RBI speeds up cheque clearing, improves customer experience

As India's financial ecosystem moves toward greater digital integration, Reserve Bank of India (RBI)’s cheque clearing reforms stand as a milestone in responsive service delivery. Stakeholders across the sector must appreciate the technological advancement and address challenges in staff training, process automation, and communication for seamless transitions. https://lnkd.in/gm-5yS_j #ChequeClearing #BankingInnovation #CustomerExperience #RBI #FinanceTrends #DigitalTransformation

Banking related acts Reserve Bank of India Act, 1934 Objective: Establishes the Reserve Bank of India (RBI) as the central bank and outlines its powers and functions. Key Provisions: Grants RBI authority to regulate monetary policy, issue currency, and supervise banks. It defines RBI’s role in controlling credit, managing foreign exchange, and maintaining financial stability. The act also covers the licensing of banks and their operations. Scope: Applies to RBI and all banking institutions under its purview. Banking Regulation Act, 1949 Objective: Regulates the functioning of commercial banks and cooperative banks in India. Key Provisions: Empowers RBI to license banks, regulate their operations, and enforce compliance. It sets guidelines for capital adequacy, audits, and amalgamations. The act prohibits banks from engaging in non-banking activities and ensures depositor protection. Scope: Commercial banks, cooperative banks, and regional rural banks. State Bank of India Act, 1955 Objective: Establishes the State Bank of India (SBI) as the country’s largest public sector bank. Key Provisions: Defines SBI’s structure, management, and functions. It allows SBI to undertake banking and related activities, with RBI holding regulatory oversight. The act also facilitates the acquisition of associate banks (now merged with SBI). Scope: Governs SBI and its subsidiaries. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 & 1980 Objective: Facilitates the nationalization of major commercial banks to serve public interest. Key Provisions: Enabled the government to acquire 14 banks in 1970 and 6 in 1980, transferring their undertakings to the state. It outlines compensation for shareholders and the management structure of nationalized banks. Scope: Nationalized banks under public sector ownership. Negotiable Instruments Act, 1881 Objective: Governs the use of negotiable instruments like cheques, promissory notes, and bills of exchange in banking. Key Provisions: Defines legal aspects of negotiable instruments, their transferability, and liability of parties. It includes provisions for cheque dishonor (Section 138), enabling legal recourse for non-payment. Scope: All banking transactions involving negotiable instruments. Payment and Settlement Systems Act, 2007 Objective: Regulates payment and settlement systems to ensure efficiency and security. Key Provisions: Empowers RBI to oversee payment systems, including digital payments, RTGS, and NEFT. It sets standards for operators and ensures consumer protection in electronic transactions. Scope: Banks, payment gateways, and fintech companies.

Transforming Banking in India: Embracing Change with GDP Growth, UPI, and Digitalization: As India elevates its position in the global GDP rankings, the dynamics of banking are undergoing a profound transformation. The integration of technology and innovative solutions is not just changing how we Bank but is reshaping the entire financial landscape. Here are some key changes observed: 1. Enhanced Accessibility: With the Unified Payments Interface (UPI) at the forefront, banking services have become more accessible than ever. UPI's seamless transaction capabilities empower millions, allowing instant payments and financial transactions without the need for traditional banking hours. 2. Digitalization Revolution: The shift towards digital banking is accelerating. Banks and financial institutions are leveraging technology to offer user-friendly mobile apps, ensuring that services are available 24/7. From account management to loan approvals, digital platforms enhance customer experience and convenience. 3. Financial Inclusion: Enhanced digital infrastructure has paved the way for increased financial inclusion. More citizens can now access Banking facilities, enabling them to participate in the economy, save, and invest, which directly contributes to the GDP growth. 4. Innovative Financial Products: With a growing economy comes the demand for personalized financial solutions. Banks are innovating their offerings, introducing tailored products that cater to diverse customer needs, from retail to SMEs. 5. Data-Driven Insights: The digitization of banking provides invaluable data insights. Banks are utilizing big data and AI to better understand consumer behavior, assess credit risks, and personalize service, ensuring that they remain competitive in a fast-evolving marketplace. In conclusion, the interplay of improved GDP rank, the rise of UPI, and a commitment to digitalization is revolutionizing the Banking sector in India. As we continue to embrace these changes, the future of banking looks promising and full of potential. Let’s continue to drive innovation and create an inclusive financial ecosystem for all!

