The International Finance Corporation (IFC) plans to invest over $4 billion in India this year, focusing heavily on climate finance, in line with India’s renewable energy goals. With a portfolio exceeding $8 billion, India is the largest recipient of IFC funding. The organization sees potential in India’s electric vehicle (EV) and battery sectors. Despite opportunities, challenges like geopolitical tensions and interest rate uncertainties persist. Puliti emphasized the importance of financial inclusion, digitalization, and public-private partnerships beyond EVs.
RBI instructed regulated entities to review their lending practices following instances of unfair practices related to interest rates. Some lenders were found charging interest from the date of loan sanction rather than disbursement, and charging interest from the cheque date instead of when it was handed over.
The RBI directed refunds for excess interest and other charges and advised online loan disbursements. It highlighted cases of charging interest for the entire month even when loans were disbursed or repaid during the month and collecting advance instalments but charging interest on the full loan amount. Regulated entities must review their practices and make corrective actions to align with fair practices guidelines issued by the RBI.
Regulatory actions on Paytm Payments Bank have halted its mobile wallet operations, leading to a significant decline in transactions. With new user onboarding stopped and restrictions on account usage, transactions fell sharply, with a 64% drop in fund transfers and a 70% decrease in transaction value.
Paytm, the parent company, shifted its Unified Payments Interface services to other banks to sustain its core payments business. Despite this, Paytm app reported 1.2 billion transactions in March 2024. The impact on UPI transactions originating from Paytm Payments Bank accounts was substantial, with a 76% decline compared to December 2023.
Bahrain-based Investcorp is acquiring the digital technology services business of the National Stock Exchange (NSE) for $120 million, marking its largest deal in India. NSEIT Ltd, the digital arm of the stock market operator, specializes in cybersecurity, digital transformation, and cloud services. The acquisition aligns with NSE’s strategy to focus on core business areas. The deal excludes NSEIT’s digital examination business. Investcorp sees it as a significant step in its expansion efforts in India, reaffirming its commitment to investing in high-growth sectors. Investcorp, with over $52 billion in assets under management globally, has previously invested in Indian companies like Safari Industries, InCred, and Wakefit.