NPCI reported a net profit of over ₹1,000 crore for FY24, primarily from banks, which face losses in UPI transactions. NPCI operates UPI and charges banks for processing transactions, but it has sparked controversy by using profits to support its BHIM app, which competes with third-party UPI apps.
Banks and app developers criticize the conflict of interest, as NPCI regulates UPI while promoting its own app. Despite efforts, BHIM holds only 0.2% market share, while PhonePe and Google Pay dominate the UPI ecosystem.
India will maintain restrictions on FDI from bordering nations, including China, for national security reasons, Finance Minister Nirmala Sitharaman stated. Despite welcoming investment, she emphasized the need for safeguards due to India’s sensitive neighborhood.
The FDI curbs, imposed in April 2020, have slowed Chinese investments, though China accounts for only 0.36% of India’s cumulative FDI inflows. India aims to focus on infrastructure, investment, innovation, and inclusiveness to become a developed nation by 2047.
SEBI’s recent circular on investments from land-bordering countries in Alternative Investment Funds (AIFs) adds due diligence and disclosure requirements if over 50% of an AIF’s investor base is from such countries and the AIF holds more than 10% in portfolio companies.
While Press Note 3 (PN3) restricted FDI from these countries, experts clarify that PN3 applies to unlisted equity (Schedule 1) and not to AIFs (Schedule 8). The circular signals no major concerns for lower foreign investments but raises the potential for further regulation.
Axis Bank has re-appointed Amitabh Chaudhry as MD and CEO for three more years, starting January 2025, following RBI approval. Since joining in 2019, Chaudhry has driven growth, digital expansion, and led the acquisition of Citibank’s India retail business. Separately, Ganesh Sankaran, Group Executive for Wholesale Banking, resigned, with his last day set for November 30.
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