Fintech Brief — September 03, 2026

RBI’s Forex Swap Facility Draws Over $136 Billion, FCNR(B) Closes Early

The Reserve Bank of India’s special USD-INR swap facility has mobilised over $136 billion in foreign exchange inflows, exceeding all projections. RBI data shows a total of $136,377 million was raised — $127,226 million through Foreign Currency Non-Resident (Bank) deposits, $5,260 million through Overseas Foreign Currency Borrowings, and $3,891 million through External Commercial Borrowings.

The facility, introduced on June 8 this year, was designed to counter forex outflows triggered by high oil prices and capital flight as Foreign Portfolio Investors exited Indian equities, which had put the rupee under pressure. The response was so strong that the FCNR(B) deposit window — originally open until September 30 — was closed early on August 31 due to unexpected inflows. The ECB and OFCB windows remain open until December 31, 2026.

The inflows are expected to shore up India’s foreign exchange reserves and have helped the rupee recover partially, though it still closed at 94.97 to the dollar this week. For consumers, a steadier rupee matters directly: it moderates imported inflation on fuel and goods.

Sources: The Hindu

Zerodha Gets SEBI Approval for Merchant Banking Licence

Zerodha’s affiliate Zerodha Corporate Advisors has received SEBI approval for a Category-I merchant banking licence, clearing the discount broker’s entry into investment banking, though formal registration remains in process. The application was filed on April 27, 2026, and the registration was issued on September 1, per SEBI’s website.

The licence will let Zerodha manage IPOs, follow-on offers and rights issues, act as a book-running lead manager, file draft red herring prospectuses, and conduct due diligence — expanding a franchise that already spans broking, asset management and lending. “Investment banking is a natural extension for us,” the company said, with whole-time director Mohit Mehra confirming operations will start over the next couple of months.

Zerodha is betting on low-cost, technology-led execution in a sector being reshaped by SEBI’s tightened rules — the minimum net-worth requirement for Category-I merchant bankers jumped from ₹5 crore to ₹50 crore. As of August 31, 2026, SEBI had registered 248 merchant bankers, and retail-heavy IPO pipelines make a discount broker’s entry a meaningful challenge to incumbent investment banks.

Sources: Mint, Business Standard

Nepal Flood Relief Now Accepts Donations from India via UPI International

India’s UPI International is now enabling Indian users to donate directly to Nepal’s Prime Minister Disaster Relief Fund, as the country reels from devastating flash floods triggered near the Nepal-Tibet border last week. The cross-border collection runs on NIPL’s rails in partnership with Nepal’s Fonepay Payment Service, which went live for India-Nepal UPI payments in March 2024.

The humanitarian use case marks a notable step for UPI’s globalisation: a foreign government fund choosing UPI as a collection channel alongside established rails like Alipay and UnionPay. UPI is already accepted in France, Qatar, the UAE, Bhutan, Cambodia, Singapore, Sri Lanka and Mauritius, with more deployments underway. For Indian donors, it means contributing to disaster relief with the same low-friction experience as a domestic QR payment — no SWIFT, no correspondent banks.

Source: Rediff, Economic Times

Ultrahuman Raises $60 Million Series C Led by Qualcomm Ventures

Smart ring maker Ultrahuman has raised ₹583 crore (~$60 million) in Series C funding led by Qualcomm Ventures, according to RoC filings first reported by Entrackr. Qualcomm Ventures is investing about ₹143 crore, Alpha Wave ₹114 crore, Labcorp around ₹95 crore, and Zerodha co-founder Deepinder Goyal roughly ₹47 crore, with participation from Blume Ventures, Steadview Capital, Nexus Venture Partners and others.

The board approved allotting Series C and C1 compulsory convertible preference shares at issue prices of ₹7,79,500 and ₹7,85,300 per share, to be raised in two tranches. The Bengaluru-based company will deploy the capital to expand its smart ring and preventive health business. While Ultrahuman sits in healthtech rather than pure fintech, the round — backed by payment-industry investors and India’s most prominent fintech founder-angel — signals continued appetite for consumer hardware plays with subscription revenue models.

Sources: Medianama