RBI cancels banking licence of Paytm Payments Bank

The banking license granted to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (the "BR Act") was revoked by the Reserve Bank of India (RBI) on Friday, April 24, 2026, with effect from the end of business on that day.

As a result, Paytm Payments Bank Limited is immediately barred from engaging in "banking" as that term is defined in Section 5(b) or any other activity listed under Section 6 of the Banking Regulation Act, 1949, according to an RBI circular.

The regulatory agency said it will make an application for winding up of the bank before the High Court.

It said Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up of the bank.

The Reserve Bank said it cancelled the licence of the Paytm Payments Bank Limited because the affairs of the bank were “conducted in a manner detrimental to the interest of the bank and its depositors.”

“Thus, the bank is not complying with Section 22 (3) (b) of the BR Act,” it said.

Besides the “general character of the management of the bank is prejudicial to the interest of depositors as also the public interest. Thus, the bank is not complying with provisions of Section 22 (3) (c) of the BR Act,” it said. 

It said no useful purpose or public interest would be served by allowing the bank to continue as envisaged in Section 22 (3) (e) of the BR Act.

The action was taken because the bank failed to comply with the conditions stipulated in the Payments Bank license issued to it, thereby violating the provisions of Section 22 (3)(g) of the BR Act, the central agency said.

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Big Gold loan scam in SBI, Staff Arrested

An SBI employee from Bhubaneswar was detained by the Crime Branch's Economic Offences Wing (EOW) for allegedly embezzling Rs 5.21 crore by approving 105 gold loans without the required paperwork or obtaining authentic gold ornaments. 

Prashant Kumar Mallick, the accused, was employed at the SBI Balichandrapur branch in Jajpur as a senior associate and cash-in-charge. According to EOW, Mallick began working at the SBI branch in Balichandrapur in June 2022. For the previous few months following the discovery of the deception, he had been running away. Peeyus Ranjan Swain, Regional Manager of SBI Jagatsinghpur, filed a complaint that led to the case's registration on February 10, 2026.

The suit states that Mallick, who had been the branch's senior associate-cum-cash in-charge since June 2022, approved and disbursed 105 gold loans totaling Rs 5,21,42,000 between October 2024 and July 2025 without the required paperwork or real gold ornaments as collateral. 

Mallick's responsibilities included recommending loan sanctioning, confirming eligibility and compliance with the necessary documentation, and checking gold ornaments with the assistance of goldsmiths. In addition, he was responsible for keeping track of the pledged gold ornaments and the completed loan agreements.When Mallick failed to present the gold loan files to senior officials during their normal visit to the bank in 2025, the scam was discovered.

In 2025, Chief Manager Manorama Rout of SBI Balasore discovered the fraud on a routine check. Mallick fled without warning and neglected to present the necessary gold loan documents.

Rout ordered an urgent spot audit and a thorough internal investigation because he suspected irregularities. According to the inquiry, 74 loans were approved without any gold security at all, and 31 of the 105 accounts contained the pledge of phony or counterfeit gold ornaments.

It was discovered that a number of loan files contained fraudulent borrower signatures and were missing important papers including jeweler valuation assessments.

The bank personnel carried out a thorough internal inquiry and audited the gold loan accounts. They discovered that Mallick had processed 105 gold loan accounts unlawfully.

Of them, 74 accounts were approved without receiving any gold ornaments, and 31 accounts involved the pledge of counterfeit gold ornaments.In this regard, the bank executives then filed a complaint with the EOW. The major scam was found when the EOW began its inquiry.

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Union Bank of India Q4 Net profit rises 6.6%

State-owned Union Bank of India on Thursday reported a 6.6 per cent increase in net profit year-on-year to ₹5,316 crore for the fourth quarter of FY26, compared with ₹4,985 crore in the year-ago period, aided by lower provisions and operating expenses. Sequentially, net profit rose 6 per cent from ₹5,017 crore in Q3FY26.

 

Provisions declined 2.76 per cent year-on-year to ₹2,640 crore from ₹2,715 crore in Q4FY25. However, on a sequential basis, provisions rose sharply by 37.1 per cent from ₹1,925 crore in Q3FY26, mainly due to a one-time increase in standard asset provision of ₹700 crore.

Operating expenses declined 6.9 per cent year-on-year and 0.9 per cent sequentially to ₹6,863 crore in Q4FY26.

