In May 2025, ZikZuk, a fast-growing fintech startup headquartered in Hyderabad(Telangana), has received in-principle authorisation from the Reserve Bank of India (RBI) to issue Prepaid Payment Instruments (PPI).
- Also, the RBI granted an in-principle approval to Emirates NBD Bank PJSC, United Arab Emirates(UAE), to establish a Wholly-Owned Subsidiary (WOS) in India.
- RBI also cancels the licence of HCBL Co-operative Bank due to capital and earnings shortfall.
ZikZuk Receives RBI Nod for PPIs:
i.With this approval from the RBI, ZikZuk can now issue prepaid wallets and cards and enable Unified Payments Interface(UPI) payments through third-party applications like Google Pay, Amazon Pay, and CRED.
ii.With this development, ZikZuk is poised to operate as a full-fledged domestic player in India’s dynamic fintech market, aligning with RBI’s recent guidelines that permit full-Know Your Customer(KYC) PPI holders to make or receive UPI payments via third-party applications(apps).
About Prepaid Payment Instruments (PPI):
PPIs are instruments that facilitate the purchase of goods and services, conduct financial services, and enable remittance facilities, against the value of money stored within themselves.
- They are designed to facilitate cashless transactions. Users can load money and use them for various payments, including online purchases, bill payments & in-store transactions.
Emirates NBD gets RBI in-principle nod to set up wholly owned subsidiary:
i.In May 2025, the RBI has decided to grant “in-principle” approval to Emirates NBD Bank PJSC for setting up a WoS in India, under the “Scheme for Setting up of WoS by foreign banks in India”.
- RBI will be granting a licence for commencement of banking business in WOS mode under Section 22 (1) of the Banking Regulation Act, 1949.
ii.Emirates NBD Bank PJSC is currently carrying on banking business in India in branch mode through its branches located in Chennai (Tamil Nadu, TN), Gurugram (Haryana), and Mumbai (Maharashtra).
- The in-principle approval allows for the establishment of the WoS by consolidating its existing branches into a unified subsidiary entity.
iii.Foreign banks operating under the WoS framework are treated on par with domestic banks for branch expansion, exempt from requiring regulatory approvals, subject to specific conditions.
Note: Other lenders operating in India through this WoS model include DBS Bank India(Mumbai, Maharashtra) and SBM India(Mumbai).
RBI cancels licence of HCBL Co-op Bank due to capital, earnings shortfall
i.In May 2025, the RBI has cancelled the licence of Lucknow, Uttar Pradesh (UP) -based HCBL Co-operative Bank as the lender does not have adequate capital and earning prospects.
- The bank ceases to carry on banking business, with effect from the close of business on May 19, 2025
ii.On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
- As per the latest data, 98.69 % of the depositors are entitled to receive the full amount of their deposits from DICGC.
About Emirates NBD Bank PJSC:
Chief Executive Officer(CEO): Shayne Nelson
Headquarters – Dubai, United Arab Emirates(UAE)
Established – 2007
