Gross non-performing assets (GNPA) reached a decade low of 2.1% by September 2025.
The sector maintains a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 17.4% , well above regulatory requirements.
Foreclosure charges on floating-rate loans (home/car) have been removed, and biometric authentication (fingerprint/Face ID) is becoming compulsory for digital payments.
Banks recorded a massive net profit of $37.5 billion (a 39% year-on-year increase) in FY24, with public sector banks contributing nearly half ($17.5 billion).
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.
The Reserve Bank of India (RBI) has recently implemented significant updates to modernize the system: