1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI Governor's statement after 54th Monetary Policy Committee meeting
At the 54th Monetary Policy Committee (“MPC”) meeting, the Reserve Bank of India (“RBI”) reviewed the economic landscape considering rising global trade frictions, softened bond yields, and a weakening US dollar. While inflation has eased due to falling food prices, the MPC remains vigilant to external shocks and climate related risks. Growth is recovering from a subdued H1 FY 2024-25 but remains below aspirational levels. The Governor reaffirmed RBI's commitment to price stability, sustainable growth, and financial stability as the institution marks ninety years since its establishment. RBI
1.1.2.RBI issues draft directions on non-fund based credit facilities
RBI has issued draft Non-Fund Based Credit Facilities Directions, 2025 to harmonise the regulation of guarantees, letters of credit, and other Non-Fund Based (NFB) instruments across Regulated Entities (“REs”), including banks, Non-Banking Financial Company (“NBFCs”) and All India Financial Institutions (“AIFIs”). The draft mandates robust credit appraisals, restricts issuance to customers with existing business relationships, and requires guarantees to be irrevocable, unconditional, and incontrovertible. It also proposes norms for electronic guarantees. RBI
1.1.3. RBI releases draft directions on securitisation of stressed assets
RBI has issued draft “Securitisation of Stressed Assets Directions, 2025” to expand the securitisation framework beyond the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. The draft permits REs to securitise stressed loans (excluding fraud accounts, farm credit, and inter-lender exposures) through Special Purpose Entities (SPEs). It introduces the concept of Resolution Managers (ReMs) to manage recovery, sets rules for retained risk, capital treatment, and recovery-based ratings, and mandates disclosures, investor updates, and regulatory reporting. RBI
1.1.4. RBI issues draft directions on co-lending arrangements
RBI has released draft Co-Lending Arrangements Directions, 2025 to formalise joint lending practices among REs, including banks, AIFIs, and NBFCs. The draft excludes loans exceeding INR 100 Crore (Indian Rupees One Hundred Crore only) and those under existing guidelines. It prescribes rules for blended interest rates, escrow operations, default loss guarantees, and loan classification. REs shall disclose co-lending partners, ensure arm's length servicing, and report to Credit Information Companies (CICs). Public disclosures are required on websites and in financial statements. RBI
1.1.5. RBI issues draft directions on lending against gold
RBI has released draft Lending Against Gold Collateral Directions, 2025 to standardise gold-backed lending across REs including banks and NBFCs. The draft consolidates existing norms and introduces rules on loan-to-value ratios, valuation, collateral handling, auctions, and borrower compensation. Lending against primary gold or gold-backed financial assets is restricted. The draft emphasises transparency, standard documentation, and fair borrower treatment. RBI
1.1.6. RBI opens ‘On Tap' facility for theme-neutral sandbox applications
RBI has enabled a continuous ‘On Tap' application facility under its Regulatory Sandbox for theme-neutral innovations, allowing entities to test solutions beyond cohort constraints. Eligible themes include Artificial Intelligence (“AI”), blockchain, alternate credit scoring, Electronic Know Your Customer (“E-KYC”), RegTech, open finance, and more. This move aims to foster ongoing innovation, support financial inclusion, and enhance regulatory engagement. Applications will be evaluated as per the updated Regulatory Sandbox (RS) framework dated February 28, 2024. RBI
1.1.7. RBI mandates the use of the PRAVAAH portal for all regulatory applications from May 1, 2025
RBI has mandated all applicants, including REs, to submit applications for regulatory authorisations, licences, and approvals exclusively via the Platform for Regulatory Application, Validation, and Authorization (“PRAVAAH”) portal, effective May 1, 2025. It is pertinent to note that, since its launch on May 28, 2024, PRAVAAH has facilitated over 3,000 submissions across 108 available forms. In exceptional cases, physical applications will still be accepted but processed through PRAVAAH. RBI
1.1.8. Overseas Direct Investment for March 2025
