• Home, auto and other loans would become costlier as the country’s largest lender, State Bank of India, has increased its benchmark lending rate or MCLR by 0.2%, a development followed by other lenders. SBI has increased the lending rate by 20 basis points across all tenors up to three years. Now SBI’s overnight and one-month tenor marginal cost of funds based lending rate (MCLR) stands at 8.1% as against 7.9%.  
  • Prime Minister Narendra Modi launched a payments bank of the Department of Posts that will take banking to the doorstep of every citizen through an unmatched network of post offices and almost 3 lakh postmen and ‘Grameen Dak Sewaks’. The India Post Payments Bank (IPPB) will be like any other banks but its operations will be on a smaller scale without involving any credit risk.
  • Indian economy grew by 8.2% in the first quarter (April-June) of the current fiscal, the highest in over two years. This announcement was made by Finance Minister, Arun Jaitley. The manufacturing sector grew by 13.5% which signals very good turnaround in the sector. Credit to the services sector grew 23% for the reporting period, up from the year-ago period's 4.9%. 
  • The Reserve Bank of India (RBI) asked all scheduled commercial banks with more than 10 branches to appoint an Internal Ombudsman (IO). The apex bank has, however, excluded regional rural banks (RRBs) from appointing IOs. The central bank stated that it has reviewed the arrangement in the form of ‘Internal Ombudsman Scheme, 2018’. 
  • HDFC ERGO, India's third-largest non-life insurance provider in the private sector, announced the launch of '[email protected]', a Cyber Insurance Policy for individuals.  This policy aims at providing comprehensive protection to individuals and their families against any cyber-attacks, cyber frauds or digital threats that could lead to a financial loss and or reputational loss. 
  • NABARD has sanctioned an amount of Rs 335 crore under the Rural Infrastructure Development Fund (RIDF) to West Bengal. The fund, alloted in August, would be used for 158 minor irrigation projects and 23 flood protection projects.
  • The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.  As per the Finance Ministry, the move is aimed at helping reduce pendency of cases in DRTs. There are 39 DRTs in the country. 
  •  India’s current account deficit (CAD) widened to a four-quarter-high at 2.4% of gross domestic product (GDP) in April-June period on the back of rising crude oil prices, from 1.9% of GDP in the January-March quarter of 2017-18, according to data released by the Reserve Bank of India (RBI). 
  •  The Reserve Bank of India has released new guidelines through a gazette notification for all notes which were introduced post note ban, or notes which were introduced as part of the Mahatma Gandhi New Series.  The Reserve Bank of India (Note Refund) Rules earlier only specified currency notes of Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 denomination. As per the new Reserve Bank of India (Note Refund) Amendment Rules, 2018, "the undivided area of the single largest piece of the note" for a damaged Rs 2000 note must be 88 square cm for a full refund, and 44 square cm for half refund. The Rs 2000 note is 109.56 square cm in dimension. For a damaged Rs 200 note, the criteria is 78 square cm for a full refund, and 39 square cm for half refund.
  • In a move aimed at creating a payments acceptance network for unorganized retail including small merchants and Kirana stores where consumers can make payments, India Post Payments Bank (IPPB) has partnered with Financial Software and Systems (FSS)FSS a payments technology company to ensure that micro-merchants are able to accept payments over any channel – online, unified payments interface (UPI), quick-response (QR) codes, Aadhaar and IPPB accounts
  • Unlimit, end-to-end IoT service provider in India announced its partnership with State-owned Bharat Sanchar Nigam Limited (BSNL) to offer comprehensive Internet of Things (IoT) solutions and services to the enterprise customers across India.The partnership between Unlimit and BSNL will leverage seamless wireless network footprint pan India to provide its solutions and services across industries.
  • After launching the world's largest mobile phone-manufacturing factory in Noida in July 2018, Samsung has now opened its biggest experience centre in Bengaluru, Karnataka. Opera House, the 33,000 sq ft iconic building in the city’s central business district, has been given a facelift to showcase Samsung's mobile devices and other consumer electronic products. It has a service centre for phones and is equipped with high-speed public Wi-Fi. 
  • Inflation based on wholesale prices eased to a four-month low of 4.53% in August on softening of prices of food articles, especially vegetables. The Wholesale Price Index-based inflation stood at 5.09% in July and 3.24% in August last year.The wholesale price index is an index that measures and tracks the changes in the price of goods in the stages before the retail level.
