Union Cabinet clears ₹5,000 crore equity infusion into Small Industries Development Bank of India (SIDBI) to boost MSME credit.
[Small Industries Development Bank of India (SIDBI)]
Key Updates:
- The equity capital will be infused by the Department of Financial Services (DFS) in a phased manner over three years.
- Of the total amount, ₹3,000 crore will be infused in FY26 at a book value of ₹568.65 per share as on March 31, 2025.
- The remaining ₹2,000 crore will be infused in two equal tranches of ₹1,000 crore each in FY27 and FY28 at the book value as on March 31 of the respective preceding financial years.
- The number of MSMEs receiving financial assistance is projected to rise from 76.26 lakh at the end of FY25 to about 1.02 crore by the end of FY28.
- The additional MSMEs supported by SIDBI are estimated to generate employment for about 1.12 crore people by the end of FY28.
- The equity infusion will help SIDBI maintain a Capital to Risk-weighted Assets Ratio (CRAR) above 10.5 per cent even under high-stress scenarios and above 14.5 per cent under Pillar 1 and Pillar 2 norms over the next three years.
Similar Coverage
- Ashika Group has received in-principle approval from the Securities and Exchange Board of India (SEBI) to act as sponsor and set up Ashika Mutual Fund.
- The approval allows the company to proceed with establishing an Asset Management Company (AMC) and preparing for the launch of mutual fund schemes, subject to fulfilling SEBI’s final registration requirements and conditions.
- Ashika Group’s financial services portfolio includes retail and institutional broking, investment banking, research advisory, global family office services, alternative asset management and private equity.
- The Group has a retail broking client base exceeding 125,000 and a presence across more than 20 states.
- Ministry of Electronics and Information Technology (MeitY) approved 22 proposals under the Electronics Components Manufacturing Scheme (ECMS) with projected investments of Rs 41,863 crore and estimated production of Rs 2.58 lakh crore.
- The approved proposals include applications from Dixon, Samsung Display Noida Pvt Ltd, Foxconn’s Yuzhan Technology India Pvt Ltd, Hindalco Industries, Tata Electronics, Amara Raja-ATL, Motherson and Vital Electronics, among others.
- Together, the projects are expected to generate 33,791 direct jobs.
- The Union Cabinet approved the scheme in March 2025 with an outlay of Rs 22,919 crore as part of the government’s broader push to make India self-reliant in electronics manufacturing and reach $500 billion in electronics production by 2030-31.
- National Commodity & Derivatives Exchange Ltd (NCDEX) has received in-principle approval from Sebi to launch a mutual fund transaction platform.
- The platform will allow investors to subscribe to and redeem mutual fund units, with clearing and settlement handled by National Commodity Clearing Ltd (NCCL), a wholly owned NCDEX subsidiary.
- NCDEX aims to expand financial inclusion through low-denomination systematic investment plans (SIPs) targeting rural and semi-urban areas.
- The mutual fund platform could be rolled out faster than equity trading systems as it operates independently of stock trading infrastructure.
- ADB approved USD 240 million as the second tranche under the USD 780 million facility sanctioned in 2022 for Chennai Metro Expansion Phase 2.
- Chennai Metro Phase 2 spans 118.9 km across Lines 3 (45.8 km), 4 (26.1 km), and 5 (47 km).
- ADB sanctioned USD 108 million results-based loan to strengthen Mizoram’s public healthcare through the Mizoram Universal Health Care Scheme (MUHCS) offering Rs 5 lakh per family annually.
- ADB provided USD 100 million to Five-Star Business Finance Limited for MSME credit access to over 400,000 women borrowers via 700+ branches.
Reserve Bank of India (RBI) issues operational guidelines for Export Credit Interest Subvention Scheme
[Reserve Bank of India (RBI)]
Key Updates:
- The Reserve Bank of India (RBI) issued operational guidance for the implementation of the Government of India’s Interest Subvention Scheme for pre- and post-shipment export credit.
- The scheme is introduced on a pilot basis under the Export Promotion Mission (EPM) – Niryat Prothsahan.
- The RBI directed all scheduled commercial banks (excluding regional rural banks), primary urban co-operative banks, state co-operative banks, and all-India financial institutions to extend the interest subvention.
- Lending institutions must adhere to operational instructions issued by the Directorate General of Foreign Trade (DGFT) through Trade Notices dated January 2, 2026, and January 16, 2026.
- The scheme aims to support exporters by reducing the interest burden on eligible export credit.