India's outward Foreign Direct Investment (FDI) commitments rose by 20 per cent (twenty per cent) year-on-year to USD 5.81 Billion (United States Dollar Five Billion Eight Hundred Ten Million only) in March 2025, up from USD 4.84 Billion (United States Dollar Four Billion Eight Hundred Forty Million only) in March 2024. Sequentially, this reflects a marginal increase from USD 5.57 Billion (United States Dollar Five Billion Five Hundred Seventy Million only) in February 2025. While equity commitments declined to USD 2.49 Billion (United States Dollar Two Billion Four Hundred Ninety Million only), loan commitments surged over three-fold to USD 2.10 Billion (United States Dollar Two Billion One Hundred Million only). RBI
1.1.9. Statement on developmental and regulatory policies
In its latest Statement on Developmental and Regulatory Policies, the RBI has proposed several reforms with respect to; Securitisation of Stressed Assets Framework, Framework on Co-lending arrangements (CLA), Review of Guidelines for Lending against Gold Jewellery, Review of Non-Fund Based Facilities, Enhancing transaction limits in UPI and ‘On Tap' application facility under theme neutral Regulatory Sandbox. RBI
National Payments Corporation of India (NPCI)
1.1.10.No more international UPI via QR Share & Pay
The National Payments Corporation of India (“NPCI”) has barred all QR Share & Pay-based international Unified Payments Interface (“UPI”) transactions for Person to Merchant (“P2M”) payments, with effect from April 4, 2025. In its April 8 circular, NPCI directed all Payer Payment Service Providers (PSPs) to ensure UPI apps are updated to restrict such transactions under UPI Global. The move tightens controls on cross-border retail UPI usage. NPCI
International Financial Services Centres Authority (IFSCA)
1.1.11. IFSCA notifies new Fund Management Regulations, 2025
The International Financial Services Centres Authority (“IFSCA”) has notified the Fund Management Regulations, 2025, repealing the 2022 framework. Key changes include extending the validity of private placement memoranda for Venture Capital and Restricted Schemes to twelve months, and reducing the minimum corpus to USD 3 Million (United States Dollar Three Million only) from USD 5 Million (United States Dollar Five Million only). IFSCA
1.1.12. IFSCA updates governance norms for finance companies
The IFSCA has issued revised Corporate Governance and Disclosure Requirements under the Finance Company Regulations, 2021. The guidelines aim to promote accountability, transparency, and long-term sustainability, supplementing the Companies Act, 2013. As amended on April 04, 2025, Part I applies to all registered Finance Companies, while Part II applies to entities undertaking core or specialised activities. Each company shall adopt a governance framework consistent with the principles set out in this Circular. IFSCA
1.1.13. IFSCA revises ITFS framework for ITFS platform
IFSCA has issued revised guidelines for International Trade Finance Services Platforms (“ITFS”) via a circular dated December 23, 2024, updated on April 11, 2025, replacing the July 2021 framework. IFSCA has amended Clause 12(2) of its ITFS Guidelines dated December 23, 2024, via a circular effective April 11, 2025. Key updates included clarification that Assets Under Management (AUM) refers to the total market value of all financial assets owned or managed by the financier. Further, financiers must demonstrate credit/debt recovery capability, either directly or via outsourcing. Additionally, the financier must be an incorporated factoring entity. IFSCA
1.1.14. IFSCA issues public Comments on draft IFSCA (KYC Registration Agency) Regulations, 2025
IFSCA has received public comments on its Draft IFSCA (KYC Registration Agency) Regulations, 2025, following a consultation paper released in December 2024. The draft framework sets out operational, compliance, and registration norms for Know Your Customer Registration Agencies (KRAs) functioning within an International Financial Services Centre (IFSC), thereby bolstering customer due diligence standards. IFSCA
1.1.15. IFSCA issues revised fee circular for IFSC entities
IFSCA has issued a new circular detailing the fee structure applicable to entities operating or intending to operate in IFSCs, and to those availing the Informal Guidance Scheme. The circular outlines multiple categories of fees — application, authorisation, annual recurring, activity-based, late, and processing fees — along with pro-rata, turnover-based calculations, and payment timelines. Indian applicants may pay in INR at the prevailing RBI reference rate, while refunds remain generally prohibited. IFSCA
