The Business Factors News Desk

Chennai, Sept 2, 2025 — The stately halls of Chennai pulsed with pride and purpose today as City Union Bank marked its 120th foundation day—a milestone few institutions live to see. But this wasn’t just a ceremonial affair. It was a moment of reckoning, reflection, and roaring optimism, graced by none other than the President of India, Smt. Droupadi Murmu who delivered a stirring address that turned heads and stirred hearts.

“India’s economy is sprinting ahead, and our banks are the wind beneath its wings,” the President declared, setting the tone for an afternoon that celebrated not just longevity, but legacy.

Banking Beyond Boundaries

Gone are the days when banks were mere vaults of currency. Today, they’re engines of empowerment, catalysts of change, and gateways to dreams. President Murmu spotlighted how institutions like City Union Bank have evolved into multi-dimensional service hubs, offering everything from micro-loans to mobile apps, insurance to investment tools—all tailored to meet the rising aspirations of a billion-plus citizens.

Financial Inclusion: The Heartbeat of Progress

In a country where millions still reside in rural and semi-urban pockets, financial inclusion isn’t a buzzword—it’s a lifeline. The President lauded City Union Bank’s strides in bringing banking to the doorstep of the underserved, saying,

She emphasised that payment banks, digital wallets, and fintech innovations are rewriting the rules of engagement, making banking not only accessible but also intuitive. Yet, she didn’t shy away from the challenges—digital literacy, internet penetration, and financial awareness remain hurdles that demand collective resolve.

Farmers, MSMEs, and the Forgotten Workforce

With a firm voice and compassionate tone, President Murmu called on the banking sector to prioritise the rural economy, urging banks to extend timely credit, agri-tech support, and financial education to farmers. She envisioned a future where MSMEs become growth dynamos, and where daily wage earners and migrant labourers are seamlessly woven into the financial fabric of the nation.

Banking the Future: From Startups to Smart Cities

As India marches toward a digital-first, knowledge-driven economy, the President underscored the transformative role of banks in powering innovation. Whether it’s funding startups, fueling smart city infrastructure, or backing entrepreneurs, banks are no longer just financial institutions—they’re nation builders.

A Celebration of Vision and Values

City Union Bank’s 120th anniversary wasn’t just a tribute to its past—it was a clarion call for the future. With President Murmu’s powerful endorsement, the event became a rallying cry for inclusive growth, digital transformation, and economic justice.

As the applause echoed through the venue, one thing was clear: India’s banking story is far from over—and it’s being written in bold, visionary strokes.

The Business Factors News Desk

Mumbai, May 23, 2025: India's net FDI hit a record low of $353 million in FY25, down 96.5% from last year, driven by high repatriation, outbound investments, and booming IPO exits.

Record repatriation and booming IPO exits push India's net FDI to an all-time low in FY25.

Net foreign direct investment (FDI) into India fell by 96.5% in the financial year 2024-25, according to data from the Reserve Bank of India (RBI). The net FDI stood at just $353 million, the lowest ever, compared to $10 billion in FY24.

The sharp drop was mainly due to a booming IPO market, which allowed long-term foreign investors like Alpha Wave Global and Partners Group to exit with multi-billion-dollar returns from stake sales in firms like Hyundai Motor and Swiggy.

Reason behind the drop

The RBI said net FDI fell due to increased outward investments by Indian firms and higher repatriation by foreign investors. Repatriated funds touched $49 billion in FY25, up from $41 billion the previous year.

According to the data released by the RBI in its monthly bulletin, Indian firms also invested heavily overseas, spending $29 billion in outbound direct investments, up from $17 billion in FY24. This reflects a growing interest among Indian businesses to tap into global supply chains and international opportunities.

Private equity and venture capital firms exited investments worth $26.7 billion in FY25, a 7% increase from the previous year, according to a report by IVCA and EY. Open market exits and IPOs were the preferred routes. For example, Hyundai sold part of its stake during its ₹27,870 crore IPO, while a top investor in Swiggy made over $2 billion after the listing, The Economic Times reported.

While net FDI dropped, gross inward FDI actually grew 13.7% to $81 billion in FY25. Key sectors attracting this capital include manufacturing, financial services, electricity and energy, and communication services, which together accounted for over 60% of the inflows.

India’s outward foreign direct investment (OFDI) also witnessed significant growth, rising by over 75% to $29.2 billion in 2024–25. Major destinations for these investments included Singapore, the US, the UAE, Mauritius, and the Netherlands. Sectoral data revealed that financial, banking and insurance services led the way, followed by manufacturing, wholesale and retail trade, restaurants, and hotels.

Khushboo Kumari reports in The Financial Express  

The Business Factors News Desk

Mumbai, May 23, 2025: The Reserve Bank of India's (RBI) Central Board has approved the transfer of Rs 2.69 lakh crores as surplus to the government for the financial year 2024-25, the RBI said in a statement on May 23. This figure is higher than the transfer for FY24, though lower than some of the market estimates for FY25.

This is likely the highest ever annual surplus transfer to the government by the central bank.

"The Board thereafter approved the transfer of Rs 2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25," RBI said in a release.