- The RBI circular, dated January 19, 2026, emphasizes that claims must be submitted according to prescribed procedures and existing regulatory instructions.
Similar Coverage
- Loans to high-quality infrastructure projects where at least 2% of sanctioned project debt has been repaid will carry a 75% risk weight.
- Loans where at least 5% of sanctioned project debt has been repaid will attract a lower 50% risk weight.
- Exposures initially classified as high-quality that later fail to meet prescribed conditions will revert to higher risk weights under the existing infrastructure lending framework.
- Projects must have completed at least one year of operations after achieving commercial operations without breaching material lender covenants, and the exposure must be classified as 'standard' in the lender's books.
- Project revenues must depend on concession or contractual rights granted by the Centre, state governments, public sector entities, or statutory bodies, with protections throughout the concession period.
- Lenders must have strong contractual safeguards including escrow or trust and retention account mechanisms, pari-passu charge over project assets, and risk-mitigation features such as step-in rights or minimum termination payments.
- Borrowers with export credit facility classified as standard as on August 31, 2025 are eligible for a moratorium on all repayments from September 1, 2025 till December 31, 2025.
- Interest accrued during the moratorium will be converted into a funded interest term loan repayable after March 31, 2026 but not later than September 30, 2026.
- Pre-shipment or post-shipment credit disbursed till March 31, 2026 can be repaid within an extended credit period of 450 days.
- Banks extending these reliefs must provision 5% of the total outstanding amount of such loans.
- The Ministry of Commerce announced two interventions under the Niryat Protsahan sub-scheme of the Export Promotion Mission.
- A base interest subvention of 2.75 per cent on pre- and post-shipment rupee export credit has been provided.
- Guarantee coverage of up to 85 per cent for micro and small exporters and up to 65 per cent for medium exporters, with a maximum outstanding guaranteed exposure of Rs 10 crore per exporter in a financial year, is being introduced in partnership with CGTMSE.
- An exporter-wise annual cap of Rs 50 lakh for each firm has been prescribed for FY 2025-26 under the interest subvention intervention.
- The government has constituted a committee to review the rates of tax refund under the export schemes – Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL).
- Both these schemes are set to expire by the end of this financial year, and the committee has been given time till March 31, 2026 to submit its main report.
- The panel is headed by former secretary Neeraj Kumar Gupta, with SR Baruah and Vivek Ranjan as the other two members.
- RoDTEP scheme was introduced in January 2021 as a replacement of Merchandise Exports from India Scheme (MEIS), covering exports of 10,642 products and providing refunds of taxes ranging from 0.3% to 4.3%.
- RoSCTL was also introduced in 2021 for textiles and garment exporters, with a maximum rate of refund for apparel at 6.05% and for made-ups up to 8.2%.
- The committee will work out the modalities for calculation of duties, taxes, levies and recommend the ceiling rates under RoSCTL and RoDTEP schemes for exports from domestic tariff areas, special economic zones, and advance authorisation holders.
Reserve Bank of India (RBI) Issues Foreign Exchange Management (Guarantees) Regulations 2026
[Reserve Bank of India (RBI)]
Key Updates:
- The Reserve Bank of India (RBI) has released the Foreign Exchange Management (Guarantees) Regulations, 2026, replacing the previous framework from 2000.
- The new principle-based regime expands the automatic route for cross-border guarantees, allowing transactions without prior approval if they meet FEMA borrowing and lending rules.
- Mandatory reporting of all guarantees must be submitted to authorized dealer banks on a quarterly basis within 15 days of the quarter end.
- The RBI has introduced a Late Submission Fee (LSF) for delayed reporting, calculated as ₹7,500 + 0.025% × amount involved × number of years of delay.
- A new reporting format, Form GRN, has been introduced to capture granular data including guarantee commissions, invocation details, and timelines for extinguishing liabilities.
- The regulations do not apply to guarantees issued under the Overseas Investment Regulations, 2022, or irrevocable payment commitments issued by custodian banks for Foreign Portfolio Investors (FPIs).
Similar Coverage
- Banks must compute foreign exchange risk capital requirements on a continuous basis at both consolidated and standalone levels.
- Capital for foreign exchange risk must be maintained at the close of each business day.
- Banks may exclude specific 'structural' foreign exchange positions from the net open position subject to strict conditions.
- The methodology for structural foreign exchange positions must be documented in the bank's risk management policy.
- Borrowers with export credit facility classified as standard as on August 31, 2025 are eligible for a moratorium on all repayments from September 1, 2025 till December 31, 2025.
