Pioneer In Short
India, US trade talks progress
India and the United States reported “constructive and forward-looking” progress after three days of trade talks in Washington, as both sides work to finalise the first phase of a proposed bilateral trade agreement (BTA). Officials discussed market access, non-tariff barriers, customs facilitation, digital trade, and investment, with both countries agreeing to remain engaged to sustain momentum. The negotiations come amid shifting US tariff policies under Donald Trump. A ruling by the US Supreme Court against sweeping reciprocal tariffs has prompted Washington to impose a temporary 10% tariff on all countries for 150 days, forcing a reassessment of earlier trade frameworks. The BTA, initially outlined in February, now requires recalibration.
India has proposed tariff reductions on US industrial goods and select agricultural imports, while signalling plans to significantly increase purchases of American energy, aircraft, and technology products. However, ongoing probes by the US Trade Representative under Section 301-strongly contested by India-add complexity to negotiations. The evolving trade environment is critical as China has overtaken the US as India’s top trading partner in 2025-26. While bilateral trade remains substantial, India’s surplus with the US has narrowed, underscoring the urgency of a revised agreement.
RBI cancels Paytm bank license
The Reserve Bank of India on Friday cancelled the banking licence of Paytm Payments Bank, citing persistent non-compliance and conduct detrimental to depositors’ interests. The central bank said it will initiate winding-up proceedings before the High Court. The action follows repeated regulatory concerns over the bank’s operations and governance. The RBI noted that the bank failed to meet conditions under the Banking Regulation Act, 1949, and its management practices were prejudicial to both depositors and public interest. With immediate effect, the bank is barred from conducting any banking or related activities. Despite the stringent action, the RBI assured that the bank holds sufficient liquidity to repay all deposit liabilities during the winding-up process. Paytm Payments Bank, promoted by Vijay Shekhar Sharma, has been under scrutiny for years.
In March 2022, it was barred from onboarding new customers following supervisory concerns and was directed to undergo a comprehensive IT system audit. Further restrictions imposed earlier this year prohibited fresh deposits and top-ups in customer accounts and wallets. The bank began operations in May 2017 under a payments bank licence issued by the RBI.
