Banks across the Asia–Pacific region are displaying stronger capital health than lenders in the United States and Western Europe, Moody’s said in its latest survey. The agency’s comparison of the largest banking institutions across major markets shows Asia–Pacific banks have accumulated strong capital levels under what it describes as tighter and more cautious regulatory oversight.The survey found that the risk-weighted asset (RWA) profiles of large Asia–Pacific banks correspond closely with their actual credit losses over the past decade, indicating that the risk assigned to their assets reflects the ground reality. At the same time, the report stresses that RWA densities are not uniform across the region and vary by market. RWAs measure the level of risk in a bank’s portfolio by assigning higher weights to assets considered riskier, meaning institutions with higher RWA density have a greater proportion of high-risk assets on their balance sheets.A notable highlight of the study is the capital strength of major private sector banks in India. Moody’s stated, “Large private sector banks in India have high CET1 capital adequacy and leverage ratios because their internal capital generation has outpaced their RWA growth in the past couple of years, and they can raise equity easily from capital markets when needed.” CET1, or Common Equity Tier 1 capital, comprises retained earnings and equity shares and is the core line of defence against losses. Higher CET1 ratios translate to a greater capacity to absorb shocks without affecting depositor safety.By the end of 2024, the average CET1 ratios of large banks in Hong Kong, India and Korea in the sample stood at 18.0%, 14.7% and 14.5%, respectively. These figures stand higher than the 13.5% reported by the four biggest US banks and the 13.8% recorded by the top six banks in Western Europe, according to the report.While Moody’s says Asia–Pacific banks can raise equity from capital markets with relative ease when required, it also notes that state-owned banks remain weaker than their private counterparts on capital and leverage.The agency attributes higher RWA densities in India, Vietnam and some Chinese lenders to the continued use of the standardised approach for calculating risk weights, a method based on fixed regulatory prescriptions rather than banks’ own internal assessments. In India, regulators have announced plans to permit banks to move to the IRB (Internal Ratings-Based) approach by 2028, a transition expected to reduce RWA density if implemented successfully.For India, the sample in the survey consisted of State Bank of India, Axis Bank, ICICI Bank and HDFC Bank, representing roughly half of the country’s total banking system assets. Overall, the report examined 35 banks across eight major Asia-Pacific banking systems, covering 75% of the total assets of all rated banks in these markets.

Last Updated:December 08, 2025, 14:12 IST

Even if your driving licence has expired, the law protects accident victims. Learn how insurance claims work and what the 30-day grace period covers

The Punjab and Haryana High Court has clarified that a driving licence remains valid for 30 days after its expiry. If an accident occurs on the 30th and final day of this grace period, the insurance company is legally required to honour the claim.

According to The Tribune, the licence in the case under consideration expired on June 4, 2001. The 30-day grace period began on June 5, meaning the licence remained valid until July 4, 2001. The accident took place on July 4, 2001, at around 10:45 am, and as it fell within the grace period, the licence was deemed legally valid.

Insurance Claims In India: What The Law Says

The rules for insurance claims following a road accident differ depending on whether it is a third-party claim or an own damage claim.

Third-Party Insurance: Mandatory for All Vehicles

Under Section 146 of the Motor Vehicles Act, 1988, third-party insurance is compulsory for every vehicle in India. Third-party claims relate to:

• Injury or death of a third party
• Damage to third-party property

The Supreme Court has consistently ruled that even if the driver has no licence, an expired licence, a suspended licence or a licence of the wrong category, the insurance company must still compensate the victim or their family.

This obligation remains even if:

• The driver has no driving licence at all
• The licence has expired
• The licence is suspended
• The licence belongs to an incorrect vehicle category
• The driver only holds a learner’s licence

‘Pay and Recover’ Principle

The Supreme Court frequently applies the pay and recover principle:

• The insurer must first pay compensation to the victim.
• The insurer may then recover the amount from the vehicle owner.

In 2023, the Supreme Court reaffirmed that the victim must not suffer because the driver lacked a valid licence.

Own Damage Claims: Strict Rules Apply

The rules for own damage claims are entirely different. Every motor insurance policy clearly states that the driver must have:

• A valid driving licence
• A proper licence for the vehicle category

If, at the time of the accident:

• The driver had no licence, or
• The licence had expired, or
• The licence was not appropriate for that vehicle,

the insurance company will reject the own damage claim entirely.

This position was upheld by the Supreme Court in Dharmendra Goyal vs Reliance General Insurance (2022) and reaffirmed in multiple judgements between 2023 and 2025.

The National Consumer Commission (NCDRC) issued similar rulings in dozens of cases.

Grace Period And Licence Validity

If an accident occurs within the 30-day grace period after the licence has expired, insurance policies provide full coverage, both for:

• Third-party claims, and
• Own damage claims

This rule is applicable nationwide.

When Is Renewal Necessary?

According to Section 15 of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989:

30-Day Grace Period

• The licence remains fully valid for 30 days after expiry.
• There is no penalty if renewed within these 30 days.

Penalties After The Grace Period

• After 30 days: Rs 300 fine, increasing to Rs 1,000 per year.
• After 1 year: The applicant must take the driving test again.
• After 5 years: A complete restart is required, including a new learner’s licence.

Renewal Made Easier (2025 Guidelines)

The Ministry of Transport’s 2025 guidelines confirm:

• The 30-day grace period applies across India.
• Driving licences can be renewed instantly online via the Parivahan.gov.in portal.

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The Executive Board of the International Monetary Fund (IMF) is scheduled to meet today, with Pakistan expecting approval of approximately $1.2 billion, according to official sources.

The IMF’s board calendar for December 8–14 confirms that Pakistan’s case is on the agenda. The board is set to review the staff-level agreement recently reached with Islamabad.

Under the current loan programme, the board may approve the release of a $1 billion tranche. Additionally, Pakistan could receive the first $200 million installment from the Resilience and Sustainability Facility (RSF), which supports climate-related initiatives.

Final approval will be determined during the board’s deliberations.

Earlier reports indicated that Pakistan had agreed to a key IMF condition requiring a special audit of supplementary grants issued over the past ten years.

Pakistan has also accepted another IMF measure aimed at limiting the federal government’s discretionary authority in issuing supplementary grants.

The 10-day technical discussions between Pakistan and the IMF, which began on November 11, have concluded.

The talks focused on reforms in public finance management (PFM) and measures to improve transparency in the budget process.

According to sources, the digital Public Finance Management Assessment was reviewed, and oversight mechanisms for the digitized PFM master plan were discussed.