Bank of Baroda (BoB) Obtains RBI Approval for Standalone Primary Dealership Subsidiary
[Reserve Bank of India (RBI), Bank of Baroda]
Key Updates:
- Bank of Baroda (BoB) received in-principle approval from the Reserve Bank of India (RBI) to transfer its existing bank primary dealer authorization to a proposed wholly-owned subsidiary.
- The new subsidiary will undertake Standalone Primary Dealer (SPD) business to enhance liquidity and price discovery in the government securities (G-Sec) market.
- The RBI introduced the Primary Dealers (PDs) system in 1995 to strengthen G-Sec market infrastructure and underwriting capabilities.
- Commercial banks were permitted to conduct PD business departmentally starting from the 2006-07 period.
- The Indian banking sector currently features 7 Standalone Primary Dealers and 14 Bank Primary Dealers.
- Current Bank PDs include BoB, Canara Bank, Union Bank of India, and IDBI Bank.
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- Reserve Bank of India (RBI) granted approval through a letter dated December 15 for HDFC Bank and its group entities to hold up to 9.50% of the paid-up share capital or voting rights of IndusInd Bank.
- The approval remains valid for one year until December 14, 2026.
- Aggregate holding covers HDFC Bank and group entities including HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited, and HDFC Securities Limited.
- HDFC Bank stated it does not intend to invest directly in IndusInd Bank.
- The application for raising the investment limit was submitted on October 24, 2025, after combined holdings of group entities were expected to exceed the previous 5% threshold.
- Bank of Baroda (BoB) received the 'Best Bank in India' title from The Banker, a Financial Times publication, at the 2025 Asia-Pacific awards.
- BoB operates phygital branches that allow customers to obtain statements, generate income tax payment certificates, update nominees and receive financial advice over video calls.
- BoB has opened 184 new branches across India to expand reach.
- BoB's Smart OD product provides small businesses quick working capital within 24 hours based on transaction history.
- BoB offers liquid fixed deposits with higher interest rates and anytime withdrawal without loss of earnings.
- Bank of Baroda and SIDBI signed an MoU 'to jointly enhance credit flow to small businesses and startups' and will 'provide joint finance for micro, small and medium enterprises'.
- RBL Bank launched two premium credit cards—‘Lumiere’ and ‘Nova’—carrying 'membership fees of up to Rs 50,000 per year'.
- Axis Bank introduced 'a corporate salary solution aimed at startups' that bundles 'financial, lifestyle, and wellness offerings'.
- The Standard opened a new Global Capability Centre in Pune and 'appointed Mohua Sengupta as the country head'.
- The Reserve Bank of India (RBI) final guidelines allow banks and their group entities to continue overlapping lending activities, preventing restructuring for 12 large bank groups.
- The draft guidelines would have impacted 12 bank groups, accounting for ~55% of sectoral advances, and 2-6% of consolidated advances of individual banks.
- The final framework permits overlapping lending operations subject to board approval.
- Of the 26 bank group entities with lending operations, only two currently qualify as upper-layer Non-Banking Financial Companies (NBFCs).
- The remaining bank group entities must adopt upper-layer norms (excluding listing requirements) by March 31, 2028.
- The guidelines impose a 20% ceiling on a bank group’s shareholding in an Asset Reconstruction Company (ARC).
- There are currently 13 ARCs in which one or more banks hold stakes.
- In all but two of these ARCs, shareholding by any single bank is less than 20%.
- Banks with shareholding exceeding the 20% limit in ARCs will have to partially divest by March 2028.
Reserve Bank of India (RBI) Authorizes PayG for Offline and Cross-Border Payment Aggregator Licenses
[Reserve Bank of India (RBI)]
Key Updates:
- The Reserve Bank of India (RBI) has granted approval to PayG to operate as both an Offline and Cross-Border Payment Aggregator.
- PayG is now authorized to facilitate online payments, QR codes, and international transactions under RBI supervision.
- The company currently provides payment solutions to over 1,000 small business partners and 50 large companies.
- PayG has expanded its platform to offer more than 120 ways to pay since its launch in 2020.
- The new licenses enable the company to support businesses with Point of Sale (POS) terminals and cross-border export transactions.
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- The Reserve Bank of India (RBI) has granted final authorisation to Bengaluru-based Skydo to operate as a Payment Aggregator–Cross Border (PA-CB).
- The license enables the company to offer cross-border payment services to Indian MSMEs, freelancers, and startups across multiple currencies and markets.
