RBI's Governor has a warning for every banker: today's resilience is not tomorrow's immunity
Every fact links to its official source.
60-second morning update
Change: RBI Governor Sanjay Malhotra said on 3 October, at the Kautilya Economic Conclave, that today's resilience does not mean tomorrow's immunity to risk. He named 5 priorities for keeping the financial system stable, including watching for risks that could start outside finance, like a cyber attack.
Impact: A bank that only tracks loan and market risk can still be hit by a risk from outside banking, like a cyber attack on a vendor or payment system.
Action: Risk staff: check if your bank's risk list covers cyber and vendor risk too.
Change: Payment companies are asking banks for a bigger share of the new UPI fee that starts 15 October. Of the 0.4 percent fee, 0.12 percent goes to the merchant's bank; payment firms want 50 to 80 percent of that part.
Impact: If payment firms win, banks earn less from the fee. The fee and its 15 October start date do not change.
Action: Payments staff: nothing to tell customers yet. The fee still falls on the merchant, not on the person paying.
Change: Bank of Baroda's global business grew 17.45 percent in a year to Rs 32.64 lakh crore, and Ujjivan Small Finance Bank's loan book grew 32.1 percent to Rs 45,699 crore, as of 30 September.
Impact: Loan and deposit demand stayed strong this quarter at both a large bank and a small finance bank.
Action: Credit staff: compare your own branch's growth over the year with these two banks.
Change: Closing this week's watchlist: Kotak Mahindra Bank's incoming CEO Anup Kumar Saha still needs shareholder approval, as of today. HDFC Bank's incoming CEO Anup Bagchi starts 27 October.
Impact: Neither has taken charge as CEO yet.
Action: Staff at both banks: no change in reporting lines yet. Watch for the shareholder vote date at Kotak Mahindra Bank.
Reserve Bank of India action board
What changed: RBI issued a Master Direction on Note Sorting Machines on 2 October 2026. It puts 5 earlier circulars, issued from 2009 to 2025, into one updated document on checking notes for authenticity and sorting them by fitness for reuse.
Who is affected: All banks. The rules cover machines run by a bank's own staff or by its agents.
What to do: Currency management staff: test each machine for accuracy and consistency every quarter and keep a signed certificate on record. From now on, get only BIS certified machines.
Last date: The 5 older circulars stand withdrawn from 2 October 2026, the date of issue. Machine models that are no longer made must be phased out on or before 30 June 2027.
Source: Reserve Bank of India, Master Direction on Note Sorting Machines, opened directly 4 October 2026 ↗
What it means for your job
Branch and retail: RBI's new Master Direction on note-sorting machines took effect 2 October. Also: most of India closes for Dussehra on 20 October.
Credit and lending: Bank of Baroda's global loans grew 18.27 percent and Ujjivan SFB's loan book grew 32.1 percent in a year. Credit demand stayed strong.
Compliance and risk: RBI's Governor said on 3 October that a crisis can start outside finance, like a cyber attack.
Payments and technology: Payment firms want 50 to 80 percent of the merchant bank's part of the UPI fee that starts 15 October. The fee itself is unchanged.
NBFC and co-operative: Ujjivan SFB's gold loan book grew 209.7 percent in a year. It is now over 3 times its size a year earlier.
People and industry: Kotak Mahindra's Anup Kumar Saha still needs shareholder approval. HDFC Bank's Anup Bagchi starts 27 October.
Careers and learning: 2 of India's biggest private banks got RBI's approval for their next CEO this week. See today's career reflection below.
Treasury: RBI will hold a 1-day cash auction (VRRR) on 5 October to take spare cash out of the banking system for a day.
Banker problem solver
A customer asks: will my UPI payment cost extra after 15 October?
From 15 October, a new 0.4 percent fee applies to some UPI payments, but it does not touch most customers.
- Tell the customer the fee hits the shop accepting payment, not the person paying.
- It applies only on payments above Rs 2,000, capped at Rs 300. Shops taking up to Rs 1 lakh a month through UPI QR codes stay exempt.
- Normal UPI payments to friends, family, or small shops under that limit stay free, as before.
Source: Swarajya, reporting NPCI's UPI MDR rule, checked 4 October 2026 ↗
Fraud and risk check
Check today: RBI's Governor named cyber attacks as a real risk to the financial system on 3 October. If a customer gets an unusual call or app request asking for OTP, PIN, or to move money fast, tell them to stop and call the bank's own helpline.
Career and technology help
Weekly reflection: what this week's 2 new bank CEOs teach you about your career
This week, RBI approved the next CEO of both HDFC Bank and Kotak Mahindra Bank. Neither rose through one bank alone: Anup Bagchi comes from ICICI Prudential Life Insurance, and Anup Kumar Saha had moved in from outside before being named CEO. The lesson: skills that travel across companies can matter as much as years at one place.
One important number
209.7 percent
Ujjivan Small Finance Bank's gold loan book grew 209.7 percent in a year, as of 30 September. It is now over 3 times its size a year earlier.
Source: Whalesbook, reporting Ujjivan Small Finance Bank's Q2 FY27 business update, checked 4 October 2026 ↗
Important dates
5 to 7 October 2026 — RBI's rate committee meets; the decision comes on 7 October.
15 October 2026 — A new 0.4 percent UPI fee starts on payments above Rs 2,000, capped at Rs 300. Vendors taking up to Rs 1 lakh a month via UPI QR stay exempt.
20 October 2026 — Dussehra. Banks across most of India stay closed, except Manipur and Sikkim.
One question
Which of this week's changes affects your work most? ["RBI's rate decision on 7 October", 'The new UPI fee from 15 October', 'The 2 new bank CEOs', 'None, same as any week']