AGP Executive Report

Crypto ETF Flows: T. Rowe Price is using active crypto security selection in its trillion-dollar asset-management push, including a “grow-with-me” crypto ETF design as SEC standards expand. Digital Banking Push: Kuwait’s NBK says its NBK Mobile Banking App is driving faster, branch-free transactions with a focus on security and customer autonomy. Bank Resolution Powers: Bangladesh Bank issued rules for temporary administrators under the Bank Resolution Act, allowing them to keep critical functions running and even replace top management. Bangladesh Digital Credit: Bangladesh Bank’s draft would let banks offer interest-free digital “salary-backed” style overdraft/utility loans up to Tk 5,000 with only fixed service fees and full digital onboarding. UPI Fees Clarification: The Philippines’ digital banks say BSP’s framework allows cost-based transfer fees, not permanent zero-fee transfers. UPI Cost Debate (India): India’s government reiterated UPI stays free for users, with any merchant fees framed as limited MDR for certain transactions. Regulatory Capital & Risk: RBI proposals include leverage buffers for global systemically important bank branches and new rules for banks’ financial contract loss coverage. Urban Co-op Banking Reform: Amit Shah urged India’s urban cooperative banks to modernize tech, boost transparency, and join NUCFDC for support as RBI resumes licensing. Market Mood: Bitcoin ETFs logged a strong week with record inflows, while Japan’s top banks boosted foreign-currency liquidity buffers amid Iran-related dollar funding worries.

RBI & India Banking Reform: India’s RBI will resume licensing urban co-operative banks on an “on tap” basis, but stresses stronger governance, professional management, timely oversight and secure tech to boost resilience and inclusion. NRI Deposits & Housing: RBI also sweetens NRI deposit rules and pushes rural cooperative banks toward bigger housing loans, while new loan-recovery guidance tightens how banks can deal with defaults. UK Retail Banking: NatWest and RBS are cutting cashback on reward accounts, reducing app-login rewards from £1/month to zero from Oct 1, though Direct Debit rewards remain. Customer Finance & Investing: HDFC Pension’s CEO says EPF alone may not be enough, while mutual-fund pickers are urged to use key ratios beyond past returns; Parag Parikh Flexi Cap’s cash level and outlook are defended despite recent underperformance. Crypto & Payments Risk: Circle expands USDC reach with native launch on OKX’s X Layer via CCTP, while BTCPay Server issues an emergency patch after a flaw could bypass TOTP protections. Banking Leadership Spotlight: Nigeria’s Tinubu salutes Fidelity Bank’s first MD Nebolisa Arah on his 75th birthday, highlighting his professionalism and sector impact.

Crypto Crackdown: Russia’s FSB says it detained 20+ people tied to unregistered crypto exchange offices used to move scam proceeds to Ukraine, shutting down transfer channels. US Digital-Asset Policy: OKX’s Rafique doubts the Clarity Act will pass and warns much of the upside is already priced into bitcoin. Exchange Legal Action: Bybit says it secured a court order to preserve $ assets tied to the Lazarus hack while litigation continues. Iran Sanctions: U.S. Treasury/OFAC targeted Iran’s “rahbar” shadow banking networks, warning facilitators face exclusion from the U.S. financial system. Stablecoin Expansion: Circle launched native USDC and CCTP on OKX’s X Layer, aiming to reduce reliance on bridged tokens. Banking Regulation (India): RBI proposed Basel III leverage ratio updates for commercial banks, with comments due Aug 28 and rollout from Apr 1, 2027. Fraud & Cybersecurity: FCA warned banks to do full diligence on unregulated lenders; BTCPay Server urged users to patch a critical actively exploited flaw. Local Banking Oversight: Missouri State Auditor Fitzpatrick launched an audit into possible misuse of taxpayer funds by the Bellflower Fire Protection District. Payments & Consumer Finance: PhonePe rolled out FD distribution and Daily RD micro-savings across partner banks/NBFCs.

