The RBI proposed new exposure norms, capping banks' direct lending to capital markets and acquisition finance at 20% of Tier-1 capital each (40% aggregate) to mitigate concentration risk and enhance financial stability.

The RBI has imposed penalties on several district central co-operative banks, including Nanded and Vijayapura, for lapses in PSL norms, capital adequacy, and governance. The 28 August 2025 orders highlight the regulator’s enforcement-driven approach and judicial deference to RBI discretion. For banking lawyers, the move signals stricter compliance expectations and reputational risks for clients in the co-operative sector.

India's digital lending sector faces increased scrutiny from both the judiciary and the RBI. A PIL in the Gujarat High Court targets predatory practices like usurious interest rates and coercive recovery methods. In response, the RBI's Digital Lending Directions aim to protect consumers by mandating direct fund flows, requiring a standardized Key Fact Statement (KFS) for transparency, and prohibiting apps from accessing a user's contact list or personal files without explicit