The Reserve Bank of India (RBI) has tweaked its priority sector lending (PSL) framework to give banks relief on certain advances backed by fresh FCNR(B) and NRE term deposits, while separately proposing changes to the leverage ratio framework to align it with the latest Basel standards.Priority sector lending (PSL) refers to the mandatory share of loans that banks must extend to sectors such as agriculture, MSMEs, affordable housing and weaker sections of society.The PSL amendment has come into force with immediate effect. Under the revised framework, advances extended in India against fresh FCNR(B) deposits with a tenor of three to five years, mobilised between June 8 and September 30, 2026, will be excluded from the calculation of Adjusted Net Bank Credit (ANBC).Similarly, advances against fresh NRE term deposits of three years or more, mobilised between June 19 and September 30, 2026, will qualify for the exclusion. Deposits renewed upon maturity are also covered.What the PSL change means for banksANBC is the base on which banks’ PSL targets are calculated. In practical terms, the change means banks raising deposits under the RBI’s special FCNR(B) and NRE window will not see their PSL requirement increase simply because their loan book rises through these eligible deposit-backed advances.In simple terms, the RBI has ensured that banks using this special deposit window will not have to make additional priority sector loans solely because these deposits temporarily increase their lending base.The exclusion, however, is capped. The amount of advances excluded from ANBC for calculating PSL targets cannot exceed the fresh FCNR(B) and NRE deposits that are eligible for exemption from cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements under the RBI’s June 2026 directions.The RBI had earlier provided CRR and SLR exemptions for fresh FCNR(B) deposits of three to five years mobilised between June 8 and September 30, and fresh NRE term deposits of three years or more mobilised between June 19 and September 30.The latest amendment modifies the RBI’s Priority Sector Lending – Targets and Classification Directions, 2025 and replaces the earlier framework for calculating the eligible ANBC deduction.RBI proposes Basel-aligned leverage frameworkSeparately, the RBI has issued draft norms to align banks’ leverage ratio framework with the latest Basel standards.A leverage ratio is a simple measure of a bank’s capital relative to its total exposures and is designed to prevent excessive borrowing and risk-taking.The draft retains the minimum leverage ratio at 4% for Domestic Systemically Important Banks (D-SIBs) and 3.5% for other banks.The proposed framework covers banks’ on-balance-sheet, derivative, securities-financing and off-balance-sheet exposures, with revised provisions for how these exposures would be reflected in the leverage ratio calculation.The RBI has also proposed allowing balances maintained with the central bank to be temporarily excluded from leverage-ratio exposure in exceptional macroeconomic conditions.Under the draft framework, banks would be required to disclose their Basel III leverage ratio every quarter, on both a standalone and consolidated basis.The proposed directions are slated to come into effect from April 1, 2027, subject to the finalisation of the framework.
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RBI gives banks relief on priority sector lending, proposes Basel rule changes
What India’s headline FDI won’t tell you and where we need to go
Foreign Direct Investment (FDI) equity inflows into India increased by 18% to reach $58.84 billion in the fiscal year 2025-26, with investments from the United States more than doubling compared to the previous fiscal year.However, is that the whole story? ChrysCapital founder Ashish Dhawan adds a layer to this data, dissecting the complexity of the matter. Ashish Dhawan says that’s the only way India can create 40-50 million jobs and take exports from $450 billion to $2 trillion.Speaking to Shereen Bhan on Young Turks Reloaded, the ChrysCapital founder argues that India is finally at a manufacturing inflexion point.The Number Is Not RightAccording to data published by the Department for Promotion of Industry and Internal Trade, FDI from the US surged to $11.17 billion in 2025-26, up from $5.45 billion in 2024-25, but Dhawan says that is not the full picture.He said India needs a trillion-dollar investment in manufacturing in the next decade. That’s the only way we’ll create the next 40-50 million jobs.He emphasised domestic savings and said forget about FII money and increase FDI.”I know you guys all report FDI of 90 billion and then net FDI is zero. Nobody focuses on the right number. FDI, half of it is private equity, which is not FDI. It’s long-term FDI.”, Dhawan added.He further elucidated and said that that money has to go back. Manufacturing FDI is only 20 billion dollars. 