- Skydo currently serves over 30,000 Indian MSMEs, freelancers, and startups across more than 50 cities.
- The platform supports payment collections in over 32 currencies.
- The company recently raised USD 10Mn in Series A funding led by Susquehanna Asia Venture Capital, with participation from Elevation Capital.
- The total funding raised by Skydo to date stands at USD 20Mn.
- Ministry of Petroleum and Natural Gas oversees the Direct Benefit Transfer of LPG (DBTL)-PAHAL Scheme operational since January 2015.
- Common LPG Database Platform (CLDP) introduced to identify and block duplicate, inactive, and fraudulent LPG connections using Aadhaar number, bank details, Household ID, Ration card, name and address matching.
- Aadhaar-Based Biometric Verification mandated for PMUY and PAHAL beneficiaries, with 69% of existing PMUY users completed as of 1 November 2025.
- Terminated 8.63 lakh ineligible PMUY connections and 20,000 inactive beneficiaries since January 2025.
- Strengthened Grievance Redress System includes toll-free helpline 1800-2333-555, LPG distributor offices, OMCs' apps and websites, CPGRAMS portal, WhatsApp support, social media channels, and LPG emergency line 1906.
- PayGlocal has received final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator – Cross Border – Inward & Outward (PA-CB-I&O).
- The latest authorisation follows the company’s Payment Aggregator – Online (PA-O) licence granted in September 2024.
- Founded in 2021, the Bengaluru-based company works with merchants in sectors including exports, retail, travel, education and software services.
- PayU has received authorisation from the Reserve Bank of India to operate as a payment aggregator across online, offline and cross-border transactions, including both inward and outward, under the Payment and Settlement Systems (PSS) Act.
- The approval enables PayU to offer secure, compliant, and seamless payment acceptance, settlement and cross-border solutions for merchants across channels.
- This development strengthens PayU's position as a full-stack digital payments provider, empowering businesses with reliable and seamless experiences across online, offline and cross-border touchpoints.
India Post Payments Bank (IPPB) mandates Choice Wealth to deploy digital investment platform
[India Post Payments Bank (IPPB)]
Key Updates:
- Choice Wealth will deploy a one-stop digital investment platform providing online mutual funds aggregator services and Robo-Advisory services for IPPB customers.
- IPPB customers will access investment products through mobile applications, web-based platforms, and mATM-compatible devices.
- Axis Finance Ltd launches Axis Finance Vyapar Business Loan, offering collateral-free loans up to Rs 10 lakh for micro and small businesses in semi-urban and rural markets.
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- Donald Trump’s social-media company is getting into the prediction markets business.
- Trump Media & Technology Group Corp. plans to make prediction contracts available on its Truth Social network.
- The prediction contracts will allow users to bet on events ranging from political elections to inflation-rate changes.
- The service will be called Truth Predict.
- Initial testing of the service, called Truth Predict, will start “in the near future.”
- PNB MetLife India Insurance Company Limited (PNB MetLife) launched the PNB MetLife DigiProtect Term Plan (UIN-117N141V01) in collaboration with Policybazaar.
- The product is an individual non-linked, non-participating, pure term insurance plan designed specifically for salaried individuals in Tier 2 and Tier 3 cities.
- The plan offers an exclusive first-year discount of up to 21% on the first premium to lower entry costs for policyholders.
- India faces a 91% life protection gap, which indicates that only ₹9 is covered for every ₹100 required to financially secure families.
- Policybazaar holds a market share of over 93% in the digital insurance aggregator space and recorded an annual premium collection exceeding ₹15,000 crore in FY24.
- Policybazaar has issued over 44.3 million policies and caters to more than 80.5 million registered users.
- PNB MetLife operates through 178 branches and provides access to customers in over 20,000 locations through bank partnerships and a network of 36,000 financial advisors.
- The company currently caters to over 585 group relationships in India and offers a portfolio covering child education, family protection, and retirement.
- LIC and YES Bank have entered into a strategic bancassurance partnership enabling YES Bank customers to access LIC’s comprehensive range of life insurance products through the Bank’s extensive branch network and digital platforms.
- YES Bank is recognised as the Preferred Banker to Digital India with best-in-class technology infrastructure, a robust API stack, and a leadership position in digital payments.
- The partnership was announced in the presence of R. Doraiswamy, CEO & MD, LIC of India, and Prashant Kumar, MD & CEO, YES Bank.
- Through this collaboration, YES Bank customers will be able to avail LIC’s diverse portfolio products including term plans, endowment policies, pension, and unit-linked insurance plans.