UPI MDR Rules Clarified: India’s Lok Sabha passed a bill allowing banks to levy charges on UPI and other notified electronic payments, but Finance Minister Nirmala Sitharaman said any MDR would apply to merchants, not customers—aimed at keeping everyday UPI use free. RBI Credit Controls: The RBI proposed draft directions barring most NBFCs from offering revolving credit, limiting lending to term loans (with a carve-out for credit-card NBFCs). RBI Consumer Protection: New RBI rules restrict when lenders can remotely disable borrowers’ phones and other devices, with limits tied to device-financing loans and a gradual approach. Bank Funding Watch: ICICI Bank and Axis Bank tapped the dollar debt market again, raising $300m each via new bond issues under RBI hedging support. Cybersecurity in Finance: Reuters reported ransom-seeking hackers using phone-based tactics to target major U.S. financial firms, highlighting persistent human-factor risk. India Banking Governance: RBI classified Tata Sons as an upper-layer NBFC, pushing Tata group listing pressure while deregistration remains under review. UK Russia Sanctions: Britain added Russian banks and shadow-fleet tankers to sanctions, targeting oil-linked revenue flows.

Digital Identity & Security: Kuwait’s National Bank of Kuwait becomes the first in the country to activate a digital signature service, enabling fully digital, secure transaction sign-offs without branch visits. Digital Trust Tech: Daon unveils a patent-backed “Quantum Identity” architecture aimed at checking whether biometric/authentication inputs are genuine, not just whether cryptography holds up. Central Bank Rules: The Bangko Sentral ng Pilipinas moves to make National ID authentication mandatory for KYC and account onboarding, with a phased rollout for banks and digital financial firms. Banking Regulation & Consumer Protection: India’s Lok Sabha advances the “Bankers’ Books Evidence” push, while RBI tightens loan recovery rules to bar harassment and strengthen borrower protections. Deal & Markets: Deutsche hires Ed Liu from Bank of America as global head of TMT; Bank of America’s investment banking co-head Mike Joo is set to leave. Banking Partnerships (Bangladesh): Dhaka Bank wins Robi’s “Best Banking Partner” award and launches a co-branded Visa card; Prime Bank signs Health Panda deals for priority customers; Southeast Bank publishes “Economic Outlook 2026.” Mental Health Access (UK): England plans walk-in mental health centres in libraries and banks, funded as part of a £343m redesign.

RBI Currency Modernisation: RBI governor Sanjay Malhotra says polymer ₹10 and ₹20 notes are still in field trials, with a possible rollout at the start of FY27-28 if tests go well. India Market & Compliance: SEBI approved a settlement for Kotak Mahindra Bank ex-executive Raghav Raj Kanoria after a ₹24.70 lakh payment to close an alleged disclosure/financial-statement case tied to expected credit losses. Banking Fraud Crackdown: India’s ED provisionally attached about ₹131 crore in assets in the Kotak Mahindra Bank-linked MC Panchkula siphoning case, alleging unauthorised accounts used to divert civic funds. Ghana Credit Quality: Bank of Ghana directed banks to cut NPL ratios to below 10% by end-2026, citing progress but warning 16.1% NPLs as still too high. Kenya Banking Charges: Kenya’s DPP charged CEOs of NCBA, KCB and Co-operative Bank over alleged failure to report suspicious transactions in a case involving theft from First Assurance Investment Company. UPI Payments Economics: A report flags potential changes to UPI merchant MDR, arguing it could boost more stable revenue for payment platforms and banks as merchant transactions dominate UPI volumes. Cyber & Trust: Reports highlight banks facing rising scam and cyber risks, including a Westpac case where a banker spotted a typo and helped stop a $1.2m property scam.

Digital Banking & AI Execution: Banks are being told to stop spreading AI thin and instead redesign high-value workflows to capture measurable value, with platform engineering framed as the “repeatable” path from AI pilots to ROI. KYC/KYB Data Sharing: Solo Network is running a pilot where banks can reuse customer vetting results from other trusted institutions, while the US Treasury is watching the rollout. Stablecoin Rails & Payments: Yellow Card raised $40m to expand Global USD Accounts and add stablecoin and local payment rails across 50+ countries, while Straata (formerly Utopaya) relaunches as an AI-native service aimed at automating payments revenue growth. Open Finance in the GCC: GCC banks are shifting from digitizing customer access to simplifying the connected tech estate behind it, as open finance moves from frameworks into implementation. Central Banking Watch: India’s RBI held rates at 5.25% as it weighs oil-driven inflation risks. Banking M&A/Infrastructure: MoneyPass Group began operating independently after Fiserv and Bridgeport Partners closed the deal, building a large ATM and cash infrastructure network. Leadership Moves: Bank Asia appointed Ariful Bari as DMD and chief credit officer; SRM named Jeffrey Bray technology practice leader; IAA Credit Union selected Mahalo Banking for nationwide digital modernization. Regulatory/Policy: Lok Sabha passed India’s Bankers’ Books Evidence Bill amid opposition noise, and RBI is set to issue draft norms for “on-tap” licensing of urban co-operative banks.

