Current Affairs - Finance

Starting September 15, 2025, the National Payments Corporation of India (NPCI) revised the Unified Payments Interface (UPI) limits for specific high-value Person to Merchant (P2M) transactions made through verified merchants. The per-transaction cap has been raised to ₹5 lakh, while the daily cumulative limit has been increased to ₹10 lakh. This enhanced limit covers sectors such as capital markets, insurance, government tax payments, credit card settlements, EMI collections, and travel bookings. The decision aims to strengthen India’s digital payments ecosystem, making UPI more versatile for high-value financial activities while ensuring secure, real-time, and cashless transactions at scale.

The National Payments Corporation of India (NPCI) has announced that peer-to-peer ‘collect requests’ on UPI will be discontinued starting October 1, 2025. This feature, which allowed one user to request payment approval from another, had become a major loophole exploited by fraudsters, despite transaction caps and limits. By mandating only payer-initiated (push) transactions such as QR code scans or manual entry of recipient details, NPCI aims to strengthen digital payment security. The move affects all UPI apps including PhonePe, Google Pay, and Paytm, and is expected to enhance trust, reduce fraud risks, and ensure safer digital transactions nationwide.

As of June 30, 2025, unclaimed bank deposits in India have reached a total of ₹67,003 crore, reflecting a growing concern within the financial system. The majority of these funds are lying with public sector banks, led by the State Bank of India, with over ₹19,000 crore. In response, the Reserve Bank of India (RBI) has launched the UDGAM portal to streamline the process for individuals to locate and claim these dormant funds. This initiative emphasises the importance of financial awareness and inclusion, while also addressing inefficiencies caused by inactive accounts and improving transparency within the banking system.

The International Monetary Fund (IMF) released a detailed note titled "Growing Retail Digital Payments: The Value of Interoperability", recognising the transformative role of India’s Unified Payments Interface (UPI) in the digital finance landscape. The IMF highlighted UPI’s ability to scale rapidly, offer real-time secure payments, and foster financial inclusion. UPI’s interoperability — allowing seamless transactions across platforms and banks — was a key point of emphasis, as it enables widespread adoption and innovation. The report also underscores India’s leadership in global digital payment systems, with UPI accounting for a major share of global real-time transactions and being adopted across multiple countries.

In the fiscal year 2024/25, Nepal received foreign aid commitments surpassing its budget estimates, with the Asian Development Bank (ADB) contributing the largest share—over Rs. 118 billion—primarily focused on environmental projects. This placed ADB ahead of other development partners, including the World Bank, which committed around Rs. 100 billion in sectors like roads, disaster resilience, bridges, and trade. Notably, ADB was also the top donor in the previous fiscal year (2023/24), demonstrating its continued commitment and leading role in supporting Nepal’s development priorities.