Explained
Plain-English breakdowns of how banking actually works.
Why Chasing Global Returns Might Not Be Worth It for Indian Investors
A new study shows that while India may seem to lag behind other global markets in the short term, its long-term equity performance has much to offer. Investors should rethink chasing quick gains abroad, as past data reveals significant shifts in market rankings over time.
ITAT Delhi Orders ₹5.31 Lakh TDS Refund: No Original ITR? No Problem!
In a recent ruling, the ITAT Delhi paved the way for a ₹5.31 lakh tax refund despite the absence of an original Income Tax Return (ITR). The tribunal stated that taxpayers shouldn’t be penalized for not presenting an original ITR, especially when a return was filed in response to a Section 148 notice. This decision emphasizes the importance of taxpayer rights during assessment processes.
Double the Trouble: Rising Vehicle Loans Signal Risks for Lenders
A growing number of vehicle buyers are opting for multiple loans, coupled with increased average loan sizes, heightening credit risks for lenders. Most pronounced in commercial vehicle finance, the percentage of borrowers with multiple loans has jumped in just a year.
RBI Reports Rising House Prices: What’s Driving the Surge?
The Reserve Bank of India has released the House Price Index for Q1:2026-27, revealing a 1.1% increase in property prices across major cities. The uptick was particularly noticeable in Chandigarh, Lucknow, and Thiruvananthapuram, indicating an ongoing demand in the real estate market.
India’s New Capex Cycle: Cash is King for Corporate Giants
India's corporate investment landscape is transforming, led by cash-rich conglomerates harnessing internal funds for growth, marking a departure from the debt-centric boom of yesteryears. HSBC India's CEO Hitendra Dave emphasizes this shift, highlighting the expanding balance sheets of major players and the need for new economic reforms to attract global investments.
Don't Let Credit Report Errors Ruin Your Score: Here's How to Fix Them!
Credit report errors can significantly impact your credit score and your eligibility for loans. This article outlines common mistakes found in credit reports, how to identify these inaccuracies, and practical steps to dispute and correct them, ensuring your financial health remains intact.
Stable Times Ahead: Indian Banks Navigate Asset Quality with Ease
Indian banks are maintaining a stable outlook on asset quality, thanks to reduced unsecured lending and solid government support for microfinance. Even as the crisis in West Asia unfolds, the impact on operations remains limited. MSME loans are growing but are within safe limits, keeping stress levels low.
Indian Banks Shine Bright: The Best Shape in a Decade!
According to Motilal Oswal Financial Services, Indian banks have achieved a remarkable turnaround, boasting their strongest position in a decade. With gross non-performing assets at near-historic lows and solid capital reserves, these banks are now not only healthier but also primed for growth as credit demand surges amid an improving economy.
UPI at 10: The Digital Payment Revolution That Transformed India
As the Unified Payments Interface (UPI) turns 10, it has redefined the digital payments landscape in India. From humble beginnings to billions of transactions, UPI has been nothing short of a miracle in financial technology, making money transfers as easy as sending a text.
India's Upcoming Shadow Loan Rules: A Need for Guardrails, Not Bans
The RBI's proposed restrictions on flexi loans could reshape borrowing for self-employed workers and small businesses in India. While aimed at preventing bad debt, these measures might inadvertently limit access to vital working capital for those who genuinely need it. The key challenge lies in establishing effective oversight that protects borrowers without shutting them out from much-needed financing.
Is Cash Making a Comeback? Exploring the Recent Rise in Cash Transactions
It seems cash is trying to stage a comeback in the ongoing digital age. Recent reports indicate that while UPI transactions are gaining ground, cash use is seeing a resurgence. This could be due to concerns over potential fees associated with digital transactions, hinting at a possible shift back to good old-fashioned cash if charges come into play.
Southern Banks Shine with Doubling Gold Loan Books
South Indian banks have doubled their gold loan portfolios in just three years, thanks to soaring gold prices and a growing demand for credit. This trend highlights the region's increasing reliance on gold as a collateral for loans, with players like CSB Bank leading the charge.
