Category: Business

Axis Bank forecasts India’s economy to grow by 7.5% in real terms for the fiscal year 2026-27, exceeding the broader consensus estimate of 6.8%. Neelkanth Mishra, the bank’s chief economist, expresses optimism about the economic trajectory, attributing potential growth to easing macroeconomic pressures and the positive effects of structural reforms. Despite recent rupee fluctuations, Mishra assures that the depreciation is manageable and does not reflect any fundamental weaknesses in India’s balance of payments.

Positive Economic Outlook

Neelkanth Mishra has shared an encouraging forecast for India’s economy, predicting a growth rate of 7.5% for FY27, significantly above the approximate 6.8% general consensus. He notes that this positive projection stems from a shift from stabilization to acceleration, propelled by easing monetary conditions and the impending benefits of structural reforms. Mishra emphasizes that India is set to remain one of the fastest-growing major economies globally, as effects from recent economic adjustments begin to take shape.

Last year, the growth rate slowed to around 6.5%, mainly due to substantial monetary and fiscal tightening. Mishra estimates that fiscal drag and credit constraints had reduced potential growth by about 3.3 percentage points. However, he anticipates that FY27 will usher in more favorable economic conditions, as monetary policy shifts from restrictive to growth-supportive.

Currency Stability and Market Confidence

Responding to concerns regarding the recent depreciation of the rupee, which has fallen past 91 to the dollar, Mishra describes the decline as a “mild but not wild depreciation.” He reassures stakeholders that India’s balance of payments position is strong, with no structural vulnerabilities needing attention. The fluctuations in the currency are largely attributed to speculative market activities, with Mishra supporting the Reserve Bank of India’s strategy of allowing the rupee to find its natural level.

Looking ahead, Axis Bank’s base case scenario forecasts the rupee drifting to a range of 92-94 by June 2027. Mishra believes the harshest phases of fiscal consolidation are behind the economy, expecting only a minor tightening of around 20 basis points in FY27, compared to 130 basis points in FY25. This reduction in fiscal pressure is predicted to positively influence economic growth.

Structural Reforms and Investment Revival

Mishra emphasizes the significance of structural reforms in enhancing India’s long-term growth potential. He highlights major regulatory changes, including the implementation of the Goods and Services Tax (GST) and labor reforms in 16 states, which have collectively introduced 38 key measures. These reforms, such as allowing women to work night shifts, are regarded as a “systemic unlock” that can significantly boost productivity and economic output.

Early indications of investment recovery are noticeable, with corporate capital expenditure, excluding the telecom sector, reporting growth of around 15% in the first half of the current fiscal year. As borrowing costs start to decline, Mishra foresees the emergence of a “golden age for Indian entrepreneurship,” driven by increased investment activity and a more conducive business environment.

Policy Recommendations for Sustained Growth

To sustain the economic growth momentum, Mishra outlines several policy priorities. He suggests that current 10-year government bond yields, which are around 6.6%, need to be corrected significantly towards 6.1%. Mishra critiques the government’s long-term borrowing strategy as “too much of a good thing,” advocating for issuing more Treasury bills to help lower yields.

Regarding inflation, Mishra cautions policymakers against hasty monetary tightening, pointing out that considerable slack remains in the economy. He argues that growth rates exceeding trend levels do not require immediate policy adjustments. Axis Bank does not foresee inflation rising to levels that would necessitate policy tightening through 2026, permitting a more measured approach to economic management in the coming years.

Digihunt is not a financial advisor and this is not investment advice.

Stock markets in India opened lower on Tuesday, reflecting weak global cues. The Nifty50 index fell below the 26,000 mark, while the BSE Sensex dropped over 300 points. As of 9:16 AM, Nifty50 was trading at 25,931.70, down 96 points or 0.37%, and BSE Sensex was at 84,890.83, down 323 points or 0.38%. Market experts predict that trading will remain range-bound with heightened volatility as the year comes to a close, influenced by reduced trading volumes and ongoing global economic uncertainties.

