Current Affairs - Banking

HSBC India has introduced the ‘Innovation Banking’ initiative to provide customised financial and banking solutions for startups at various stages of growth—from seed funding to IPO. The program includes a $1 billion allocation in non-dilutive debt capital, enabling startups to access funding without giving up equity. This move aims to strengthen India’s startup ecosystem by offering long-term financial support and innovative credit solutions, reflecting HSBC’s commitment to nurturing entrepreneurial ventures and driving economic growth through technological innovation and business development.

The Reserve Bank of India cancelled the NBFC (Non-Banking Financial Company) licence of Datta Finance and Trading Pvt Ltd because it violated digital lending guidelines. The company outsourced core lending functions such as customer sourcing, KYC verification, loan disbursal, and recovery, which breaches RBI’s Fair Practices Code and Digital Lending Guidelines. The cancellation prevents Datta Finance from offering or recovering loans and signals RBI’s strict enforcement of ethical conduct and regulatory compliance in the digital lending sector. This move highlights RBI’s emphasis on consumer protection and oversight of financial service providers.

Kotak Mahindra Bank’s Kotak811 app achieved the 3rd position globally in banking app downloads in the first half of 2025, according to Sensor Tower. It recorded over 16 million downloads, surpassing SBI’s Yono app, which ranked 4th with 14 million downloads. This milestone marks a 250% year-on-year growth, making Kotak811 the fastest-growing banking app worldwide during this period. Remarkably, the surge came despite RBI restrictions earlier in the year that temporarily halted new digital onboarding. Kotak811’s digital-first, customer-centric model has played a pivotal role in its rapid adoption and global recognition.

Punjab National Bank (PNB) signed a Memorandum of Understanding with Telecommunications Consultants India Limited (TCIL) on 3 September 2025 to strengthen its IT systems and digital banking capabilities. The partnership focuses on areas like system integration, IT infrastructure rollout, and regulatory-compliant deployments, ensuring PNB delivers secure, resilient, and customer-centric services. TCIL will provide consultancy, project management, and execution support, helping PNB meet rising customer demands while maintaining robust cybersecurity standards. This collaboration not only strengthens PNB’s competitive position in the digital banking sector but also aligns with the broader Digital India mission to expand secure financial services nationwide.

Punjab National Bank (PNB) signed a significant ₹21,000 crore Memorandum of Understanding (MoU) with the Rajasthan government as part of the Rising Rajasthan initiative. The collaboration focuses on empowering MSMEs, promoting women entrepreneurs, and strengthening digital financial inclusion across the state. PNB aims to facilitate easier access to credit, encourage adoption of modern technology, and provide financial support to women-led enterprises. As part of this initiative, 2,000 loan letters were distributed to women entrepreneurs in Jaipur. This MoU represents a step toward socio-economic development and inclusive growth, reinforcing PNB’s role in driving financial empowerment in Rajasthan.