 

Net interest income (NII) for the quarter stood at ₹9,406 crore, marginally lower by 1.1 per cent year-on-year, but up 0.8 per cent sequentially. Interest earned declined 4.5 per cent year-on-year to ₹26,439 crore, while interest expenses fell 6.3 per cent to ₹17,033 crore.

 

Net interest margin (NIM) moderated to 2.64 per cent in Q4FY26, from 2.76 per cent in the previous quarter. NIM in Q4FY25 was 2.87 per cent.

“We have seen a cumulative repo rate reduction of 125 basis points, of which about 53–54 per cent has been transmitted. Despite this, our margins have remained relatively stable, with NIM moderating only from 2.91 per cent (FY25) to 2.70 per cent (FY26), a decline of just 21 basis points,” said Asheesh Pandey, MD & CEO, Union Bank of India.

Other income declined 2.6 per cent year-on-year to ₹5,412 crore in Q4 but rose 19.2 per cent sequentially. Treasury income declined sharply to ₹636 crore in Q4FY26, down 61.4 per cent year-on-year and 29.4 per cent sequentially.

 

“Treasury income has declined during the period due to market conditions. As far as regulatory limits are concerned, including the RBI’s cap on overnight positions, our exposure remained well within limits at around $30 million. We maintained a cautious stance and avoided taking large positions during a volatile phase, which ensured there was no material impact on earnings,” Pandey said.

 

Operating profit before provisions and contingencies increased 3.3 per cent year-on-year to ₹7,955 crore and rose 14.6 per cent sequentially.

“Other income in the previous year included a one-off recovery of ₹787 crore from the sale of two NARCL-backed accounts, which had sovereign guarantee support. Adjusting for that, other income declined by about 1.9 per cent year-on-year,” Pandey added.

 

On the asset quality front, gross non-performing assets (GNPA) declined 14 per cent year-on-year to ₹30,401 crore, while net NPAs fell 15.1 per cent to ₹5,067 crore during the same period. In percentage terms, the GNPA ratio improved to 2.82 per cent from 3.60 per cent a year ago, while the net NPA ratio eased to 0.48 per cent from 0.63 per cent.

On the business front, total advances grew 9.7 per cent year-on-year to ₹10.79 trillion and 6.1 per cent sequentially, indicating steady credit demand. Deposits, however, were largely flat on a yearly basis at ₹13.07 trillion, though they rose 6.9 per cent quarter-on-quarter.

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Bank Ignored Credit Card Closure Request, Ended Up Paying ₹3.21 Lakh – Know Reserve Bank of India Rules”

After a private bank neglected to promptly close a credit card, a credit card user was compensated with a substantial sum of Rs 3.21 lakh.

The user described how he attempted to close two credit cards in May of last year after the bank lowered the credit limit from Rs 1 lakh to Rs 10,000 in a widely shared Reddit post titled "Got Rs 3.21 lakh compensation from Kotak Mahindra Bank for not closing my credit card." The bank charged an annual fee rather than canceling the cards.

The user then filed a complaint with higher authorities. After bringing up the matter, the bank claimed that the cards had never been closed, which led to another round of unanswered emails. The user complained to the Banking Ombudsman because they were frustrated.

The bank’s officer called customer and said: “It’s your mistake. Closure requests are not accepted via email, you should have called”. But I had already submitted a written closure request. Sent follow-ups. Received no response from the bank.”

The user said the bank finally paid a compensation of Rs 3,21,000. But what are RBI guidelines regarding credit card closure? Let’s understand.

According to RBI guidelines, if a bank fails to close a credit card within 7 working days of a customer’s request (provided all dues are cleared), the issuer must pay a penalty of ₹500 per day of delay to the customer.

If a bank fails to follow the guidelines, customers can raise a complaint. The first step is to complain to the bank’s nodal officer. If no resolution is provided within 30 days, customers can approach the RBI Ombudsman.

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₹1.15 Crore Worth of Jewelry Missing from Indian Bank in Gujarat: Petition in High Court

In a case that has raised public concern regarding the safety of assets pledged in public sector banks, the Gujarat High Court has issued notices to the State Government and the Rajkot Police. The court is seeking a response following a petition filed regarding the mysterious disappearance of gold jewelry worth approximately ₹1.15 crore from a branch of Indian Bank. This dispute originally began in 2023.

 Incident: 

A couple from Rajkot had taken an MSME Jewel Loan from the Rajkot branch of Indian Bank.

 They had pledged over 1,000 grams of 22-carat gold jewelry, which included necklaces and pieces studded with precious stones.

