IRDAI Proposes Tighter Commission Disclosure; Commission Expenses Cross ₹1 Lakh Cr in FY25

IRDAI Proposes Insurance Reforms: Commission Caps at 20% for Distributors, 25% for Agents

IRDAI has proposed sweeping reforms to cap commissions and reduce expenses in the insurance sector, aiming to curb mis-selling and improve consumer protection. The move has triggered a sharp selloff in insurance distributors like Policybazaar and TurtleMint, whose high upfront commission model is directly threatened. For exam aspirants, this is a critical regulatory reform with implications for financial markets, consumer welfare, and insurance penetration in India.

IRDAI Proposes Public Insurance Registry to Transform Insurance Sector

IRDAI has released a consultation paper proposing a Public Insurance Registry (PIR), a digital public infrastructure for insurance. This aims to create a unified, interoperable platform for policy data, enhancing accessibility, transparency, and efficiency across the insurance sector. This is a significant reform with implications for financial inclusion and digital governance.

SEBI Proposes Digital KYC Norms for NRIs/OCIs, Eases Physical Presence for FATF-Compliant Countries

SEBI has proposed major relaxations in KYC norms for individual overseas investors (NRIs, OCIs, foreign nationals) by allowing digital onboarding without physical presence for residents of FATF-compliant countries. This move aims to simplify entry into India's securities market, reduce paperwork, and boost foreign portfolio investment by enabling KYC portability across intermediaries.

Govt Proposes 0.25-0.5% MDR on UPI Transactions Above ₹2,000 via PSS Act Amendment

The government has proposed allowing a Merchant Discount Rate (MDR) of 0.25-0.5% on UPI transactions above ₹2,000 via an amendment to Section 10A of the Payment and Settlement Systems Act, 2007. This reverses a decade-long zero-MDR policy, potentially undermining financial inclusion, formalisation, and investment in UPI infrastructure. While only 5% of transactions by volume are affected, they account for 65% of transaction value, making this a significant policy shift.

Govt Proposes Gold Monetisation via Jewellers: 20,000 Tonne Idle Gold, Demat Deposits, Interest Income

The government is planning a new gold monetisation scheme where jewellers, not banks, will collect physical gold deposits from households, issue demat receipts, and pay interest. This aims to unlock over 20,000 tonnes of idle gold, improve India's trade balance, and reduce import dependence — a key reform for economic stability and current account management.

SEBI Proposes Net Settlement of Funds for Mutual Funds to Reduce Liquidity Needs

SEBI has proposed allowing mutual fund schemes to settle cash market transactions on a net basis for funds, while keeping securities settlement gross. This aims to reduce temporary liquidity pressures and operational inefficiencies, especially during index rebalancing or large redemptions, following a similar framework for FPIs.

SEBI Impounds ₹28 Cr from Prrsaar & Chaubara for Cross-Segment Price Manipulation

SEBI has impounded ₹28 crore from Prrsaar Sampada and Chaubara Eats for a novel cross-segment price manipulation strategy using stock futures and options. This case is critical for understanding market integrity, SEBI's regulatory powers, and manipulative trading patterns often tested in Banking and UPSC exams.

RBI Mandates Daily Bulk Deposit Rate Disclosure by 10 AM, Allows LCR-Linked Differential Pricing from Oct 2026

RBI has mandated daily disclosure of bulk deposit interest rates by 10 AM with a 10-minute grace period, ensuring uniformity across branches and customers. Simultaneously, banks can now offer differential rates on bulk deposits based on LCR run-off rates, linking pricing to liquidity risk.