Feb ' 25 Flashcards
the Reserve Bank of India (RBI) announced the alignment of regulations governing the private placement of non-convertible debentures (NCDs) by housing finance companies (HFCs) with those applicable to non-banking financial companies (NBFCs)
This change replaces the existing framework under Chapter XI of the Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 with new guidelines in line with Paragraph 58 of the Master Direction – NBFC– Scale Based Regulation) Directions, 2023.
- This means that HFCs will follow the similar rules and guidelines as NFBCs when issuing NCDs.
- The RBI also mentioned that existing guidelines specific to HFCs regarding NCD issuance were repealed.
- The updated guidelines will take effect on January 29, 2025, and will apply to all new private placements of NCDs issued by HFCs with maturities exceeding one year.
NBFC- Scale Based Regulation:
i. Under NBFC regulations for the private placement of NCDs, companies are required to formulate a board approved policy for resource planning, outlining the planning horizon and the frequency of private placements.
ii. The minimum subscription per investor shall be _____. The private placement of NCDs will be classified into two segments:
- NCDs with a maximum subscription of less than Rs.1 crore per investor. NCDs with a minimum subscription of Rs.1 crore and above per investor.
iii. Additionally, for NCDs with a maximum subscription of less than Rs.1 crore per investor, the total number of subscribers shall be limited to 200 per financial year (FY), and these subscriptions must be fully secured
Rs. 20,000
National Payments Corporation of India (NPCI), has implemented New Rules for Unified Payments Interface (UPI) transactions, effective from _____. This regulation mandates that all UPI transaction Identifications (IDs) containing special characters (@, #, $, %, and others) will be declined and must use only the alphanumeric characters.
- This directive aims to enforce compliance with UPI technical specifications implemented back in March 2024.
February 1, 2025
i. The move follows an earlier NPCI Operating circular (OC 193) issued in March 2024, requiring UPI participants to generate transaction IDs using only alphanumeric characters for technical standardization.
ii. All banks, payment service providers, and third-party applications (apps) are required to update their systems prior to the enforcement date.
the Reserve Bank of India (RBI) released its latest Annual Report of the Ombudsman Scheme, 2023-24. As per the report, RBI resolved 95% (i.e. 2.84 lakh) complaints received under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) between April 1, 2023 and March 31, 2024 and achieved a disposable rate of _____.
- Under the RB-IOS, 2021 act, the complaints are handled by 24 Offices of the RBI Ombudsman (ORBIOs) and the Centralised Receipt and Processing Centre (CRPC).
- During F.Y.2023-24 The report revealed that a total of 9,34,355 complaints were received by the ORBIOs and CRPC as compared to 7,03,544 complaints during F.Y.2022-23, representing an increase of 32.81 per cent.
95.10%
Annual Report of the Ombudsman Scheme
i. Out of these 9,34,355 complaints, 2,93,924 complaints (31.46 per cent) were received at ORBIOs and 6,40,431 complaints (68.54 per cent) were received at the CRPC.
- As per the report, _____of the total complaints received at the ORBIOs, came through digital modes including the online Complaint Management System (CMS) portal, and Centralised Public Grievance Redress and Monitoring System (CPGRAMS).
ii. The report informed that ORBIO has resolved 57.07% of maintainable complaints through mutual settlement, conciliation, or mediation, while 40.78% were dismissed due to absence of any service deficiency.
iii. CRPC witnessed a sharp increase in complaints, receiving 7,66,957 complaints (including assigned to ORBIOs/ Consumer Education and Protection Cell (CEPCs)), which was 30.10 per cent higher as compared to the previous year.
- While, 6,31,876 complaints were dismissed as non-complaints or non-maintainable complaints and 1,26,607 complaints were assigned to ORBIOs/CEPCs for further redress.
The report observed a significant increase in complaints from individuals, senior citizens in both FY23 and FY24. Notably, the complaints from this group have increased by 24.09%, from 2.07 lakh (in FY23) to 2.57 lakh (in FY24).
Office of Reserve Bank of India Ombudsman
88.77%
Annual Report of the Ombudsman Scheme
RBI received maximum complaints in the “Loans and Advances” category , with 85, 281 complaints reported in FY24, accounting 29.01% of total complaints. This represents a sharp increase of 42.70% compared to last year.
- It is followed by Mobile and Net Banking with 57,242 complaints (accounting 19.48% of total complaints), and saw a significant increase of 32.61% compared to previous year.
- Also, complaints related to ‘Opening and Operating Deposit Accounts’ increased by 34.45% (from the last year) to 46,358, representing 15.77% of total complaints.
- Complaints related to ‘Credit Cards’ increased by 23.95% (from the last year) to 42,329, accounting for 14.40% of total complaints.
- ATM and Debit cards complaints fell _____, making it the only category with a decline.
ii. ORBIOs received maximum complaints against Banks during FY24, accounting 82.28% of total complaints (2.42 lakh), followed by Non-Banking Financial Company (NBFC) with 42,699 complaints (accounting 14.53% of total complaints).
It further mentioned that within the banking sector, Public Sector Banks (PSBs) accounted for 38.32%, followed by Private Sector Banks (34.39%), Payment Banks (3.08%), Small Finance Banks (SFBs) (1.35%), among others.
15.7%
State-wise Contributions:
i. ORBIOs (Office of the Reserve Bank of India Ombudsman) received maximum complaints from top 5 States/ Union Territories (UTs) based on per lakh accounts (deposit and credit) are: UT Chandigarh, the National Capital Territory (NCT) of Delhi, Rajasthan, Gujarat, and Uttarakhand.
ii. Top 5 states/UTs reported lowest complaints during FY24: Mizoram, Nagaland, UT Ladakh, Manipur, and UT Lakshadweep.
Key Observations:
i. The RBI highlighted instances of unfair interest charging practices by lenders during its onsite examination of banks for the FY24 ending on March 31, 2024.