20-22 billion dollars. View this post on Instagram Quoting the number, he said, “t’s abysmal. That’s the number to focus on. Because that number is what creates jobs, brings new technology, and puts factories. You know, it’s here permanently. And that’s an abysmally low number. So we need greater FDI.”According to him, India has to mobilise domestic savings, adding that this can be aided by incentives from the government.Invest In Manufacturing Talking about the manufacturing sector, he said, “:if people were looking to start up, people were looking to invest, is this the time to invest in manufacturing in India? I think so. I also think, you know, the enabling conditions are much better. See, 10-15 years ago, our logistics was terrible. Our port turnaround times were terrible. You know, we didn’t have the industrial parks the way we do. Government didn’t have an industrial policy to start with.”According to him, now India has some industrial policy and the enabling conditions are much better.Dhawan thinks that India has to be much more aggressive.Trade During Global Paradigm Shift As for the international landscape, he said that, in his view is the world will get divided up into two spheres. The Sinosphere and then the Western sphere.And we will therefore get more opportunities to export as well into the Western sphere. Which is why India’s FTAs with the US, EU and UK make a lot of sense. Because those are the markets we need to access.The West, as per Dhawan going to get extremely afraid of China, as there is $400 billion deficit with China and the EU. The EU has to diversify asthey are way too dependent on China. So that’s the opportunity that India is presented with.With stronger infrastructure, improving industrial policy and global supply chains looking beyond China, Dhawan believes the enabling conditions are much better for entrepreneurs to build in India.Also Read: CM Devendra Fadnavis orders probe into Siddhivinayak Temple donations after Raj Thackeray’s allegations(Edited by : Juviraj Anchil)First Published: Aug 8, 2026 12:40 PM IST
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India’s differences with US must be managed through firm negotiation, says Global Trade Research Institute
The US Senate has overwhelmingly approved legislation that could expose Indian exports to additional tariffs of up to 100% if India continues buying Russian crude oil. The Senate passed the bipartisan Lindsay O. Graham Sanctioning Russia and Iran Act of 2025 on August 7 by an 86-11 vote.US Passes Russia Sanctions Bill The bill now returns to the House of Representatives. The Senate used H.R. 5334, an earlier House bill, to carry the sanctions package. When the House reconvenes on August 31, it can approve, amend or reject the Senate version. If it makes changes, the two chambers must agree on identical text before the bill can go to President Trump.The White House has supported the measure and has indicated that Trump would sign it. However, passage in the House isn’t certain. Some lawmakers are concerned about giving the President wider tariff powers and raising costs for American businesses and consumers. The legislation is named after the late Republican Senator Lindsay Graham of South Carolina, who strongly supported tougher sanctions on Russia. His sister and Senate successor, Darline Graham, helped advance the bill.What It Means For India The bill doesn’t automatically impose a 100% tariff on India. Section 113 allows the US President to impose additional tariffs of up to 100% on goods from countries that continue buying Russian crude oil or natural gas 30 days after the law takes effect.The bill’s sponsors have identified China, India, Slovakia, Hungary, and Azerbaijan as the five largest buyers of Russian crude. These tariffs would be added to existing US duties, including tariffs imposed under Sections 301 and 232, as well as antidumping and countervailing duties.The US Trade Representative could raise or lower the tariff within a range above zero and up to 100%, depending on whether a country increases, reduces or stops its purchases of Russian energy.While China buys more Russian crude than India, the bill gives President Trump wide discretion to set country-specific tariffs. Washington has previously penalised India while sparing China: in July 2025, it imposed an additional 25% Russia-related tariff on Indian goods, withdrawing it only in February 2026. Russia supplied 30.3% of India’s crude imports in FY2026, costing $40.8 billion out of a total $134.7 billion.What Would It Mean To Give Up Russian Oil Stating that discounted Russian oil has lowered India’s import bill, strengthened energy security and helped contain inflation, the Global Trade Research Institute (GTRI) has said that giving up under pressure would impose real costs on the Indian economy.India is also buying substantially more energy from the US, with crude imports rising from $6.6 billion to $9.1 billion in FY2026, while total US energy purchases reached $12.5 billion. This included LNG worth $1.4 billion, LPG worth $896 million and petroleum coke worth $861 million.Noting that Washington cannot credibly claim that India is shutting out American energy, GTRI’s Founder Ajay Srivastava said that “larger concern is America’s growing use of trade restrictions to enforce foreign-policy goals”, terming reciprocal tariffs, Section 301 investigations, forced-labour measures, sectoral duties and now Russia-related sanctions as turning of tariffs into instruments of strategic pressure.Recommending that India shouldn’t allow tariff threats to determine its energy policy and continuation of buying of Russian crude as long as it is commercially attractive, he said that “differences with Washington must be managed through firm negotiation-not extending unilateral concessions that raise India’s energy costs and weaken its strategic autonomy.”