 Despite the petitioners regularly fulfilling their interest obligations, they were informed on October 29, 2025, that their pledged jewelry had gone missing from the bank’s locker (secure storage).

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5 Days Bank Working: When will Indian banks start working for 5 days, how far has the demand for 2 days holiday reached?

 

Will banks soon begin operating for five days? This question is being asked by most bank employees, associations, and ordinary customers. When will banks begin operating Monday through Friday, with all Saturdays and Sundays closed? 

Demands for a five-day working day and two holidays are being consistently raised. Bank associations have placed their demands before both the RBI and the government, but no final decision has been made yet. Neither the government nor the RBI has issued any official announcements.

At present, banks remain closed on all Sundays along with second and fourth Saturdays as before.

Why is the decision stalled? 

This proposal was agreed upon during the salary agreement between the Indian Banks' Association (IBA) and bank unions. However, government approval is required for its implementation. Despite numerous protests and negotiations, no timeline has been established.

Bank employees want a better work-life balance. They believe that the RBI and many other financial institutions already have a five-day work system, so banks should also implement it. Unions have also suggested that slightly longer working hours could help maintain a balanced work schedule.

At present, nothing has changed for customers. Bank branches are open as usual, and all services are continuing as usual. However, if the 5-day system is implemented in the future, some changes to banking timings and services may be observed.

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Bank of Maharashtra Q4 Net profit jumps 34% YoY; NII up 20%

 In the fourth quarter of FY26, public sector lender Bank of Maharashtra reported a net profit of Rs 2,014 crore on Monday, up 35% from Rs 1,493 crore in the same quarter of the previous fiscal year.

In addition to showing an 8.19% sequential increase, net interest income (NII) increased 18.81% year over year (YoY) to Rs 3,702 crore in Q4FY26 from Rs 3,116 crore in Q4FY25.

Operating profit increased 7.69% quarter-over-quarter (QoQ) and 16.92% YoY to Rs 2,946 crore in Q4FY26 from Rs 2,520 crore in the same period last year.

Net revenues, which include net interest income and other income, rose 13.26% year over year from Rs 4,097 crore in Q4FY25 to Rs 4,640 crore in Q4FY26. Revenues increased by 6.55% sequentially.

Gross non-performing assets (NPA) decreased to 1.45% as of March 31, 2026, from 1.74% a year earlier and 1.60% in the preceding quarter, indicating an improvement in asset quality during the quarter. Additionally, net non-performing assets (NPA) decreased to 0.13% from 0.15% in the previous quarter and 0.18% in the same period last year.

The provision coverage ratio stood at 98.59% as of March 31, 2026, improving from 98.26% a year earlier and 98.41% as of December 31, 2025.

As of March 31, 2026, total business grew 17.47% YoY to Rs 6.43 lakh crore. Total deposits rose 14.14% to Rs 3.50 lakh crore, while gross advances increased 21.74% to Rs 2.91 lakh crore. Net advances also rose 22.03% to Rs 2.88 lakh crore.

The RAM segment, comprising retail, agriculture, and MSME, expanded 20.74% YoY. Within this, retail advances surged 32.39% to Rs 85,857 crore, while MSME advances grew 10.71% to Rs 53,547 crore.

For FY26, net profit rose 27.17% to Rs 7,019 crore, while net interest income increased 17.13% to Rs 13,664 crore. The domestic net interest margin stood at 3.91%.

The bank has proposed a final dividend of 12%, or Rs 1.20 per equity share, for FY26. This is in addition to the interim dividend of 10%, or Rs 1.00 per share, already declared and paid.

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The government orders PSU Banks finish the 13th BPS Wage Revision on schedule

The Indian government's Ministry of Finance has issued a formal letter instructing public sector banks to finish the 13th BPS on schedule. The 10th Joint Note and 13th Bi-partite Settlement for Public Sector Bank employees' wage revision is set to go into effect on November 1st, 2027.

The wage revision settlements were previously signed every two to three years. However, the 12th Bi-partite Settlement (also known as the 9th Joint Note) was completed in just 14 months. The government hopes to finish the settlement on schedule this year.

This year, public sector banks have been advised to finish the negotiations within a maximum of 12 months.

According to the government, it has been noted that in the past, significant changes to the relevant regulations have been made after a significant amount of time had passed since the settlements.

It is emphasized that the consequential changes to the pertinent regulations should also be finished before the next wage settlement's due date, since talks for the settlement are now being started in a timely manner.

