Briefing · Sun, 20 September 2026

RBI Tightens KYC for Cooperative Banks; JioBlackRock CIO Sees Potential in Underperforming Indian Banks

The Reserve Bank of India has issued new directives updating Know Your Customer (KYC) requirements for Rural, Regional, and Urban Co-operative Banks, aiming to standardize identity verification, especially for non-resident customers and Foreign Portfolio Investors.

Meanwhile, market observers are noting the de-rating of largecap valuations and the underperformance of Indian banks compared to global peers, suggesting a potential shift in market leadership and a re-rating opportunity for the banking sector. Liquidity management continues to be a focus, with upcoming bank strikes posing a potential disruption for services.

New RBI circulars update KYC norms for Rural, Regional, and Urban Co-operative Banks, affecting identity verification procedures for non-residents and FPIs.
JioBlackRock CIO Rishi Kohli and Bank of India MF CIO Alok Singh suggest Indian banks, having underperformed, are poised for a re-rating due to strong fundamentals and de-rated valuations.
The Finance Ministry has called a meeting with PSB and RRB chiefs to ensure banking services continuity amid a scheduled three-day strike starting September 28.
Government considers bringing digital gold under RBI and SEBI oversight, proposing physical gold backing for every digital unit.
RBI Deputy Governor Shirish Chandra Murmu clarified that UPI MDR won't necessarily lead to a surge in cash transactions, citing growth in both digital and cash usage.

Sun, 20 September 2026

Top Stories

JioBlackRock CIO Rishi Kohli decodes Nifty’s inflection point after two years of weak returns

JioBlackRock CIO Rishi Kohli observes that largecap valuations have de-rated, and Indian banks have notably underperformed their global counterparts over the past two years. This creates a potential inflection point for the Nifty, with Kohli suggesting a possible shift in market leadership. He anticipates continued market volatility but believes that the banking sector, with its current valuation and fundamental position, could provide crucial support to broader indices going forward.

Why it matters

This expert view suggests that the banking sector, despite recent underperformance, might be undervalued and poised for a re-rating. Banks should monitor this sentiment as it could attract renewed investor interest, potentially impacting stock performance and capital raising efforts. Improving fundamentals, such as contained NPAs and healthy loan growth, are seen as key drivers.

The Economic Times · Sun, 20 September 2026

FinMin to meet PSB, RRB chiefs on Monday to ensure banking services during 3-day strike

The Finance Ministry is scheduled to meet with the chiefs of Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) on Monday to discuss strategies for ensuring continuity of banking operations. This meeting comes ahead of a proposed three-day strike by the United Forum of Bank Unions, called for September 28. The strike, which demands a five-day banking week and pension updates, is anticipated to disrupt banking services for five consecutive days, considering weekend closures.

Why it matters

The government's proactive engagement underscores the critical importance of uninterrupted banking services. Banks must prioritize business continuity planning, including staff deployment and digital service robustness, to minimize disruption to customers and maintain essential financial operations during the strike period.

The Economic Times · Sun, 20 September 2026

Digital gold may come under RBI, SEBI oversight: What physical gold backing could mean for investors

The Indian government is considering a regulatory framework to bring digital gold under the oversight of both the Reserve Bank of India (RBI) and SEBI. A key proposal within this framework is that every unit of digital gold sold must be fully backed by an equivalent quantity of physical gold. This move is aimed at enhancing investor protection and standardizing practices, potentially introducing stricter regulations concerning vault holdings, audit requirements, and the overall security of digital gold assets.

Why it matters

Potential regulation of digital gold by RBI and SEBI would formalize a nascent market, increasing consumer trust and potentially attracting more institutional participation. For banks, this could open avenues for new product offerings or partnership opportunities in regulated digital gold services, while also requiring an understanding of the new compliance landscape if they engage in this space.

Livemint · Sun, 20 September 2026