- It found that Banks are charging interest prematurely, from the date of loan sanction or loan agreement execution rather than the actual date of disbursement.
ii. It noted that in cases where loans were disbursed through Cheque, interest was charged from the ____, even if the customer received the cheque days later.
cheque date
i. As per the report, 82 appeals were received by the Appellate Authority against the decisions of the RBI Ombudsman during FY24, of which 72 appeals were received from the complainants and 10 appeals were received from the Regulated Entities (REs).
ii. The report mentioned that the Consumer Education and Protection Department has outlined the certain goals for FY25 (from April 1, 2024 to March 31, 2025) under RBI’s medium-strategy framework (Utkarsh 2.0) and other short term goals. These goals aim to enhance consumer protection and improve grievance redress mechanisms.
About RB-IOS, 2021:
i. It was introduced in November 2021 by integrating 3 erstwhile Ombudsman schemes i.e. Banking Ombudsman Scheme, 2006; Ombudsman Scheme for Non-Banking Financial Companies (OSNBFC), 2018, and Ombudsman Scheme for Digital Transactions (OSDT), 2019.
ii. The Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 provides an Alternate Grievance Redress (AGR) mechanism for expeditious and cost-free grievance redressal of customer complaints that have not been satisfactorily redressed by the Regulated Entities (REs) or where the complainants have not been replied to within a period of _____ by the REs.
30 days
RBI released the list of NBFCs in the Upper Layer (UL) segment under the _____ for NBFCs for the year 2024-25. It has retained Tata Sons Private Limited (TSPL) in the NBFC UL list despite its request to de-register as a NBFC, is under examination.
- The list comprises 15 companies that include Life Insurance Corporation of India (LIC) Housing Finance Limited (HFL), Bajaj Finance Limited (BHL), and Shriram Finance Limited (SFL), among others.
Scale Based Regulation (SBR)
the Reserve Bank of India (RBI) has tightened norms for imposing monetary penalties and compounding offences under the Payment and Settlement Systems Act (PSS Act, 2007). The new norms aim to consolidate and rationalize enforcement actions by the RBI.
- The new framework which has been introduced for payment system operators and banks that outlined various contraventions and penalties such as: operation of a payment system without authorization, disclosure of information, which is prohibited, and failure to pay the penalty imposed by the RBI within the stipulated time period, among others
i. RBI has been empowered under Section 30 of the PSS Act, to impose a penalty not exceeding Rs 10 lakh or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more.
Note: Previously, the RBI was empowered to impose a penalty up to Rs 5 lakh. The amount was increased following the enactment of the Jan Vishwas (Amendment of Provisions) Act, 2023, which came into force on January 22, 2024.
ii. In cases where such contravention or default is repeating one, a further penalty of maximum Rs 25,000 for every day after the 1st instance, during which the contravention or default continues, can also be imposed.
iii. Section 31 of the PSS Act, 2007 has empowered an officer of RBI duly authorised to compound contraventions, excluding those offences punishable with imprisonment only or with imprisonment and fine.
iv. The authority which has been designated for imposing monetary penalty and compounding contraventions, is required to form a committee comprising 3 Executive Directors (EDs) handled by the Central Office of Enforcement Department (ED).
- The committee is required to include the Regional Director and two senior officials at the Regional Office of ED.
v. The amount of penalty will be determined based on the principles of proportionality, intent and mitigating factors, if any. The compounding amount will be calculated on the same factors as of monetary penalties.
- The compounding amount may be 25% less than the calculated amount of penalties.
- In case of repeated contraventions (within a period of 5 years), the compounding amount may be increased by 50% of the calculated compounding amount, subject to limits prescribed under statutory provisions.
vi. The monetary penalty or compounding amount is required to be paid within 30 days from the date of receipt of penalty or compounding order, as the case may be.
- In the case where the penalty amount is not paid within the stipulated time period, RBI is empowered to initiate appropriate action against the contravener as per section 8 or section 30 (3) or section 33 of the PSS Act, 2007.
vii. The RBI mentioned that only material contraventions will be considered for enforcement action in the form of imposition of monetary penalty or compounding of offences.
In December 2024, the Reserve Bank of India (RBI) injected _____ into the banking system to manage the increasing liquidity deficit, following a surplus liquidity of Rs 1.4 lakh crore that lasted more than two months.
The liquidity deficit has arisen due to a negative balance of payments in Q3FY25, totaling USD 23 billion, driven by continued outflows from foreign portfolio investors (FPI) and the RBI’s dollar sales in the market to stabilize the rupee.
Rs 6,956 crore
Mumbai (Maharashtra) based Reserve Bank of India (RBI), conducted a dollar-rupee buy/sell foreign exchange swap (FX swap) auction for USD 5.1 billion. The auction saw a significant oversubscription, with total bids amounted to USD 25.59 billion from 253 participants, exceeding the offered amount by five times.
- This move will infuse rupee liquidity into the banking system and is part of a broader strategy by the central bank to inject approximately ______ into the financial system.
Rs.1.5 trillion
i. The transaction will be reversed on August 4, 2025, when the RBI will sell the USD 5.1 billion, obtained through 28 accepted bids, back to the market at the forward rate (currency exchange spot rate plus 96.71 paise) and take back Rs. 43,784 crores approximately.
ii. In response to the auction’s results, dollar-rupee forward premiums saw a slight dip, with the 1-year implied yield moderating its increase to settle at the last quote of 2.24%.
Note: In an FX swap, the RBI acquires dollars from financial institutions in exchange for rupees, simultaneously boosting rupee liquidity and reducing excess dollar circulation
the Reserve Bank of India (RBI) released Payment System Report, December 2024, which analysed the trends in payment transactions carried out using different payment systems in the last ____ Calendar Years (CY) up to CY-2024.
- The report has covered key developments in the payment ecosystem and provides in-depth information about Unified Payments Interface (UPI).
- Henceforth, this report will be published on RBI website bi-annually.
5
Payment System Report, December 2024
PSO – Payment System Operators
DCRUI
i. Exponential increase in Digital Payment transactions
ii. Growth of Credit Card and Debit Card
iii. Surge in Retail Digital Payments
iv. The Growth of UPI Payments
v. Increase in DPI
Payment System Report, December 2024
i. Exponential increase in Digital Payment transactions:
As per the report, 222 crore digital transactions valued at _____ were made in CY-2013, it has increased 94 times in volume and more than 3.5 times in value to more than 20,787 transactions valued at Rs 2,758 lakh crore in CY24.
- The report revealed that digital payments in India have increased ____ times in volume and _____ times in value in the last 5 years.
