Jan 2025 Flashcards
RBIHub partners with _____ to launch ______ for women’s financial inclusion
IIM Ahemdabad ; Swanari TechSprint 3.0
- on January 9
- RBIHub: innovation arm and a wholly -owned subsidiary of RBI ; IIM A startup incubator: IIMA Ventures
- 3rd cohort of the Swanari TechSprint 3.0 programme
- the programme is designed to accelerate women-centric Fintech startups to scale their businesses
- this initiative aims to conceptualize, develop and support innovations in technology that enhance access, usage and quality of financial services for all women in India
✓ RBIHub: section 8 company, with an initial capital contribution of Rs. 100 crore
RBI penalised _______ from Karnataka for Regulatory Non-Compliance
4 Cooperative Banks
- Bharat Cooperative Bank (3 lakh)
- Sri Basaveshwara Pattana Sahakara Bank Niyamit (1 lakh)
- Swami Vivekanand Sahakari Bank Niyamit (1 lakh)
- Manjra Mahila Urban Cooperative Bank Limited (50k)
RBI enabled UPI payments for _____ to make payments or recieve funds via third-party UPI apps
Full-KYC PPIs
- PPI: Prepaid Payment Instruments
This move comes in line with the RBI’s Statement on Development and Regulatory Policies
announced on April 5, 2024.
* Previously, UPI payments for PPIs could only be made through the PPI issuer’s mobile apps.
i.Under this updated provision, PPI issuers will be able to allow holders of their Full-KYC PPIs to link these PPIs to their UPI handle and make payments or receive funds via third-party UPI apps.
ii.The transactions will be pre-approved before being processed in the UPI system, ensuring security and the authentication for these transactions will be carried out using the PPI’s existing credentials.
Note: PPI is a financial tool that allows users to store funds on a card or digital wallet for future
transactions.
RBI introduced new guidelines effective from January 1, 2025: Closure of ___________ to increase security, decrease fraud and increase overall efficiency of banking operations
3 types of bank accounts
- Dormant Accounts: No transaction for continuous 2 years or more
- Inactive Accounts: Account inactive for 12 months or longer
- Zero-Balance Accounts: Maintained a zero balance for an extended period
✓ New Fixed Deposits Rules
- Small deposits upto Rs. 10,000: withdraw total amount within 3 months without interest
- Larger deposits: Partial withdrawal upto 50% or Rs. 5 lakh (whichever is lower) within 3 months without interest
- NBFCs to notify the maturity details to depositors at least 2 weeks before maturity date
Ministry of Finance unchanged Interest Rate on Small Savings Schemes for Q4 FY2025 (1st Jan, 2025 to 31st March, 2025)
- Savings Deposit 4.0%
- 1-Year Post Office Time Deposits 6.9%
- Kisan Vikas Patra 7.5% (will mature in 115 months)
- Public Provident Fund 7.1%
- Sukanya Samriddhi Yojana 8.2%
- National Savings Certificate 7.7%
- Senior Citizens’ Savings Scheme 8.2%
- Post Office Monthly Income Scheme 7.4%
- Mahila Samman Savings Certificate 7.5%
National Payments Corporation of India extended deadline for 30% market share cap for UPI apps till _______.
NPCI removed user limit for ______ to increase its UPI service to all users in India
December 31, 2026 ; WhatsApp Pay
Microfinance Institutions Network and _____ (Self-regulatory Organization for Microfinance Institutions) are two self-regulatory organizations that play important roles in the microfinance sector in India
Sa-Dhan (Self-Regulatory Organization for Microfinance Institutions)
Mumbai based Microfinance Institutions Network (MFIN), the self-regulatory organization (SRO) for the microfinance sector, announced a further 3-month postponement for implementing its new rule that limits the number of lenders per borrower to ___, down from ___, to manage microfinance risks
3 ; 4
- initially set to take effect on January 1, 2025, but now the implementation of this regulation postponed to April 1, 2025
- The new regulations are aimed at ensuring better financial management and preventing over-indebtedness.
- The postponement is to provide financial institutions enough time to adapt their Information Technology systems and business rule engines for smoother implementation
- other regulations, such as capping outstanding loans at Rs. 2 lakh per borrower and stopping lending to delinquent customers took effect on January 1, 2025. And also directed its members to stop providing loans to customers whose overdue amounts exceed Rs. 3000 and have been pending for more than 60 days.
Insolvency and Bankruptcy Board of India (IBBI) mandated that all asset auctions under the liquidation process must use the _______ starting _____
eBKray platform ; April 1, 2025
- also known as BAANKNET: Bank Asset Auction Network
- it aims to simplify the auction process, boost transparency, and increase recovery rates in liquidation cases
i.IBBI has directed Insolvency Professionals (IPs) to list all unsold assets from ongoing liquidation cases on
the eBKray platform by March 31, 2025, aiming to improve efficiency, accountability, and buyer access in
the liquidation process.
ii.The IBBI has mandated this platform to address issues with manual and fragmented auctions.
About eBKray platform:
i.The eBKray, launched in 2019, is an advanced property listing and e-auction platform designed for banks
and lending institutions.
ii.It helps recover non-performing asset (NPA) loans by enabling the efficient sale of distressed assets
through digital auctions
IBBI has extended the deadline for Insolvency Professionals (IPs) to submit electronic forms on liquidation and voluntary liquidation processes to March 31, 2025, following concerns from liquidators and insolvency
agencies about technical issues in form submission.
* This marks the second extension of the deadline by IBBI. The original deadline was September 30,
2024, which was first extended to December 31, 2024.
* Currently, IPs submit the requisite details to IBBI through electronic mails(e-mails).
