RBI Introduces New Customer-Centric Regulations and Monetary Policy Outlook
The Reserve Bank of India (RBI) has unveiled significant new regulations aimed at enhancing customer service and streamlining banking operations. Notably, banks are now mandated to settle claims of deceased customers within 15 days, with a provision for compensation in case of delays. These guidelines, termed the 'Reserve Bank of India (Settlement of Claims of Deceased Customers) Directions, 2025,' are set for swift implementation and cover deposit accounts, safe deposit lockers, and safe custody items.
Additionally, the RBI is transitioning cheque handling from a batch clearing system to continuous clearing with settlement on realization. Phase 1 of this change is scheduled for October 4, 2025, with HDFC Bank already announcing its implementation of same-day cheque clearance from this date, urging customers to ensure adequate funds and correct details.
Looking ahead, the RBI's Monetary Policy Committee (MPC) is slated to hold its three-day meeting from September 29 to October 1, 2025. Analysts, including a report by the State Bank of India (SBI), anticipate a potential 25-basis-point (bps) repo rate cut, citing controlled inflation and a benign outlook for FY27. The RBI has also set the Ways and Means Advances (WMA) limit for the central government at ā¹50,000 crore for the second half of FY26.
India's Economic Growth Sustained Amidst Global Headwinds
India continues to demonstrate strong economic performance, with its GDP rising to a five-quarter high of 7.8% in the first quarter of fiscal 2025-26, up from 7.4% in the similar quarter of the previous year. This growth positions India as the fastest-growing major economy in the world, a fact acknowledged by Russian President Vladimir Putin, who praised India's high economic growth rates under Prime Minister Modi's leadership. Finance Minister Nirmala Sitharaman affirmed India's economic resilience, stating its preparedness to withstand global shocks and sustain growth momentum, attributing this to strong macroeconomic fundamentals, a young population, and robust domestic demand.
However, Crisil Intelligence warned that high tariffs imposed by the United States on Indian goods pose a major risk to the country's growth, potentially impacting exports and investments. Despite this, domestic consumption, supported by benign inflation (projected to soften to 3.5% in the current fiscal year) and expected rate cuts, is anticipated to bolster growth. Nominal GDP growth, however, slowed to 8.8% from 10.8% in the same period, which could affect tax collections.
Strengthening International Trade and Investment Ties
India is actively fostering international economic partnerships. An Abu Dhabi-India business forum, co-organised by the Abu Dhabi Department of Economic Development (ADDED) and the Federation of Indian Chambers of Commerce and Industry (FICCI), convened to deepen trade and investment ties. Non-oil trade between the UAE and India saw significant growth, rising by 33.9% to $37.6 billion in H1-2025.
Similarly, Malaysia, as the ASEAN Chair in 2025, is committed to promoting ASEAN-India economic cooperation. The ASEAN-India Business Summit 2025 highlighted that bilateral trade between the regions has already exceeded $123 billion during 2024-2025.
Domestically, Prime Minister Narendra Modi unveiled development projects valued at over ā¹60,000 crore in Odisha, spanning telecommunications, railways, and higher education. The Uttar Pradesh government is also making a strong pitch to emerge as India's next Global Capability Centre (GCC) hub, exploring investment and expansion possibilities.
Stock Market Volatility and Government Initiatives
The Indian stock market witnessed a volatile day, with the Sensex hitting a new record high in early trade on September 27, driven by buying in IT stocks and positive global market trends. However, profit booking later in the day led to minor drops in both the Nifty 50 and S&P BSE Sensex, though the latter remained above the 85,000 mark.
HSBC upgraded Indian equities to 'Overweight,' anticipating a comeback of Foreign Institutional Investors (FIIs) after a 12-month absence, and identified 11 stocks with significant upside potential. Conversely, Donald Trump's recent actions, including H-1B visa changes and potential 100% tariffs on branded pharmaceuticals, have negatively impacted Indian stock markets and foreign investor sentiment, with foreign funds selling Indian stocks worth around $16 billion in 2025.
In other government-related news, PM Modi highlighted the positive impact of GST simplification and citizen-centric infrastructure development on India's growth. However, a scheme launched in June 2025 to promote electric passenger car manufacturing, offering duty concessions, has yet to attract any applications from automakers.