- Also, this reflects a 5-year Compound Annual Growth Rate (CAGR) of 45.9% and 10.2% in terms of digital payments volume and value respectively
Rs 772 lakh crore
6.7 ; 1.6
Payment System Report, December 2024
ii. Growth of Credit Card and Debit Card: The report showed that the number of credit cards in circulation has more than doubled in the last 5 years, from 5.53 credit cards in circulation in December 2019 to nearly _____ at the end of December 2024.
- In contrast to credit cards, the number of debit cards in circulation has remained relatively stable, with a slight increase from 80.53 crore (in December 2019) to slightly more than 99.09 crore (December 2024).
iii. Surge in Retail Digital Payments: The report showed that the retail digital payments in India has surged from 162 crore transactions in Financial Year 2012-13 (FY13) to 16, _____ transactions in FY24, reflecting a nearly 100-fold increase over 12 years.
iv. The Growth of UPI Payments: UPI has emerged as the significant contributor to growth of digital payments in India. The contribution of UPI to digital payments volume increased from 34% in CY-2019 to ____ in CY-2024, with a remarkable CAGR of 74% over 5 years.
- The volume of UPI transactions increased from 375 crore in CY-2018 to 17,221 crore in CY-2024 and the total value of transactions increased from 5.86 lakh crore in CY-2018 to Rs 246.83 lakh crore in CY-2024.
- This reflects 5 year CAGR of 89.3% and 86.5% in terms of volume and value, respectively.
v. Increase in DPI: As per the report, the Digital Payment Index (DPI), a key indicator which measures the growth of payment systems, has increased by more than 4 times in the last 6 years, from a base of 100 (in March 2018) to _____ (in March 2024)
10.80 crore ;
416 crore ;
83% ;
445.50
Payment System Report, December 2024
i. The report highlighted that the RBI has been working towards enhancing cross-border payments by linking UPI with Fast Payment Systems (FPS) of other countries.
- In February 2023, the FPS of India (UPI) and Singapore (PayNow) were linked together.
ii. India joined Project ____, facilitating multilateral linkage of FPS of Association of Southeast Asian Nations (ASEAN) countries i.e. Malaysia, Philippines, Singapore, and Thailand. An agreement to this effect was signed on June 30, 2024.
iii. Payments to merchants using Indian UPI applications via Quick Response (QR) codes has been enabled in various countries like: Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the United Arab Emirates (UAE).
Nexus
- The Project was conceptualized by Singapore-based Bank for International Settlements (BIS) Innovation Hub, to develop ‘Nexus’ as a multilateral network connecting domestic Instant Payment System (IPS) networks of participating countries
Jaipur (Rajasthan) based _____, India’s 1st Reserve Bank of India (RBI) registered Non-Banking Financial Company (NBFC) Factor partnered with Government e-Marketplace (GeM), an initiative of the Ministry of Commerce and Industry (MoC&I), along with Bengaluru (Karnataka) based Perfios Software Solutions Private Limited and Mumbai (Maharashtra) based Tata Consultancy Services (TCS) developed GeM Sahay 2.0.
121 Finance Private Limited
- GeM Sahay 2.0 aims to enhance financial inclusion by making the platform more accessible and effective for Micro, Small, and Medium Enterprises (MSMEs) while ensuring a seamless experience for lenders.
i. 121 Finance played a key role in the pilot phase of GeM Sahay, setting a benchmark for digital lending with its real-time, tech-driven financing, making the platform more accessible and effective for MSMEs.
ii. 121 Finance, India’s largest independently owned NBFC-Factor, specializes in providing solutions for B2B trade credit challenges faced by MSMEs.
iii. This collaboration designs specialized loan products with small ticket sizes, serving as key partners in the Open Credit Enablement Network (OCEN) framework.
iv. The OCEN framework highlights how digital platforms can transform lending in India. Its scalability and flexibility will support more projects, fostering MSME growth and financial inclusion.
the Reserve Bank of India (RBI) launched a Regulatory Sandbox (RS) to test the “On Tap” application facility under the theme of _____
- Chennai (Tamil Nadu, TN) based Exto India Technologies Private Limited was selected to participate in the ‘Test Phase’ of this initiative.
‘Retail Payments’.
i. The company tested an offline digital payment solution integrating Distributed Ledger Technology (DLT) with private biometric authorization, enabling offline card-to-card and card-to-phone transactions.
ii. The key features of the innovation include the use of cryptography in distributed ledgers, on-card biometric authentication, and time-limited balances, to prevent issues like double spending.
iii. The product after testing was found acceptable under the RS and may be adopted by Regulated Entities, subject to compliance with applicable regulatory requirements.
the Reserve Bank of India (RBI) revealed that its Digital Payments Index (DPI) has increased from 445.5 in March 2024 to _____ as of September 2024, this marks an 11.11% increase Year-on-Year (Y-o-Y).
- This increase in RBI’s DPI was mainly driven by growth in payment infrastructure and payment performance across the country over the period.
465.33
About RBI-DPI:
i. RBI had been publishing the composite RBI-DPI since January 1, 2021, with March 2018 as the base period (DPI score for March 2018 is set at 100). The index monitors the extent of digital payment adoption across India.
ii. The index is based on 5 key parameters: payment enablers (25%); payment infrastructure- Demand-side factor (10%); payment infrastructure - Supply-side factor (15%); payment performance (45%) and consumer centricity (5%).
- Each of these parameters has sub-parameters which, in turn consist of various measurable indicators
the Securities and Exchange Board of India (SEBI) introduced a comprehensive framework to regulate algorithmic (algo) trading for retail investors. Under the new framework, retail investors will get SEBI’s ______ facility through the registered brokers, which was previously dominated by institutional players.
- The Brokers’ Industry Standards Forum has been tasked with formulating detailed implementation standards by April 1, 2025, with the new norms set to take effect from August 1, 2025.