- FITT, IIT Delhi in collaboration with IDFC FIRST Bank announced the launch of a new cohort under the IGNITE Program to support high-potential startups working across climate tech, clean energy, healthcare, agri-tech, mobility, education, and AI-driven solutions for social good.
- The program offers non-dilutive financial support of up to ₹30 lakhs per startup along with structured capacity-building workshops covering technology development, business strategy, and investor readiness.
- Startups gain mentorship from IIT Delhi faculty, industry experts, and IDFC FIRST Bank CSR leaders, plus access to investor connect sessions, demo day exposure, and SIDBI-FITT investment pitching opportunities.
Ministry of Statistics and Programme Implementation (MoSPI) projects India’s real GDP growth at 7.4% for FY26.
[Ministry of Statistics and Programme Implementation (MoSPI)]
Key Updates:
- MoSPI’s First Advance Estimates place FY26 real GDP growth at 7.4%, up from 6.5% in FY25.
- Nominal GDP growth for FY26 is estimated at 8.0%.
- Real gross value added (GVA) is projected to rise 7.3% in FY26, with the services sector identified as the key growth engine.
- Private consumption growth eased to 7% YoY in FY25 versus 7.2% in the previous fiscal.
- Manufacturing GVA growth is estimated at 7% and Financial, Real Estate & Professional Services plus Public Administration, Defence & Other Services are estimated to grow 9.9% at constant prices in FY26.
- Agriculture and allied sector GVA growth is pegged at 3.1% while Electricity, Gas, Water Supply & Other Utility Services GVA growth is moderate at 2.1% in FY26.
- Reserve Bank of India (RBI) had forecasted FY26 GDP growth at 7.3% in its December MPC meeting.
- CRISIL revised its FY26 GDP growth forecast to 7% after Q2 FY26 data showed 8.2% growth, the fastest in six quarters.
- India Ratings & Research (Ind-Ra) pegs FY26 real GDP growth at 7.4% and nominal GDP growth at 9%.
- Bank of Baroda projects FY26 GDP growth in the 7.4%-7.6% range, noting risks from decelerating exports to the US.
- SBI Capital Markets expects FY26 real GDP growth to exceed 7% and nominal GDP growth at around 8.5% y/y.
- Acuité Ratings & Research revised FY26 GDP growth estimate to 7.2% from 6.6% after Q2 data.
- The Second Advance Estimates of GDP for FY26 will be released on 27 February 2026 and will incorporate a base revision to 2022-23.
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- The UN has raised India's 2026 GDP growth projection to 6.6% from the earlier 6.4%.
- India's GDP is forecast to grow 6.7% in 2027.
- India's GDP is expected to expand 7.4% in 2025.
- Inflation in India is forecast at 4.1% in 2026.
- On a financial year basis, India's economy is estimated to grow 7.2% in 2025-26 and 6.6% in 2026-27.
- The US has imposed a 50% tariff on India, including a 25% penalty for importing Russian oil.
- The US accounts for around 18% of India's exports.
- Globally, GDP growth is projected at 2.7% in 2026, marginally lower than the estimated 2.8% for 2025.
- The US economy is anticipated to grow 1.9% in 2025 and 2% in 2026.
- China's growth is forecast at 4.9% in 2025 and 4.6% in 2026.
- Fitch Ratings raised India’s FY26 GDP growth forecast to 7.4% from 6.9%.
- GDP growth is expected to slow to 6.4% in FY27.
- India’s GDP growth hit a six-quarter high of 8.2% in Q2FY26.
- Fitch projects the Indian rupee to strengthen to 87 per dollar by end-2026 from 88.5 projected for end-2025.
- Retail inflation fell to a record low of 0.25% in October.
- Fitch expects the Reserve Bank of India (RBI) to cut the policy rate by 25 basis points to 5.25% in December.
- The RBI has already cut rates by 100 basis points in 2025 so far.
- Fitch sees the RBI holding the policy rate at 5.25% over the next two years.
- India faces an effective tariff rate of around 35% on exports to the US.
- GST reforms effective September 22 shifted to a two-rate structure of 5% and 18%, lowering tax rates on about 375 items.
- Private investment is projected to pick up in the second half of 2026-27 as financial conditions loosen.
- Asian Development Bank (ADB) raised India’s growth forecast for FY26 to 7.2 per cent from 6.5 per cent.
- The upgrade for India is 0.7 percentage points.
- ADB forecasts Asia to grow at 5.1 per cent in 2025, higher than its earlier projection of 4.8 per cent.