- Interest accrued during the moratorium will be converted into a funded interest term loan repayable after March 31, 2026 but not later than September 30, 2026.
- Pre-shipment or post-shipment credit disbursed till March 31, 2026 can be repaid within an extended credit period of 450 days.
- Banks extending these reliefs must provision 5% of the total outstanding amount of such loans.
- The Ministry of Statistics and Programme Implementation (MoSPI) will release a new series of Consumer Price Index (CPI) data with the base year 2024=100 on February 12, 2026.
- MoSPI will roll out revised National Accounts data using 2022-23 as the base year on February 27, 2026.
- The new Index of Industrial Production (IIP) series, featuring 2022-23 as the base year, is scheduled for release on May 28, 2026.
- MoSPI convened a pre-release consultative workshop to discuss proposed methodological and structural changes in the revised data series with stakeholders.
- The revision process involves key officials including NITI Aayog Vice Chairman Suman K Bery, Chief Economic Advisor V Anantha Nageswaran, and MoSPI Secretary Saurabh Garg.
- Reserve Bank of India (RBI) replaces the 2000 rules with the Foreign Exchange Management (Guarantees) Regulations, 2026.
- Guarantees are freely permitted if the underlying transaction is not prohibited under FEMA and parties are eligible to lend or borrow under FEMA borrowing and lending rules.
- Guarantees issued, modified or invoked must be reported quarterly within 15 days of quarter-end to authorised dealer banks using Form GRN.
- Late submission attracts a fee of Rs 7,500 + 0.025% × amount involved × years of delay (rounded to nearest month and Rs 100).
- Exemptions cover guarantees by overseas/IFSC branches of authorised dealer banks, irrevocable payment commitments by custodian banks for FPIs, and guarantees under Overseas Investment Regulations, 2022.
Reserve Bank of India (RBI) grants Payoneer India in-principle PA-CB approval
[Reserve Bank of India (RBI), Payoneer India]
Key Updates:
- Payoneer India has received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator – Cross Border (PA-CB).
- The RBI has already fully authorised 19 entities with a PA-CB licence.
- Payoneer Global claims to support customers in more than 190 countries and territories.
- Over the trailing 12 months as of the third quarter of 2025, Payoneer Global served nearly two million active customers and processed over $80 billion in transaction volume.
Similar Coverage
- 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.
- 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.
- Paytm Payments Services Limited (PPSL) received RBI authorisation to operate as a payment aggregator for physical (offline) payments and cross-border transactions.
- PPSL now holds Payment Aggregator licences across all key segments, enabling end-to-end payment aggregation services across online, offline and cross-border use cases.
- PPSL had already received online payment aggregator authorisation from RBI on November 26, 2025, under the Payment and Settlement Systems Act, 2007.
- 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.
National Payments Corporation of India (NPCI) grants ZET TPAP licence for RuPay credit-card UPI payments.
[National Payments Corporation of India (NPCI), RuPay]
Key Updates:
- ZET secured NPCI approval for a Third-Party Application Provider licence.
- ZET integrates UPI payments with credit card rewards using RuPay’s UPI-on-credit-card capability.
- ZET expects monthly UPI transactions via credit cards to reach about Rs 100 crore.
- ZET’s platform has around 10 lakh eligible users, nearly 75 percent of whom are first-time credit card users.
- ZET’s UPI ecosystem is powered by Juspay’s technology stack and enabled through a partnership with RBL Bank.
Similar Coverage
- Canara Bank will integrate NPCI BHIM Services Limited (NBSL) bank plugins to offer Unified Payments Interface (UPI) services on its banking app, Canara ai1Pe.
- Canara Bank is the first financial institution to adopt this technology stack approach from NBSL to host UPI features and upgrades.
- NBSL was established as a wholly owned subsidiary of the National Payments Corporation of India (NPCI) in 2024.
- The Unified Payments Interface (UPI) recorded 21.63 billion transactions worth ₹27.97 trillion at the end of 2025.
- The Public Sector Undertaking (PSU) Bank index grew by 31% in 2025, outperforming the Nifty for the fifth consecutive year.
- The Indian Rupee (INR) breached the 91 per US Dollar mark as Foreign Portfolio Investors (FPIs) sold ₹29,300 crore in 2026.
- In 2025, BHIM presented a proof of concept for BHIM Vishwas, a technology stack designed for white-labeling payment capabilities for banks.
