Money this Month
From GST collections rise by 12.6% to an all-time high of ₹2.37 lakh crore in April'25
to RBI Governor Sanjay Malhotra Urges US Businesses to Invest in India, Citing Strong Growth and Policy Stability. One place to know about them all for it is your "Money This Month", that matters. Here's the new in the line of indefinite "Money this Month" editions.Being published by the Research Department of Finance and Investment Cell at Aryabhatta College, "𝐌𝐨𝐧𝐞𝐲 𝐓𝐡𝐢𝐬 𝐌𝐨𝐧𝐭𝐡", a monthly newsletter that aims to encapsulate the latest developments in the field of money, economics, finance, and geopolitics. Extensive efforts have been put in to compile the most relevant and insightful information from various sources to provide you with a comprehensive overview of the financial world.
Headlines
GST collections rise by 12.6% to an all-time high of ₹2.37 lakh crore in April 2025
Private sector capex projected to Jump 66.3% to ₹6.6 lakh crore in FY25.
RBI’s New Liquidity Norm to Free Up $35 Billion, Potentially Boosting Credit Growth
RBI Governor Sanjay Malhotra Urges US Businesses to Invest in India, Citing Strong Growth and Policy Stability
Indian Authorities Push for Merchant Fees on UPI Payments to Boost Domestic Payments Network.
So, how was the money this month?
GST collections rise by 12.6% to an all-time high of ₹2.37 lakh crore in April 2025
India’s Goods and Services Tax (GST) collections have risen by 12.6% year-on-year in April 2025 reaching a record high of ₹2.37 lakh crore according to official government data.In comparison for the month of March 2025 the GST collection stood at ₹1.96 lakh crore showing a 9.9% year-on-year increase. The previous highest GST collection stood at ₹2.10 lakh crore, which was in April 2024. This makes the collection of April 2025 the highest GST collection ever since GST was introduced in 2017.
Private sector capex projected to Jump 66.3% to ₹6.6 lakh crore in FY25.
According to reports given by the Ministry of Statistics and programme implementation (MoSPI) the capital expenditure (capex) of private enterprises is expected to grow by 66.3% from ₹3.9 lakh crore in FY22 to ₹6.6 lakh crore in FY25.This amount of expenditure will make FY 25 the peak year for private sector capex during the five year period from FY 22 to FY 26.In the following year FY26 private capex is expected to decline slightly to ₹4.9 lakh crore as a sign of cautious planning after the strong surge in FY 25 though it would still be higher by 23.9% than FY 22 levels. In FY 24 the private capex was of ₹4.2 lakh crore. The growth is being led by the manufacturing sector which accounts for 43.8% of total investments. The main reasons behind this increase include income generation and plans for capacity upgradation despite some economic challenges.
RBI’s New Liquidity Norm to Free Up $35 Billion, Potentially Boosting Credit Growth
The Reserve Bank of India (RBI) has released relaxed final guidelines on the Liquidity Coverage Ratio (LCR) for banks which could unlock ₹2.7–₹3 trillion in additional funds for lending. This is expected to boost credit growth by 1.4 to 2 percentage points according to multiple analyst estimates.India’s banking system currently holds ₹45–₹50 trillion in HQLA. With the new guidelines the freed-up capital could significantly boost lending at a time when credit growth has been slowing. The implementation of these guidelines has been pushed to April 1, 2026 giving banks more time to adjust. This move aligns with the RBI’s broader goal of reviving credit growth and supporting the economy through improved bank liquidity and lending capacity.
RBI Governor Sanjay Malhotra Urges US Businesses to Invest in India, Citing Strong Growth and Policy Stability
Reserve Bank of India Governor Sanjay Malhotra has called on US industry leaders to invest in India-highlighting the country’s strong economic performance and investor-friendly environment. Speaking at the US-India Economic Forum the governor noted that India continues to be the fastest-growing major economy with an expected growth rate of 6.5% in FY25 despite global uncertainty. He emphasized that India offers a transparent rule-based and forward-looking policy ecosystem ideal for long-term investments. Over the past four years, India recorded an average growth rate of 8.2% up from 6.6% in the previous decade. He added that India is poised to become the third-largest economy in the world and aims to achieve developed-nation status by 2047. He pointed to opportunities in emerging sectors such as semiconductors, renewable energy, EVs space and generative AI and also said that India is becoming an important part of global supply chains and a hub for innovation.
Indian Authorities Push for Merchant Fees on UPI Payments to Boost Domestic Payments Network.
The Indian government is considering introducing a Merchant Discount Rate (MDR) on large digital payments made via the Unified Payments Interface (UPI). This move is seen as essential to attract further investment in India’s growing digital payments industry and to revive the slowing growth of UPI transactions according to official sources. A fee of 0.2% to 0.3% per transaction has been suggested—much lower than the charges on debit and credit card payments. Importantly this cost is expected to be borne by merchants not passed on to customers. The final decision will likely be taken by the Prime Minister’s Office with support from the Finance Ministry. The RBI and NPCI (National Payments Corporation of India) have yet to comment. Major players like PhonePe and Google Pay which dominate UPI in India have previously supported the introduction of MDR. The Payments Council of India has also formally urged the government to implement a 0.3% MDR on merchant payments to help expand digital payment adoption.Without such a measure experts believe it may become difficult to attract the next wave of users to digital payments in India.