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BRICS Trade Ministers meet agrees to close global trade finance gap of $2.5 trillion for MSMEs
The 16th BRICS Trade Ministers’ Meeting 2026 concluded in Rajasthan’s Jaipur under India’s BRICS Chairship with decisive push for small businesses and the Multilateral Trading System under the WTO rules. The Chair’s Statement and Outcome Document was issued comprising four Annexes.The Annex-I affirmed the multilateral trading system with the World Trade Organization at its core, with development at its centre, the preservation of Special and Differential Treatment, and the restoration of a fully functioning, two-tier and binding dispute settlement system, alongside the policy space for developing economies for their food and livelihood security.Ministers issued the Jaipur Consensus to study a BRICS Invoice Discounting Mechanism and adopted the Guiding Principles for Credit Assessment Frameworks for Export-Oriented MSMEs, so that a firm is judged by its cash flow and not by its assets and collateral. The Commerce Ministry said that these instruments respond directly to the global trade finance gap of about $2.5 trillion which impacts smaller enterprises, and form part of the Workplan on the Internationalisation of MSMEs adopted as Annex-II.Ministers advanced the opening of markets and economic diversification among BRICS Members. The Workplan on the BRICS Shared Understanding on Global Value Chains, covered by Annex-III, carried the GVC Action Plan 2026-2030, including BRICS Technical Council, BRICS Connect, BRICS GVC Joint Study, the possibility of establishing strategic supply chain and investment promotion platform including in pharmaceutical sector as well as food security, among others.The BRICS Principles to Facilitate Digitally Delivered Services Across Borders was adopted as the Annex-IV to help cooperation in safe and secure digitally delivered services to place services and value chains at the frontier of the next decade of BRICS cooperation. Another outcome was the progress towards finalisation of the Strategy for BRICS Economic Partnership 2030, spanning the Multilateral Trading System, trade in services, the digital economy, industry, innovation and technology, trade and investment, financial cooperation and sustainable development. Ministers agreed to submit the Strategy, together with the priorities to the BRICS Leaders for endorsement.The Meeting held under the theme “Building for Resilience, Innovation, Cooperation and Sustainability” was chaired by India’s Commerce and Industry Minister Piyush Goyal, and was preceded by the Third Meeting of the BRICS Contact Group on Economic and Trade Issues (CGETI), held on 3 and 4 August 2026 in New Delhi.The Meeting brought together Trade Ministers, Vice Ministers, Heads of Delegation and officials from the BRICS member countries. The visiting dignitaries included Brazil’s Minister of State for Development, Industry, Commerce and Services Marcio Fernando Elias Rosa; China’s International Trade Representative and Vice Minister of Commerce Li Chenggang; Egypt’s Minister of Investment and Foreign Trade Dr. Mohamed Farid Saleh; Ethiopia’s Ambassador Molalign Asfaw Ayana, Indonesia’s Minister of Trade Dr. Budi Santoso; Iran’s First Deputy Minister of Trade and Industry Dr. Mohammad Sadegh Mofatteh; Russia’s Deputy Minister of Economic Development Vladimir Evgenievich Ilichev; South Africa’s Minister of Trade, Industry and Competition Parks Franklyn Mpho Tau; and UAE’s Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi.