Market Trends and Expert Insights
Market analysts suggest that the Indian stock market is entering a consolidation phase in the near term. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that sustained selling by foreign institutional investors (FIIs) is being countered by buying from domestic institutional investors (DIIs). He emphasized that the economic fundamentals are showing signs of improvement, which could provide market support during periods of weakness.

Additionally, the Indian rupee is expected to stabilize, as the trade deficit for November has decreased to $24.53 billion from $41.64 billion in October. This reduction may alleviate some pressure on FIIs, who have been selling shares in anticipation of further rupee depreciation. Dr. Vijayakumar also mentioned that the weakening of artificial intelligence (AI) trade in the U.S. could potentially lead to increased capital flows into emerging markets like India by 2026. However, he stressed that a sustained market recovery hinges on an improvement in earnings, with upcoming Q3 financial results expected to shed light on this aspect.

Global Market Influences
On the global front, U.S. markets closed lower on Monday as investors awaited significant economic reports and monitored statements from Federal Reserve officials regarding interest rate directions. Asian markets also experienced slight declines at the opening, as traders reduced their exposure ahead of key U.S. economic data releases that could impact interest rate decisions. Notably, the Japanese yen gained strength during this period.

In the commodities market, oil prices continued to decline in early Tuesday trading, extending the downward trend observed on Monday. This drop is attributed to improving prospects for peace negotiations between Russia and Ukraine, which may lead to a relaxation of sanctions. Conversely, gold prices saw a slight increase, driven by expectations of U.S. interest rate reductions in January. Investors are closely watching upcoming employment data, while silver prices remain near their recent historic highs.

Investment Activity and Market Sentiment
In terms of investment activity, foreign portfolio investors sold shares worth Rs 1,468 crore net on Monday. In contrast, domestic institutional investors made net purchases amounting to Rs 1,792 crore. This divergence in investment behavior highlights the contrasting sentiments between foreign and domestic investors in the current market landscape.

As the year draws to a close, market participants are likely to remain cautious, given the prevailing uncertainties in the global economy. The combination of reduced trading volumes and fluctuating investor sentiment may contribute to a volatile trading environment. Analysts continue to monitor key economic indicators and corporate earnings reports, which will play a crucial role in shaping market trends in the coming weeks.

Digihunt is not a financial advisor and this is not investment advice.

Investors may soon have the chance to trade on the Nasdaq for nearly 23 hours a day as the exchange seeks regulatory approval for near-continuous trading. This initiative aims to address the rising global interest in U.S. equities, prompting exchanges to rethink traditional trading hours. Nasdaq, home to major tech firms such as Nvidia, Apple, and Amazon, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) that could significantly broaden trading hours, potentially allowing round-the-clock access for international investors.

Proposed Trading Schedule

With the new proposal, Nasdaq intends to extend its trading hours from the current 16 hours to 23 hours daily. The exchange currently operates a pre-market session from 4 a.m. to 9:30 a.m. Eastern Time, followed by a regular trading session from 9:30 a.m. to 4 p.m., and a post-market session until 8 p.m. The proposed structure streamlined into two extended sessions would include a continuous day session from 4 a.m. to 8 p.m., followed by a one-hour operational break. A night session would start at 9 p.m. and continue until 4 a.m. the next day, with trades executed between 9 p.m. and midnight recorded for the following day. The trading week would commence at 9 p.m. on Sunday and end at 8 p.m. on Friday, while the opening and closing bells would stay the same at 9:30 a.m. and 4 p.m.

Infrastructure and Market Impact

The transition to continuous trading depends on necessary infrastructure upgrades, particularly to the securities information processor that consolidates stock prices across U.S. exchanges. The U.S. Depository Trust and Clearing Corporation is also anticipated to implement nonstop stock clearing by the end of 2026. Supporters of extended trading hours argue that this change would allow investors outside the U.S. to respond more quickly to global events occurring when U.S. markets are closed. However, Wall Street banks have raised concerns regarding potential challenges like thinner liquidity, increased volatility, and the commercial feasibility of nonstop trading.

Chuck Mack, senior vice president of North American markets at Nasdaq, mentioned that demand for overnight trading has surged, although trading volumes during extended hours have historically been lower. Many investors currently turn to off-exchange platforms and alternative trading systems to access markets outside regular hours. Mack highlighted that global investors are eager to engage with the U.S. market on their own terms and timelines.