The Hidden Economics of International Spending: What You Need to Know
As India's international spending skyrockets, many travelers face unexpected costs from forex mark-ups on credit cards. Choosing zero forex mark-up options can lead to significant savings. Understanding these costs is crucial for savvy global shoppers looking to maximize their travel experiences without breaking the bank.
Bank of America's $1.9 Billion Investment: A Vote of Confidence in India's Retail Lending
Bank of America has announced a substantial investment of $1.9 billion into Jio Financial's Jio Credit, underscoring the appeal of India's thriving retail lending market. This partnership aims to leverage Jio's digital prowess alongside Bank of America's financial expertise, signaling a growing interest from global banks in India's economic landscape. Regulatory approvals are pending for this high-profile collaboration.
The Rs 20,000 Crore Credit Guarantee Plan: A Slow Start and Uncertain Future
Despite the government's big promise of a Rs 20,000 crore credit guarantee plan for microfinance, banks have disbursed only 17% of the funds. While small and medium-sized institutions have received some support, larger players remain wary, stalling loan sanctions and leaving many potential borrowers hanging.
HDFC Bank Lowers Lending Rates, Bank of Baroda Turns Up the Heat
HDFC Bank has decided to cut its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points effective August 7. Meanwhile, Bank of Baroda is raising its three-month lending rate by 10 basis points starting August 12. This move highlights the dynamic nature of the banking sector as these banks adjust their lending rates in response to market conditions.
Retirement Planning for Child-Free Couples: Expecting More than Just Savings
Many child-free couples assume that not having children reduces their retirement financial needs. However, experts suggest that these couples might actually require a larger retirement corpus to maintain their lifestyle and plan for potential unexpected expenses in their later years.
ITAT Chennai Paves the Way for Gratuity Tax Deductions with Common Sense Ruling
In a recent ruling, the ITAT Chennai has allowed a taxpayer to claim a deduction of ₹79.25 lakh for gratuity, which was initially denied due to an inadvertent error in the Income Tax Return (ITR). The tribunal highlighted that genuine claims should not be hindered by minor errors.
Justice Delayed, But Not Denied: Allahabad High Court Sides with Homebuyer After 13-Year Battle
In a notable ruling, the Allahabad High Court has fined a Noida builder ₹2.5 lakh after a homebuyer spent 13 years fighting over delayed possession of his flat. The court's decision to impose interest rates of 24% on the delayed possession highlights the challenges homebuyers face while seeking justice against builders.
Asset Reconstruction Companies See a 56% Jump in Bad Loan Purchases
In the first quarter, asset reconstruction companies (ARCs) in India upped their purchases of bad loans by a significant 56%, totaling ₹26,304 crores. This growth reflects a continued downward trend in non-performing assets across the banking sector, with banks progressively resolving longstanding stressed assets through increased cash settlements and security receipts.
RBI's New Recovery Rules: A Shield for Borrowers Against Harassment
The Reserve Bank of India (RBI) is tightening regulations around loan recoveries starting January 2027. The new rules protect borrowers from harassment, unlawful service use, and device locking by banks and NBFCs, aiming to create a fairer financial environment. These guidelines set clear lines for recovery agents on how they can interact with borrowers, ensuring that people's rights are respected during tough financial times.
Global Banks Tighten the Purse Strings on Credit Cards for Wealthy Indians
In a surprising turn of events, offshore banks are scaling back the issuance of international credit cards to wealthy Indians, thanks to India's stringent 180-day rule on foreign fund transfers. This policy is also proving tricky for minors trying to navigate their foreign accounts. Is this the end of a golden era for luxury spending abroad?
SBI Holds Firm on Loan Growth Goals Amid Broad-Based Credit Surge
The State Bank of India (SBI) is optimistic about its loan growth trajectory, sticking to its guidance of 14-15% for FY27. With broad-based credit growth across various segments and a plan to bolster its foreign-currency deposits, SBI shows confidence in its financial health despite concerns about potential economic factors like the El Nino phenomenon. Their net interest margins hover at a steady 3%, keeping things calm in the banking sphere.
Retail Loans Drive Non-Banking Finance Company Credit Surge
In June, non-banking finance company (NBFC) credit soared by 14.4%, reaching ₹59.3 lakh crore, spurred largely by retail loans. Housing, vehicle, and gold loans all contributed to this growth. As credit to the industry and services sectors also expanded, the trend indicates a flourishing lending environment, particularly in the retail space.