  • The government has announced an array of steps to check the rising Current Account Deficit (CAD), and the fall in rupee.The government has decided on a number of steps to contain CAD, which widened to 2.4% of the GDP in the first quarter of 2018-19. The steps to be taken by the government to attract dollar inflows into the country includes : Reviewing of mandatory hedging condition for infrastructure loans, To permit manufacturing sector entities to avail of External Commercial Borrowing (ECBs) up to $50 million with minimum maturity of one year, instead of the earlier limit of three years, Removing restrictions with respect to FPI exposure limit of 20 per cent in corporate bond portfolio to a single corporate group or company or entity and 50 per cent of any issue of corporate bond, Removal of withholding tax on rupee-denominated bonds known as Masala bonds issued till March 2019, Removing restrictions on Indian banks, market making in masala bonds, including restrictions on underwriting of masala bonds, Relaxation for Foreign Portfolio Investment (FPI) and curbs on non-essential imports. 
  • The Reserve Bank to purchase government securities (G-secs) worth Rs 10,000 crore on September 19, a move aimed at inducing liquidity in the system. The purchase of the government securities will be done through Open Market Operations (OMO).
  •  India’s overall exports (Merchandise and Services combined) in April-August 2018-19 (as per the RBI Press Release) are estimated to be USD 221.83 Billion, exhibiting a positive growth of 20.70% over the same period last year.Overall imports in April-August 2018-19 are estimated to be USD 269.54 Billion, exhibiting a positive growth of 21.01% over the same period last year.
  • Cisco, a U.S.-based firm, that makes networking telecommunications equipment, has signed two agreements with the NITI Aayog and Bharat Sanchar Nigam Limited (BSNL) to speed up its Country Digital Acceleration programme in India.The current set of investments will focus on fostering innovation and entrepreneurship through the Atal Innovation Mission . 
  • PayU India has received Reserve Bank of India’s (RBI) approval to operate its own non-banking financial company (NBFC).The move will help PayU promote inclusive growth in the country by catering to the diverse financial needs of various segments of the society. The approval from the central bank is subject to “certain pending RBI compliance”. 
  •  Salesforce.com Inc. founder Marc Benioff and his wife Lynne agreed to acquire Time magazine from Meredith Corp. for $190 million in cash, joining Jeff Bezos among tech billionaires buying venerable print publications.TIME magazine publisher Time Inc was sold to Meredith for $1.8 billion in January 2018.
  • Infosys has acquired Finnish company Fluido, a top consulting partner of Salesforce, for 65 million euros (about Rs 545 crore). This is Infosys’s second acquisition under CEO Salil Parekh. Recently, it had acquired US digital creative and consumer insight agency WongDoody for $75 million.
  • Federal Bank, which is in the process of formation of a wholly owned subsidiary company, has executed MOU with Infopark Kakkanad for leasing space in their campus. The Bank has already obtained in principle approval of the Reserve Bank of India for the creation of a subsidiary company. The proposed company will integrate and handle all the back-end operations of the Bank.
  • The National Bank for Agriculture and Rural Development (NABARD) has approved Rs 65,634.93 crore loan so far to 93 prioritised irrigation projects under the government's flagship scheme Pradhan Mantri Krishi Sinchai Yojana (PMKSY). The NABARD is funding the central and state share of 99 prioritised irrigation projects under the PMKSY through long term irrigation fund (LTIF). It is mandated to provide Rs 70,000 crore loan to these projects to be completed by 2019. 
  • State-run Punjab National Bank (PNB) bagged the "Rajbhasha Kirti" award for outstanding performance in implementing the Official Language Policy during 2017-18. The award was given on the occasion of Hindi Diwas (14th September). The award, under the category of 'Nationalised Banks and Financial Institutions in Region A', was presented by Vice President M. Venkaiah Naidu to PNB Chief Executive and MD Sunil Mehta. 
  • The government has proposed amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank to create India’s 3rd largest globally competitive Bank. Finance Minister Arun Jaitley announced that the amalgamation will increase the banking operations and no employee will face any service condition adverse to present conditions. The government had announced in the budget that consolidation of banks was also in the agenda of the government. 
  •  The Central Board of Direct Taxes (CBDT) announced that no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee-denominated bonds issued between September 17, 2018 and March 31, 2019. The move is expected to incentivise foreign exchange inflows into India through low-cost offshore rupee-denominated bonds, popularly referred to as masala bonds. 
  • A Loan Agreement for IBRD Credit of US$74 million equivalent for the Uttrakhand Workforce Development Project (UKWDP) was signed between India and the World Bank.The Project objective is to improve the quality and relevance of training at priority Industrial Training Institutes (ITIs) and to increase the number of labor-market-relevant workers through short-term training in Uttrakhand. 