A Shift in Market Dynamics

The proposed changes illustrate a broader trend toward globalization in the U.S. markets, which now account for nearly two-thirds of the global listed market value. Nasdaq data indicates that overseas investors held $17 trillion worth of U.S. equities last year. This increasing international interest has compelled exchanges to adjust their trading models to cater to the needs of global investors.

Traditionally, U.S. exchange trading hours have seen little change over the past century, originating in an era when transactions took place in person on trading floors. Despite the current predominance of electronic trading, market schedules have evolved little over time. Earlier this year, Nasdaq also filed with regulators to allow trading in tokenized stocks, reflecting a growing interest in tokenization amid a relaxation of crypto-related regulations. As the trading landscape evolves, Nasdaq’s proposal for extended hours could signify a meaningful shift in how global investors engage with U.S. markets.

Digihunt is not a financial advisor and this is not investment advice.

The Indian rupee has reached a record low, closing at 90.74 against the US dollar. This decline follows an intra-day drop to 90.80, driven by ongoing uncertainties surrounding trade negotiations between India and the US, coupled with continued outflows of foreign funds. Analysts suggest that strong demand for dollars from importers and a risk-averse sentiment among investors are major factors affecting the rupee’s performance.

Rupee’s Performance and Market Sentiment

The rupee opened at 90.53 per dollar in the interbank foreign exchange market but faced pressure during the trading session, ultimately settling at 90.74, down 25 paise from its previous close. This follows a 17 paise decline on Friday, when the rupee had already hit a then-record low of 90.49. Forex traders noted that, despite some positive macroeconomic indicators, the domestic currency struggled to gain traction. Concerns over capital outflows and trade negotiations have overshadowed any potential support for the rupee. Dilip Parmar, a research analyst at HDFC Securities, stated that the rupee has become the weakest currency in Asia.

Factors Influencing the Currency’s Decline

Parmar mentioned that the rupee’s decline is mainly due to a significant imbalance between demand and supply in the currency market. The high demand for dollars from importers, combined with ongoing capital outflows, remains a critical concern for the currency’s stability. He indicated that the technical outlook for the USD-INR pair appears bullish in the near term, with resistance levels around 90.95 and support near 90.50. This analysis suggests that the rupee may continue to face difficulties in the coming days.

Trade Negotiations and Economic Outlook

Trade negotiations between India and the US are a central focus for market participants. Commerce Secretary Rajesh Agrawal noted that both countries are “very close” to finalizing a framework trade deal, although no specific timeline was provided. The discussions include tariff-related issues alongside a comprehensive bilateral trade agreement. Exporters and industry bodies are closely monitoring these negotiations, as elevated import duties have adversely affected Indian exports to the US. The outcome of these discussions could significantly influence the rupee’s future trajectory.

Market Reactions and Broader Economic Indicators

In the broader financial landscape, the dollar index, which measures the US dollar’s strength against a basket of six major currencies, saw a slight reduction of 0.08% to 98.32. Concurrently, Brent crude futures, a global oil benchmark, increased by 0.21% to $61.25 per barrel. In the equity market, benchmark indices experienced a marginal decline, with the Sensex dropping by 54.30 points to close at 85,213.36 and the Nifty declining by 19.65 points to 26,027.30. Furthermore, foreign institutional investors sold equities worth Rs 1,114.22 crore, reflecting cautious market sentiment. On a positive note, India’s foreign exchange reserves rose by $1.033 billion to reach $687.26 billion in the week ending December 5, following a decline in the previous week.

Digihunt is not a financial advisor and this is not investment advice.

Aastha Jha’s poignant remark, “Agle janam mohe ladka hi kijo,” echoes the frustration many women experience regarding the hidden costs of simply existing in society. This sentiment brings to light the pervasive issue known as the “Pink Tax,” where women pay more for products and services marketed towards them, despite many being nearly identical to those for men. This financial burden on women is significant and often overlooked, raising questions about gender equality and societal norms.

