April 2025 Banking Rule Changes: NBFC Risk Weight, UPI, PCA
Why in the news
Several banking, payments and microfinance rules changed around April 2025, affecting NBFC funding, UPI, ATMs, MFIs and weak urban co-operative banks.
Key facts
| Area | Authority | Change |
|---|---|---|
| NBFC loan risk weight | RBI | 125% down to 100% |
| UCB supervision | RBI | PCA replaces SAF |
| ATM fee ceiling | Banks | ₹21 up to ₹23 |
| UPI records | NPCI | Weekly mobile number updates; explicit opt-in to seeding |
| MFI borrowing | MFIN (SRO) | Max four lenders per borrower |
- PSL: RBI raised limits for education, renewable energy and affordable housing loans.
- PCA triggers for UCBs: two straight years of losses, net NPAs above 6% but under 9%, or CAR up to 250 bps short; a principle-based design with fewer parameters.
Exam angle
- NBFC risk weight: 100% (earlier 125%).
- Four-lender cap comes from MFIN, the RBI-recognised SRO.
- UPI changes aim at security and fewer fraud cases.