  • Markets regulator SEBI approved a slew of proposals, including a revised framework for the settlement of cases and new KYC norms for foreign portfolio investors.The watchdog has approved a proposal to allow foreign investors to trade in commodity derivatives market, except for sensitive commodities, as well as common application form for the registration of FPIs in the domestic market.  The board has given its nod for amending delisting regulations.
  • The Board of Directors of Vodafone Idea Limited, India's largest telecom operator, approved the merger of the Vodafone Idea Limited with the Aditya Birla Telecom Limited (ABTL), the parent company of Idea Cellular. The merger was approved under the relevant provisions of the Companies Act, 2013. The Aditya Birla Telecom Ltd holds 11.15% stake in telecom infrastructure firm Indus Towers Ltd. 
  • The government has raised interest rates on Small Savings Schemes (SSS), including National Savings Certificate (NSC) and Public Provident Fund (PPF) by up to 0.4% for the October-December quarter, in line with rising deposit rates in the banks.
  • State-owned India Post Payments Bank (IPPB) and Private Life Insurer Bajaj Allianz Life Insurance Co Ltd (BALIC)  entered into a strategic partnership to provide life insurance solutions, especially at the doorstep of every household in the country.This partnership will leverage IPPB’s last mile reach for building awareness about life insurance. 
  • World Bank Board has endorsed an ambitious five-year Country Partnership Framework (CPF) for India, which aligns with New Delhi's objectives of high, sustainable and inclusive growth. The framework is expected to bring between 25 and 30 billion US Dollars in financial support to India. The move is aimed at supporting India's transition to a higher middle-income country by addressing some of its key development priorities such as resource efficient and inclusive growth, job creation and building its human capital. 
  • Midsized private sector lender Yes Bank has paid Rs 38 crore in fines to the GST department for alleged violations in domestic remittances. Over Rs. 32 crore has been paid to the GST department, while Rs 6 crore has been paid in service tax which has been replaced by GST. The issue relates to remittances by migrants from urban pockets to their homes in rural areas. 
  • Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs. 15 lakh for a premium of Rs. 750 per annum, a move to provide some succour to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs. 1 lakh and Rs. 2 lakh, respectively.
  • The BRICS' New Development Bank has approved a $525-million loan for infrastructure projects in India. The loan will be used by the Indian government for on-lending to the Madhya Pradesh government for rehabilitating major district roads with a total length of about 2,000 km.
  •  Global research agency Fitch has raised India’s growth forecast for the current fiscal to 7.8 per cent from the earlier 7.4 per cent. However, forecast for the next two fiscal, 2019-20 and 2020-21, have been shaved by 20 basis points (100 basis points means 1 per cent) to 7.3 per cent.While the RBI’s estimate is 7.4 per cent, the Government feels that it could be 7.5 per cent. However, the International Monetary Fund (IMF) cut its projection to 7.3 per cent from 7.4 per cent. India Ratings too lowered its growth projection by 20 bps to 7.2 per cent.
  • State-run telecom firm BSNL has inked a pact with Japan’s Softbank and NTT Communications to roll out 5G and internet of things (IoT) technology in India. BSNL will look at collaborating with Softbank for its satellite constellation which will have around 900 satellites.
  • The National Mission on Government e Marketplace (GeM), was launched by the Minister of Commerce and Industry, Suresh Prabhu, on 5th of September 2018. This was followed by the launch of the Mission in 19 States and Union Territories. GeM has recorded till date more than 8 lakh transactions worth over Rs.12,239 crore.
  • FDI in the telecom sector has jumped nearly five times in the last three years – from USD 1.3 Billion in 2015-16 to USD 6.2 Billion in 2017-18. According to Union Minister of Communications Shri Manoj Sinha, the draft National Digital Communications Policy, 2018 aims to attract investment of USD 100 billion or about Rs.6.5 lakh crore in the Digital Communications Sector.
  • The Reserve Bank of India allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation’s money markets. The move by the central bank follows concerns over tight liquidity conditions and banks’ unwillingness to lend to NBFCs.  As per the RBI, banks could 'carve out' up to 15% of holdings under the statutory liquidity reserves to meet their liquidity coverage ratio (LCR) requirements as compared to 13% now. 
  •  The Reserve Bank of India (RBI) barred Bandhan Bank from opening new branches and also ordered freezing of the bank's CEO salary over failure to stick to shareholding rules. The Bank was not able to bring down the shareholding of Non-Operative Financial Holding Company (NOFHC) to 40% as required under the licensing condition, general permission to open new branches stands withdrawn.