Current Affairs - Banking

The State Bank of India (SBI) has launched a Centre of Excellence for MSMEs at its State Bank Academy in Gurugram. This initiative is aimed at strengthening the MSME ecosystem by focusing on skill development, innovation, and knowledge sharing. It will provide significant support to MSME promoters, startups, and other stakeholders in the sector. Moreover, the Centre of Excellence is expected to foster collaboration between academia, industry, government institutions, and banking professionals. By doing so, SBI is contributing to the growth and sustainability of the MSME sector, which is a vital component of India’s economic development and employment generation.

The State Bank of India (SBI) introduced a special collateral-free personal loan scheme for Agniveers on the occasion of India’s 79th Independence Day. Under this initiative, Agniveers holding an SBI salary account can borrow up to ₹4 lakh with zero collateral, zero processing fee, and a flat interest rate of 10.50%. The repayment tenure is aligned with the Agnipath scheme, ensuring flexibility for beneficiaries after service. Alongside, SBI also revised its IMPS fee structure, imposing nominal charges on online transfers above ₹25,000 while continuing to offer exemptions for certain account holders. These measures strengthen SBI’s support for defence personnel and digital banking users.

ICICI Bank, India’s second-largest private lender, faced widespread criticism after it sharply raised the minimum average balance (MAB) for new urban savings account holders from ₹10,000 to ₹50,000. This move drew heavy backlash from customers and financial experts, as the hike was seen as disproportionate compared to other banks like SBI, which has removed MAB requirements altogether. Responding swiftly, ICICI Bank revised the policy, lowering the urban MAB to ₹15,000, while also reducing thresholds in semi-urban areas. The revision highlights how customer feedback and market competition play a decisive role in shaping banking policies, balancing profitability with inclusivity.

Bank of Baroda has introduced international UPI services via its bob इ Pay app, making cross-border digital payments more accessible for both resident Indians and NRIs. The new features include UPI Global Acceptance, foreign inward remittances, and dedicated UPI access for NRI account holders. Customers can now make payments to merchants abroad, receive money from Singapore in real-time, and NRIs can link their NRE/NRO accounts to use UPI seamlessly. With a daily transaction limit of ₹1,00,000, the initiative strengthens Bank of Baroda’s role in digital banking innovation while aligning with India’s push for global adoption of UPI services.

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.