The Pink Tax: An Overview

The Pink Tax describes the additional costs women incur for products and services specifically marketed to them. This phenomenon is not confined to any one country; it exists globally, including in India. Women frequently discover that personal care items, clothing, and even healthcare services carry higher prices than their male counterparts, even though they serve the same purpose. For example, a lavender-scented moisturizer may be more expensive than a basic men’s moisturizer, despite both performing the same function. This discrepancy goes beyond consumer choice; it underscores a deeper societal issue where women’s needs are often exploited for profit.

Many women remain unaware of the extent of this hidden tax, which can surface in various aspects of daily life. Personal care products, fashion items, and healthcare services frequently come with premium price tags simply because they are aimed at women. This pricing strategy not only impacts women financially but also reinforces gender stereotypes and inequalities within society.

Marketing Strategies and Their Impact

Marketing plays an integral role in perpetuating the Pink Tax. Companies often target women with a vast range of products, framing them as necessities rather than luxuries. This strategy fosters the perception that women are less price-sensitive, compelling them to spend more on personal care and fashion. The skincare industry, for instance, offers numerous products for women, while men’s options remain limited. This disparity creates pressure on women to invest in various beauty and personal care routines, further inflating their expenses.

Moreover, the design of women’s clothing often reflects societal norms that prioritize aesthetics over functionality. Many women find themselves with clothing that lacks practical pockets, necessitating the use of additional bags for their essentials. This design choice not only contributes to financial strain but also hinders women’s convenience and freedom in their daily lives.

The Safety Tax: A Hidden Cost

In addition to the Pink Tax, women encounter what can be termed a “safety tax.” This refers to the extra expenses women incur to ensure their safety while navigating urban environments. Cheaper public transportation options for men may not feel secure for women, leading them to prefer more costly alternatives like cabs or higher travel classes. This necessity is not a luxury but a fundamental requirement for many women who face the constant threat of harassment.

For instance, Aastha Jha revealed that she spends around Rs 6,000 monthly on travel to her office, driven by safety concerns. Unlike men, who may not hesitate to use public transport, women often have to consider safety when planning their travel. This added layer of anxiety and expense underscores the stark differences in how men and women experience urban life.

Healthcare and the Unpaid Labor Tax

Healthcare costs frequently burden women disproportionately, as they face ongoing expenses related to reproductive health, menstrual products, and routine medical care. Although the government removed GST on sanitary pads in 2018, many women, especially in rural areas, continue to struggle with affording these essential items. The financial implications of healthcare are aggravated by the fact that women often earn less than men, making these costs even more challenging to manage.

Additionally, women typically bear the brunt of unpaid domestic and emotional labor, which is not accounted for in economic calculations. Tasks such as caregiving, cooking, and cleaning often fall to women, contributing to their overall workload and financial strain. This unpaid labor represents a significant aspect of the hidden costs women contend with daily, further complicating their financial landscape.

The cumulative effect of these factors illustrates that merely existing as a woman in society comes with higher, unavoidable expenses. As awareness of the Pink Tax and its implications increases, it becomes crucial to recognize these costs as structural issues rather than individual choices. Until society acknowledges and addresses these disparities, women will continue to bear the burden of these hidden taxes in silence.

Disclaimer: Digihunt is not a financial advisor and this is not investment advice.

Ford has announced a significant shift in its electric vehicle strategy, stepping back from large EVs to concentrate on hybrids and petrol-powered trucks, as well as exploring a new venture in battery storage. This change is prompted by the automaker’s expectation of a substantial $19.5 billion profit drop in the coming years. The decision to discontinue various large electric models, including the F-150 Lightning, reflects a broader reassessment of the electric vehicle market against the backdrop of rising costs and changing regulations.

Shift in Electric Vehicle Strategy

Ford’s latest announcement marks a notable shift from its previous electric vehicle-focused ambitions. The company revealed plans to discontinue several large electric models due to disappointing demand and escalating costs. The once flagship electric truck, the F-150 Lightning, will no longer be produced, with its successor being developed as a hybrid model instead. This hybrid will integrate an electric battery with a petrol engine, offering a driving range exceeding 700 miles. This pivot indicates a strategic move towards smaller, more affordable electric vehicles, in line with current market demands.