- Innoviti Technologies received RBI Certificate of Authorization to operate as a Payment Aggregator under the Payments and Settlement Systems Act, 2007.
- The authorization now covers both online and physical in-store payment transactions.
- Innoviti already processes over ₹80,000 crore annually across 2,000+ cities and 50,000+ merchants.
- Google Pay launched FLEX, a fully digital, UPI-powered co-branded credit card with Axis Bank built on the RuPay network.
- Users can link the FLEX card to UPI accounts inside Google Pay and scan QR codes for credit-powered merchant payments.
- The card offers instant cashbacks or rewards instead of monthly billing-cycle credits.
- Eligible users can apply and receive a virtual card within minutes at zero cost directly inside the Google Pay app.
- Google Pay introduced Pocket Money on the UPI Circle framework, letting parents set monthly spending limits up to ₹15,000 or approve each child transaction.
- Google Pay now prompts customers to rate small merchants immediately after transactions to build unified customer ratings.
- A GenAI-powered Ads tool within Google Pay for Business lets small merchants create, preview, and launch ad campaigns in minutes.
- UPI-linked credit card transactions now account for nearly 40% of total credit card transactions by volume, up from 10% at the end of FY24.
- RuPay’s credit card market share has climbed to nearly 16%, from 3% two years ago, after the RBI allowed RuPay credit cards to be linked exclusively to UPI in late 2022.
- More than 50 million merchants now use UPI for transactions, while fewer than 10 million merchants have point-of-sale devices that accept all credit cards.
GeM–WTC Mumbai MoU to Boost MSME Inclusion in Public Procurement
[World Trade Center Mumbai]
Key Updates:
- GeM and MVIRDC World Trade Centre Mumbai signed an MoU to foster domestic and international collaboration in public procurement.
- The MoU aims to enhance GeM’s global positioning, promote knowledge exchange, and drive inclusive participation for MSMEs, startups, women entrepreneurs, and underrepresented suppliers.
- Joint initiatives include global procurement dialogues, capacity-building programs, supplier outreach, and research on AI in procurement, sustainability, and green practices.
- A Joint Working Group will oversee implementation, ensuring alignment with Government of India policies on public procurement, data security, and inclusivity.
Similar Coverage
- The Government e-Marketplace (GeM) celebrated seven years of its Womaniya initiative, a program aimed at bolstering the participation of women-led Micro and Small Enterprises (MSEs) in public procurement.
- According to the Ministry of Commerce & Industry (MoCI), over two lakh women-led MSEs are registered on the GeM portal.
- Since its launch on January 14, 2019, these enterprises have secured public procurement orders over Rs 80,000 crore, accounting for 4.7% of the total order value on GeM.
- The initiative provides a transparent, digital interface, reducing entry hurdles and eliminating intermediaries to foster gender-inclusive economic growth.
- A new partnership with the Women's Collective Forum aims to enhance support for women entrepreneurs and improve market access.
- IREDA secured an ‘Excellent’ MoU rating for the fifth consecutive year with the Ministry of New and Renewable Energy (MNRE), scoring 96.42 out of 100.
- Union Minister for New and Renewable Energy Shri Pralhad Joshi stated the sustained top-tier performance reflects the organisation’s institutional strength, reform-driven governance, and professional execution.
- IREDA’s CMD Shri Pradip Kumar Das said the recognition is a testament to the dedication of employees, trust of stakeholders, and consistent guidance of the Government of India.
- The TEAM Scheme is implemented by Ministry of Micro, Small & Medium Enterprises as a sub-scheme of ‘Raising and Accelerating MSME Performance’ (RAMP), a Central Sector Scheme.
- The outlay of MSME TEAM Initiative is Rs. 277.35 Cr. for the duration of 3 years from 2024 to 2027.
- The TEAM Scheme provides MSMEs direct access to Open Network for Digital Commerce (ONDC) which offers ready-made online storefronts, integrated digital payment solutions, and logistics support.
- MSME TEAM Initiative envisages to benefit 5 lakh Micro and Small Enterprises (MSEs) of which 50% are to be women owned MSEs.