Gold Loans Soar: NBFCs Enjoy Nearly 70% Growth
Gold-backed loans from non-banking financial companies (NBFCs) surged nearly 70% year-on-year, hitting a whopping Rs 3.41 lakh crore by June 2026. This growth outstripped that of other retail loans, while housing and vehicle loans also showed decent progress. Meanwhile, the Reserve Bank of India has tightened regulations for these gold-backed loans, causing a shift in focus from industry and services credit growth, which has seen a moderation.
NBFC Sectoral Credit Deployment Sees Upward Trend in June 2026
The latest data from the Reserve Bank of India reveals that non-banking financial companies (NBFCs) have experienced a robust growth in credit deployment, with a year-on-year increase of 14.4% in June 2026. This marks a significant uptick from last year's 11.1%, indicating a positive trend in lending across various sectors, particularly in agriculture and housing finance.
Decoding UPI MDR: Who Pays the Bill?
The Indian government has made it clear that UPI (Unified Payments Interface) will continue to be free for consumers and small merchants. However, under the new rules, a Merchant Discount Rate (MDR) may apply to select transactions that exceed a certain amount. This means while most day-to-day payments remain cost-free, larger transactions could attract fees – but don’t worry, it won’t be your average chaiwala who gets hit!
RBI's Steady Rates: A Silver Lining for Credit Growth
The Reserve Bank of India has kept its benchmark repo rate steady at 5.25%, a move welcomed by bankers who see this as a positive indicator for credit growth and economic stability. With raised economic growth forecasts and lowered inflation projections, the RBI is promoting a favorable environment for lending and financial inclusion.
UPI Transaction Charges: Still on the Table, But Not on the Menu Yet
As discussions around UPI transaction charges heat up, Reserve Bank Governor Sanjay Malhotra says it’s too soon to make any decisions. Meanwhile, the government is looking into potential legal amendments to introduce merchant discount rates for specific UPI deals. All while the push for more UPI adoption continues!
E-Shram Portal Hits Milestone: 31 Crore Workers Registered!
The e-Shram portal has reached a remarkable milestone, with over 31.82 crore unorganised workers registering to access essential social security schemes and welfare services. This government initiative streamlines access to various resources, empowering workers in sectors often overlooked.
Everything You Need to Know About the Unified Pension Scheme
The Unified Pension Scheme (UPS), launched in April 2025, aims to ensure a reliable income for retirees. With over 1.18 lakh beneficiaries already on board, this optional pension under the NPS is gaining traction. Here's a breakdown of its objectives, eligibility, contribution structure, and key benefits.
Data Delight: Credit to Tech Infrastructure Sector Doubles in Two Years
India's technology infrastructure sector has seen an astonishing doubling in bank loans over the past two years, underscoring its growing significance as a global hub for data centers. Key drivers of this increase include IT services, digital infrastructure, and a robust demand for data centers and IT-enabled services. This growth presents a promising outlook for the sector as it continues to attract substantial financial support from banks.
Monsoon Blues: Microfinance Lending Takes a Dip
India's microfinance sector is reeling from an uneven monsoon, leading to a contraction in lending. With rural demand dropping and lenders exercising caution, the sector's portfolio shrank by four percent to ₹3.26 lakh crore by the end of June. As farmers battle unpredictable rainfall, the future of microfinance hangs in the balance.
Payment Bill Rekindles Merchant Discount Rate Hopes for Large-Value UPI
The Indian government is considering amendments to the Payment and Settlement Systems Act that may see the return of Merchant Discount Rates (MDR) for large-value UPI transactions. This move aims to help banks and fintech companies recover investments in technology and infrastructure, especially for transactions over 2,000 rupees. The reintroduction could create a revenue stream for payment companies without causing significant disruption.
Mastering Your Home Loan: The Essential Maths for Every Indian Borrower
Understanding the key elements of home loans, like EMI calculation, amortization, and the impact of prepayment, is crucial for every borrower in India. Knowing how these factors work together can significantly reduce your overall borrowing costs. From the decreasing interest on a reducing balance to how repo rate fluctuations affect your payments, a little knowledge can go a long way in making your home loan journey smoother and more economical.
India's Retail Credit Revolution: A Decade of Doubling Access
India has witnessed a remarkable expansion in its formal retail credit market over the last decade. Access to formal credit has surged from 35% of the population in 2017 to an expected 74% by 2026. This growth is largely attributed to consumption-led loans, which have shifted borrowing from traditional asset purchases to lifestyle spending.
Strong Loan Growth Signals Robust Economic Activity
Recent data from the Reserve Bank of India (RBI) reveals that banking credit is flourishing, with a year-on-year boost of 19.2% for industries and a 16% rise in personal loans. Medium enterprises are leading the charge with a staggering 30% growth, while sectors such as petroleum and gems show promising expansion. Gold loans have also emerged as the hottest trend in personal borrowing.
Minimum Due Explained: The Most Expensive Small Number on Your Bill
Paying just the minimum due keeps a credit card account in good standing on paper, but it's one of the most expensive financial habits available, silently accruing interest on the full remaining balance.
Why Credit Limits Increase (And What It Really Means)
A credit limit increase feels like a reward, and it partly is, but banks raise limits primarily because it's profitable for them, not purely as recognition of good behavior.
UPI Transactions Hit New High: July's Spending Spree
July saw a record number of transactions through the Unified Payments Interface (UPI) in India, with consumers flocking to the instant payment system for everything from groceries to movie tickets. As digital payments continue to gain traction, UPI's rise reflects the changing spending habits of Indian consumers, supported by new features and increasing merchant adoption. This article dives into why July was a landmark month for UPI and what it means for the future of digital payments in India.
Credit Card Billing Cycle Explained: The Free Loan Window
Every credit card purchase sits inside an interest-free window that can stretch up to 45-50 days if timed right, but that window collapses to zero the moment a balance is carried past the due date.
Credit Card Rewards Explained: Who Really Pays for Your Points
Reward points feel free, but they are funded by the merchant fee card networks charge on every swipe - understanding that explains why rewards cards only make sense if you pay your bill in full every month.
How CIBIL Score Works: The Number That Decides Your Loan
Your CIBIL score is a three-digit summary of your repayment behavior, built from your entire credit history, that every lender checks before saying yes to a loan or credit card.
Loan Restructuring Explained: A Second Chance, With Conditions
Loan restructuring lets a struggling borrower renegotiate their repayment terms instead of defaulting outright, but it comes with real trade-offs that show up on the borrower's credit report.
What Happens When a Loan Becomes NPA?
A loan becomes a Non-Performing Asset the moment payments are overdue for 90 days, triggering a set of RBI-mandated responses that reshape how the bank treats that account.
How Home Loans Work: EMIs, Tenure, and the Interest Trap
A home loan's monthly EMI stays constant, but the split between interest and principal inside that EMI shifts dramatically over the loan's life - understanding that shift changes how borrowers think about prepayment.
Personal Loans Explained: The Cost of Borrowing Without Collateral
Personal loans are unsecured, which is exactly why they carry the highest interest rates of mainstream retail credit - the lender is taking your word, and your credit score, as the only guarantee.
Gold Loans Explained: India's Favorite Emergency Credit
Gold loans remain the fastest, most collateral-efficient credit product in India, letting households borrow against jewellery they already own with minimal paperwork and same-day disbursal.
NEFT vs RTGS vs IMPS: Which One Should You Actually Use?
India has three separate bank transfer rails - NEFT, RTGS, and IMPS - each with different speed, minimum amount, and cost trade-offs, and most people default to whichever one their banking app shows first without knowing the difference.
UPI vs Cards: Why India Chose a Different Path
Cards took decades to reach mass adoption worldwide because they needed expensive point-of-sale hardware and charged merchants a fee on every transaction. UPI skipped both problems, which is why it overtook cards in India in a fraction of the time.
The Evolution of UPI: How India Rewired Money Movement
UPI went from a niche interbank experiment in 2016 to the backbone of India's daily payments, processing tens of billions of transactions a month and reshaping how the country moves money.