Impact of Regulatory Changes

The decision to scale back on large electric models aligns with recent regulatory shifts in the United States. The rollback of stricter fuel economy standards, initiated during the previous administration, has prompted Ford to reassess its electric vehicle investments. CEO Jim Farley expressed support for these regulatory changes, stating that they align fuel economy standards with market realities. This shift has led to a reduction in clean-energy tax credits that previously bolstered electric vehicle sales, further influencing Ford’s strategic pivot.

New Ventures in Battery Storage

Alongside its updated electric vehicle strategy, Ford is venturing into the battery energy storage market. The company intends to convert a facility in Kentucky to manufacture storage systems targeting data centers and power utilities. This initiative represents a significant investment of around $2 billion over the next two years, with an ambitious goal of achieving annual production capacity of 20 gigawatt-hours by late 2027. This move positions Ford as a key player in the rapidly expanding battery storage sector, diversifying its portfolio beyond traditional automotive manufacturing.

Future Production Plans

Looking ahead, Ford’s production will focus on petrol and hybrid vehicles. The company has announced that its Ohio assembly plant will shift to producing petrol and hybrid vans starting in 2029, abandoning earlier plans for new electric commercial vans in both Europe and North America. Additionally, the Tennessee factory, initially designated for electric vehicle production, will be retooled to manufacture affordable petrol-powered trucks. This strategic realignment highlights Ford’s commitment to adapting to market conditions while aiming to maintain profitability in a changing automotive landscape.

Digihunt is not a financial advisor and this is not investment advice.

Negotiations for a free trade agreement between India and New Zealand are nearing completion, as stated by Commerce Secretary Rajesh Agrawal. After a series of discussions at both official and ministerial levels, Agrawal expressed optimism about finalizing the agreement soon. The talks, which commenced on March 16, 2025, have intensified with both virtual and in-person meetings focused on resolving outstanding issues. This proposed agreement is expected to significantly enhance bilateral trade, which has already experienced substantial growth.

Progress in Negotiations

The fourth round of negotiations has recently concluded, with officials from both countries indicating a favorable position to finalize the free trade agreement. Agrawal noted the positive momentum, expressing, “We are in a good zone where we hope that the agreement will be closed and finalized soon.” Significant interactions have included visits from key officials, such as New Zealand’s Trade Minister Todd McClay, who met with India’s Commerce and Industry Minister Piyush Goyal to assess the negotiation progress. This collaborative approach highlights both nations’ commitment to strengthening their economic ties.

Trade Growth and Expectations

Bilateral merchandise trade between India and New Zealand reached $1.3 billion in the fiscal year 2024-25, marking an impressive 49 percent increase from the previous year. Officials anticipate that the free trade agreement will further stimulate trade flows, bolster investment ties, and improve supply-chain resilience. The agreement is designed to create a stable and predictable environment for businesses in both countries, thereby facilitating smoother trade operations. New Zealand’s low average import duty of 2.3 percent is expected to expedite market access once the agreement is finalized.

Historical Context of Trade Talks

These negotiations build on earlier discussions that began in April 2010 when India and New Zealand initiated talks on a Comprehensive Economic Cooperation Agreement (CECA). However, those discussions stalled after nine rounds in 2015. The renewed emphasis on a free trade agreement reflects both countries’ desire to revitalize their economic partnership and reap mutual benefits. The proposed agreement aims to reduce or eliminate customs duties on a wide range of goods while also relaxing regulations to promote trade in services and investments.

Key Exports Between India and New Zealand

India primarily exports a diverse array of products to New Zealand, including clothing, textiles, pharmaceuticals, refined petroleum, agricultural machinery, automobiles, and electronics, along with specialty items like basmati rice and diamonds. Conversely, New Zealand’s major exports to India consist of agricultural products and minerals, such as apples, kiwifruit, lamb, milk products, and timber. This diverse trade portfolio highlights the potential for increased economic collaboration between the two nations, further underscoring the importance of finalizing the free trade agreement.