It usually takes three to four months to implement consequential changes to the regulations. As a result, it is recommended that the banks start the process of amending the pertinent regulations as soon as the negotiations are concluded. This will ensure that the amendment procedures are finished well in advance of the next wage settlement's scheduled start date, which is November 1, 2027.

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Five Officers sent to 3 Years Jail for lapses in Loan Sanctioning

In a significant bank fraud case, the CBI Court found two private individuals and five State Bank of India (SBI) employees guilty. According to the conviction, A1 to A7 were fined Rs1,15,000, A1 to A4 were sentenced to three years of simple jail, and A5 was sentenced to two years of simple imprisonment. 

According to CBI investigators, they plotted to defraud SBI-Anaparthy Branch between 2008 and 2011 by obtaining credit facilities for VNR Refineries through deception. Bank clients conspired with bank employees to get loans by hiding previous mortgages and providing falsified paperwork as collateral.

• Kalluri Satyanarayana (A1) – Then Relationship Manager (Medium Enterprises), SBI Sales Hub, Regional Business Office, Kakinada, East Godavari district.
• Chaganti Chalapathi (A2) – Then Branch Manager.
• Nidadavolu Venkata Ramana Rao (A3) – Then Branch Manager.
• Manapragada Ramana (A4) – Then Assistant Manager (Advances), SBI Anaparthy Branch, East Godavari district.
• Mallidi Venkata Narayana Reddy (A5) – Managing Director of VNR Refineries Private Ltd, Vemulapalli-Dwarapudi, Mandapeta Mandal, East Godavari district.
• M Venkata Narayana Reddy (A6) – Private person.
• P Subba Rao (A7) – Then Assistant Manager (Agriculture Advances), SBI Anaparthy Branch.

By breaking bank regulations, disregarding proper processes, and falsely certifying documents to enable the loans, the bank executives abused their positions. With an outstanding balance of Rs 9.19 crore, they thus caused unjust loss to the bank and wrongful gain to themselves.

Because it involves public funds, financial confidence, and stringent regulatory compliance, loan processing is one of the most delicate tasks in the banking industry. When it comes to lending sanctioning, verification, and monitoring, bank employees are expected to act with the highest level of diligence, integrity, and openness.

Serious financial losses and financial mismanagement can result from even a minor oversight. As a result, when processing loans, bankers must thoroughly review each application, accurately check papers, and make sure that all regulations and guidelines are followed.

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HDFC Bank Q4 Net profit rises 9%; announces Rs 13 dividend for FY26

Mumbai-headquartered HDFC Bank the country's largest lender by market value on Saturday reported a net profit of Rs 19,221 crore for the quarter ended March 31, in line with analyst expectations. The private sector bank declared a dividend of 1,300 per cent for eligible shareholders.

The Q4 FY26 results marked the bank's first earnings report since the exit of its part-time chairman and independent director Atanu Chakraborty.

The lender's net profit grew 9.1 per cent to Rs 19,221 crore, from Rs 17,616 crore a year ago, according to a regulatory filing.

Its net interest income -- or the difference between interest earned and interest paid -- increased 3.2 per cent to Rs 33,082 crore for the final three months of FY26, slightly below expectations.

HDFC Bank was expected to register a net profit of Rs 19,200 crore and net interest income of Rs 33,660 crore.

The bank staged an improvement in its asset quality, beating Street expectations.Asset quality is gauged by sequential changes in the proportion of bad loans in total loans.

HDFC Bank's gross non-performing assets (NPAs) or bad loans stood at 1.15 per cent for the March quarter, versus 1.24 per cent for the previous three months.

Its net NPAs were recorded at 0.38 per cent of total loans, decreasing from 0.42 per cent three months ago.

HDFC Bank's fourth-quarter gross and net NPAs were pegged at 1.2 per cent and 0.4 per cent of its total loans, respectively, unchanged from the previous three months.

The private lender reported Rs 2,610 crore in provisions for the quarter ended March 31, 2026, as against Rs 2,838 crore for the quarter ended December 31, 2025, and Rs 3,193 crore for the quarter ended March 31, 2025.

The bank's capital adequacy ratio a key metric that compares a lender's capital to its risk-weighted assets -- stood at 19.71 per cent as of March 31.

Earlier this month, the private lender reported growth of 12.80 per cent and 12 per cent in deposits and gross loans for the March quarterly.The bank declared a dividend of Rs 13 per equity share a 1,300 payout given the face value of Re 1 per equity share.

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