The additional buffer comes at a time of global uncertainty, and when the government is in trade negotiations with America, which may have some bearing on future custom duty collections.

During accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of the pandemic, the Board had decided to maintain the Contingency Risk Buffer (CRB) at 5.50 per cent of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity, RBI release said.

The CRB was increased to 6.00 per cent for FY 2022-23 and to 6.50 per cent for FY 2023-24. Based on the revised Economic Capital Framework (ECF), and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 percent, RBI added.

On May 7, Moneycontrol had reported that the RBI may transfer around Rs 2.5-3 lakh crore as dividend transfer to the government, sharply higher than what the central bank transferred last year, on account of profits made from its intervention in currency markets to stem the decline in the rupee in FY25.

Every year, the RBI makes an annual payout to the government from the surplus income it earns on investments and valuation changes on its dollar holdings, and the fees it gets from printing currency.

The RBI, after provisioning for bad debt, depreciation of assets, contributions to staff and superannuation fund and other matters, transfers the remaining surplus to the government, as required under the RBI Act.

The RBI has been a net seller of the dollar since October to defend the rupee from falling sharply against the greenback, which has made the Indian currency the least volatile among Asian and global peers.

On a gross basis, the central bank sold dollars’ worth $398.71 billion in FY25 and gross purchased $364.2 billion during the period.

In financial year 2024-25, the central bank net sold $69.661 billion, and purchased $25.15 billion. Such heightened selling of dollars may have increased the revenue for the central bank.

The logic implies that, like in any commercial transaction, the RBI accumulated dollars cheap and sold it when the price rose. The central bank accumulated dollars in the 83-84 range a dollar and sold in the 84-87 range.

The RBI dividend is a major revenue source for the government. As the manager of its finances, the RBI pays a dividend to the government to help from its surplus profit.

The government expects to receive Rs 2.56 lakh crore from the RBI and public sector banks in FY26, Finance Minister Nirmala Sitharaman said in her Budget speech on February 1.

Source: Manish M. Suvarna report in Moneycontrol 

The Business Factors News Desk

Mumbai, May 23 (2025): The 616th meeting of the Central Board of Directors of the Reserve Bank of India was held today at Mumbai under the Chairmanship of Governor Sanjay Malhotra.

The Board reviewed the global and domestic economic scenario, including risks to the outlook. The Board also discussed the working of the Reserve Bank during the year April 2024 – March 2025 and approved the Reserve Bank’s Annual Report and Financial Statements for the year 2024-25.

The transferable surplus for the year (2024-25) has been arrived at on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board in its meeting held on May 15, 2025. The revised framework stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of the RBI’s balance sheet.

During accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of the Covid-19 pandemic, the Board had decided to maintain the CRB at 5.50 per cent of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity.

The CRB was increased to 6.00 per cent for FY 2022-23 and to 6.50 per cent for FY 2023-24. Based on the revised ECF and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 per cent. The Board thereafter approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.

Deputy Governors  M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., Dr. Poonam Gupta and other Directors of the Central Board –  Ajay Seth, Secretary, Department of Economic Affairs, Nagaraju Maddirala, Secretary, Department of Financial Services,  Satish K. Marathe, (Smt) Revathy Iyer, Prof Sachin Chaturvedi, Pankaj Ramanbhai Patel and Dr. Ravindra H. Dholakia – attended the meeting.

The Business Factors News Desk

Mumbai, May 23, 2025: In its 578th meeting held on August 26, 2019, the Central Board had adopted the Economic Capital Framework based on the recommendations of the Expert Committee to Review the Extant Economic Capital Framework of the Reserve Bank of India (Chairman: Dr. Bimal Jalan). The Expert Committee, inter alia, recommended that the framework be periodically reviewed every five years.

In line with the recommendation of the Expert Committee, the Bank undertook an internal review of the framework, based on the experience gained from the operationalisation of the extant ECF, developments in the external operating environment, and changes in the asset profile of the RBI. The outcome of the review was considered by the Central Board in its meeting held on May 15, 2025, and a revised framework was approved, RBI Chief General Manager Puneet Pancholy said in a statement.

It was noted by the Central Board that the extant ECF had met its objective of ensuring a resilient balance sheet for RBI, while maintaining a healthy transfer of surplus to the Government. Accordingly, it was decided to retain the broad principles underlying the extant ECF, with no major changes in risk assessment methodologies. Certain changes have, however, been made with the objective of further strengthening the framework to align better with any emerging risks to the balance sheet of the RBI. The revised ECF provides requisite flexibility year-on-year to the Central Board in the maintenance of risk buffers, considering the prevailing macroeconomic and other factors, while also ensuring needed inter-temporal smoothening of the surplus transfer to the Government.

Major changes to the ECF with regard to risk provisioning and surplus distribution

A. With respect to Market Risk

A1. The computation of the market risk buffer requirement to adopt an integrated approach, wherein the off-balance sheet portfolio is also reckoned, together with the on-balance sheet portfolio.

A2. The computation of the market risk buffer requirement may also include investments in Foreign Currency Assets in minor currencies.