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PFRDA aims to raise non-govt NPS subscriber base to 35-40 crore in 5 years
Pension Fund Regulatory and Development Authority (PFRDA) on Friday said the regulator aims to increase the number of non-government National Pension System (NPS) subscribers to 35-40 crore over the next five years from the current 90 lakh by leveraging digital platforms and expanding its distribution network.Speaking at an outreach programme for mutual fund distributors on the StAR NPS platform in Kolkata, Ramann said PFRDA is building digital infrastructure such as StAR NPS with BSE and Tatkal NPS with NPCI to simplify subscriber onboarding and improve last-mile access.”We have set ourselves a clear goal of growing non-government NPS subscribers from 90 lakh to 35-40 crore in five years,” PFRDA Chairperson S Ramann said.He said the regulator has tripled distributor commissions since October and introduced an on-tap licensing system for pension funds to encourage wider participation by banks and mutual fund houses.Ramann said PFRDA’s conservative pension schemes have delivered annual returns of about 9.2-9.3% over the past 15 years, while the Atal Pension Yojana has enrolled around 10 crore subscribers through bank and regional rural bank networks.The outreach programme focused on promoting the StAR NPS platform among mutual fund distributors, who can also function as Pension Agents to expand NPS coverage.The StAR NPS platform enables fully digital onboarding through CKYC and DigiLocker-based verification, instant Permanent Retirement Account Number (PRAN) generation, and direct settlement of subscriber contributions to improve efficiency and transparency.PFRDA said it would continue similar outreach programmes across the country to deepen pension penetration and improve retirement coverage through technology-enabled initiatives.
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Goldman Sachs, CLSA split on RBI rate outlook as inflation, growth debate heats up
Goldman Sachs Chief India Economist Santanu Sengupta and CLSA India Economist Nikhil Gupta offered sharply different views on where the Reserve Bank of India’s (RBI) interest rate policy is headed, following a policy statement widely seen as more dovish than expected.Sengupta said Goldman has pushed back its rate hike call to December, from an earlier expectation of October, and expects a 50 basis points (bps) hike this cycle, possibly 75 bps if inflation runs higher. “We think there’s a 50 bps hike in this cycle, maybe 75 if inflation gets higher,” he said. A basis point is one-hundredth of a percentage point.Gupta, by contrast, said CLSA does not expect any rate hikes at all. “We have maintained since March, since we have seen the war escalation, that rate hikes may not come,” he said, adding that interest rate tools are not well suited to defending the currency, which had been an earlier rationale for raising rates.The two economists also differed on where inflation is headed. Sengupta said core inflation, which excludes volatile food and fuel prices, has started rising and could reach 4% to 4.5% by the end of the year as cost pressures from an oil price shock filter into goods and eventually services prices.Gupta said the RBI’s own downward revision of core inflation, from 4.7% at its previous meeting to 4.3% now, supports the case for holding rates steady, since headline inflation’s expected rise to around 6% is being driven by temporary supply-side issues rather than demand.Both economists see the first half of the fiscal year coming in stronger than the RBI’s 6.7% forecast, but disagree on what follows. Sengupta said Goldman sees an upward bias to its growth forecast, citing resilience in the economy despite an oil price shock, and expects second-half growth to track close to the RBI’s forecast, with some upside risk.Gupta was more cautious, projecting second-half growth of around 5.5%, well below the RBI’s roughly 6.5% projection. He cited a fading favourable base effect, the risk of an El Niño weather pattern not yet priced into forecasts, potential government spending restraint to meet fiscal deficit targets, and slower consumption growth as inflation rises.Gupta expects the rupee to strengthen toward 94 to the dollar by the end of September, supported by inflows tied to the RBI’s FCNR deposit scheme. Sengupta gave a similar near-term estimate but said the currency could weaken back toward 96 later, citing unresolved pressures in India’s balance of payments.For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
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BRICS nations adopt joint declaration as India hosts industry ministers’ meet in Jaipur
The 10th BRICS Industry Ministers’ Meeting, held under India’s chairship, concluded in Jaipur on Thursday with member countries adopting a joint declaration for strengthening industrial cooperation and promoting innovation-driven growth.Held under the theme “Building for Resilience, Innovation, Cooperation and Sustainability”, the meeting brought together industry ministers and senior representatives from BRICS nations to deliberate on enhancing industrial capabilities, leveraging technological transformation and expanding collaborative opportunities.Addressing the gathering, Union Commerce and Industry Minister Piyush Goyal said BRICS countries must convert aspirations into practical innovation and cooperation, and leverage their complementary strengths to build resilient industries. He noted that the BRICS Partnership on New Industrial Revolution (PartNIR) has emerged as a key mechanism for such collaboration.Minister of State for Commerce and Industry Jitin Prasada reaffirmed India’s commitment to deepening industrial partnerships among BRICS nations and highlighted the importance of cooperation, innovation and mutual trust in building an inclusive industrial future.Goyal also recalled the evolution of BRICS since its first summit in 2009 and appreciated Brazil’s leadership in 2025, adding that India aims to carry forward the agenda through a pragmatic and proactive approach.Officials said significant progress was made under India’s chairship through PartNIR, including finalisation of a cooperation framework for MSMEs, adoption of terms of reference and an action plan for the photovoltaic industry working group, and an innovation-led growth plan for startups.The meeting also emphasised strengthening transport and logistics systems linked to industrial resilience, including GIS-based infrastructure and city logistics planning.A key outcome of the meeting was the adoption of a joint declaration reflecting the commitment of member countries to move beyond dialogue towards implementing practical cooperation measures.During the meeting, participating countries shared their national perspectives and policy priorities, underlining a common focus on accelerating digital transformation, building resilient industrial ecosystems and addressing shared development challenges.Meanwhile, India is also hosting the 16th BRICS Trade Ministers’ Meeting in Jaipur on August 7, which will focus on issues related to international trade and economic cooperation among member countries.The discussions are expected to contribute to strengthening multilateral trading systems, enhancing MSME participation in global trade, promoting resilient supply chains and facilitating cross-border digital services, officials said.
