Current Affairs - Finance

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.

EximPe has secured in-principle approval from the Reserve Bank of India to operate as a Payment Aggregator – Cross Border (PA-CB). This approval signifies a crucial milestone in India’s fintech ecosystem, particularly for digital trade and cross-border transactions. With a focus on the high-growth India-Asia corridor, EximPe aims to simplify and strengthen the digital payment infrastructure for SMEs involved in international commerce. The license enables the company to streamline regulatory compliance, currency conversion, and secure transactions. Backed by investor funding and a growing client base, EximPe is well-positioned to enhance India’s cross-border e-commerce and B2B payment landscape.

CTBC Bank, Taiwan’s largest private sector bank, has applied to open an International Financial Services Centre (IFSC) Banking Unit in GIFT City, Gujarat. This move is part of Taiwan’s broader push to expand its financial presence in India and strengthen bilateral economic ties. CTBC Bank already has a long-standing presence in India, having opened its first branch in New Delhi in 1996. The new unit at GIFT City will offer international banking services and occupy over 3,100 sq. ft. in Brigade Towers. This initiative also reflects Taiwan’s interest in supporting its banking sector’s global growth, especially in South Asia.

The State Bank of India (SBI), the country’s largest public sector bank, contributed a substantial $44 billion to the global economy in the financial year 2024–25. This alone accounted for 1.1% of the world’s GDP growth and 16% of India’s total GDP increase for the year. In addition to its global contribution, SBI also added 8.7% to India’s Gross Value Added (GVA) in the financial services sector, with its GVA rising to ₹1,38,533 crore. This performance not only highlights SBI’s critical role in India's economic expansion but also demonstrates its influence in driving international economic progress.