RBI Rate Hold: India’s RBI kept the repo rate at 5.25% for the third straight meeting, citing West Asia conflict, crude volatility, and trade uncertainty. Banking Reform Push: Nepal’s finance minister Dr. Swarnim Waglé pledged legal and procedural banking reforms and tighter coordination to boost credit flow. UK Bank Tax Debate: The TUC urged a higher bank surcharge after big four lenders posted £29bn first-half profits, arguing banks can afford more tax to cut energy bills. Payments Go Live: Apple Pay launched in the Philippines with support from major banks, adding another contactless option as cashless adoption accelerates. Digital Banking Upgrade: Himachal Pradesh State Cooperative Bank relaunched its Himpesa app after migrating to Finacle, improving security and services. Loan Affordability Warning: Australia’s ASIC flagged car-loan fine print issues, finding borrowers hit with heavy fees and early repayment trouble. Stablecoin Retail Access: Western Union and Rain rolled out the Stablecard, letting users receive and spend USDPT via Visa across 37 markets. Crypto Policy Uncertainty: Bitwise said crypto can keep growing even if the CLARITY Act stalls, pointing to potential SEC rulemaking support. Banking Tech & AI Deals: Volta signed a 6-year $10bn compute deal with Anthropic, securing large Nvidia capacity at a Norway site. Banking Sector Limits: Pakistan’s central bank raised the exposure cap for unrated large private borrowers to Rs 10bn from Rs 3bn, effective Sept. 30, 2026.

Central Banking: Armenia’s central bank kept its refinancing rate unchanged at 6.5% and maintained Lombard repo (8%) and banks’ deposit rates (5%), while the country’s banking system posted H1 2026 net profit of AMD 214bn (+6.8%). Lending & Rates: In Armenia, retail dram loan rates eased slightly (1–5 years), narrowing the loan-deposit margin; Bangladesh Bank data also points to softer credit demand, with private sector credit growth hitting a 33-year low. Cybersecurity: Bangladesh Bank warned that commercial banks haven’t reached expected cybersecurity readiness after a June drill flagged vulnerabilities, and India’s Supreme Court ordered RBI to set a bank SOP to freeze accounts tied to “digital arrest” scams. Cross-Border Payments: City Bank became the first Bangladesh bank to execute live SWIFT retail cross-border payments under the new scheme, while Wells Fargo joined major US banks building a tokenized deposit network for 2027. Crypto Regulation & Policy: South Africa proposed draft rules for regulating crypto used in cross-border transfers via authorized providers and reporting to FinSurv; Russia’s public remains skeptical ahead of broader crypto legalization. Tokenization & Fintech: BlackRock launched its first tokenised money-market fund access in Europe, and Apple Pay officially expanded in the Philippines with an initial four banks. Banking Governance & Compliance: A US Senate Democrats report alleges JPMorgan, Deutsche Bank and Bank of America failed to report suspicious Epstein-related transactions over years. Banking Business Moves: Standard Chartered reported record H1 profit and announced a $1bn buyback; Emirates NBD agreed to buy HSBC Egypt’s retail banking business.

AI Infrastructure Finance: A Financial Times investigation says Google assembled a ~$200bn financing web for AI chip and data-centre buildouts tied to Anthropic, involving Broadcom, Apollo, Blackstone and Morgan Stanley—showing AI spend is now reshaping global capital markets. Fraud & Payments Security: Visa agreed to buy BioCatch for $2.4bn to use behavioral biometrics to stop scams earlier in the banking journey. Banking Regulation (India): India plans to reintroduce MDR on UPI transactions above ₹2,000, while the government also moves key banking/tax bills in the Monsoon Session, including the Bankers’ Books Evidence Bill. Consumer Protection (Australia): ASIC flagged offset-account failures; fintech Bheja.ai launched a free tool for Australians to check whether their bank is applying offset interest correctly. Banking Compliance (Greece): Optima Bank was fined €1.169m for AML and IT control shortcomings by Greece’s banking supervisor. Corporate Banking Tech: Goldman Sachs launched AlphaAI to find AI-linked investment opportunities across public and private markets. Banking Operations (PNG): Tisa Bank opened a new Madang branch as part of its nationwide expansion.

