Banking Awareness of 9, 10 and 11 October 2025

Topic: RBI

1. Four new digital payment initiatives introduced by the RBI at the Global Fintech Fest.

• The aim of these initiatives is to make payments more convenient for users.
• One of the initiatives launched by RBI is UPI HELP. It is an AI-powered tool that assists with payments, managing mandates, and resolving disputes.
• The RBI also introduced ‘IoT Payments’ integrated with UPI. This feature allows payments directly from connected devices like smart cars, TVs, and wearables.
• Another new initiative launched by RBI is ‘Banking Connect.’ It is an interoperable net banking platform that supports smooth payments and standardizes merchant onboarding.
• The RBI launched ‘UPI Reserve Pay’ as well. This service lets users securely block and control credit limits for specific uses across merchants and UPI apps.
• UPI HELP builds user trust by using AI technology. It provides safe and easy access to financial services.
• IoT Payments enable transactions triggered by contextual cues, routines, voice, or text commands.
• These transactions can occur across multiple connected devices or cloud systems within limits set by the user.
• Users can quickly pay for services such as fuel and electric vehicle charging through smart devices.

Topic: Miscellaneous

2. A discussion paper about the treatment of Public Distribution System (PDS) items in the new retail inflation series has been issued by the Ministry of Statistics.

• It suggests merging the indices for commodities supplied through both PDS and non-PDS channels into a single unified index.
• At present, these items have separate indices and assigned weights.
• The base year for the Consumer Price Index (CPI) is set to change from 2012 to 2024.
• The composition and weights of the new CPI will be derived from the Household Consumption Expenditure Survey (HCES) for 2023-24.
• The updated CPI series is planned for release from the first quarter of 2026 onward.
• The paper references three approaches from the 2020 Consumer Price Index Manual to handle situations where prices for social transfer goods fall from a positive value to zero.
• The proposed approach for the new CPI follows Method 1, which records a zero price and adjusts the item's weight in the subsequent revision.
• Method 2, currently in use, reallocates the weight to other goods within the same category.
• Method 3 distributes the weight broadly across the entire basket of goods.
• The Ministry intends to implement Method 1 in the forthcoming CPI series.
• Currently, separate indices are maintained for ‘Rice (PDS)’ and ‘Rice (non-PDS)’ to allow detailed analysis.
• In the new series, these will be combined into a single ‘Rice’ index covering both sources.
• The discussion paper notes that the PDS Rice index has limited relevance as it is government-controlled.
• This unified indexing approach will be extended to all PDS items in the revised CPI.
• The Ministry is seeking public feedback on the proposed methodology for incorporating PDS items into CPI calculations.

Topic: Corporates/Companies

3. In September, more than 21,600 new private sector companies were registered.

• This is the highest number recorded in the last five months.
• It is also the second-highest number for the current calendar year.
• The data was released by the Ministry of Corporate Affairs.
• These numbers do not include one person companies, limited liability partnerships, or foreign companies.
• In total, 21,632 companies (‘Limited by Shares’ and ‘Limited by Guarantee’ companies) were registered during September.
• In a company limited by shares, liability of shareholders is restricted.
• In a company limited by guarantee, liability is limited to the amount each member agrees to contribute.
• The companies limited by shares are the most common in India.
• September also saw 1,477 one person companies (OPCs) being formed. This is the highest number of one person company registrations so far this year.
• An one person company is owned and managed by a single person who acts as both shareholder and director.
• The government expects simpler Goods & Services Tax registration to further boost company formations.
• The GST Council recently approved an optional simplified GST registration scheme.
• Under this, low-risk applicants can get automated approval within three working days.
• The scheme applies to applicants with a monthly tax liability below ₹2.5 lakh.
• The new system will take effect from November 1, 2025, and will allow voluntary opting in and out.

Topic: Indian Economy/Financial Market

4. Capital expenditure by 60 Central Public Sector Enterprises (CPSEs) and four major organisations increased sharply in September.

