Fintech Brief — May 19, 2026

RBI Discontinues Investment Fluctuation Reserve Requirement

The Reserve Bank of India has discontinued the mandatory Investment Fluctuation Reserve (IFR) for commercial banks, effective May 18, 2026. The circular, titled “Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026,” notes that prudential frameworks governing market risk and investments have evolved, making the IFR requirement redundant¹.

Banks must transfer existing IFR balances to Statutory Reserve, General Reserve, or the Balance of Profit and Loss Account by May 17, 2026. For foreign banks operating in India, balances will be transferred to statutory reserves or non-repatriable surplus. Separate circulars have been issued for cooperative banks, small finance banks, and payments banks, with clarified guidelines for SFBs and PBs¹.

This move reduces regulatory burden on banks and could free up capital for lending and other credit activities.

NPCI Plans Single Soundbox System for All UPI Apps

NPCI is developing a common soundbox platform that would allow merchants to receive transaction alerts from all UPI apps through a single device, according to reports citing unidentified sources². The proposed system would enable merchants to link multiple payment apps to one soundbox, which would then announce successful payments regardless of whether customers pay via PhonePe, Paytm, Google Pay, or other UPI applications².

Currently, merchants maintain separate QR codes and soundboxes for competing payment firms, paying between ₹100-150 monthly per device for subscription fees. A common platform could reduce operational costs for small businesses while simplifying payment confirmations at crowded retail counters².

The development signals a potential shift in competitive dynamics, as soundboxes have evolved beyond simple confirmation devices into merchant engagement tools for distribution of financial products and recurring subscription revenue².

SEBI Proposes Easing Call Recording Rules for Research Analysts

SEBI has proposed relaxing mandatory call recording requirements for research analysts when dealing with institutional investors, aiming to reduce compliance burdens³. In a consultation paper released on May 18, 2026, the regulator proposed amendments to the Research Analysts Regulations, 2014, to make maintenance of call recordings optional for institutional investor interactions³.

The proposal recognizes institutional clients as sophisticated entities that do not require the same level of protection as retail investors. Research analysts argue that maintaining records for institutional clients is unnecessary, as these clients have their own compliance frameworks and access to public disclosures³.

If implemented, the rule change could streamline operations for research firms and reduce data storage requirements, while maintaining investor protection through alternative monitoring mechanisms for retail clients³.

Trackk Bags ₹30 Crore in Extended Seed Round

Mumbai-based trading platform Trackk has raised ₹30 crore (~$3.16 million) in an extended seed round led by Lightspeed India, with participation from Info Edge Ventures⁴. Lightspeed contributed ₹23.66 crore while Info Edge Ventures invested ₹6.37 crore, valuing the company at approximately ₹118 crore post-allotment⁴.

Founded in 2021 by Vedant Gupte, Aryan Jain, and Siddharth Thakkar, Trackk offers single-screen trading, personalized insights, and behavioral analytics for young investors. The fresh capital will be used for capital expenditure, marketing, working capital, and general corporate purposes⁴.

Trackk, which secured SEBI approval last year to offer brokerage services on both NSE and BSE, is reportedly in talks to raise an additional $8 million in a round led by Z47 (formerly Matrix Partners India)⁴.

Viyona Fintech Achieves NPCI Certification

Hyderabad-based Viyona Fintech has secured NPCI certification across multiple payment infrastructure layers, including UPI Acquirer, UPI Issuer, IMPS, and Interoperable Banking Mobile Banking (IBMB) integrations⁵. The certification enables Viyona to participate across multiple layers of the UPI ecosystem—from merchant acceptance and QR acquiring to customer-side issuance infrastructure⁵.

Ravikanth Yarlagadda, Chairman, Viyona Infotech, noted that the addition of IMPS and IBMB capabilities expands the company’s service portfolio across interoperable mobile banking, real-time fund transfers, merchant settlement systems, and rural banking use cases⁵.

This milestone positions Viyona as a key player in India’s fintech infrastructure landscape, joining a select group of firms building end-to-end payment orchestration capabilities aligned with NPCI standards⁵.