1.1.16. Governing Body Meeting Norms for IBUs in IFSCs Revised
IFSCA has amended the requirement in Module 2 of the IFSCA Banking Handbook (GEN V5.0) concerning the meetings of the governing body of International Banking Units (“IBUs”). Effective immediately, the governing body must now meet at least once each quarter during a financial year, with flexibility for additional meetings as needed. The formal amendment to the Handbook will follow. IFSCA
1.1.17. IFSCA Issues Revised Framework for GRCTC in IFSC
IFSCA on April 04, 2025, issued a revised framework for Finance Companies and Finance Units undertaking Global/Regional Corporate Treasury Centre (“GRCTC”) activities in IFSCs. This supersedes the earlier circular dated June 25, 2021, and aligns the GRCTC regime with international best practices. Key features include application via the SWIT Portal, a minimum owned fund of USD 0.2 million (United States Dollar Zero Point Two Million only), and mandatory registration under the FC Regulations before commencing operations. IFSCA
Miscellaneous
1.1.18. CERT-In and SISA release Digital Threat Report 2024 for BFSI
Computer Emergency Response Team(“CERT-In”), Computer Security Incident Response Team (CSIRT)-Fin, and SISA have jointly launched the Digital Threat Report 2024 for the Banking, Financial Services, and Insurance (“BFSI”) sector. The report presents a unified strategy integrating technology, regulatory compliance, and threat intelligence to enhance cyber resilience. It offers financial institutions a strategic blueprint to pre-empt vulnerabilities and respond to emerging threats through collaboration between national agencies and industry stakeholders. Report
1.1.19. 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 of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and non-compliance with RBI directions on KYC. |
|
|
INR 3,20,000/- (Indian Rupees Three Lakh Twenty Thousand only) |
Contravention of Section 10(4) of the FEMA, 1999. During the statutory inspection, it was observed that the bank failed to undertake due diligence while processing inward remittances from a Foreign Currency Account. This penalty has been imposed under Section 11(3) of FEMA, 1999. |
1.2. Vietnam
1.2.1. SBV handles economic challenges with balanced policies in Q1 2025
Global growth slowed as inflation risks rose amid trade tensions and US reciprocal tariffs. The State Bank of Vietnam (“SBV”) set a 16 per cent (sixteen per cent) credit growth target for 2025, achieving 3.93 per cent (three point nine three per cent) YoY by Q1—a sharp rise from 2024. Lending rates dropped 0.4 per cent (zero point four per cent) as SBV urged banks to lower mobilisation rates. State Bank of Vietnam
1.2.2. SBV advances banking efficiency with shared database initiative
Deputy Governor Pham Thanh Ha emphasised the need for a modern, synchronised banking database to enhance forecasting, management, and operational safety. Under Decision No. 2655/QD-NHNN, the SBV launched a project, supported by the World Bank and Swiss State Secretariat for Economic Affairs (SECO), to assess and design an integrated data system.State Bank of Vietnam
1.2.3. ASEAN+3 strengthens financial integration
The Association of Southeast Asian Nations (“ASEAN+3”) meetings addressed regional economic challenges, including US tariffs and declining growth forecasts. The International Monetary Fund (IMF) highlighted Asia's slowing growth and Foreign Direct Investment (FDI) fragmentation risks, recommending supply chain restructuring and regional integration. State Bank of Vietnam
1.3 Indonesia
1.3.1. Bank Indonesia takes steps to stabilise rupiah amid global turmoil
On April 7, 2025, Bank Indonesia's Board of Governors announced interventions in offshore markets Non-Deliverable Forward (NDF) to stabilise the rupiah, which faced pressures due to global financial turmoil triggered by the United States-China tariff policies. The central bank is intervening in Asia, Europe, and New York markets and plans aggressive domestic interventions, including forex market actions and government securities purchases, starting April 8. Bank Indonesia
1.3.2. Indonesia's M2 growth accelerates, driven by loans and foreign assets
In February 2025, Indonesia's broad money (M2) grew by 5.7 per cent (five point seven per cent) Year-on-Year (“YoY”), reaching Rp 9,239.9 trillion (Indonesian Rupiah Nine Thousand Two Hundred Thirty-Nine Trillion Nine Hundred Billion only), up from 5.5 per cent (five point five per cent) in January. This growth was fuelled by narrow money (M1) and quasi-money, which grew by 7.4 per cent (seven point four per cent) and 1.8 per cent (one point eight per cent) YoY, respectively. Bank Indonesia