Operational Controls:
i. Limits on order frequency or leverage to curb excessive risk-taking.
ii. Requirements for back-testing environments to validate algo strategies before deployment.
iii. Stricter oversight on brokers offering algo platforms, requiring transparency in algorithm operations.
iv. Technical standards compliance, including audit trails, real-time monitoring, and circuit breakers to prevent market manipulation
Direct Market Access (DMA)
Key Highlights of Framework:
i. Broker Authorization: Brokers are required to obtain approval from stock exchanges for each algorithm they offer to retail investors. Any modifications to approved algorithms also necessitate prior exchange consent.
ii. Unique Identifier for Orders: All algo orders must be tagged with a unique identifier provided by the exchange, ensuring a clear audit trail and enhancing transparency.
iii. Retail Investor-Developed Algos: Tech-savvy retail investors who develop their own algorithms must register them with exchanges through their brokers if their trading activity exceeds a specified order-per second threshold. These self-developed algos can be used for personal accounts, including those of immediate family members.
iv. Standard Operating Procedures (SOPs): Stock exchanges are required to establish SOPs for testing, monitoring, and simulating algo trading. This includes implementing a “kill switch” mechanism to disable specific algos in case of irregularities. Exchanges will supervise algo trading, ensuring brokers can differentiate between algo and non-algo orders.
the Government of Kerala approved the ‘Kerala Health System Improvement Programme (KHSP)’ with a loan of Rs 2,424.28 crore (approximately USD 280 million) from the United State of America (USA) based ____
World Bank (WB)
- The aim is to improve living standards and life expectancy, focusing on preventing diseases, accidents, and premature deaths, benefiting economically disadvantaged groups in Kerala
_____ signed a Memorandum of Understanding (MoU) with Vadodara (Gujarat) based Bank of Baroda Limited (BoB) to offer loans for Residential Rooftop Solar Installations.
- This collaboration aims to support the Prime Minister – Surya Ghar Muft Bijli Yojana (PMSGMBY), an initiative targeting 1 crore households with rooftop solar panels by March 2027.
Mumbai (Maharashtra) based Tata Power Renewable Energy Limited (TPREL)
i. Under the agreement, customers can avail loans up to Rs.6 lakhs at an interest rate starting at 7% per annum with both fixed and floating rate options.
ii. Homeowners installing systems of up to 3 kilowatt (kW) can access loans up to Rs.2 lakhs without income documentation.
iii. The scheme requires only a 10% margin contribution and flexible repayment tenure of up to 10 years.
- Installations ranging from 3 kW to 10 kW qualify for loans up to Rs.6 lakh with a 20% margin contribution.
Stuttgart (Germany)-based Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB signed Memorandum of Understandings (MoUs) with Ropar (Punjab)-based Indian Institute of Technology Ropar (IIT-R) and the Birla Institute of Technology and Science (BITS) Pilani.
- This strategic collaboration between Fraunhofer and Indian Institutes, aims to leverage Germany and India’s technological strengths.
- It also aims to improve the implementation of best practices to optimize the water-energy-food nexus, to foster sustainable and climate-neutral economy
Leading Indian food and grocery delivery giant Zomato announced that it will rename its parent company to _____, accompanied by a new logo. The move underscores the company’s evolution beyond its core food delivery service into a diversified conglomerate, driven by its quick commerce arm Blinkit and other ventures
Eternal Limited.
Eternal will oversee four major divisions:
* Zomato: Core food delivery vertical.
* Blinkit: Quick-commerce unit (10-minute deliveries).
* District: Live events and B2B logistics.
* Hyperpure: Restaurant supply chain services.
_____, under the Ministry of Power (MoP) and the Indian Army (IA) signed a 25 years Power Purchase Agreement (PPA).
- The agreement enables the sale of 200 kilowatts (kW) of renewable energy round-the-clock (RERTC) from a solar-hydrogen-based microgrid at Chushul, Ladakh to off-grid Army locations
New Delhi (Delhi) based NTPC Limited (Formerly National Thermal Power Corporation)
According to the Reserve Bank of India (RBI) latest data, outward remittances under its Liberalised Remittance Scheme (LRS) declined _____ Year-on-Year (Y-o-Y) to USD 22.82 billion in nine month (from April to December) of Financial Year 2024-25 (9MFY25), compared to USD 24.80 billion in 9MFY24.
- The data highlighted outward under the scheme declined across major segments such as: in deposits, maintenance of close relatives, and the international segment, among others.
10.15%
i. Increase in Outward Remittance in Q3FY25: As per the RBI’s data, outward remittances increased _____ Y-o-Y in 3rd Quarter (October-December) of FY25 to USD 6,670.4 million compared to same period last financial year.
ii. Decrease in Remittances for Deposits: The data showed that remittances for deposits decreased 43% Y-o-Y, to USD 422.28 million (in 9MFY24) against USD 738.12 million in the same period of previous financial year.
iii. Decline in Remittances of Close Relatives as well for Gifts: The RBI data revealed that remittances of close relatives dropped approximately 25.2% to USD 2,757 million and similarly, remittances for gifts decreased 21.38% to USD 2,215.5 million.
iv. Decrease in Outward Remittances from International Travel: As per the data, outward remittances from international travel dropped 2.23% Y-o-Y, to USD 13.10 billion from USD 13.40 billion registered in the previous year period.
v. Increase in Remittances for investments in equity and debt instruments: The data showed that remittances for investments in equity and debt instruments increased 2.09% Y-o-Y to USD 1,113.73 million.
3.3%
About Liberalised Remittance Scheme (LRS):
i. The scheme was introduced by the RBI on _______, to simplify and streamline the process of remitting funds overseas.
ii. The scheme allowed all resident individuals (including minors) to freely remit up to _____ per financial year (April-March) for any permissible current or capital account transaction or a combination of both.
4th February, 2004 ;
USD 2,50,000
the Reserve Bank of India (RBI) launched ______, a mobile application (App) to provide the public with access to macroeconomic and financial data related to the Indian economy.
- The app is designed to help researchers, students, and the general public track important economic trends in a user-friendly and visually engaging format.
- This initiative aligns with RBI’s ongoing efforts to enhance data transparency and accessibility.