📶 India’s Banking Story Enters a New Phase: Emirates NBD’s $3B Bet on RBL Bank ▪️ In one of the most significant cross-border financial developments this year, Dubai’s Emirates NBD announced a $3 billion acquisition for a 60% stake in RBL Bank — marking its largest investment in South Asia to date. But beyond the numbers, this deal represents something far larger: ▶️ A strategic re-rating of India’s financial ecosystem — from being a high-growth banking market to becoming a wealth management powerhouse. ➡️ RBL Bank, once known primarily for its retail and SME presence, will now pivot towards wealth management and investment services, leveraging Emirates NBD’s strong global expertise. ➡️ The deal introduces a global bank’s capital, risk systems, and digital frameworks into India’s financial architecture — a step that could enhance efficiency, governance, and innovation. ➡️ It also reflects India’s evolving financial maturity — moving from traditional savings to diversified investments, mutual funds, insurance-linked wealth products, and portfolio management. ▶️ Why It Matters for India ➡️ Capital Inflow → $3 billion in direct foreign investment adds liquidity, strengthens RBL’s balance sheet, and fuels credit growth. ➡️ Skill and Tech Transfer → Emirates NBD brings sophisticated risk analytics, AI-driven client servicing, and high-end wealth platforms. ➡️ Job Creation → Wealth advisory, portfolio management, financial analytics, and digital banking roles will see stronger demand. ➡️ Economic Multiplier → Every $1 of financial service investment creates ripple effects across fintech, compliance, consulting, and infrastructure. ➡️ India’s Global Positioning → Strengthens India’s role as the next big financial hub in Asia, bridging Middle East capital with Indian growth potential. ▶️ The Flip Side (Challenges) ➡️ Cultural Integration: Aligning RBL’s domestic retail focus with Emirates NBD’s global structure could be complex. ➡️ Regulatory Oversight: RBI may scrutinise cross-border governance, liquidity norms, and foreign control. ➡️ Competitive Pressure: Larger Indian private banks like HDFC, ICICI, and Axis already dominate high-value segments; catching up won’t be easy. ➡️ Execution Risk: Transitioning from retail banking to wealth-focused models requires technology, talent, and time. 💠 The Broader Picture ▪️ This deal isn’t just about ownership — it’s about India’s financial evolution. The shift from saving to investing, from deposits to wealth creation, from physical branches to digital ecosystems — it’s all accelerating. #RBLBank #EmiratesNBD #IndianEconomy #BankingTransformation #FinanceCommunity SOVON PAUL || LinkedIn

RCBC Upgrades Digital Remittance Services Amid 34% Growth in Transactions The bank has seen a 34% year-on-year growth in remittance transactions as of June this year and has recently partnered with new digital players like Visa and Gmoney Trans. Rizal Commercial Banking Corp. (RCBC) is upgrading its remittance arm. Now known as RCBC Remittance, it aims to enhance its digital capabilities and expand its global network. The move comes as more overseas Filipinos shift to digital channels for sending money home. Industry data indicates that 75% of remittances to the Philippines are now sent through digital platforms. RCBC’s Head of Transaction Banking Group, Martin Tirol, said the upgrades are part of the bank’s commitment to driving greater adoption of digital remittances. They want to make it easier for global Filipinos to take advantage of growing accessibility worldwide. The bank reported a 34% year-on-year growth in remittance transactions as of June this year. It attributed such growth to new partnerships in Asia and initiatives in the Middle East. RCBC has recently partnered with new digital remittance providers, including Visa and Digital Wallet Corp. in Japan. They also collaborated with Gmoney Trans in Korea to offer faster and more secure transfer options. Through its RCBC Pulz mobile app, the bank has also digitised the account opening process for overseas Filipinos in 42 countries, removing the need for physical branch visits. The bank aims to expand its remittance partner base to over 80 tie-ups across 25 countries within the next five years. Source: https://lnkd.in/gSFkB9ne