- The 2025 growth estimate for India has been revised to 7.2 per cent.
- India recorded GDP growth of 8.2 per cent in the second quarter ending September.
- India's GDP growth was 7.8 per cent in the first quarter, taking the growth rate for the first half of the financial year to 8 per cent.
- ADB kept its FY27 forecast unchanged at 6.5 per cent.
- ADB revised the inflation forecast for FY2026 down to 2.6 per cent from 3.1 per cent in September.
- Reserve Bank of India (RBI) increased its GDP growth estimate for the ongoing financial year to 7.3 per cent from 6.8 per cent.
- RBI places real GDP growth for the full year at 7.3 per cent.
- RBI projects Q3 growth at 7 per cent and Q4 at 6.5 per cent.
- India Ratings and Research (Ind-Ra) forecasts real GDP growth of 6.9% in FY27.
- Ind-Ra expects retail inflation to average 3.8% in FY27.
- Union government debt as a percentage of GDP is projected to decline to 55.5% in FY27 from an estimated 56.3% in FY26.
- Ind-Ra anticipates the Indian Rupee to average 92.26 against the US dollar in FY27, compared with 88.64 in FY26.
- Ind-Ra estimates total budget size to rise to Rs 52 lakh crore in FY27 from the budgeted Rs 50 lakh crore in FY26.
- Tax revenue is expected to fall short by Rs 2 lakh crore in FY26, to be offset through higher non-tax revenue and slightly lower capex.
- Fiscal deficit for FY26 is retained at the budgeted 4.4% of GDP, amounting to Rs 15.69 lakh crore in absolute terms.
India upgrades Pinaka rocket launchers with L&T and Tata contract
[Indian Army, Larsen & Toubro (L&T)]
Key Updates:
- The Army is undertaking an extensive upgrade of its Pinaka multi-barrel rocket launchers, with orders going to private sector defence giants Tata and Larsen & Toubro.
- The contract will involve the two companies working with Army Base Workshops in upgrading critical sub-systems, providing sustained technical support and replacing outdated components.
- The indigenous Pinaka has emerged as the army's primary rocket system, with work underway to significantly increase its range to excess of 150 km.
- The partnership of the two companies with the Corps of EME of the Indian Army seeks to enhance long-term operational availability and modernisation of Pinaka regiments.
- Tata Advanced Systems has achieved nearly 80% indigenous content on manufacturing the Pinaka launchers.
- The Pinaka programme, developed by DRDO and manufactured by the private sector, has emerged as a key Make in India success story in the defence sector.
- A longer range variant, that can strike targets at 75 km range, has been tested successfully and is likely to be ordered in future.
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- Tata Advanced Systems has been awarded a supply order to support the Indian Army's 510 Advance Base Workshop (ABW) in the overhaul cum upgradation of in-service first-generation Pinaka Multiple Launch Rocket Systems (MLRS) and Battery Command Posts (BCPs).
- In the initial phase, Tata Advanced Systems and 510 ABW will jointly undertake a pilot overhaul of select Pinaka MLRS and BCPs.
- Following the pilot phase, the remaining systems will be overhauled by 510 ABW with Tata Advanced Systems providing critical spares, quality assurance and technical support.
- Tata Advanced Systems partnered with the Defence Research and Development Organisation (DRDO) to design and develop the Pinaka MLRS.
- The company has achieved nearly 80 per cent indigenous content in the Pinaka MLRS.
- Pinaka MLRS is mounted on an 8x8 High Mobility Vehicle and features automated 'shoot-and-scoot' operations.
- NIBE has secured a domestic defence contract worth Rs 292.69 crore from the Indian Army under the Ministry of Defence, Government of India.
- The order involves the manufacturing and supply of ground equipment, accessories, ESP and ammunition for a Universal Rocket Launcher System capable of integrating multiple rocket types, including long-range rockets with strike capabilities of 150 km and 300 km.
- The company is required to furnish a performance-cum-warranty bank guarantee equivalent to 10% of the total contract value within 30 days of signing the agreement.
- The contract will be executed in tranches over a period of 12 months.
- The total consideration of Rs 292.69 crore is inclusive of all taxes and duties.
- The Indian Army successfully inducted tanks, artillery guns, and engineering equipment into the Kashmir Valley using a Military Special Train.
- The operation involved seamless transportation of heavy assets from the Jammu region to Anantnag in southern Kashmir.
- The move was conducted as part of a validation exercise demonstrating enhanced mobility and logistical capability.