‘RBIDATA’
Key Features of the RBIDATA app:
i. Comprehensive Economic and Financial Data Access: Offers users access to more than 11,000 economic data series, enabling the viewing of time-series data in graphical formats and the ability to download information for further analysis. It also provides key details like data sources, units of measurement, frequency, recent updates, and helpful notes to better understand the graphs and charts.
ii. Popular Reports Section: Features the most frequently accessed reports, making it easier for users to find key information quickly.
iii. Search Function: Allows users to quickly find data directly from the home screen, eliminating the need to navigate through multiple sections.
iv. Banking Outlet Section: Helps users locate banking facilities within a _____-kilometer (km) radius of their current location.
v. SAARC Database Access: Offers access to economic data from South Asian Association for Regional Cooperation (SAARC) countries via the ‘SAARC Finance’ link.
vi. DBIE Portal Integration: Connects with the RBI’s Database on the Indian Economy (DBIE) portal at https://data.rbi.org.in ensuring real-time updates and accuracy.
vii. It is available for both iPhone Operating System (iOS) and Android users (version 12 and above) and features a feedback mechanism for user suggestions and improvements.
20
Hyderabad (Telangana) based Insurance Regulatory and Development Authority of India (IRDAI) has set up a _____-member committee to review and implement changes to the Insurance Act of, 1938.
- This panel will be led by ______, the former Chairman of the Mumbai (Maharashtra) based State Bank of India (SBI).
- These changes are part of the government’s effort to improve the insurance sector and its reach, aiming for “Insurance for All by 2047.”
7 ;
Dinesh Kumar Khara ;
i. The Insurance Act, 1938 serves as the foundational legislation governing the insurance industry in India. It provides a comprehensive legal framework for the operation of insurance businesses, ensuring their financial stability and protecting policyholders’ interests.
ii. The committee, led by Dinesh Kumar Khara, is tasked with reviewing these proposed amendments and suggesting a framework for their implementation. The committee is expected to submit its report within 3 months.
iii. Based on its recommendations, the IRDAI will forward proposals to the Ministry of Finance (MoF), while the Department of Financial Services (DFS), MoF will draft a new bill for stakeholder feedback.
Proposed Amendments to the Insurance Act:
i. Increase in Foreign Direct Investment (FDI): The government plans to raise the FDI cap in the insurance sector from 74% to ______ aiming to attract more foreign investment, potentially leading to enhanced capital inflow and improved services in the Indian insurance market.
- This enhanced limit will be available for those companies which invest the entire premium in
India.
ii. Composite License for Insurers: The proposed amendments seek to allow insurance companies to operate across different insurance segments (like life and general) under a single license, offering more flexibility and operational efficiency.
iii. Reduced Capital Requirements: The amendments propose lowering the minimum paid-up capital for insurance companies, encouraging more players to enter the market and boosting competition.
100%
Note: To increase the FDI limit in the insurance sector, the government will need to amend key legislations, including the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999.
Note: As of January 2025, there are 25 life insurance companies and 34 non-life or general insurance firms in India.
according to the State Bank of India (SBI) Research report, India’s Gross Domestic Product (GDP) grew ______ to 6.3% in the third quarter (October-December) of the Financial Year 2024-25 (Q3 FY25).
- SBI economists have developed a “Nowcasting Model” to estimate GDP using 36 high-frequency indicators linked to industrial and service activity, as well as global economic factors
6.2%
i. It forecasts 6.3% GDP growth in FY25, assuming no significant revisions to earlier quarter data from the National Statistical Office (NSO).
ii. The Indian economy expanded by 5.4% in real terms during the July-September quarter of the current financial year(Q2 FY25). This was significantly below the Reserve Bank of India (RBI)’s GDP forecast of 7%. In the April-June quarter of FY25, India’s GDP grew slower than the central bank estimated.
iii. The report notes that India’s manufacturing sector, as measured by the Index of Industrial Production (IIP), grew from 3.3% in Q2 FY25 to 4.3% in Q3 FY25.
Mumbai (Maharashtra)-based National Securities Depository Limited (NSDL) and Mumbai based Central Depository Services Limited (CDSL) in collaboration with capital market regulator Securities and Exchange Board of India (SEBI), launched a mobile application (app) ______, integrating CDSL’s MyEasi by NSDL’s SPEED-e.
- This platform provides investors with a consolidated view of their financial statements, shareholdings, investments, and financial statements.
- The initiative aims to provide a secure and accessible solution for investors by simplifying financial data across several accounts.
Unified Investor Platform (UIP)
About Unified Investor Platform (UIP):
i. The UIP sources data directly from _____, _____, and ______ to resolve issues over fraudulent intermediaries. This reduces the possibility of fraud and unauthorized access while guaranteeing that investors receive accurate and genuine information.
ii. The platform also makes it easier for investors to manage and transfer their assets effectively by consolidating all financial data, which streamlines inheritance and asset transmission.
iii. Investors can easily check their holdings and recent transactions with a single login system, which guarantees quicker decision-making based on the most recent financial data.
iv. Every app is designed with strong security features, such as two-factor authentication, to ensure a secure and safe user experience. The CDSL MyEasi app and the NSDL SPEED-e app both offer access to the unified app features.
exchanges, depositories, and clearing firms
Noida (Uttar Pradesh) based Paytm Money Limited, a wholly owned subsidiary of One97 Communications, has launched India’s first solar-powered payment device ‘Paytm Solar Soundbox’ designed for merchants to accept Unified Payments Interface (UPI) and ______ payments using a Quick-Response (QR) code. It offers a cost-effective, reliable, and eco-friendly solution with minimal
sunlight needed for charging in rural and remote areas.
RuPay Credit Card
- It is designed for small merchants, street vendors, and rural businesses, ensuring steady digital payments even in places with regular power cuts.
i. The Paytm Solar Soundbox, with a built-in solar panel and two batteries (one solar-powered and one electricity-powered)
- It charges in just 2-3 hours of sunlight to last a whole day, while the electricity-powered battery lasts up to 10 days without recharging.
- It supports 11 Indian languages, provides real-time audio payment confirmations through a 3-watt (W) speaker, and works with a 4G (fourth-generation wireless) connection for instant transaction alerts, ensuring clear notifications even in noisy environments.
- In 2024, Paytm launched the Near-Field Communication (NFC) Card Soundbox, a device that combines NFC and QR payments, enabling users to link bank accounts, create UPI IDs (Identification), and make payments through QR codes, mobile numbers, or bank transfers.
