Indian Banking Sector Apr 2026

The RBI officially cancelled Paytm Payments Bank's licence on April 24, 2026, due to persistent compliance failures, signaling a zero-tolerance policy for governance lapses.

Foreclosure charges on floating-rate loans (home/car) have been removed, and biometric authentication (fingerprint/Face ID) is becoming compulsory for digital payments.

Gross non-performing assets (GNPA) reached a decade low of 2.1% by September 2025. Indian banking sector

As of April 2026, the Indian banking sector is on its strongest footing in decades , characterized by high capital buffers, record profitability, and asset quality at multi-decade lows.

Lending is expanding at a healthy rate of 10.4%–11.3% for FY26, driven by retail credit and manufacturing. 2. Major Regulatory Reforms (April 2026) The RBI officially cancelled Paytm Payments Bank's licence

The sector maintains a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 17.4% , well above regulatory requirements.

Banks are transitioning from an "incurred loss" model to a forward-looking ECL framework , aligning with global IFRS 9 standards. As of April 2026, the Indian banking sector

The Reserve Bank of India (RBI) has recently implemented significant updates to modernize the system: