RBI Streamlines Priority Sector Lending Norms For Small Finance Banks

The Reserve Bank of India (RBI), in a recent Notification No. RBI/2025-26/61 dated 20.06.2025, has reduced the Priority Sector Lending (PSL) target for Small Finance Banks (SFBs), effective from the financial year 2025-26.
Key Highlights:

The RBI has reduced the PSL target for SFBs from 75% to 60% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher.
The SFBs shall continue to allocate 40% of its […]

By | July 30th, 2025 ||

Banking Transformation: The New Agenda

Operational and cost transformation is at the top of the agenda for banks navigating a complex landscape of economic pressure, rising competition, and rapidly evolving customer expectations. With tighter margins and increasing regulatory demands, banks are turning to digital technologies, automation and AI to streamline operations, reduce costs, and enhance service delivery. Yet many banks struggle to deliver on their transformation objectives. Just 18% of banks have been highly successful in achieving their transformation […]

By | July 30th, 2025 ||

European Central Bank Plans To Fine Banks For Failures To Address Climate Change

It has been publicly reported that the European Central Bank is planning to impose financial penalties (albeit modest ones) on certain banks that have failed to adequately prepare for climate change. Specifically, the European Central Bank has identified “nine outlier banks” which did not “adequately manage [climate] risks,” and are therefore subject to the potential imposition of fines. Notably, these banks include a major French bank that is the third-largest in Europe–so the European […]

By | July 21st, 2025 ||