1.3.3. Indonesia's March 2025 CPI shows inflationary trends across sectors
The Consumer Price Index (“CPI”) in Indonesia recorded 1.65 per cent (one point six five per cent) month-to-month inflation and 1.03 per cent (one point zero three per cent) YoY inflation in March 2025. Core inflation remained stable at 2.48 per cent (two point four eight per cent) YoY driven by higher gold prices and festive demand, Bank Indonesia
2. Trends
2.1. Ashwini Vaishnaw urges alignment of Aadhaar Law with DPDP Act
At the Aadhaar samvaad event, Union Minister Ashwini Vaishnaw called for harmonising the Aadhaar Act, 2016 with the Digital Personal Data Protection Act, 2023 (“DPDP Act”) to modernise digital identity governance. He also launched a revamped Aadhaar mobile app with facial authentication, eliminating the need for physical document sharing. The app aims to enhance privacy, consent-based authentication, and digital trust. The initiative is part of a two-step plan to combat identity fraud and simplify service access through secure digital verification. Medianama
2.2.Tech giants back India's AI Mission public AI infrastructure
Google, Airtel, Tata Consultancy Services (“TCS”), and Infosys are among key players engaging with the IndiaAI Mission, which aims to build a national AI compute ecosystem with over 10,000 (ten thousand) Graphic Processing Unit (“GPU”). Launched in March 2023 with a budget of INR 10,372 Crore (Indian Rupees Ten Thousand Three Hundred Seventy-Two Crore only), the initiative spans areas like Large Language Mission (“LLM”) development, dataset platforms, and safe AI. Firms like Jio Platforms and Tata Communications are leading bids, with allocations expected by mid-April 2025. CIOTechOutlook
2.3. Centre considering local storage of AI models to prevent data outflow
The Centre is reportedly considering the local storage of AI models to mitigate risks and prevent sensitive data from flowing outside India. With the DPDP Act rules expected to be finalised by April, Ministry of Electronics and Information Technology (MeitY) Secretary S Krishnan stated that the new rules would play an effective role in preventing personal data leaks. He also highlighted the increase in cybersecurity incidents in India, indicating improved public awareness and enhanced surveillance capabilities. Economic Times
3. Sector Overview
3.1. Govt launches new Aadhaar app with Face ID and privacy safeguards
The Government of India, in partnership with the Unique Identification Authority of India (UIDAI), has launched a new Aadhaar mobile application integrating Face ID authentication and artificial intelligence. The app allows users to verify identity without sharing physical Aadhaar copies. The app ensures consent-based sharing, promoting a UPI-like digital experience for secure, privacy-first Aadhaar verification across services and travel points. Mint
3.2. India AI Mission in final stage of evaluating LLM applications for funding
IT Minister Ashwini Vaishnaw announced that the evaluation of AI-LLM applications is in its final stages, with funding decisions expected in the coming weeks. The government has selected 10 (ten) companies to supply 18,693 (eighteen thousand six hundred ninety-three) GPUs for developing foundational AI models, after receiving 120 (one hundred twenty) applications in the second round of bidding. The INR 10,372 Crore (Indian Rupees Ten Thousand Three Hundred Seventy-Two Crore only) IndiaAI Mission aims to build a comprehensive AI ecosystem through initiatives including computing capacity, innovation centres, and datasets platform. INC42
3.3. Piyush Goyal announces startup helpline
Union Commerce and Industry Minister Piyush Goyal has launched a dedicated ‘Startup India' desk within the ministry, which will serve as a helpline for budding entrepreneurs across India. Accessible via a simple four-digit toll-free number in regional languages, the helpline will allow startups to suggest improvements to the ecosystem and flag issues. This announcement follows Goyal's comments urging the startup community to focus more on the tech sector and AI, rather than non-tech businesses. Hindustan Times
3.4. India to boost deep tech startups with INR 10,000 crore Fund of Funds