Philippines Courtroom Update: BDO Unibank and Security Bank won a 10-banking-day extension to submit Vice President Sara Duterte’s financial records to the Senate impeachment court, with the deadline pushed to Aug. 13. Banking Tech & Payments: i2c and American Banker will host a live Aug. 4 webinar on how issuer processors are becoming strategic partners for banks and credit unions. Digital Banking Push: Bahrain Islamic Bank (BisB) launched advanced digital corporate tools, including a fully digital cash margin letter of guarantee, automated audit confirmations, and online opening of Wakala special investment deposit accounts. Crypto Regulation & Access: Bitget will stop serving Japan residents, moving affected accounts to close-only mode after identity checks, as Japan’s crypto rules tighten. Fraud & Security Deal: Visa agreed to buy BioCatch for $2.4bn to strengthen AI-driven fraud detection and account-takeover prevention. AI for Banking Infrastructure: Maximum, backed by CRV, is raising $30m to build an AI-first bank operating system alternative aimed at embedding agentic AI into core banking. Nigeria Markets: First HoldCo became the first Nigerian banking group to top N6tn market cap, lifting Femi Otedola’s net worth to a 10-year high. Customer Experience Benchmark: OmniBSIC Bank ranked #1 in Ghana’s 2025 consumer service quality (GH-CSI), scoring 94.4%.

Embedded Insurance Deal: Cover Genius is buying Friendsurance to build a bigger embedded protection and banking/insurance distribution network across Germany, Austria and Switzerland. Banking Regulation Watch: Klaas Knot warns that easing bank capital rules to spur lending could push risks back onto banks as private credit grows. Crypto Market Structure: The SEC has kept Nasdaq’s Bitcoin index options approval on hold while it reviews CME’s jurisdiction challenge, with written comments due Aug. 24. Payments Innovation: BIS and the IIF say more than 40 institutions and eight central banks tested tokenised cross-border payments under Project Agorá, aiming for faster, atomic settlement. India Credit Pulse: Haitong reports India’s bank credit grew 18.6% YoY in June 2026, led by retail lending and stronger NBFC and CRE flows. Cyber & Data Risk: Amgen disclosed a cloud cyber incident involving theft of patient information and proprietary data. Funding & Talent: Blue Owl hires ex-Barclays banker Takeo Ikemori to co-lead Japan institutional capital efforts. Scam Alert: Singapore warns of a fake IBF/MAS-branded training course charging S$490.

Banking Leadership: NCC Bank promoted Md Zakir Anam to additional managing director, expanding his corporate banking and trade finance remit. Crypto Market Access: Morgan Stanley launched new spot Ethereum and Solana ETFs with a 0.14% expense ratio, adding another regulated on-ramp for crypto investors. India Branch Expansion: MCC Bank opened its 23rd branch in Katapadi, Karnataka, boosting local cooperative banking access. Payments Security: SabPaisa selected AccuKnox’s AI-powered zero trust cloud security to harden its RBI-regulated payments platform. Banking Rates: Indian Bank revised its TBLR benchmarks effective Aug 3, cutting several tenors while keeping key MCLR and base rates unchanged. Banking Results: Utkarsh Small Finance Bank reported a turnaround with lower losses and improving asset quality, while Muthoot Finance and subsidiaries posted strong Q1 FY27 profit and AUM growth. Regulatory/Compliance: FSSAI issued flavour-related notices to liquor makers including United Spirits and INBREW, and GPCB revoked a closure notice for Aarti Drugs’ Sayakha plant after EDC payment. Deal/Orders: PTC India received an income tax penalty notice, while 3i Infotech won a Rs 13.11 crore order from a private bank for support and enhancements. Macro/Markets: A week of central bank decisions and softer US data pushed the dollar lower, with Japan’s yen surge after Tokyo intervention and the BoJ holding its rate.