New York (the United States of America, USA)-based Moody’s (formerly known as Moody’s Analytics), a subsidiary of Moody’s Corporation released its report titled ‘Asia-Pacific (APAC) Outlook: Chaos Ahead’. According to the report, India’s Gross Domestic Product (GDP) is expected to slow to_____ in 2025, from 6.6% in 2024.
- The report has further projected that India’s GDP will grow at 6.4% in both 2026 and 2027.
6.4%
i. The report highlighted that economic growth of the entire Asia-Pacific (APAC) region will slow in 2025 mainly due to rising trade tensions and shifting landscape of global tariffs.
ii. The report projected that global growth will ease from an estimated 3.9% (in 2024) to 3.7% and 3.5% in 2025 and 2026, respectively.
iii. The report observed that most of the economies have already been trailing their pre-pandemic levels. For instance: China’s GDP is about 1.2% of its pre-pandemic trend but nearly in line with the global average.
- While, India is trailing close to about 2% of its former trend but, it is still better positioned compared to other Association of Southeast Asian Nations (ASEAN) group economies with GDP 5% off the pre-pandemic levels
______ Limited announced its partnership with the Professional Golf Tour of India (PGTI) as its official Banking Partner.
- This partnership demonstrates the bank’s dedication to offering its Ultra High Net Worth Individuals (UHNIs) and High Net Worth Individuals (HNIs) an exceptional experience under the guidance of PIONEER banking
IndusInd Bank
Mumbai (Maharashtra) based the Reserve Bank of India (RBI) imposed monetary penalties on Mumbai (Maharashtra) based Citibank, Chennai (Tamil Nadu, TN) based Asirvad Micro Finance Limited (AMFL), and Mumbai (Maharashtra) based JM Financial Home Loans Limited (JMFHL) for violating regulatory norms.
i. Citibank was fined Rs 39 lakh by the RBI for failing to upload corrected data in specific sectors within seven days of receiving rejection reports from Credit Information Companies (CICs) and for reporting violations of “Large Exposures” restrictions with delay.
ii. RBI imposed a penalty of Rs 6.20 lakh on AMFL for failing to report the household income of certain borrowers to CICs.
- It also failed to provide factsheets to certain gold loan customers and failed to set up a system of auto-escalation procedure for all complaints that were partially or completely denied by its internal grievance resolution mechanism to the internal ombudsman for a final decision.
iii. JMFHL was fined Rs 1.50 lakh by the RBI for violating several of the “Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021” regulations.
Mumbai (Maharashtra)-based India’s central bank, Reserve Bank of India (RBI) has launched the Financial Literacy Week (FLW 2025) which commenced on February 24, 2025 and will be observed till February 28, 2025 across India.
- FLW 2025 was inaugurated by RBI Governor Sanjay Malhotra in Mumbai, Maharashtra.
- Theme of FLW 2025: ‘Financial Literacy – Women’s prosperity’. This year’s theme of FLW is in alignment with the overall strategic objectives of the National Strategy for Financial Education 2020-2025
About Financial Literacy Week 225(FLW 2025):
i. This initiative was launched by RBI in 2016 and since then, it has been observed annually across the country to promote financial awareness among the people.
ii. As part of the FLW 2025, the banks have been directed to spread awareness about financial literacy by displaying RBI-developed posters on their respective web portals, Automated Teller Machines (ATMs), mobile applications (apps), and display boards at their branches.
iii. The campaign will cover topics such as risk diversification, responsible borrowing, maintaining a good credit score and household budgeting and will have special focus on homemakers, working women and women entrepreneurs.
iv. As part of this year’s FLW, RBI has planned multimedia campaigns to raise awareness about the importance of financial literacy for women
RBI approved the establishment of National ______ as an Umbrella Organisation (UO) to boost Urban Co-operative Bodies (UCBs) across India. It has also approved NUCFDC to function as a Non-Banking Finance Company (NBFC).
- Earlier, Union Minister Amit Shah, the Ministry of Cooperation (MoC) inaugurated the corporate office of the NUCFDC during the inaugural function of International Year of Cooperatives 2025 held in Mumbai, Maharashtra.
Urban Co-operative Finance and Development Cooperation (NUCFDC)
the Reserve Bank of India (RBI) revised the norms for Urban Co-operative Banks (UCBs), allowing them to classify loans of up to Rs _____, or 0.4% of Tier I capital, whichever is higher, as small-value loans, subject to a ceiling of Rs 3 crore per borrower.
25 lakh
- Earlier, UCBs could classify loans of up to Rs 25 lakh, or 0.2% of Tier I capital, as small-value loans, subject to a ceiling of Rs 1 crore per borrower.
revised the norms for Urban Co-operative Banks (UCBs)
Small-Value Loans:
Old Norms:
* Small-value loans were capped at Rs 25 lakh or 0.2% of Tier-I capital (whichever higher), with a maximum ceiling of Rs 1 crore per borrower.
* UCBs were required to ensure 50% of aggregate loans fell under small-value loans by March 2026.
New Norms:
* Definition revised: Loans up to Rs 25 lakh or 0.4% of Tier-I capital (whichever higher), with a higher ceiling of Rs 3 crore per borrower.
* Objective: Helps UCBs meet the 50% small-loan target by 2026.
Real Estate Exposure: Balancing Risk and Flexibility:
Old Norms:
* Aggregate exposure to real estate (including housing, commercial) capped at 10% of total assets.
* Could exceed by 5% only for priority-sector housing loans.
New Norms:
* Priority Sector Exclusion: Housing loans under Priority Sector Lending (PSL) excluded from commercial real estate (CRE) exposure.
Revised Caps:
* Residential mortgages (non-PSL): Up to 25% of total loans (vs. 10% earlier).
* Real estate (excluding housing loans): Capped at 5% of total loans.
* Builder/developer loans: Limited to 5% of total loans.
revised the norms for Urban Co-operative Banks (UCBs)
Extended Glide Path for Security Receipts (SRs):
Old Norms:
* Provisioning Requirement: UCBs had to maintain provisions (set aside funds) to cover potential losses from the valuation gap in SRs.
* Deadline: UCBs were required to fully provision for these gaps by March 2026 (FY2026).
