Current Affairs - Banking

IDFC FIRST Bank has introduced RemitFIRST2India, a zero-fee digital remittance platform designed for Non-Resident Indians to send money to India quickly, securely, and transparently. Launched in partnership with SingX, the service currently operates from Singapore and Hong Kong, offering competitive forex rates, real-time transaction tracking, and fully digital, paperless transfers to any bank account in India. Existing NRI customers can access it directly through the bank’s mobile app, while new users benefit from simple online onboarding. This initiative aligns with IDFC FIRST Bank’s customer-first approach, digital innovation leadership, and commitment to ethical, socially responsible, and inclusive banking practices.

Axis Bank has introduced the ‘Lock FD’ feature as a proactive measure to safeguard customers from digital banking fraud. This feature prevents the premature closure of fixed deposits through online channels, allowing closure only via in-person visits to a branch with proper identity verification. By blocking digital closure requests and requiring branch-based verification, the initiative significantly reduces the risk of unauthorised fund withdrawals, even if digital credentials are compromised. Customers can activate ‘Lock FD’ through the Axis Bank mobile app or by visiting a branch, thereby adding a strong human and procedural layer of protection to their savings.

ICICI Bank, India’s second-largest private sector lender, has announced a significant hike in its Minimum Average Balance (MAB) requirements for metro, urban, semi-urban, and rural branches, effective August 2025. This revision marks the first such steep increase among private banks, with metro and urban branches seeing the MAB raised from ₹10,000 to ₹50,000, semi-urban from ₹5,000 to ₹25,000, and rural from ₹2,500 to ₹10,000. The policy also introduces stricter penalties for non-maintenance and revised cash transaction limits. This move has sparked discussions on the rising banking cost burden, especially when many public sector banks are reducing or waiving similar charges.

AU Small Finance Bank has made history by becoming the first Small Finance Bank in India to receive the Reserve Bank of India’s in-principle approval to transition into a Universal Bank. This marks a significant milestone in its journey from a vehicle financing business to a niche financial institution and now to a full-spectrum banking provider. The upgrade will allow AU to expand its services to include corporate lending, wealth management, forex operations, and broader digital banking solutions. The move reflects AU’s strong governance, financial performance, and compliance standards, setting a precedent for other well-performing SFBs in India.

The Reserve Bank of India has granted approval to Warburg Pincus, a global private equity firm, to acquire up to a 9.99% stake in IDFC First Bank. This strategic investment, amounting to ₹4,876 crore (approximately $587 million), will be made via Warburg’s affiliate, Currant Sea Investments B.V. The transaction involves the purchase of about 81.27 crore Compulsorily Convertible Preference Shares (CCPS) at a price of ₹60 each. This move is expected to strengthen the capital base of IDFC First Bank and reflects increasing investor confidence in India's private banking sector.