Last Week’s 7 Fintech Updates You MUST Know in India — October 25th
Happy Sunday everyone!
Today I am back with another weekly update for the Fintech Companies. Covering updates in the regulatory or economic side of the Fintech market for Indian companies.
If you run a Fintech Company in India. Or you plan on expanding your Fintech Company in India. Then this becomes important for you.
Here are the main things that happened in the last week.
A) Fintech Innovations & Market Shifts
1) Ramp Files for US National Trust Bank Charter
Regulatory Application:
• Fintech firm Ramp has applied to the Office of the Comptroller of the Currency (OCC) to establish Ramp National Trust Bank.
• The proposed non-depository institution would focus on fiduciary investment management and custody services for digital assets under a federal framework.
Strategic Intent:
• Aims to expand corporate asset management and treasury capabilities while continuing to work with existing banking partners.
• Comes amid rapid growth, with the company recently valued at $60 billion and annualised revenue reaching $2 billion.
Why It Stands Out:
• Positions Ramp to offer institution-grade digital asset custody directly under federal oversight.
2) Rose Merc Appoints New Executive Director and Seeks Payment Aggregator Licence
Leadership and Strategy:
• Rose Merc Limited has appointed Niti Trivedi as Additional Executive Director for a five-year term and applied for a Payment Aggregator licence.
• The board also named Qazi Gulshan as Strategic Advisor for Fintech and Fashion and reconstituted key committees.
Governance Updates:
• Nominee director appointments were made across three subsidiaries, replacing a late director.
• The moves signal a pivot toward regulated fintech and payment services.
Why It Stands Out:
• Marks a clear shift from traditional operations into the payments and fintech space.
B) Economic Trends & Fintech Investments
1) South Indian Bank Plans Credit Card Launch Within Six Months
Strategic Priorities:
• New MD & CEO Mahesh Pai said the bank aims to enter the credit card business in the first half of 2027.
• Focus remains on increasing the share of retail, agriculture and MSME (RAM) loans while reducing the corporate share toward 35–37%.
Growth Outlook:
• Targets credit growth of around 15–16% over the next two years, slightly ahead of the industry.
• Net interest margin improved to 3.33% in Q2FY27, with a medium-term goal of 3.5%.
Why It Stands Out:
• Signals a push toward next-generation retail banking and product diversification.
2) Nomura Initiates Coverage on Paytm with Buy Rating and ₹2,250 Target
Brokerage View:
• Nomura has initiated coverage on Paytm with a Buy recommendation and a target price of ₹2,250, implying about 33% upside.
• The stock has already risen nearly 50% over the past six months.
Growth Drivers:
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• Expectations of strong payments GMV growth, higher merchant lending penetration, improving cost structure, and potential MDR-related revenue.
• EBITDA is projected to grow at a 96% CAGR between FY26 and FY29.
Why It Stands Out:
• Reflects continued institutional confidence in Paytm’s payments and financial services trajectory despite competition and asset-quality risks.
C) Fintech Developments & Strategic Expansions
1) BharatPe Rolls Out Agentic AI Assistant for Merchants
Product Launch:
• BharatPe has introduced an agentic AI assistant within its BharatPe for Business app to help merchants manage operations in real time amid strong festive demand.
• Built on Google Cloud’s Gemini Enterprise Agent Platform, the system can initiate actions across more than 60 live systems rather than only answering queries.
Key Capabilities:
• Supports voice and chat in Hindi, English, Hinglish and regional languages, using context such as screen activity and past tickets.
• Assists with requests, complaints, chargebacks, and product suggestions including Credit-on-UPI, loans and POS solutions.
Why It Stands Out:
• Aims to reduce manual support friction for BharatPe’s network of over 1.7 crore merchants during peak business periods.
D) Regulatory & Compliance Updates
1) RBI Places Restrictions on Puducherry Co-operative Urban Bank
Supervisory Action:
• RBI has issued Directions under Section 35A of the Banking Regulation Act restricting Puducherry Co-operative Urban Bank Ltd from granting new loans, accepting fresh deposits, or disposing of assets without prior approval, effective October 21, 2026.
• Depositors may withdraw up to ₹5,000 from accounts, with essential expenses and loan set-offs permitted under specified conditions.
Context:
• Issued due to unresolved supervisory concerns and to protect depositors; the bank retains its licence under restrictions for six months, subject to review.
• Eligible depositors can claim up to ₹5 lakh from DICGC.
Why It Matters:
• Reflects RBI’s intervention to safeguard depositor interests amid liquidity and governance concerns.
2) RBI Finalises Guidelines for Leverage Ratio 2017 Standard
Regulatory Update:
• RBI has issued the final Amendment Directions implementing the Basel Committee’s Leverage Ratio 2017 Standard for commercial banks.
• The framework comes into effect from April 1, 2027, following public consultation on the draft released in August 2026.
Why It Matters:
• Aligns India’s capital adequacy norms with the updated international leverage ratio framework.
I hope this was useful to you guys working in the Fintech Space.
The fintech space is everchanging, so staying up to date with information will help you make smart decisions for your business.
Again, If I see any notable changes or updates on the Fintech Side during the week, that can help Fintech Companies, I will compile them. And then share them next week!
Btw — I run a legal firm that’s a one-stop solution for Fintech Companies in India.
Whether you are starting out in India, or expanding to the Indian market, DM 💬 me on Linkedin if you need legal help with:
1) Business Registration
2) Contract Drafting or Review
3) Compliance
4) Answering any legal questions
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