Taxpayers must comply with the applicable notifications, rules, eligibility criteria and portal procedures.

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10. 🤝 FINANCIAL INCLUSION: SUSTAINABILITY OF THE BC NETWORK

Business Correspondents (BCs) play an important role in extending banking services to rural and underserved communities.

However, the viability of the BC network remains a concern because of operating costs, commission structures and the need for reliable digital infrastructure.

Key priorities:

- Fair and sustainable remuneration.

- Timely settlement of commissions.

- Reliable connectivity and devices.

- Strong fraud prevention and customer protection.

- Training in digital transactions and grievance handling.

Cooperative-sector perspective: PACS, DCCBs and other local institutions can support financial inclusion through coordinated service delivery, subject to applicable regulations and authorised business arrangements.

IBR Insight: Financial inclusion is sustainable when access, customer protection and the viability of service providers improve together.

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📌 DAILY EXECUTIVE TAKEAWAYS

1. Banking reforms: A high-level committee will review issues affecting the banking system.

2. Cooperative finance: NCDC reported cumulative assistance of ₹4,14,586 crore up to 25 October 2026.

3. Cybersecurity: Banks need robust authentication, API security and third-party risk controls.

4. Credit and deposits: Credit growth exceeded deposit growth in the fortnight ended 15 October 2026.

5. Leverage ratio: Revised RBI requirements are scheduled to take effect on 1 April 2027.

6. SEBI compliance: FPI KYC review requirements have been rationalised, and the digital-accessibility timeline has been extended.

7. Digital payments: UPI recorded 25.47 billion transactions worth ₹31.53 lakh crore in October.

8. GST: Specified amendments concerning discounts and refunds took effect on 1 November 2026.

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🧠 IBR DAILY KNOWLEDGE CHECK

Q1. Who chairs the High Level Committee on Banking for Viksit Bharat?

A. Shaktikanta Das

B. Suresh N. Patel

C. T. Rabi Sankar

D. N. S. Vishwanathan

E. Sanjay Malhotra

Q2. What was NCDC's cumulative financial assistance to cooperative institutions up to 25 October 2026?

A. ₹1,27,596 crore

B. ₹2,50,000 crore

C. ₹3,14,586 crore

D. ₹4,14,586 crore

E. ₹5,14,586 crore

Q3. What is the revised minimum leverage ratio for Domestic Systemically Important Banks under the framework described in this bulletin?

A. 4%

B. 3%

C. 3.5%

D. 4.5%

E. 5%

Q4. How many UPI transactions were reported for October 2026?

A. 18.47 billion

B. 21.53 billion

C. 23.07 billion

D. 24.07 billion

E. 25.47 billion

Q5. What is the principal purpose of a bank leverage ratio?

A. To measure only net interest margin

B. To determine the repo rate

C. To limit excessive leverage through a non-risk-based measure

D. To calculate deposit-insurance premiums

E. To measure priority-sector lending growth

✅ ANSWER KEY

Q1. B

Q2. D

Q3. A

Q4. E

Q5. C

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