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No UPI fee for customers, says FM Nirmala Sitharaman; MDR decision pending
Finance Minister Nirmala Sitharaman on Thursday clarified that UPI users will not have to pay any Merchant Discount Rate (MDR) if such a fee is introduced, saying the charge would apply only to merchants.The clarification comes amid concerns that the government was planning to impose charges on customers for making UPI payments.In a post on X, Sitharaman said MDR would help banks and fintech companies invest more in payment infrastructure, innovation and security, with all UPI users benefiting from these improvements.MDR is a fee paid by merchants to banks and payment service providers for processing digital transactions. Customers do not pay this charge.The finance minister also said no final decision has yet been taken on introducing MDR for UPI transactions.According to her, the UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), will consider the matter only after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026, which proposes changes to the Payment and Settlement Systems Act, 2007.The clarification marks the government’s first official response on the proposed UPI MDR framework after the issue sparked a political debate.Sitharaman also criticised the Congress party, saying the issue could have been discussed in Parliament during the debate on the Bill instead of being raised outside the House.
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UPI needs a monetisation model to sustain growth, not boost profits: Pine Labs CEO
Pine Labs CEO Amrish Rau says it’s time for India’s Unified Payments Interface (UPI) to start paying for itself. “For a long period of time… we have been very keen to bring some sort of monetisation model,” Rau said, as the government moves to allow charges on UPI transactions for the first time.Rau said the industry has poured roughly ₹1.5 lakh crore (₹1.5 trillion) into UPI over the past decade. He estimated banks alone spend close to ₹10,000 crore a year just to keep UPI infrastructure running, while fintech companies invest a further ₹5,000 crore annually to expand transactions across the country. “I don’t think this is about profit or profiteering,” he said. “I think it is much more about growth.”The policy shift behind the debateUPI is the real-time payment system that lets people transfer money instantly using just a phone number or QR code, and it has been free to use since it launched. That’s now set to change.The government has moved an amendment to the Payments and Settlements Act, 2007, that would give the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) — the nonprofit body that runs UPI’s backend infrastructure — the authority to frame rules on how UPI payments may be charged and who bears the cost.No official numbers have been finalised. But market expectations point to person-to-person payments — transfers between individuals — staying free, since no merchant is involved.Payments to merchants above a certain size could be charged, with ₹2,000 emerging as the widely discussed minimum threshold. Small merchants, those with annual turnover below ₹1.5–2 crore, are expected to be exempt.Ramesh Lakshminarayanan, Group Head of Information Technology and Chief Information Officer at HDFC Bank, cautioned that nothing is confirmed yet. “These are all right now conjectures and guesses,” he said, adding that the government and NPCI appear to be approaching the issue in a very calibrated way.Why the industry says costs need to be recoveredLakshminarayanan pointed to rising cybersecurity costs as a key driver behind the push. He noted that a single ATM withdrawal once triggered one hit to a bank’s core banking system; today, the same cash withdrawal habit translates into far more digital transactions hitting that infrastructure. “The transactions per second on core banking have gone up,” he said, adding that hardware costs have also risen due to global supply chain pressures.Mahesh Ramamoorthy, Chief Information Officer at Yes Bank, said the immediate priority isn’t profit but sustainability. “We know our costs,” he said, but argued the more pressing question is how any new revenue would be distributed among banks, fintechs, and other participants.Growth has been slowingRau argued that framing the debate around profit misses the bigger picture. He said digital payment acceptance in India stands at about 35%, compared to roughly 90% in Brazil and China. UPI transaction growth, he noted, has been decelerating — from 60% year-on-year growth three years ago, to 40%, to just under 30% most recently.He drew a comparison to Brazil’s Pix payment system, which has reached 91% penetration since launching in 2020 — a system that, unlike UPI, has always charged