Current Affairs - Finance

PhonePe received final approval from the Reserve Bank of India (RBI) on September 19, 2025, to operate as an online payment aggregator. This authorization allows the fintech platform to provide secure and scalable digital payment solutions, particularly benefiting small and medium enterprises (SMEs) that previously lacked easy access to online payment infrastructure. As a payment aggregator, PhonePe will act as an intermediary between customers, merchants, and banks, ensuring secure transactions, operational transparency, and consumer protection. The move strengthens India’s digital payments ecosystem and supports financial inclusion by enabling seamless digital transactions for a wider range of businesses across urban and rural areas.

India signed a $126 million loan agreement with the Asian Development Bank (ADB) to boost sustainable tourism in Uttarakhand, particularly focusing on Tehri Garhwal District. The project is expected to benefit nearly 87,000 local residents while enhancing the experience for about 2.7 million annual visitors. The funding will help in strengthening tourism planning, improving infrastructure, ensuring proper sanitation and waste management, and enhancing disaster preparedness in the region. By promoting environmentally responsible and culturally sensitive tourism, the project aims to balance economic development with ecological preservation, creating long-term benefits for both local communities and visitors.

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.