Digihunt is not a financial advisor and this is not investment advice.

Tata Power is in the process of negotiating to acquire stakes held by sovereign wealth funds from Oman and Kuwait, along with ICICI Ventures, in Resurgent Power. This company operates a thermal power plant in Uttar Pradesh and manages two transmission lines in northern India. Collectively, these investors hold a 74% stake in Resurgent, which reported a profit of Rs 613 crore on revenues of Rs 6,004 crore for fiscal year 2025. Tata Power’s Managing Director, Praveer Sinha, confirmed that discussions are active and aim to finalize the purchase of these shares, marking a significant step for the company.

Details of the Proposed Acquisition
The negotiations are centered around a valuation of about $2 billion for Resurgent, inclusive of its debt. Currently, Tata Power owns a 26% stake and, if the acquisition goes through, it will gain full ownership of the company. This move will greatly enhance Tata Power’s position in the energy sector. Resurgent Power was established in 2016 by a consortium, including the State General Reserve Fund of Oman, Kuwait Investment Authority, CDP Groupe of Quebec, and ICICI Ventures, with the objective of acquiring distressed power assets in India. Following Tata Power’s investment, the combined stake of the four investors decreased to 74%.

Current Stake Distribution
As it stands, the sovereign wealth funds of Oman and Kuwait control 64% of Resurgent, while ICICI Ventures holds a 10% stake. The company’s portfolio comprises a 75% stake in Prayagraj Power Generation Co, which operates a substantial 1,980 MW coal-fired power plant in Uttar Pradesh. Additionally, Resurgent manages two power transmission companies in northern India: the South East UP Power Transmission Company, operating in Uttar Pradesh, and NRSS XXXVI Transmission, which spans across Uttarakhand, Rajasthan, and Haryana.

Strategic Implications for Tata Power
The potential consolidation of Resurgent Power is anticipated to benefit Tata Power as it prepares to bid for distribution companies in Uttar Pradesh, awaiting the state’s official call for bids. Sinha emphasized that many states are grappling with financial challenges in their distribution sectors, making reforms and increased private sector participation essential. Tata Power is ready to engage in future bidding opportunities as they emerge. The company has already applied for electricity distribution licenses in Goa and specific regions of Maharashtra, showcasing its proactive strategy towards expanding its operations.

Financial Performance and Future Prospects
Transmission and distribution are vital to Tata Power’s revenue and profitability. The company’s strategic initiatives, including the potential acquisition of Resurgent Power, align with its broader objectives of enhancing market presence and addressing challenges in the energy distribution landscape. As discussions move forward, the outcome could potentially redefine Tata Power’s operational framework and its influence within India’s energy sector.

Digihunt is not a financial advisor and this is not investment advice.

State Bank of India (SBI) plans to significantly boost its mobile banking services, aiming to grow its customer base from 9.4 crore to 20 crore over the next two years. The initiative includes the launch of Yono 2.0, a revamped digital platform designed for a seamless banking experience. SBI Chairman C S Setty unveiled that the bank will strengthen its in-branch digital support by increasing its floor manager network to 10,000 by March. This move ensures that customers receive assistance as they transition to digital banking.

Revamped Digital Banking Experience

The new Yono 2.0 is a complete overhaul of SBI’s internet banking system, now known as Yono Net Banking. Setty stressed that the redesign aims to create a cohesive customer experience across all platforms. Customers starting their banking journey on mobile or internet banking can seamlessly continue in a physical branch when necessary. This integration is vital for enhancing customer satisfaction and facilitating a smooth transition between digital and traditional banking services.

Currently, SBI boasts nearly 10 crore users on its mobile app, with an even larger base using internet banking. The bank intends to double its mobile banking users in the next two years, emphasizing scalability and customer convenience. Setty revealed that around 3.5 crore existing internet banking users have already migrated to the new Yono Net Banking interface, receiving favorable feedback for its user-friendly design.