• The expenditure more than doubled compared to August. Data from the Department of Public Enterprises showed total capex reached ₹1.13 lakh crore.
• This is the highest level recorded in the past nine months.
• The increase represents a 119% rise over ₹51,000 crore of August.
• Compared to September 2024, expenditure grew by nearly 60%from about ₹71,000 crore.
• The capex target for FY26 for these 60 CPSEs and four organisations is over ₹7.85 lakh crore.
• With rise achieved in September, about half of the annual target has already been achieved.
• Capex performance is a key parameter in the annual MoU evaluation framework for CPSEs.
• Other indicators in the framework include return on net worth, capital employed, exports, and asset turnover ratio.
• According to the Controller General of Accounts, central government capex grew by over 43 per cent during April to August.
• The Union Budget for FY26 allocated ₹11.21 lakh crore for capital expenditure.
• Defence services recorded the highest growth in spending at around 58 per cent.
• Road ministries followed with about 11 per cent growth, while railways saw a 9 per cent rise.

Topic: RBI

5. A retail sandbox for its central bank digital currency (CBDC) project has been launched by RBI.

• This sandbox allows fintech companies to develop and test digital currency applications during the pilot phase.
• The launch was announced by Suvendu Pati, the RBI’s Chief General Manager.
• The RBI started its first retail e-rupee pilot on December 1, 2022.
• As of now, about 7 million users are engaged with the CBDC in India.
• The pilot uses the wholesale CBDC segment as its base infrastructure.
• The RBI is working with a select group of banks for this project.
• Digital tokenisation makes transactions faster, cheaper, and more secure.
• In finance, tokenisation means converting physical financial assets into digital tokens.
• These tokens are recorded on secure ledgers such as blockchain or distributed ledger technology.
• In deposit tokenisation, bank deposits are transformed into digital tokens.

Topic: World Economy

6. WTO cut global trade growth forecast to 0.5% for next year.

• The World Trade Organization (WTO) has revised its 2026 forecast for global merchandise trade volume growth down to 0.5%, citing expected delayed impacts from U.S. President Donald Trump’s tariffs.
• The new figure marks a sharp decline from its earlier estimate of 1.8% released in August.
• For 2025, the WTO upgraded its trade growth projection to 2.4%, from 0.9% previously, driven by increased U.S. imports before tariff hikes and growth in AI-related goods
• This is still below the 2.8% growth seen in 2024.
• The decline in 2026 is attributed to the impact of higher tariffs imposed by the U.S. on imports from multiple countries in August.
• The European Union negotiated a 15% duty on most EU goods imported into the United States under a new agreement.
• Growth in the volume of total world merchandise trade is expected to decline from 2.8% last year to 2.4% this year and 0.5% next year.
• The World Trade Organization also estimates that global GDP growth will decline from 2.7% in 2025 to 2.6% in 2026.
• WTO data showed that global trade volume rose by 4.9% in the first half of 2025, with trade value increasing by 6% year-on-year.
• AI-linked goods such as semiconductors and telecom equipment accounted for nearly half of the trade growth, rising 20% compared to the previous year.
• Asia and Africa are projected to record the fastest export growth this year, while Europe’s performance is expected to slow and North America’s to decline.

Topic: Banking System

7. Revolut, a London-based digital finance firm, will launch its payment platform in India as part of its global expansion.

• The company will launch a platform for domestic and international payments.
• This will be done through partnerships with UPI and Visa.
• The service will initially be available to 350,000 users on a waiting list. It will later be opened to the wider public.
• Revolut aims to reach 20 million users in India by 2030.
• To meet India’s data localisation requirements, it has spent over £40 million adapting its technology.
• India is the only country where Revolut has made such a significant localisation investment.
• This launch marks its first move into one of the world’s largest digital payment markets.
• India is expected to become a key part of Revolut’s global growth strategy.

Topic: Banking System

8. The Unified Payments Interface will be integrated with PayPal World.

• On 7 October, a collaboration between the National Payments Corporation of India (NPCI) and PayPal was announced.
• Under this partnership, India's instant payments platform will be the first to launch on PayPal World, a global platform connecting payment systems and digital wallets around the world.
• The initiative was announced at the Global Fintech Fest, highlighting India’s growing digital payments leadership.
• PayPal CEO Alex Chriss stated that the goal was to connect global payment systems seamlessly.
• It was said that UPI’s interoperability with PayPal World will make global transactions smoother and more inclusive.
• The idea for an interoperable platform originated during a meeting between Dilip Asbe (NPCI) and Alex Chriss in Florence two years ago.
• The project aims to make payments simple, frictionless, and accessible for both merchants and consumers.
• Chriss mentioned that the future of money lies in domestic wallets that can interact globally through shared standards.
• India was identified as a key market for PayPal, with its second-largest employee base worldwide.
• Rather than competing with UPI, PayPal chose to connect India’s digital payments system to global markets, enhancing cross-border integration.