BFSI High lights on 29th October-Indian banking industry Emirates NBD to acquire majority stake in RBL Bank: Dubai-based bank Emirates NBD plans to acquire a majority stake in Indian private lender RBL Bank for $3.2 billion (approx. ₹26,850 crore), marking the largest foreign direct investment in India's banking sector. Jana Small Finance Bank license application returned: The Reserve Bank of India (RBI) has rejected Jana Small Finance Bank's application to convert into a universal bank, stating the bank did not meet the eligibility criteria. RBI proposes same-day credit for remittances: India's central bank has proposed new rules that would require banks to credit customers' accounts on the same day for cross-border payments received during foreign exchange market hours. Foreign investment cap in PSU banks may increase: The Indian government is reportedly planning to raise the foreign investment limit in public sector banks (PSBs) from 20% to 49% to attract more capital. Quarterly earnings results Federal Bank: Q2 net profit increased by 10.85% quarter-over-quarter, driven by strong growth in net interest income. The bank's asset quality improved, with gross non-performing assets (GNPA) decreasing. Dhanlaxmi Bank: The bank reported an 11.5% drop in Q2 net profit, though its total income increased for the quarter. Kotak Mahindra Bank: Consolidated net profit for Q2 fell 2.7% year-over-year. The bank's net interest income (NII) increased by 4% to ₹7,311 crore, and net advances grew 16% year-over-year. Technology and AI in finance AI adoption lags despite high interest: While many Indian consumers are willing to use AI-powered financial assistants, AI adoption in the BFSI sector is still largely in the "early experimentation stage," according to Perfios CEO Sabyasachi Goswami. Banks drive demand for Gen AI tools: Major Indian banks like PNB and Union Bank of India are issuing tenders for BFSI-specific Generative AI tools, leading tech firms to compete in tailoring AI solutions for the sector. Indian banks using AI responsibly: At the Business Standard BFSI Summit, banking leaders discussed the need to use AI responsibly to prevent biases and maintain ethical standards. Other notable developments Business Standard BFSI Insight Summit 2025: Industry leaders have convened to discuss key issues facing the sector. Panel topics have included the need for specialized banks for niche markets, the growing appeal of retail lending, and the future role of AI. RBI's four-nominee rule takes effect: Effective November 1, new regulations allow bank customers to designate up to four nominees for their accounts, simplifying the claim settlement process. Credit card transactions at a record high: The value of credit card transactions reached a record high in September 2025, with e-commerce driving a significant portion of the growth.

We spent months building what we thought was the perfect banking solution for the Middle East market. Storytime…👇🏻 One successful implementation at Emirates Bank in Dubai proved we'd nailed it. Or so we thought. We successfully launched a highly-customized solution after deep gap analysis and months of configuration. The product went live, customers were happy, and we believed we'd cracked the Middle East banking market. Then we tried replicating it at Emirates Islamic Bank in the same city. Everything broke. Features that worked perfectly for conventional banking violated Sharia compliance principles. Interest-bearing accounts, standard loan structures, and core banking workflows - all unusable. We had to customize and reconfigure the entire product to suit Islamic banking. Here's the lesson that cost us four months of runway: 👉🏻 We never ran a business simulation for Islamic banking before assuming our solution would work. 👉🏻 We thought we’d be able to fulfill Islamic banking with minor tweaks, but that was not the case. In this case, both geography and customer context mattered. Until you've run a business simulation of your target customer inside your product, you can't be sure it fits. Not a demo alone. ❌ Not a presentation alone. ❌ A real business simulation in your product covering: 📍Actual data flows  📍Real user journeys 📍Compliance requirements  📍End-to-end workflows with sample customer and product type 𝐀𝐬𝐬𝐮𝐦𝐩𝐭𝐢𝐨𝐧 𝐯𝐬 𝐑𝐞𝐚𝐥𝐢𝐭𝐲: ❌Assumption: Banking principles are universal across the region ✅Reality: Islamic vs conventional banking requires fundamentally different products ❌Assumption: One successful implementation proves market fit ✅Reality: Each customer segment needs separate validation What we should have done…👇🏻 Rather than going ahead with the assumptions, we should have gone ahead with the business simulation. The opportunity cost wasn't just the four wasted months. It was the competitive advantage we lost while competitors were onboarding customers with simpler, focused solutions. Actionable advice for founders…👇🏻 🫸🏻 Pick ONE core feature, stabilize it with a small diverse customer set, then expand. 🫸🏻 If you're launching based on one flagship client's success, run business simulations with 3-5 different customer types before scaling. 🫸🏻 Your product roadmap should come from customer reality across segments, not from ONE successful implementation you're hoping will replicate. Building on the back of one flagship client? Book your free product diagnostic call: https://lnkd.in/gFevzd-g #productmarketing #customerdiscovery #startuplessons #productdevelopment #entrepreneurship