Union Commerce and Industry Minister Piyush Goyal announced a substantial allocation towards deep tech through the INR 10,000 Crore (Indian Rupees Ten Thousand Crore only) Fund of Funds (FOF) scheme, aimed at supporting early-stage innovation in AI, robotics, quantum computing, biotech, and other cutting-edge sectors. The initiative will mobilise patient capital to foster Research and Development (R&D) for startups working on disruptive technologies. The Hindu
3.5. Restoration of Certificate of Registration of Vishesh Credits Private Limited by RBI
The Certificate of Registration issued to the Vishesh Credits Private Limited has been restored after considering the orders passed by the Appellate Authority/Courts. RBI
3.6. RBI cancels certificate of registration of six NBFCS
RBI, in exercise of powers under Section 45-IA(6) of the Reserve Bank of India ACT, 1934, has cancelled the Certificate of Registration of six NBFCs as of March 2025. The affected entities are Thamiraparani Investments Private Limited, Aramusk Infrastructure Investments Limited, Viswapriya Gold Hire Purchase Limited (name changed to Viswapriya Finance Limited in MCA records), Matrix Financial Services Ltd, Unitara Finance Limited, and Well Fin Securities Limited. RBI
3.7. RBI cancels Certificate of Registration of 11 NBFCs
RBI has cancelled the Certificate of Registration of the following 11 NBFCs under Section 45-IA(6) of the Reserve Bank of India Act, 1934: (i) The following businesses exited from NBFC business: Ekagrata Finance Private Limited, Ezcred Private Limited, Lamina Leasing and Finance Limited, Hinduja Finance Limited, Whitegold Holdings Private Limited, Trident Microfin Private Limited, Digikredit Finance Private Limited, Rutgers Investment and Trading Company Private Limited. (ii) The following businesses ceased to be legal entities due to merger/dissolution: Joindre Finance Private Limited, Jasol Investment & Trading Co Pvt Ltd, S. M. Management Private Limited. RBI
4. Business Updates
4.1. Pine Labs receives NCLT approval for reverse flip to India
Pine Labs has secured approval from the National Company Law Tribunal (“NCLT”) to merge its Singapore entity with its India entity, marking a reverse flip of its parent firm to India. Following Groww, Pine Labs is the second major fintech to undertake such a move. With all regulatory clearances in place, the company plans to pursue a public listing on Indian stock exchanges later this year. Pine Labs was last valued at USD 5 Billion (United States Dollar Five Billion only). Economic Times
4.2. BharatPe's Resilient Payments gets RBI nod for payment aggregator licence
Resilient Payments Private Limited, part of the BharatPe Group, has received final authorisation from the RBI to operate as an online payment aggregator. This positions BharatPe as the only fintech with a NBFC licence, a stake in Unity Small Finance Bank, and a payment aggregator licence. The new platform, BharatPe X, will target tier-2 and tier-3 cities, supporting over 1.3 (one point three) crore merchants across 450 (four hundred fifty) cities and processing 450 (four hundred fifty) million UPI transactions monthly. INC42
4.3. RBI permits NPCI to revise UPI transaction limits for P2M
RBI has authorised the NPCI to revise transaction limits under the UPI for Person-to-Merchant (“P2M”) payments, based on evolving user needs. Currently, UPI transactions are capped at INR 1 Lakh (Indian Rupees One Lakh only), with exceptions for select P2M use cases. Future revisions may be made in consultation with banks and UPI stakeholders, while Person-to-Person (P2P) payments will remain capped at INR 1 Lakh (Indian Rupees One Lakh only). Mint
4.4. SEBI approves IPOs for Aye Finance, Bluestone, GK Energy, and Anthem Biosciences
The Securities and Exchange Board of India (“SEBI”) has granted final observation for the Initial Public Offerings (“IPOs”) of Aye Finance, Bluestone Jewellery and Lifestyle, GK Energy, and Anthem Biosciences. INC42
4.5. PhonePe retains market leadership
UPI recorded 18.30 (eighteen point three zero) billion transactions in March 2025, reflecting a 13.6 per cent (thirteen point six per cent) increase from February. PhonePe led the market with 864.7 (eight hundred sixty four point seven) crore transactions, despite a 0.28 per cent (zero point two eight per cent) dip in market share. It processed INR 12.57 Lakh Crore (Indian Rupees Twelve Lakh Fifty-Seven Thousand Crore only) in value, accounting for 50.74 per cent (fifty point seven four per cent) of the total UPI value. Outlook Business
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