10-year US Treasury yields surges over 5.05% to 19-year high
The 10-year US Treasury yield surged to 5.058%, reaching its highest level since July 2007. This spike was triggered by fresh US services and manufacturing data, which signaled a robust economy and reignited concerns about potential further Federal Reserve (Fed) rate hikes. The rising yields put increased pressure on equity markets, particularly affecting growth and technology stocks, as investors weigh the implications of higher borrowing costs.
Why it matters
A significant rise in US Treasury yields often leads to capital outflow from emerging markets like India, potentially pressuring the rupee and increasing borrowing costs for Indian entities. For Indian banks, this could translate to higher funding costs for their foreign currency borrowings and impact their treasury operations.
The Economic Times · Thu, 24 September 2026
Read more →Irdai proposes sweeping reset of insurance distribution system
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a major overhaul of insurance distribution, aiming to tighten Expenses of Management limits and reintroduce product-level commission caps. A key proposal is also to ban the compulsory bundling of insurance products with loans by banks and Non-Banking Financial Companies (NBFCs), which has been a common practice. These changes seek to foster greater transparency and consumer protection within the insurance sector.
Why it matters
For banks and NBFCs, the ban on compulsory bundling of insurance with loans will directly impact cross-selling strategies and fee income. Product-level commission caps could also reduce the incentives for pushing certain insurance products, potentially shifting focus towards more transparent and needs-based selling.
Livemint · Thu, 24 September 2026
Read more →JPMorgan to double GIFT City business as $1 billion book expands
JPMorgan Chase & Co. announced plans to significantly expand its operations at Gujarat's GIFT City in the coming years, aiming to double its business in key areas like trade finance and payments. Since establishing its branch in 2022, JPMorgan has built a client base of several hundred and a book of nearly $1 billion. This expansion highlights the growing appeal of GIFT City as a hub for multinational companies looking to leverage its treasury and cross-border financial services offerings.
Why it matters
This move signals continued confidence from major global financial institutions in India's International Financial Services Centre (IFSC) at GIFT City. Increased activity from global players like JPMorgan can bring new financial products, expertise, and liquidity to the Indian financial ecosystem, fostering competition and innovation.
The Economic Times · Thu, 24 September 2026
Read more →NPCI dismisses speculation over GST burden due to UPI merchant discount rate as 'incorrect'
The National Payments Corporation of India (NPCI) has issued a clarification, stating that claims regarding Goods and Services Tax (GST) on Unified Payments Interface (UPI) Merchant Discount Rate (MDR) burdening small merchants and making digital payments costly are incorrect. The NPCI emphasized that transactions below ₹2,000 have zero MDR and, consequently, no GST. It also highlighted that over 96% of merchant transactions fall below this threshold, and merchants can adjust GST paid on MDR against their tax liability. Small merchants receiving under ₹1 lakh monthly are exempt from MDR entirely.
Why it matters
This clarification by NPCI aims to allay concerns among merchants and ensure continued adoption of UPI, which remains a cornerstone of India's digital payment infrastructure. For banks and payment service providers, it reinforces the existing structure and addresses potential misinformation that could impact merchant confidence in digital transactions.
Livemint · Thu, 24 September 2026
Read more →NBFCs see healthy loan demand, resilient asset quality; rate hikes may lift funding costs: Jefferies
A recent Jefferies report, based on discussions with nine Non-Banking Financial Companies (NBFCs), indicates strong loan demand across various lending segments in India. Asset quality for these institutions remains resilient, with early festive-season trends showing encouraging signs. However, the report also flags a potential challenge: ongoing interest rate hikes could lead to increased funding costs for NBFCs, impacting their profitability margins.
Why it matters
The sustained loan demand suggests a buoyant economic environment, particularly in segments served by NBFCs. However, rising funding costs due to rate hikes could squeeze NBFC margins, potentially leading to higher lending rates for consumers or a slowdown in loan growth if not managed effectively. Banks lending to NBFCs will also monitor this closely.
The Hindu BusinessLine · Thu, 24 September 2026
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