B. With respect to Credit risk and Operational risk

B1. The existing requirement is retained without any change.

C. With respect to Monetary and Financial Stability risk

C1. The range for buffers for Monetary and Financial Stability risks has been widened to 5.0 ± 1.5% of balance sheet (B/S) size (vis-à-vis the existing range of 4.5% - 5.5%). The Central Board may maintain it at any level between the range of 3.5% - 6.5% based on its assessment of the prevailing macroeconomic conditions and other factors affecting the balance sheet of RBI.

D. Consequently, the Contingent Risk Buffer, which includes buffers for Monetary and Financial Stability risk, Credit risk and Operational risk, would be maintained in the range of 6.0 ± 1.5% of B/S size (as against the existing level of 6.5%, with a lower bound of 5.5%).

E. Central Board would have the flexibility to maintain market risk buffers at any resilience level within the range of ES at 99.5% Confidence Level (CL) and ES at 97.5% CL, and to maintain risk provisions for shortfall in revaluation balances accordingly, based on its assessment of expected market risk factors.

F. With respect to the Surplus Distribution Policy, any available equity in excess of 7.5% of B/S size (after considering shortfall in market risk buffers, if any) may be written back from the Contingency Fund to income. In case the available equity is below the lower bound of its requirement, no surplus will be transferred to the Government till at least the minimum level of Required Realised Equity is achieved.

The revised framework comes into effect from the financial year 2024-25.

The Business Factors News Desk

Mumbai, May 21, 2025: The rise and adoption of social media have redefined the way we connect and share information.

However, some entities are using Social Media Platforms (SMPs) to entice and deceive gullible investors in the securities market.  “It has been observed that such entities use strategies to induce investors into trusting them by gaining their confidence,” India’s stock market watchdog, the Securities and Exchange Board of India (SEBI), said in a statement.

Such entities usually send unsolicited invitations in the form of links to join  WhatsApp Groups (like VIP Group, Free Trading Courses, etc) to prospective clients.

These entities create fake profiles that portray them as experts in the securities market. Many times these entities impersonate SEBI-registered intermediaries, well-known public figures, celebrities, CEOs/ MDs, etc., of established organisations.

They exploit investors by showcasing fake testimonials of achieving huge profits from other group members who play a supporting role in these scams.  Investors are then tricked into transferring funds to the bank accounts of these entities,   with false assurances that such unreasonable returns can also be earned by them.

In view of the above, investors are advised not to trust such unsolicited messages from unverified people and refrain from joining such WhatsApp Groups/ Communities.

Investors are advised to deal with only SEBI-registered intermediaries and through authentic trading apps. Investors are advised to verify the status of registration of entities with SEBI at https://www.sebi.gov.in/intermediaries.html before investing and to carry out transactions only through authentic trading apps of SEBI-registered intermediaries at https://investor.sebi.gov.in/Investor-support.html.

Investors are hereby alerted to communicate with only genuine social media handles of SEBI-registered entities. SEBI  is issuing this  Press  Release to caution investors about the rampant frauds and scams being carried out by unscrupulous entities and the means with which investors can protect themselves while carrying out transactions in the securities market by dealing with SEBI-registered intermediaries. 

The Business Factors News Desk

Mumbai, May 16, 2025. Karvy Stock Broking Ltd. was declared a defaulter by NSE on November 23, 2020. 
As per NSE bylaws, rules and regulations, claims against the default broker were invited from investors, and the deadline for submitting such investors’ claims was fixed as June 02, 2025.

As the deadline for submitting investors’ claims against default broker Karvy Stock Broking Ltd. is approaching shortly,  investors are advised to take note of the above deadline and are urged to file their claims before the deadline, if not lodged already. 
In case of any queries, investors may contact NSE on its toll-free number- -1800 266 0050 (Select IVR option 5) or write to defaultisc@nse.co.in. Mumbai.

The Business Factors News Desk

Mumbai, April 08, 2025: In an effort to enhance investor protection and curb financial fraud, SEBI has advised its regulated/registered entities to comply with the latest guidelines by the Telecom Regulatory Authority of India (TRAI). 
“Specifically, all regulated/registered entities are advised to only use the ‘1600’ phone number series exclusively for service and transactional voice calls to their existing customers,” SEBI said in an official statement.

Investors should note the  new’1600’ phone numbering series to easily identify and attend service and transactional calls from SEBI-regulated/registered entities,  thereby enhancing investor security and minimising the risk of fraud by unscrupulous entities using regular 10-digit numbers.

Investors can report any Unsolicited Commercial Communications (UCC) or suspected fraudulent activities as under:
In case of receiving spam or  UCC,  make a  Do  Not  Disturb(DND)  complaint through your telecom service provider’s app or website (e.g., Airtel, Jio, Vi, MTNL, BSNL, etc.), use the TRAI DND app, or call/SMS 1909.

In case of receiving suspected fraud communication, report to the Chakshu Platform of the Department of Telecommunications(https://sancharsaathi.gov.in/sfc/).

In case fraud has already happened,  report the same to the Cyber  Crime helpline number 1930 or website www.cybercrime.gov.in.