a merchant discount rate (MDR), the fee merchants pay for accepting digital payments.A Jefferies report has estimated that if the ₹2,000 threshold holds, Pine Labs’ earnings before interest and tax (EBIT) could rise 9% and profit could climb 23% by fiscal year 2028. Rau declined to confirm the figures, saying that isn’t how the company is thinking about the change. He said every ₹1 lakh crore in new digital spending adds roughly half a percentage point to gross domestic product (GDP), citing broader economic research on digital payments.What innovation could followRau and the bank executives pointed to areas that new revenue could unlock:B2B payments: Rau said business-to-business payments remain largely unaddressed by UPI despite the large sums of money involved.Agentic payments: Rau also pointed to AI-driven “agentic” payments — automated transactions initiated by AI systems — as an emerging global category where UPI could compete with stablecoins.SME lending and invoice discounting: Ramamoorthy and Lakshminarayanan flagged the small and medium enterprise (SME) sector, including invoice-based payment and discounting tools, as an underdeveloped opportunity.Cross-border acceptance: Rau said UPI’s global ambitions require investment, drawing a comparison to China UnionPay’s international expansion. “When I am walking on the streets of France, I don’t get to see UPI acceptance,” he said.Lakshminarayanan also cited past UPI innovations — delegated payments (allowing one person to authorise payments on another’s behalf without a bank account), UPI Lite, and wallet integrations — as proof that investment translates into new features, provided usage grows.What happens nextThe amendment must still pass before RBI and NPCI can formally frame charging rules. No timeline has been confirmed for when a threshold or fee structure would take effect.For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
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Railways Ministry Approves Single All-India Licence for Container Train Operators, Simplifies Regulations
The Ministry of Railways has approved a series of changes to the licensing framework for Container Train Operators (CTOs), allowing them to operate container trains across the Indian Railways network with a single all-India licence instead of obtaining separate permissions for different route categories.The changes, approved under the Model Concession Agreement (MCA), are aimed at simplifying regulations, reducing compliance costs and encouraging greater private participation in rail freight.The revised framework will come into effect after a Gazette notification.What has changed?The biggest reform is the removal of the existing route-wise licence categories. Going forward, eligible operators will receive a single all-India licence, subject to approval by the Ministry of Railways, enabling them to run container trains on any route across the railway network.The government has also introduced a uniform, non-refundable registration fee of ₹25 crore for all operators. Earlier, registration fees varied depending on the category of routes for which operators sought permission.Another significant change is that operators will not have to pay any fee when extending their licence after the initial concession period. The permission can be extended by another 20 years, subject to satisfactory performance, and no extension fee will be charged for future renewals as well.What happens to existing operators?Existing licence holders will be allowed to continue under their current concession agreements until the end of their concession period.Operators holding Category I licences can shift to the new framework upon renewal or extension without paying any additional fee.Operators in Category II, III and IV will have to pay ₹15 crore to migrate to or renew under the new licensing regime, as they had earlier paid ₹10 crore. They may either continue under the existing arrangement until their concession expires or opt for an early migration by paying the same amount.Why does it matter?According to the Railways Ministry, the simplified licensing regime is expected to reduce regulatory and compliance costs for container train operators while making the approval process more uniform.The ministry expects the reforms to encourage greater private participation in rail-based freight transportation, improve the movement of container cargo and help lower logistics costs for industries, particularly micro, small and medium enterprises (MSMEs).The government also expects a greater shift of freight traffic from roads to rail, which could help reduce highway congestion, lower fuel consumption and cut carbon emissions.First Published: Aug 6, 2026 8:16 AM IST
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