📰 India Finance Update – October 7, 2025
Big Moves in India’s Financial Landscape: RBI Reforms, GIFT City Launch & Growth Outlook
India’s finance sector witnessed major developments this week, signaling the country’s push toward a more globally connected and resilient economy. From the Reserve Bank’s regulatory reforms to the government’s focus on growth and new settlement systems, here’s everything you need to know.
🇮🇳 India Launches Foreign Currency Settlement System via GIFT City
India has officially launched its foreign currency settlement system through GIFT City — a big step toward reducing dependency on overseas banking networks.
This system allows foreign currency transactions (like USD) to be cleared locally within India.
Standard Chartered Bank will handle dollar settlements under this framework.
💡 Impact: This move strengthens India’s financial independence and positions GIFT City as a global financial hub competing with Singapore and Dubai.
🏦 RBI Grants Self-Regulatory Status to NBFC Body
The Reserve Bank of India (RBI) has given the Finance Industry Development Council (FIDC) self-regulatory organization (SRO) status.
This means the NBFC sector (non-banking financial companies) will now be more closely monitored and standardized.
💡 Impact: Improved transparency, faster compliance, and stronger investor confidence in NBFCs.
💰 RBI Expands Credit Access and Raises Loan Limits
In one of its biggest reforms in recent years, the RBI increased the cap on loans against shares and securities from ₹20 lakh to ₹1 crore.
Banks now have greater flexibility to finance corporate deals, IPOs, and business expansions.
💡 Impact: Easier access to credit for growing companies and a boost in capital market activity.
📈 Finance Minister: Growth Is Resilient, But No Room for Complacency
Finance Minister Nirmala Sitharaman highlighted that India’s growth remains strong thanks to robust domestic demand and capital investments.
However, she cautioned that global trade tensions and inflation still pose risks.
The government plans a record ₹11.21 trillion investment in infrastructure this fiscal year.
💡 Impact: Long-term growth looks steady, but export challenges and global slowdown remain watch points.
🌍 NITI Aayog Proposes Simpler Tax Rules for Foreign Companies
NITI Aayog introduced an optional presumptive taxation scheme to simplify tax compliance for foreign businesses operating in India.
Instead of complex audits, a fixed presumptive rate would apply to their earnings in India.
💡 Impact: Encourages more foreign investment and reduces legal disputes.
📊 Stock Market Snapshot
Bajaj Finance shares gained 0.88% today, closing near their 52-week high at ₹1,017.80.
The BSE Sensex also rose 0.17%, showing continued investor optimism in the financial sector.
🧭 Outlook
India’s financial reforms — from digital settlements to credit expansion — reflect a clear goal:
“Build a self-reliant, globally integrated, and investor-friendly financial ecosystem.”
If executed well, these measures could attract more foreign investment, boost business lending, and solidify India’s place as a financial powerhouse in Asia.
🏁 Conclusion
Today’s updates show how India is reshaping its financial system for the future — with digital innovation, credit reform, and global confidence leading the way.
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