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October 30, 2025 Indian Economy and Business: RBI's New Nomination Rules, Market Volatility, and Trade Progress Mark Recent Developments

The Indian economic landscape has seen a flurry of activity in the last 24 hours, with the Reserve Bank of India (RBI) announcing new nomination rules for bank accounts, fixed deposits, and safe deposit lockers, effective November 1, 2025. The stock market is bracing for a cautious opening today, influenced by global cues following the US Federal Reserve's rate cut and subsequent statements. Meanwhile, significant progress has been reported in India-EU trade talks, and the government has imposed new import duties on yellow peas. Foreign direct investment continues to flow, with major investments in fintech and broader sector interest from global funds.

In a significant move impacting banking customers, the Reserve Bank of India (RBI) has issued new directions regarding nomination facilities for deposit accounts, safe deposit lockers, and articles held in safe custody with banks. These rules, set to come into force on November 1, 2025, stipulate that while the nomination facility aims to streamline claim settlements, customers will be allowed to opt out of nomination if they choose. Banks are mandated to open accounts even if a customer declines to make a nomination, provided the customer provides a written declaration of their refusal, or the bank notes the refusal.

The Indian stock market is expected to face a negative opening on Thursday, October 30, 2025, tracking weak global market cues. This follows the US Federal Reserve's decision to cut interest rates by 25 basis points (bps). However, Fed Chair Jerome Powell's statements downplaying the likelihood of further rate cuts in December have tempered market expectations. Despite the cautious outlook for today, the Indian market saw a rally on Wednesday, with the Nifty 50 closing above the 26,000 level and the Sensex gaining 368.97 points.

On the trade front, India has made "significant progress" in its Free Trade Agreement (FTA) talks with the European Union (EU). Union Minister Piyush Goyal indicated that "half of the EU FTA deal wrapped up," highlighting momentum in negotiations aimed at a fair and reputable trade agreement beneficial to both sides. Additionally, the Centre has imposed a 10% import duty and a 20% additional cess on yellow pea imports. This measure comes ahead of the Kharif season, likely aimed at supporting domestic agricultural markets.

Foreign investment continues to bolster the Indian business landscape. General Atlantic has injected another $600 million into PhonePe, a fintech firm preparing for its Initial Public Offering (IPO). Furthermore, the Canadian pension fund CPPIB (Canada Pension Plan Investment Board) plans to increase its investments in India, citing the booming economy and favorable market conditions. India is CPPIB's third-largest market in the Asia-Pacific region, with investments targeting diverse sectors including real estate, energy, infrastructure, e-commerce, and emerging technologies like AI and data centers.

In other business news, boAt's parent company, Imagine Marketing, has refiled documents for a Rs 15-billion IPO, two years after initially postponing its public offering plans. The Lenskart IPO is also scheduled to open on October 31st. The Reserve Bank of India also returned Jana Small Finance Bank's application for a universal bank license, citing that it did not meet the eligibility criteria under the 2024 framework for small finance banks.

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