Published on 29 August 2026
Reserve Bank of India (RBI)
a. Cross-Border INR Settlement via SRVA (FEMA Governance) RBI rationalized instructions permitting Authorised Dealer (AD) banks to open Special Rupee Vostro Accounts (SRVAs) for foreign branches or non-resident banks. All permissible current and capital account transactions under FEMA can now be settled directly in INR through these accounts.
Bottomline: Foreign companies and banks can now pay and accept payments directly in Indian Rupees for international business, reducing dependence on US Dollars.
b. Stricter Income Recognition Norms (SNFA Exposure) Amendments require banks acquiring Stressed Non-Performing Assets (SNFA) to stop recognizing accrued but unrealized interest/charges as income prior to acquisition. Income can only be recognized in the P&L statement as “non-interest/other income” upon actual realization. (Effective October 1, 2026)
Bottomline: Banks buying bad loans can no longer inflate profits by counting unpaid interest until cash is actually collected.
c. CICRA & Banking Supervision Enforcement Monetary penalties imposed on entities—including Jalna District Central Co-operative Bank—for failing to report borrower credit data to all Credit Information Companies (CICs) and neglecting mandatory bi-annual risk categorizations under Section 25 of the CICRA Act, 2005.
Bottomline: RBI penalized banks that failed to report customer loan data to credit bureaus, ensuring credit histories remain accurate
Securities and Exchange Board of India (SEBI)
a. Interoperable KYC Framework (SEBI–IFSCA Integration) SEBI specified the International Financial Services Centres Authority (IFSCA) under Regulation 16A(1) of the SEBI KRA Regulations. KYC Registration Agencies (KRAs) can now seamlessly share client KYC data with GIFT City/IFSCA-regulated entities.
Bottomline: Investors completing KYC in India won’t need to redo paperwork to invest in GIFT City.
b. Framework for Intraday Borrowings by Mutual Funds Introduced a standardized mechanism allowing Mutual Fund schemes to avail intraday liquidity borrowings strictly to meet temporary operational mismatches (redemptions, IDCW payouts, FX settlements). Borrowings must link to guaranteed receivables and be fully settled on the same business day. (Effective September 1, 2026)
Bottomline: Mutual funds can borrow quick, same-day cash to meet investor payouts on time.
c. Custodian Fee Structure Revision Amended SEBI (Custodian) Regulations to shift fee remittances from annual to monthly frequency (₹85,000/month or 0.0000416% of assets under custody), with monthly operational reporting.
Bottomline: Custodians will now pay oversight fees monthly, improving regulatory monitoring.
Pension Fund Regulatory and Development Authority (PFRDA)
a. Overhaul of NPS Scheme Classification Discontinued the legacy distinction between Common Schemes and the Multiple Scheme Framework (MSF). Pension Funds must reclassify, rename, or merge overlapping schemes within 30–45 days to ensure each scheme maps strictly to a single mandate. Mandatory display of a Risk-o-meter enforced across all schemes.
Bottomline: Pension managers must simplify overlapping fund options and display clear risk indicators for investors.
b. Revised Points of Presence (PoP) Charge Structure Published a revised fee architecture for all NPS and NPS Lite schemes. Onboarding charge capped at ₹200 (₹100 for digital onboarding), while dormant accounts are exempted from servicing fees. (Effective October 1, 2026)
Bottomline: Opening an NPS account is now cheaper, especially online, and inactive accounts won’t be charged maintenance fees.