Insurance sellers, take note: regulator may cut your bank's commission by half

Change: Insurance regulator IRDAI has proposed big cuts to the commission banks earn for selling insurance. Term insurance commission may fall from up to 51 percent to 30 percent. Motor insurance commission may fall from up to 26 percent to 15 percent.

Impact: Banks that sell a lot of insurance earn less fee income if this rule is approved. Bandhan Bank gets 26 percent of its fee income from insurance sales, and AU Small Finance Bank gets 20 percent, the most among named lenders.

Action: Branch and insurance sales staff: this is a proposal, not a final rule yet. Watch for IRDAI's final order before assuming your incentive changes.

Change: Reserve Bank of India is replacing 167 separate export and import circulars with one single rule from Thursday, 1 October. The time to bring back export payment money changes from 9 months to 15 months, or 18 months if the invoice is billed in rupees.

Impact: Trade finance and forex desks follow one new document instead of three old ones. Exporters get more time to receive payment for shipments from 1 October.

Action: Trade finance staff: shipments billed before 1 October still follow the old 9 month rule. Update customer guidance to show both timelines.

Change: The 3 day bank strike is now 2 days away, starting Monday, 28 September. At a government meeting on 22 September, the finance ministry said a 5 day banking week is still under consideration, not agreed.

Impact: With Saturday, 26 September, already a holiday, up to 5 days of branch and cheque work could be hit, from 26 to 30 September.

Action: Branch staff: keep telling customers to use UPI, mobile banking and net banking, which will keep working through the strike.

Change: The Indian Institute of Banking and Finance's own website confirms registration for the CAIIB and CAIIB Elective December 2026 exam is open now.

Impact: Bank staff working toward this senior certification have a fresh window to apply.

Action: Log in to your IIBF profile today if you plan to take CAIIB in December.

What changed: Reserve Bank of India is replacing 167 separate export and import circulars with one consolidated rule, the Foreign Exchange Management, Export and Import of Goods and Services, Regulations 2026.

Who is affected: All banks that handle foreign exchange, called authorised dealer banks, and all exporters of goods, services and software.

What to do: Move to one Export Declaration Form instead of separate forms for goods and software. The time to receive export payment becomes 15 months, or 18 months if billed in rupees, for shipments from 1 October. Note: Reserve Bank of India's own notification page could not be opened in full text this session; these details are confirmed by three independent legal and compliance publications, and the notification's title, ID and date are confirmed on Reserve Bank of India's own site.

Last date: Effective 1 October 2026. Shipments billed before 1 October still follow the old 9 month rule.

Source: Reserve Bank of India notification list, checked 26 September 2026 ↗

Branch and retail: The bank strike is 2 days away, from Monday 28 September. Keep pointing customers to UPI, mobile and net banking, which will keep working.

Compliance and risk: From 1 October, one rule book replaces 167 old export and import circulars. Update your checklists before the change.

Credit and lending: Trade finance and export credit teams: check your customer's invoice date. Before 1 October, the old 9 month payment rule applies; from 1 October, the new 15 or 18 month rule applies.

NBFC and co-operative: IRDAI's proposed insurance commission cuts hit smaller lenders hardest. Bandhan Bank earns 26 percent of its fee income from insurance sales, and AU Small Finance Bank earns 20 percent.

Payments and technology: The new 0.4 percent charge on UPI shop payments above Rs 2,000 starts in 19 days, on 15 October. Merchants pay it, not customers.

Careers and learning: CAIIB December 2026 exam registration is open now on IIBF's own website. Log in to your profile to apply.

People and industry: Mahesh Muralidhar Pai takes charge as South Indian Bank's new Managing Director and CEO on 1 October, a 3 year term Reserve Bank of India approved in July.

Treasury: Reserve Bank of India absorbed Rs 75,026 crore this week through an overnight cash-absorbing auction, as system cash stayed in surplus.

A customer's export shipment was billed on 28 September. Which payment collection rule applies - 9 months or 15 months?

From 1 October, Reserve Bank of India's new consolidated rule changes the time allowed to bring back export payment. Using the wrong deadline can mean a wrong compliance report.

1. Check the invoice date on the shipping bill, not the shipment date.
2. If billed before 1 October 2026, the old 9 month window applies.
3. If billed on or after 1 October 2026, the new window applies - 15 months normally, or 18 months if the invoice is in Indian rupees.

Source: Reserve Bank of India notification list, read with legal analysis, 26 September 2026 ↗

CAIIB December 2026 registration is open

The Indian Institute of Banking and Finance's own website confirms registration for the CAIIB and CAIIB Elective December 2026 exam is live. If you plan to take this senior certification, log in to your IIBF profile and apply now.

Source: Indian Institute of Banking and Finance website, checked 26 September 2026 ↗

167

Number of separate Reserve Bank of India export and import circulars being replaced by one single rule book from 1 October 2026.

Source: KNM India legal analysis of the Reserve Bank of India notification, read 26 September 2026 ↗

28-30 September — Confirmed 3-day nationwide bank strike.

1 October — New consolidated export-import rule takes effect. Same day, Mahesh Muralidhar Pai takes over as South Indian Bank's new Managing Director and CEO.

15 October — New 0.4 percent charge on UPI shop payments above Rs 2,000 starts.

Do you support bank unions' demand for a 5 day banking week, with all Saturdays off? Yes/No