Current Affairs - Banking

Paytm Payments Bank is the entity whose licence was cancelled by the Reserve Bank of India (RBI) using its powers under Section 22(4) of the Banking Regulation Act, 1949. The cancellation led to a complete prohibition on conducting all banking activities, including those defined under Sections 5(b) and 6 of the Act. This action resulted in an immediate halt to its operations. Payments banks in India are designed to facilitate digital transactions and accept limited deposits, but they cannot issue loans or credit cards, making regulatory compliance crucial for their functioning.

Punjab National Bank collaborated with fintech platform Kiwi to introduce a credit-on-UPI card, marking an important development in digital payments. The card operates on the RuPay network and is designed to extend formal credit access to the bank’s vast customer base. It offers benefits such as zero joining and annual fees, cashback on transactions, and seamless digital onboarding with UPI integration. This initiative also represents Kiwi’s first partnership with a public sector bank, highlighting a growing trend of collaboration between traditional banks and fintech firms to expand digital financial services in India.

Karnataka Bank entered into a strategic partnership with Pine Labs on April 21, 2026, to strengthen its digital payment ecosystem. The agreement focuses on deploying advanced PoS infrastructure across all its branches nationwide, improving accessibility and efficiency for retail and MSME customers. This initiative aligns with the bank’s vision of becoming a ‘Digital Bank of the Future.’ By integrating advanced payment technologies and responding to merchant needs, the collaboration ensures faster, reliable, and user-friendly transactions, enhancing overall service delivery in the modern financial ecosystem.

PNB MetLife India Insurance Company Limited is a joint venture that includes Punjab National Bank as a key partner along with MetLife International Holdings LLC and other investors. Established in 2001, the company leverages the strong domestic presence of Punjab National Bank and the global insurance expertise of MetLife. The launch of the RISE Life Insurance Plan highlights its focus on providing reliable financial products with life coverage and guaranteed returns. The plan offers flexible premium payment options, maturity benefits, and additional riders, catering to diverse customer needs in savings and protection.

The BoB World Lite application was launched as a collaborative initiative between Bank of Baroda and Reliance Jio to enhance financial inclusion in India. Designed specifically for feature phone users, the app enables access to digital banking services without requiring a smartphone. It supports both existing customers and new users through a self-onboarding process. This innovation is significant as it targets millions of users who rely on basic mobile devices, aligning with the Reserve Bank of India’s push for inclusive digital payment systems and expanding banking accessibility across diverse population segments.