NEW DELHI, May 4 : A lightly supervised system may appear efficient for some time, because of lower costs and faster growth, but if that growth rests on weak governance, poor credit standards or hidden risks, the eventual cost is also borne by depositors as well as the wider economy, according to RBI Deputy Governor Swaminathan J.

Emphasising the importance of supervision, he said that institutions and firms cannot be understood only through reported numbers.

“… supervision must look beyond formal compliance. Compliance asks whether the rule has been followed. Supervision asks whether the underlying risk has been understood and addressed,” he said in a recent lecture.

While noting that institutions and firms cannot be understood only through reported numbers, Swaminathan said that numbers tell a story, but one must learn to ask what lies behind them.

“The audited balance sheet and information memorandum are useful, but they are not the business. The business is in the factory, on the shop floor, in the market, in the supply chain, in the quality of management, and in the decisions taken. The banker’s job is therefore not to be cynical, but to be curious,” he said.

Swaminathan delivered the 12th G Ramachandran Memorial Lecture at the Madras School of Economics in Chennai on the topic ‘Learning, Judgement and Public Purpose – Lessons from Banking’ on April 30.

The lecture was uploaded on the RBI website on Monday.

“A lightly supervised system may appear efficient for some time, because the costs are lower and growth may be faster. But if that growth rests on weak governance, poor credit standards or hidden risks, the eventual cost is borne not only by shareholders or management, but by depositors, borrowers, taxpayers and the wider economy.

“The true value of supervision lies in reducing the probability and severity of such outcomes,” the RBI Deputy Governor said.

Addressing the students, he also mentioned that banking is becoming more digital, more data-driven and more interconnected.

Credit can now be originated through platforms. Payments move instantly. Algorithms may influence lending decisions. Non-bank entities play a growing role in financial intermediation, he said.

While these changes bring enormous possibilities as they can widen access, reduce costs and improve efficiency, Swaminathan said there are also new questions.

“Is the customer being treated fairly? Is the model understandable? Is accountability clear? Are risks being recognised early enough? These questions cannot be answered by technology alone. They require judgment. They require institutional discipline. They require humility about what we do not know. And above all, they require a sense of public purpose,” he said. (PTI)

NEW DELHI, May 4 : Government’s net direct tax collections grew 5.12 per cent to over Rs 23.40 lakh crore in 2025-26, but missed the revised budgeted target set for the fiscal year that ended March 2026.

In the revised estimates (RE) for the fiscal year (2025-26), the government projected its direct tax collection at Rs 24.21 lakh crore. This included a corporate tax of Rs 11.09 lakh crore and personal income tax (including STT) of Rs 13.12 lakh crore.

According to the data released by the Central Board of Direct Taxes (CBDT), net corporate tax mop-up was Rs 10.99 lakh crore, and personal income tax, including Securities Transaction Tax, was about Rs 12.41 lakh crore.

Net direct tax collection (including corporate and non-corporate tax) came in at Rs 23.40 lakh crore in FY26, registering a 5.12 per cent growth over Rs 22.26 lakh crore collected in FY25.

Refund issuance dipped 1.09 per cent year-on-year to Rs 4.71 lakh crore in 2025-26.

Gross direct tax collection during the recently concluded fiscal stood at about Rs 28.12 lakh crore, up 4.03 per cent from the 2024-25 fiscal. (PTI)

NEW DELHI, May 4 : About 22.35 billion transaction were carried out through the Unified Payments Interface (UPI) in April, Department of Financial Services said on Monday.

In volume terms, UPI transactions grew 25 per cent in April 2026 over the April 2025 when it was 17.89 billion.

The UPI transactions had touched a record high of 22.64 billion in volume terms in March, up from 20.39 billion recorded in February.

“UPI achieves 22.35 Bn transaction count in April’26!,” Department of Financial Services said in a post on X.

UPI combines the ease of use with strong security while following the RBI’s two-factor authentication rule. This first factor is the mobile number linked to the user’s bank and the second is the UPI PIN, making transactions quick and safe from unauthorised access.

Today, UPI accounts for about 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments.

UPI is already live in eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign transactions.

NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association, is an umbrella organisation for operating retail payments and settlement systems in India (IBA).

It runs the UPI used for real-time payments between peers or at merchants’ end while making purchases. (PTI)

NEW DELHI, May 4 : India and Canada on Monday started second round of negotiations for a free trade agreement aimed at boosting two-way commerce and investments, an official said.

The pact is officially known as the Comprehensive Economic Partnership Agreement (CEPA) and negotiations will cover trade in goods, services, and other mutually agreed policy areas.

“The five-day talks started on May 4 here,” the official said. The first round was held in March.

This round is important as Commerce and Industry Minister Piyush Goyal will visit Canada by end of this month to give an impetus to the negotiations.

The negotiations mark the resumption of talks, as the two countries had earlier engaged in a similar exercise, but Canada paused it in 2023. Now, they decided to resume talks from the beginning as a lot has changed on the global trade front during these two years.

The negotiations are important as the two sides have fixed a target to increase the bilateral trade to USD 50 billion by 2030. It stood at USD 8.66 billion in 2024-25 (USD 4.22 billion exports and USD 4.44 billion imports).

Canada represents a market of 41.65 million people (2025) and a GDP of USD 2.34 trillion at purchasing power parity.

Key exports from India to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, among others. Key imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and petroleum crude.

India’s main services sector exports include telecommunications, computer and information services, and other business services.

Canada is also home to over 425,000 Indian students and a strong Indian community.

Joint Secretary in the Department of Commerce, Brij Mohan Mishra, is the chief negotiator from the Indian side. Bruce Christie is Canada’s chief negotiator. (PTI)