Expanding Digital Support

To support the shift to digital banking, SBI is ramping up the number of floor managers from approximately 3,500 to 10,000. These managers will help customers navigate new digital channels while still offering support for traditional banking services. This “phygital” approach reflects SBI’s commitment to maintaining a physical presence while prioritizing digital solutions. Setty noted that the cost associated with customer acquisition through digital onboarding is significantly lower than that of traditional branch methods, making this strategy economically viable.

SBI’s digital strategy, termed “Yono-isation,” is focused on simplifying customer journeys across all banking services. Although monetization of these services is not an immediate objective, the bank is targeting a younger demographic, with one-third of its customer base under the age of 30. Currently, SBI opens about 70,000 new accounts each day, with a goal for 90% of these to be created via the mobile application.

Future Developments and Security Measures

SBI is progressing with plans for Yono 3.0, where simplification will be a key design principle. Setty indicated that the upcoming version will directly compete with third-party UPI applications, as improvements in payment features are highly desired by customers. The UPI stack has been entirely redesigned to enhance functionality and user experience.

Security remains a top priority for SBI, adhering to a “security-by-design” framework. Customers will have direct control over their transaction limits and usage settings, ensuring a secure banking environment. Setty mentioned that 60-70% of transactions are monitored in real-time, adding an extra layer of security for users.

Yono 2.0 will be rolled out as an app upgrade in phases, with most Android users expected to transition within the next two weeks. Since its launch in 2017, Yono has become integral to SBI’s digital operations, managing 93% of customer-initiated payments digitally and achieving cumulative digital lending exceeding Rs 2 lakh crore. Setty concluded by stating that Yono is more than just a banking platform; it functions as a digital operating system that aligns with SBI’s Vision 2030.

Digihunt is not a financial advisor and this is not investment advice.

The Pension Fund Regulatory and Development Authority (PFRDA) has announced significant changes for National Pension System (NPS) subscribers who had previously chosen Scheme A under Tier I (Active Choice). The regulator will merge Scheme A with Schemes C (corporate bonds) and E (equities) to modernize the investment framework and improve long-term retirement outcomes. This strategic decision is aimed at providing a more diversified and efficient management of retirement savings, aligning with developing market practices.

Rationale Behind the Merger

In a communication dated December 13, 2025, the PFRDA stated that the merger is based on an extensive review of Scheme A’s structure and performance. The analysis identified limitations, such as a relatively small corpus and limited investment options, which hindered diversification and operational flexibility. By merging Scheme A with the larger Schemes C and E, subscriber funds will benefit from broader and more liquid portfolios. This integration seeks to align investments more closely with long-term retirement goals, offering improved growth and stability opportunities for subscribers.

Benefits for NPS Subscribers

The PFRDA has outlined several benefits for NPS subscribers as a result of the merger. Firstly, this integration will improve diversification and stability. Contributions previously allocated to Scheme A will now be part of larger pools under Schemes C and E, thus reducing concentration risk. The larger schemes are expected to provide improved risk-adjusted returns, allowing for enhanced portfolio management flexibility and more consistent long-term performance. Additionally, subscribers will experience increased liquidity, as assets that were once subject to longer lock-in periods will now be managed in schemes that provide easier access to funds. This change aligns the NPS investment framework with recent SEBI-led reforms and modern asset classification standards.

Transition Options for Existing Subscribers

To ensure a smooth transition, the PFRDA is offering existing Scheme A subscribers a one-time opportunity to switch their accumulated corpus to any asset class of their choice. This switching window will remain open until December 25, 2025, enabling subscribers to move their funds without incurring additional costs. The switch can be made in accordance with existing NPS guidelines. Subscribers who do not utilize this option within the designated period will have their investments managed under the newly merged structure.

Investment Choices and Future Reforms

Within the NPS common investment framework, subscriber contributions are spread across four asset classes: Equity (E), Corporate Bonds (C), Government Securities (G), and Alternate Assets (A). Scheme A was originally designed to provide exposure to alternative investments, including Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and other structured products. This merger is part of broader reforms intended to modernize the NPS ecosystem, which includes broadening the permissible investment universe and simplifying the scheme architecture. The PFRDA encourages subscribers to assess their asset allocation carefully and use the switching window to realign their retirement strategies effectively.

Digihunt is not a financial advisor and this is not investment advice.