RBI Overhaul for NRI Banking: India’s central bank rolled out upgraded Central KYC 2.0 and other cross-border updates to cut paperwork for overseas Indians, enabling faster account and portfolio actions via a unified digital ID. Deposit Rate Rules: RBI also tightened how banks set and disclose fixed deposit interest rates, requiring uniform pricing across branches for similar deposits and stricter website schedules from Oct 1. HSBC Exit in Australia: HSBC agreed to sell its A$36bn Australian home and personal loan book to Blackstone-backed Virgo, marking a major step in its retail pullback. Green Finance Push (Cambodia): Banks in Cambodia and GGGI launched a Green Finance Network to mobilize private capital for low-carbon buildings as the country targets $32bn+ in climate investment by 2035. Crypto Infrastructure Fix (XRPL): XRP Ledger released xrpld 3.2.1 hotfix after a validator-manifest flood strained peer systems, with node operators urged to upgrade and restart. Stablecoin Flows (South Korea): South Korea logged 18 straight months of net stablecoin outflows to overseas exchanges, extending June’s 560.3bn won net transfer. Coldcard Wallet Flaw Fallout: Loss estimates tied to a Coldcard seed-generation issue climbed to about 1,367 BTC (~$88.6m), prompting renewed calls to split holdings across wallets. Ireland’s Bad Bank Ends: Nama formally closed after 16 years managing toxic loans, having paid down debt and returned €5.6bn to the state. J&K Credit Delivery: J&K banks disbursed Rs 84,384 crore to 19.37 lakh beneficiaries in FY25-26, hitting 108% of targets. Cyber Scam Warning (India): A refund scam using fake helplines shows how quickly fraudsters can access banking via UPI and transaction steps.

Crypto Regulation: The SEC paused Nasdaq’s approval of cash-settled bitcoin index options (QBTC) after CME challenged the move, arguing the product falls under CFTC jurisdiction—setting up a potential redesign or reclassification of the contracts. Cross-Border Payments: TaqFlow says it’s out of stealth and launching pre-orders for a Central Asia-focused payments network aimed at faster settlement, lower fees, and less currency volatility. Tokenized Assets: Stellar XLM’s tokenized real-world assets hit $3.06B across 70 products, while stablecoin supply rose 38.3% and monthly stablecoin volume reached $6.45B, signaling growing institutional interest in on-chain payment rails. India Banking & Credit: Jammu & Kashmir banks disbursed Rs 84,384 crore to 19.37 lakh beneficiaries in FY25-26, reaching 108% of target, with priority-sector lending led by J&K Bank. Digital Fees Debate (PH): The Philippines’ digital banks group defended keeping at least P10 transfer fees, arguing e-wallets rely on those charges to fund compliance, fraud checks, and cybersecurity. RBI/NRIs: India’s FCNR(B) push is driving US-dollar fixed deposit offers above 7% for some NRIs, supported by hedging cost coverage. Banking Tech & Security: Regulators urged banks to install fake-currency detection and note-authentication machines in border districts, while cyber-fraud concerns keep rising.

Banking Regulation: Trump regulators propose an overhaul of the “weaponized” Community Reinvestment Act, aiming to refocus lending and stop community-development funds being diverted to advocacy groups. Deposit & Funding Pressure: India’s RBI data shows banks lifted fresh term-deposit rates in June as credit growth outpaced deposits, while South Africa’s SARB says it won’t bring non-bank shareholders into PayInc, keeping it as a payment utility. Banking Operations: CFSB plans two new branches in Paducah, expanding frontline teller and drive-thru capacity. Consumer Banking Rules: August brings multiple finance changes, including updates to banking rules and CKYC 2.0, plus the next ITR deadlines for certain taxpayers. Private Banking/Wealth: Societe Generale and NatWest report higher private banking and wealth profits, with NatWest citing AuM boosts. Digital Finance & Fintech: Kredivo Vietnam and Dien May Xanh deepen embedded BNPL and cash lending across retail channels. Crypto Market Watch: Bitcoin faces a choppy August as traders weigh macro cues and ETF flows, while Russia expands crypto mining restrictions around Moscow.