- MoU signed between Engineers India (EIL) and NMDC Energy to cooperate on onshore projects in Saudi Arabia covering Oil and Gas Processing, Refineries, Petrochemicals, Pipelines, Storage Terminals, and Energy Transition
- MoU signed on the sidelines of ADIPEC 2025 in Abu Dhabi
- Collaboration aims at joint tendering and executing EPC projects leveraging NMDC’s Ras Al Khair fabrication facilities and EIL’s Al Khobar design center
SAMPANN Portal Integrated with DigiLocker to Provide One-Click Digital Access to DoT Pensioners
[DigiLocker, Department of Telecommunications (DoT)]
Key Updates:
- The Office of the Principal Controller of Communication Accounts (Pr CCA), Delhi has integrated the System for Accounting and Management of Pension (SAMPANN) pension portal with DigiLocker.
- SAMPANN is a government-run digital platform designed to make pension services easier for Department of Telecommunications (DoT) retirees.
- The integration enables pensioners to access key documents such as e-Pension Payment Orders (e-PPOs), gratuity sanction orders, communication sanctions, and Form-16 online.
- The SAMPANN platform was launched by Prime Minister Narendra Modi in December 2018.
- The platform is developed and managed by the Office of the Controller General of Communication Accounts and handles pension payments and related financial work online.
- The platform has digitised the entire pension lifecycle—from initiation and processing of cases to issuance of e-Pension Payment Orders, disbursement, accounting, reconciliation, financial reporting, audit facilitation, and grievance redressal.
Similar Coverage
- Controller General of Communication Accounts (CGCA) Smt. Vandana Gupta officially launched the onboarding process for all MTNL employees set to retire in November 2025 onto the SAMPANN portal.
- The initiative integrates a total of 45,939 pensioners from Delhi and Mumbai, both current and past retirees, into a modernized digital framework.
- The SAMPANN initiative promises precise, rule-based calculations, efficient handling of cases, prompt disbursements linked with the Public Financial Management System (PFMS), and improved mechanisms for grievance redressal through multi-modal integration.
- Features include direct pension disbursement, online issuance of PPOs, integration of Digital Life Certificates, streamlined grievance management, and a notable reduction in paperwork.
- The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee to formulate guidelines and regulations for establishing a framework for assured payouts under the National Pension System (NPS).
- The committee will be chaired by Dr. M. S. Sahoo, Founder of Dr. Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI).
- The 15-member panel comprises experts from law, actuarial science, finance, insurance, capital markets, and academia.
- The committee has been established as a standing advisory committee on structured pension payouts.
- Its core objectives include formulating regulations for assured payout products, designing an end-to-end framework for transition from accumulation to payout phase, and enabling legally enforceable, market-based guarantees for assured payouts.
- The committee will define operational parameters such as lock-in periods, withdrawal limits, pricing methodologies, and fee and cost structures for service providers.
- It will establish capital and solvency requirements for providers and examine tax implications for payout options within the NPS architecture.
- The committee will develop standardized disclosure norms to prevent mis-selling and align subscriber expectations with market-based guarantees.
- The Pension Fund Regulatory and Development Authority (PFRDA) notified the amended PFRDA (Exits and Withdrawals under the National Pension System (NPS)) Regulations, 2025, on December 16.
- Eligible NPS members can now withdraw up to 80 per cent of their retirement corpus as a lump sum at the time of exit.
- The revised rules apply to subscribers under the All Citizen Model and Corporate NPS, bringing relief to non-government sector employees.
- The compulsory annuity purchase requirement for non-government subscribers has been reduced to a minimum of 20 per cent of the accumulated pension wealth.
- Subscribers with accumulated pension wealth up to Rs 8 lakh can withdraw the entire amount as a lump sum.
- For accumulated pension wealth between Rs 8 lakh and Rs 12 lakh, lump sum withdrawal is capped at Rs 6 lakh, with the balance available for annuity purchase or systematic unit withdrawal over a period of up to six years.
- For accumulated pension wealth above Rs 12 lakh, at least 20 per cent of the corpus must be used to purchase an annuity, while up to 80 per cent becomes available for withdrawal.
- India Post Payments Bank (IPPB), a 100% government-owned entity under the Department of Posts, has signed an MoU with the Employees' Provident Fund Organisation (EPFO).
- The partnership aims to provide doorstep digital life certificate services to pensioners under the Employees' Pension Scheme, 1995.
- IPPB will use its network of around 1.65 lakh post offices and over 3 lakh postal service providers equipped with doorstep banking devices.
- Pensioners will be able to submit their digital life certificates from home through face authentication or fingerprint biometric verification.
- The service will be free for pensioners as the Employees' Provident Fund Organisation will bear the entire cost.
- The agreement was exchanged between IPPB MD & CEO R Viswesvaran and EPFO central provident fund commissioner Ramesh Krishnamurthi.