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NBFC Sector Seeks Funds and Reforms Ahead of  Union Budget 2024 As the Union Budget for 2024 approaches, the Non-Banking Financial Company (NBFC) sector is calling for enhanced financial inclusion and digitalization efforts to sustain its growth. The sector, represented by the Finance Industry Development Council (FIDC), is advocating for the establishment of a special refinancing body, akin to the National Housing Bank (NHB) for housing finance companies. Importance of NBFCs in the Economy NBFCs play a crucial role in the Indian economy by providing financial services to underserved segments that traditional banks may not fully reach. They offer a range of financial products, including loans, asset financing, and wealth management services. This sector is vital for promoting financial inclusion, supporting consumer demand, and improving trade balances. Current State of NBFCs Despite facing stringent regulatory actions from the Reserve Bank of India (RBI) this year, the NBFC sector...

RBI Proposes Cash Deposit via UPI and Widens Scope of CBDC RBI's Proposal for Cash Deposits via UPI: The Reserve Bank of India (RBI) has put forth a proposal to facilitate cash deposits in banks through the Unified Payment Interface (UPI) mechanism. Currently, cash deposits in Cash Deposit Machines (CDMs) primarily rely on debit cards. However, building on the success of card-less cash withdrawal using UPI at ATMs, the RBI aims to extend this functionality to cash deposits as well. RBI Governor Shaktikanta Das emphasized that enabling cash deposits via UPI would enhance customer convenience and streamline currency-handling processes at banks. Expansion of UPI Payments through PPI Wallets: In addition to cash deposits, the RBI has proposed allowing UPI payments through Prepaid Payment Instruments (PPI) wallets. Presently, UPI payments from PPIs are limited to using the web or mobile apps provided by the PPI issuer. The proposed measure seeks to permit the use of third-party UPI apps...