New Norms:
* Extended Deadline: The RBI has extended the timeline for provisioning by 2 years, pushing the deadline to March 2028 (FY2028).
What are Security Receipts (SRs)?
Security Receipts (SRs) are financial instruments issued by Asset Reconstruction Companies (ARCs) when banks (including UCBs) sell their Non-Performing Assets (NPAs or bad loans) to these ARCs.
- SRs’ Value: The value of SRs depends on the ARC’s ability to recover money from the defaulted borrower. If the ARC recovers less than expected, the SRs’ value declines, creating a valuation gap.
New York (the United States of America, USA)-based S&P Global Market Intelligence projected India’s Gross Domestic Product (GDP) will grow at _____ for Financial Year 2024-25 (FY25) as well as for FY26. It has cited that monetary and fiscal stimulus will help the Indian economy to tackle rising challenges in the global market.
6.4%
- The global analytics firm’s latest projection for the Indian economy for FY25 is slightly less than its previous estimate of 6.5%, while it has retained its December update projection for FY26 at 6.4%.
i. The global firm has projected India’s GDP will further slow to 6.2% in FY27 and is expected to increase to 6.6% in FY28.
ii. The firm highlighted that tax relief measures announced by Ministry of Finance (MoF) in Union Budget for FY25, along with the 25 basis point (bps) policy rate reduction by the Reserve Bank of India (RBI) in February 2025, should support domestic demand in FY25 but will be not sufficient to fully offset the effects of external headwinds on growth.
_______ signed an Memorandum of Understanding (MoU) with New Delhi (Delhi) based Solar Energy Corporation of India Limited (SECI), a Navratna Central Public Sector Undertaking (CPSU) under the Ministry of New & Renewable Energy (MNRE), to set up a 200 Mega Watt (MW) solar project in Dhar (MP) and a 1000 Mega Watt hour (MWh) battery storage project
the Government of Madhya Pradesh(MP)
the Reserve Bank of India (RBI) in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 reduced the risk weights on the exposure of Scheduled Commercial Banks (SCBs) loans to Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs).
- RBI has lowered the risk weights of bank loans to NBFCs by _____ basis points (bps), from 125% to 100%, depending on the ratings. This move is expected to enhance credit flow to NBFCs and will improve credit availability in the retail segment.
- The restored risk weight on loans to NBFCs will come into effect on April 1, 2025.
25
i. As per RBI directions, risk weights for microloans by banks will be 75%, while risk weights for loans for consumption purposes will be 100%, from current 125%.
* In addition to that, microfinance loans extended by Regional Rural Banks (RRBs), and Local Area Banks (LABs) will attract a risk weight of 100%.
* The restored risk weight on loans to MFIs came into force with immediate effect.
ii. RBI has further clarified that microfinance loans which are not consumer type credit and completes certain criteria will be classified under Regulatory Retail Portfolio (RRP).
* Also, banks have been mandated to put in place appropriate policies and Standard Operating Procedures (SOPs) to ensure the compliance of qualifying criteria.
iii. The decrease in risk weights will free maximum Rs 40,000 crore capital, which would mean banks can grant loans up to Rs 4 lakh crore to ‘AAA-rated’ companies.
i. In November 2023, RBI had increased risk weights for banks loans to NBFCs to _____ (over and above the risk weight associated with the given external rating) in all cases where the extant risk weight as per external rating of NBFCs was below 100%.
- The primary objective of this increased risk weights was to restrict unsecured loans, which had increased 25% in October 2023 compared to previous year.
ii. Also, this increased risk weight of 125% was applicable on consumer credit, including personal loans, but excluding housing loans, education loans, vehicle loans, among others.
125%
Recent Related News:
In January 2025, RBI cancelled the Certificate of Registration (CoR) of Mumbai (Maharashtra)-based NBFC, X10 Financial Services Limited (formerly Abhishek Securities Limited), due to irregularities in its digital lending operations.
- As a result, the company is no longer allowed to operate as an NBFC
_______ in partnership with K.M. Dastur Reinsurance Brokers (KMD), launched one of India’s first Air Quality Index (AQI)-based parametric insurance policies for migrant labourers affected by construction bans during periods of high air pollution in the Delhi National Capital Region (NCR) region.
- The policy aims to reduce salary losses for construction workers during air pollution-induced construction bans.
Go Digit General Insurance Limited (Digit Insurance)
i. When Delhi’s AQI rises beyond 400 on more than two occasions, the parametric insurance policy will pay out up to Rs 6,000 for 6,200 migrant workers.
ii. As per the policy, a “strike” occurs when the AQI is above 400 for at least three of the five days prior. Additionally, there must be at least a 25-day gap between strikes.
iii. These bans are frequently implemented through government and court orders to reduce dangerous pollution levels in the region.
iv. Parametric insurance is a simple, efficient, and transparent way to address the financial vulnerabilities of workers caused by environmental challenges in the region.
Bengaluru (Karnataka) based _______ and Bengaluru based BEML Limited (formerly Bharat Earth Movers Limited) signed a Memorandum of Understanding (MoU) to collaborate on leadership and technical training programs aimed at skill development and professional excellence.
Hindustan Aeronautics Limited (HAL)
- This collaboration aims to enhance technical expertise and managerial leadership within BEML, contributing to the growth and self-reliance of India’s defence manufacturing ecosystem.
Tokyo (Japan) based MUFG Bank Limited, which is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG) completed its first fully digitalised _____ transaction from its GIFT City Branch for a subsidiary of Tata International Limited (TIL), the global trading arm of the Tata Group.
trade finance
i. MUFG collaborated with the Singapore-based treasury center of TIL to process a USD 15 million Letter of Credit (LC) by utilizing the Contour Network Hub from Xalts.
ii. This digital process requires three hours to complete and includes smooth negotiation, preparation, application, and acceptance. In contrast, a traditional document-based approach would typically extend the process to two days
iii. The digitization of this transaction demonstrates MUFG’s dedication to technological integration in trade finance and marks a substantial improvement in trade efficiency. The bank continues to expand its transaction banking capabilities to provide its customers a better service.
