Current Affairs - Finance

L&T Finance Ltd. transitioned from being an NBFC-Core Investment Company (NBFC-CIC) to a Non-Banking Financial Company (Investment and Credit Company) (NBFC-ICC) following the merger of its wholly-owned subsidiaries. The Reserve Bank of India (RBI) issued the certificate of registration on August 2. This shift is significant as it marks L&T Finance's enhanced focus on investment and credit, although it does not alter the company's compliance with the NBFC-ICC guidelines.

Axis Bank has launched the Primus credit card, designed as an ultra-premium offering for high-net-worth individuals. This exclusive card comes with a Rs 5 lakh joining fee and a Rs 3 lakh annual fee, providing benefits such as luxury hotel stays, private jet access, and a personal concierge service. Cardholders also earn EDGE miles, enjoy zero forex markup, and gain access to premium travel and lifestyle perks. The introduction of this card underscores Axis Bank's focus on catering to affluent customers with high-end financial products.

The RBI has mandated that Housing Finance Companies (HFCs) maintain a liquid asset ratio of 15% of public deposits, aligning with similar requirements for Non-Banking Financial Companies (NBFCs). This change is designed to enhance the financial stability of HFCs by ensuring they have sufficient liquidity to meet their obligations. The requirement will be phased in, starting with 14% by January 1, 2025, and reaching 15% by July 2025.

NPCI International Payments Limited (NIPL), the international arm of India's National Payments Corporation, has achieved a significant milestone by surpassing 100,000 cross-border Unified Payments Interface (UPI) Person-to-Merchant (P2M) transactions in Nepal. This accomplishment follows NIPL's collaboration with Fonepay, Nepal's largest payment network, which was launched in March 2024. Additionally, NIPL has partnered with Nepal SBI Bank Limited to operationalize RuPay cards in Nepal, further strengthening cross-border financial transactions between India and Nepal.

The Reserve Bank of India (RBI) has increased the UPI limit for tax payments to Rs 5 lakh per transaction, up from the previous limit of Rs 1 lakh. This adjustment is designed to facilitate larger transactions and enhance convenience for taxpayers handling high-value payments. By raising the limit, the RBI aims to boost digital payment adoption and reduce dependence on cash, aligning with its broader goal of promoting efficient and secure digital transactions.