Banking

India’s central bank has introduced revised dividend guidelines for commercial banks ahead of FY27, aiming to reinforce financial stability while allowing lenders to reward shareholders responsibly. The updated framework focuses on stronger capital adequacy, improved asset quality and stricter eligibility thresholds before banks can distribute profits as dividends. Regulators say the changes are designed to ensure that lenders retain adequate capital buffers to manage economic shocks and support credit growth.

India’s financial crime enforcement agency has carried out searches in Haryana and Chandigarh as part of an ongoing investigation into an alleged fraud linked to IDFC Bank. Officials from the Enforcement Directorate conducted coordinated raids at multiple locations to gather evidence related to suspected financial irregularities and potential money laundering activities. The probe is part of broader efforts to strengthen oversight in the banking sector and combat financial misconduct.

Private sector lender IDFC First Bank has resolved a financial dispute related to an alleged fraud case in Chandigarh through a negotiated settlement. The matter, which involved disputed transactions and financial liability claims, had drawn attention to issues surrounding banking oversight, customer protection, and digital transaction security. By settling the claims, the bank aims to bring closure to the matter while reinforcing its commitment to regulatory compliance and consumer confidence.

India’s largest public sector lender, State Bank of India, has introduced a USD 500 million financing initiative aimed at promoting women’s economic participation and strengthening women-led enterprises. The program is designed to expand access to credit for female entrepreneurs, self-employed professionals, and small businesses across diverse sectors. By providing structured financing support, the initiative seeks to reduce long-standing gender gaps in business funding while encouraging greater financial independence among women.

India’s digital payments ecosystem continues to evolve rapidly, and Paytm has emerged as a prominent player in monetizing its platform, according to a recent analysis by Bank of America. The report highlights Paytm’s ability to generate revenue from its vast user base through financial services, merchant solutions, and digital payments infrastructure. Analysts believe the company’s diversified revenue streams and expanding financial products position it strongly within India’s competitive fintech landscape.

Yes Bank has introduced a specialized salary account designed exclusively for working women, marking a strategic step toward advancing financial inclusion and tailored banking services in India. The initiative aims to provide women professionals with customized financial benefits, lifestyle privileges, and enhanced security features that address their evolving banking needs. By combining traditional salary account features with value-added services, the bank seeks to empower female employees across sectors with better financial management tools and exclusive offers.

Fino Payments Bank has strongly denied allegations of goods and services tax (GST) evasion in connection with betting-related promotional activities, asserting that its operations remain fully compliant with Indian regulatory and tax frameworks. The bank clarified that it merely provides payment processing infrastructure and does not engage in, endorse, or promote gambling platforms. The clarification comes amid intensified government scrutiny of online gaming ecosystems and financial intermediaries facilitating digital payments.

Rishi Gupta, managing director and chief executive officer of Fino Payments Bank, has been arrested by tax authorities in connection with an ongoing investigation into alleged financial irregularities. The development has sent ripples across the banking and fintech sectors, raising questions about governance standards and regulatory compliance within India’s fast-growing payments ecosystem. While officials have not disclosed detailed charges, the enforcement action underscores intensifying scrutiny of financial institutions.

Bank of Baroda has announced plans to raise up to Rs. 10,000 crore through the issuance of green infrastructure bonds, reinforcing its commitment to sustainable finance and environmentally aligned lending. The fundraising initiative is designed to support renewable energy, clean transportation and other climate-focused projects, while diversifying the bank’s liability profile. As investor appetite for environmental, social and governance (ESG) instruments strengthens, the move positions the public sector lender to tap institutional demand for sustainable assets.

Yes Bank has initiated a review after reports of unauthorised transactions involving certain forex cards surfaced among customers. The lender said it is working to identify the root cause, contain any potential exposure and strengthen monitoring systems. While the bank has not indicated any systemic breach, the episode underscores the growing risks associated with cross-border digital payments.