Boston, Massachusetts (United States of America, USA)-based management consultant company, Bain & Company, Inc. in collaboration with National Association of Software and Services Companies (NASSCOM) released a report titled ‘India@2047: Transforming India into a Tech-Driven Economy’. As per the report, India is set to become a High-Income Nation (HIN) with a projected Gross Domestic Product (GDP) between USD 23-USD 35 trillion by _____.
- This growth is mainly be driven by sustained annual growth of 8%-10%, supported by India’s demographic dividend, technological innovation, and sectoral transformation.
- The report has projected that services sector is expected to make up 60% of India’s GDP, while manufacturing will account for 32%, both sectors will become crucial drivers of economic growth.
2047
i. The report mentioned that with approximately 200 million individuals expected to enter the workforce in the coming decades, which will be a unique opportunity for India to promote high-value job creation and unleash significant economic potential.
ii. The report has outlined 5 key sectors such as: electronics, energy, chemicals, automotive, and services, will act as strategic growth levers due to alignment with international trends and scalability.
* These sectors have the potential to address India’s unique challenges and advantages.
iii. As per the report, India’s share of Renewable Energy (RE) in its total energy production is expected to increase from 24% (in 2023) to around 70% by 2047.
* Similarly, the auto-component export sector is expected to reach USD 200-USD 250 billion by 2047, supported by share capture in ICE market and long-term shifts to Electric Vehicles (EVs).
iv. Advancements made in Artificial Intelligence (AI)-driven chip design, touchless manufacturing, and backward integration into component manufacturing and design will enhance cost competitiveness and innovation.
* This will help in increasing the export share of the sector from current 24% to 45%-50% by 2047.
* Also, its GDP contribution is expected to increase from 3% to 8%-10%
v. The report observed that a projected workforce shortfall of nearly 50 million individuals by 2030 focuses on the need for improved Science, Technology, Engineering, and Mathematics (STEM) education and focused skill development programs across different sectors.
* It has also emphasized on backward integration and local manufacturing may help in decreasing India’s reliance on imports for essential components.
London (the United Kingdom, UK)-based Consumer goods giant Unilever PLC announced that Hein Schumacher who joined the company in July 2023, will step down as Chief Executive Officer (CEO) and Board Director on March 1, 2025 and will leave the company officially on May 31, 2025.
- He will be replaced by _______, who is currently serving as Unilever‘s Chief Financial Officer (CFO) and Executive Director of the company.
Fernando Fernandez
i. Earlier, Fernandez, who was appointed CFO in January 2024, served as President of Beauty & Wellbeing division of Unilever.
* Also, he worked at various positions in the company such as: President of Latin America, CEO of Brazil and CEO of Philippines.
ii. While, Srinivas Phatak who is currently serving as Deputy CFO will assume the role of CFO.
the ______ approved a USD 200 million loan to improve the development of climate and disaster-resilient sewerage and drainage infrastructure in Kolkata, West Bengal with the aim of enhancing Kolkata’s livability.
Asian Development Bank (ADB)
- The loan agreement was part of the Kolkata Municipal Corporation Sustainability, Hygiene, and Resilience (Sector) Project (KSHARP).
- Kolkata, one of India’s most populous and highly populated cities, faces severe issues due to poor drainage and sewerage systems, which result in urban flooding and an unsanitary atmosphere.
Lucknow (Uttar Pradesh, UP) based Small Industries Development Bank of India (SIDBI) and Mumbai (Maharashtra) based ______ signed a Memorandum of Understanding (MoU) for Partnership for financing Micro, Small and Medium Enterprises (MSMEs).
Tata Capital Limited (TCL)
Gurugram (Haryana) based _______, an umbrella body of the Microfinance Institutions (MFIs), released 52nd edition of Micrometer as on 31 December 2025 report. The report revealed that disbursement of microfinance loans has decreased 35.8% to Rs 22,091 crore during the 3rd Quarter (Q3: October-December) of Financial Year 2024-25 (FY25) compared with the year-ago period.
Microfinance Institution Network (MFIN) India
- The Gross Loan Portfolio (GLP) of the sector as of December 31, 2024, stood at Rs 3,85,348 crore.
- The report showed that the total loan portfolio in the micro-finance sector has decreased by 3.5% Year-on-Year (Y-o-Y) to Rs 3.85 trillion during Q3FY25.
- Also, the number of new loans disbursed registered a negative growth of 29.02%.
the Reserve Bank of India (RBI) has released the Report on Trend and Progress of Banking
in India 2023-24 under Section 36(2) of the Banking Regulation Act, 1949.
- The profitability of the commercial banks in India increased for the ____ consecutive year in 2023-2024. The banks witnessed a Return on Assets (RoA) of 1.4% and a Return on Equity (RoE) of 14.6% in Financial Year (FY) 2024 with profitability remaining robust in the first half of FY25.
6th
About Microfinance Institution Network (MFIN) India:
Chief Executive Officer (CEO) and Director- Dr. Alok Misra
Headquarters- Gurugram, Haryana
Established- _____
2009
Vadodara (Gujarat) based INOX India Limited (Inox India and Cryogenic Vessel Alternatives, INOXCVA) became the first Indian manufacturer of ________ to receive the ‘International Automotive Task Force (IATF) 16949 Certification’ for cryogenic fuel tank production.
- This certification, granted by Bureau Veritas Certification (BVC), covers both the design and manufacturing processes of vacuum-insulated cryogenic fuel tanks at INOX India’s Kalol facility in Gujarat.
- This achievement, positions INOX India Limited as a pioneer in integrating cryogenic technology with automotive applications, in the growing Liquefied Natural Gas (LNG) fuel tank sector in India.
cryogenic equipment
i. The IATF 16949 certification is a mandatory requirement for automotive Original Equipment Manufacturer (OEM) suppliers, ensuring adherence to high-quality management standards in the automotive industry.
ii. IATF 16949 is a vital quality management standard, based on International Organization for Standardization (ISO) 9001, specifically designed to meet the unique needs of the automotive industry.
iii. INOX India Limited, a leading manufacturer of cryogenic storage, re-gas, and distribution systems for LNG, industrial gases, and cryo-scientific applications, operates in India, Brazil, and Europe.
______, Chairman of Tata Sons, was appointed as the Chairman of the Ratan Tata Endowment Foundation (RTEF), a Section 8 entity established by the late Ratan Tata.
N Chandrasekaran