🚀 Considering #agency banking as a business model for domestic growth.   🏦 As domestic markets saturate due to intense competition, relatively lowered entry barriers in terms of regulations and as various customer segments gain maturity leading to high expectations, there are two potential paths for growth (increase in customer base, revenue, margins, brand strength etc.), that banks (and fintech) can consider - ✈️ 1️⃣ #Expand beyond domestic borders, following the customers, mostly corporates and institutions segments. 🧗♀️ 2️⃣ Find ways to #grow in the domestic market, by entering new segments while improving current operations and margins.   🏭 🌏 There could be multiple possible options that can be derived from the above two considerations. An option that plays well into the strength of a commercial banks is agency banking, essentially becoming an aggregator of payments services in the country, leveraging its regulatory and operational strengths. Serving an increasing demand due to globalized nature of operations for banks and fintech.   🏛️ ⏳ This also opens up an opportunity for domestic scheme operators to offer these services with the objective of increasing adoption of systemic payments schemes in the country. 🌐 🏗️ Considering the two points above, banks have been growing their presence in the international markets. A regional or global reach for a bank is a representation of its #distribution advantage, which is difficult to replicate. 🪢 But as they enter these markets, regulators allow them, in most cases, to access the clearing and settlement systems for a country. Though resources required to comply do present challenges. Hence leveraging a direct participant into the national payments infrastructure is a viable solution.   🀄 Foreign banks that already exist and have a relationship, struggle with compliance of new schemes and payments infrastructure.   📱 Fintech are essential parts of the value chain, encouraged in an economy, by policies to reduce the entry barriers and create an environment of innovation and competition. Government policies will most likely keep them going, but to be effective, fintech need banks.   🎼 🎛️ Approach for agency/aggregator banking - 🏄 An important consideration is to separate domestic payments operations from aggregator operations, as the needs, speed of change management and risks involved are expected to be different. Risking domestic operations may not be an appropriate path. 💸 The entire flow or major parts of the model should be disconnected to keep things separate; some parts of the existing infrastructure can be reused though. An ability to continuously evolve, accommodating needs of a diverse set of in-direct participants is important. Considering substantial scale (relative to the size of country) this could be a lucrative business to get into.   🎢 Payments technology stack will be an important differentiation for growth. Temenos can help.   #payments #strategy

How State Bank of India bridges the gap between scale and personalization offers a winning blueprint for CX professionals. Its success stresses the importance of integrating digital journeys with human touchpoints, investing in employee empowerment, and prioritizing financial inclusion for sustainable excellence. https://lnkd.in/gVFU8xZq #CustomerExperience #DigitalBanking #SBI #FinanceInnovation #CXLeadership #EmployeeExperience #FinancialInclusion #BankingExcellence #YONO #GlobalFinanceAwards

The National Bank of Bahrain (NBB) recently launched its digitalised treasury bills (T-Bills), marking a transformative step in the evolution of Bahrain’s capital markets infrastructure. The new digital process enables end-to-end issuance, settlement, and management of T-Bills through a secure and automated platform. Accessible through NBB’s Digital Banking platform, the solution allows customers to select from a range of investment opportunities. Users can subscribe to, manage, and monitor their T-Bill portfolios anytime and anywhere through a secure and fully digitalised experience. Commenting on the announcement, NBB head of wealth management Ali Janahi said, “At NBB, our mission is to put customers at the heart of everything we do. This launch is a testament to our commitment to building strong partnerships with all our customers and potential investors to grow together. It also underscores our focus on driving innovation, enhancing operational efficiency, and delivering tailored solutions that raise the bar for investor experience.” Omar Al Adhami, head of retail digital banking at NBB added, “This initiative represents a key milestone in our digital-first strategy, aimed at delivering every customer a seamless and secure digital experience tailored to their financial needs. Through NBB Digital Banking, customers can conveniently access a new investment opportunity in addition to the comprehensive suite of products and services, all in one place, making NBB Digital their trusted one-stop shop for all their banking requirements.” The launch is aligned with NBB’s broader strategy to integrate customer-centric digital solutions across its investment banking offerings, while supporting national objectives for digital advancement and sustainability. The platform is underpinned by a robust and compliant digital infrastructure that safeguards client data and ensures the integrity of all transactions. It also contributes to the bank’s ESG agenda by reducing reliance on paper-based processes. Read more: https://lnkd.in/dJDPu48d