- The milestone was achieved in close coordination with the Ministry of Railways, leveraging the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project.
- The USBRL project features iconic structures like the Chenab Bridge, the world's highest railway arch bridge, and provides all-weather connectivity.
- Defence Research and Development Organisation (DRDO) on Monday successfully conducted the maiden flight test of the Pinaka Long Range Guided Rocket (LRGR 120) at the Integrated Test Range in Odisha's Chandipur.
- The rocket was tested for its maximum range of 120 km, demonstrating all in-flight manoeuvres as planned.
- The LRGR impacted the target with textbook precision.
- The LRGR 120 is an extended-range, precision-guided rocket developed for the Indian Army’s Pinaka Multiple Launch Rocket System (MLRS).
- Unlike earlier unguided Pinaka rockets, the LRGR is equipped with a guidance system that significantly improves accuracy.
- The rocket is fired from the existing Pinaka launcher, allowing the Army to enhance capability without inducting a new launch platform.
DRDL conducts 12-minute ground test of actively-cooled scramjet combustor
[Defence Research and Development Organisation (DRDO)]
Key Updates:
- Defence Research & Development Laboratory (DRDL) successfully ran the full-scale combustor for over 12 minutes at the Scramjet Connect Pipe Test Facility.
- The test validated the design of the actively-cooled scramjet combustor for hypersonic cruise missiles.
- Hypersonic cruise missiles exceed five times the speed of sound (over 6,100 kmph) for extended periods.
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- Technology: domestically developed ultra-lightweight miniature turbojet engine manufactured primarily by 3D printing
- Institution: Aero Engine Corporation of China (AECC)
- Key performance: 30-minute flight at 6,000 m altitude and Mach 0.75, engine operated normally and stably
- Design features: 160-kilogram thrust class; over three-quarters of engine weight in 3D-printed rotating parts, reducing part count and weight
- Significance: first 3D-printed, ultra-lightweight miniature turbojet engine in this thrust class in China to pass a flight test
- ISRO successfully carried out a static ground test of an improved version of the third stage of its Small Satellite Launch Vehicle (SSLV).
- The test was conducted at the Solid Motor Static Test Facility at the Satish Dhawan Space Centre (SDSC), Sriharikota.
- The improved SS3 motor features a carbon-epoxy composite motor case, reducing inert mass and yielding a payload gain of about 90 kg for SSLV.
- The third stage alone delivers velocities of up to 4 km/second to the launch vehicle.
- Nozzle control is achieved through a fault-tolerant electro-mechanical actuation system supported by low-power control electronics.
- ISRO successfully demonstrated the boot-strap mode start test of the CE20 Cryogenic engine.
- The CE20 engine powers the upper stage of the Launch Vehicle Mark -3 (LVM3) rocket.
- The test was conducted for 10 seconds under vacuum conditions at the High-Altitude Test (HAT) facility at ISRO Propulsion Complex, Mahendragiri on November 7.
- The CE20 cryogenic engine is already qualified for operation at thrust levels between 19 and 22 tonnes with a single start in flight and is cleared for use in the Gaganyaan missions.
- Under normal conditions, the engine ignition begins under tank head pressure, followed by a turbopump start up using a stored gas start-up system.
- For future missions, multiple in-flight restarts of the CE20 engine will be required for mission flexibility, towards multi-orbit missions.
- With the current configuration, each restart requires an additional start-up gas bottle and associated systems, leading to a reduction in vehicle payload capability.
- Achieving boot-strap mode start, where the engine builds up to steady operation without external start-up assistance, is essential.
- During the test, a multi-element igniter was employed in both the thrust chamber and gas generator to facilitate boot-strap starting.
- In this test, following the ignition of the thrust chamber, the gas generator was ignited under tank head conditions, and the turbopumps were started without the use of the start-up system.
- Boot-strap mode build-up and steady-state operation of the engine were successfully demonstrated.
- ISRO has successfully demonstrated boot-strap mode starting of a gas-generator cycle cryogenic engine without any auxiliary start-up system, perhaps for the first time in the world.
- This achievement is a significant milestone towards enhancing the restart capability and mission flexibility of future LVM3 flights.
- CSIR–National Aerospace Laboratories (CSIR-NAL) hosted the IISF 2025 curtain-raiser under the JIGYASA Programme.
- Students toured the Flight simulator facility to learn aircraft control and simulation-based engineering.
- DRISHTI indigenous runway-visibility technologies were demonstrated to the visitors.
- The Advanced composites division displayed cutting-edge materials used in aerospace structures and lightweight components.