About Insolvency and Bankruptcy Board of India (IBBI):
It is a statutory body that operates under the Ministry of Corporate Affairs(MCA).
Chairperson – Ravi Mital
Headquarters – New Delhi(Delhi)
Formed – 2016
SEBI grants licence to Bengaluru-based Strata Capital Management Private Limited, a real estate fractional ownership platform for its ______
SM REIT: Small and Medium Real Estate Investment Trust, named Strata SM REIT
- Strata SM REIT will provide retail and institutional investors with access to premium commercial properties in key locations, streamlining real estate investments.
NPCI International partners with_____ to expand UPI Acceptance in UAE
Magnati (a leading payment solutions provider in the Middle East)
- to provide the feature of QR (Quick Response) based UPI merchant payments via Magnati’s Point-of-Sale terminals in the United Arab Emirates.
- the partnership aims to expand the QR based merchant payment network to more merchants in the UAE which will facilitate seamless payment options to more than 12 million Indians travelling to Dubai and the UAE annually
- UPI acceptance will be initially provided across Dubai Duty Free, enhancing the shopping and payment experience for Indians tourists.
- It will be further expanded to other key merchant categories including retail, hospitality, transport, and supermarkets etc.
✓ UPI payments are accepted in 7 countries, including Bhutan, Mauritius, Nepal, Singapore, Sri Lanka, France and the UAE.
____ confers Honorary Citizen Award in former CII head Mr Tarun Das
Singapore
- CII: Confederation of Indian Industry
- for his outstanding contributions to Singapore-India relations.
- second Indian to recieve Singapore’s Honorary Citizenship after late Ratan Tata (2008).
RBI assigns Deputy Governor _____ to head Monetary Policy
M Rajeshwar Rao
In January 2025, RBI has decided to conduct ______ auctions on a daily basis until further notice. This move will boost the banking liquidity amid deficit.
Variable-Rate Repo
- in order to manage liquidity deficit, RBI has decided to reduce the Cash Reserve Ratio (CRR) of all banks to 4% of their deposits in two equal tranches of 25 basis points each with effect from the fortnight starting December 14, 2024 and December 28, 2024
- VRR: It acts as means to infuse short-term liquidity into the banking system. It is a process through which RBI allows banks to borrow at rate determined by the market generally lower than Repo rate for maximum period of 14 days.
RBI introduced new measures under the Foreign Exchange Management Act (FEMA), 1999, to ______
Facilitate cross-border trade in INR
- To encourage the use of the Indian Rupee and other local currencies for international trade.
- this move comes as the INR faces depreciation
Key changes related to changes under FEMA introduced by RBI
- overseas branches of Indian banks can now open INR accounts for individuals or entities outside India. This account can be used for permissible current and capital account transactions with Indian residents.
- Non-Residents are now allowed two settle legitimate transactions with other non-residents using balances in their repatriable INR accounts. These accounts include Special Non-resident Rupee Accounts (SNRR), Special Rupee Vostro Accounts (SRVA)
- additionally, the balances in these accounts can be used for investments, such as Foreign Direct Investment in non-debt instruments.
- Indian exporters will now have the flexibility to open accounts in foreign currencies abroad. These accounts can be used to recieve export payments and pay for imports, simplifying trade settlements.
To promote trade in local currencies, RBI has signed agreements (MoUs) with the central banks of ____ (3)
UAE, Indonesia, Maldives
SNRR Account: Special Non-Resident Rupee account
A bank account in India that allows individuals and entities based outside India to hold funds in Indian Rupees.
- any person or entity residing outside India with business interests in India can open this account provided they comply with the rules and regulations of the FEMA Act. The account’s duration cannot exceed 7 years.
- Nationals or entities from Pakistan and Bangladesh need prior approval from the RBI to open SNRR account
SVRA: Special Rupee Vostro Accounts
- In July 2022, the RBI launched SVRA to boost the use of INR for international trade.
- this account is held by a domestic bank for a foreign bank in the domestic currency
Banks from partner countries need to approach an authorised domestic dealer bank to open an SRVA. - Domestic banks must ensure that the correspondent bank is not froma high-risk or non-cooperative country listed by the Financial Action Task Force (FATF)
RBI removed business restrictions imposed on ______ and _____ following remedial measures initiated by the lenders and their commitment to adhere to the fair loan pricing and regulatory guidelines
Ashirvad Micro Finance Limited and DMI Finance Private Limited
- directed the two NBFE to cease and desist from sanctioning and disbursing loans, effective from the close of business on October 21, 2024
- they were charging excessive interest rates and not complying with regulatory guidelines, particularly concerning Weighted Average Lending Rates (WALR) and interest spreads.
United Nations- Department of Economic and Social Affairs (UN-DESA) released a report titled “World Economic Situation and Prospects (WESP) 2025”. The report has projected that Indian economy will grow by ____ in 2025, mainly driven by strong private consumption and investment growth.
6.6%
- Indian economy is further expected to expand by 6.7% in 2026.
- the report revealed that Indian economy registered the growth rate of 6.8% in 2024.
- the report has projected that global economic growth rate will be 2.8% in 2025 and 2.9% in 2026.
New Delhi (Delhi) based Power Finance Corporation Limited (PFC) under the Ministry of
Power (MoP) signed an agreement with Tokyo (Japan) based ______ for 120 billion Japanese Yen (JPY) or _____ to support Renewable Energy(RE) projects
in India.
Japan Bank for International Cooperation
(JBIC) ; Rs.6600 crore loan
- Under the agreement, JBIC will contribute JPY 72 billion(Rs 40.04 billion), while the remaining
amount will be provided by commercial banks.
* The initiative supports India’s commitment to achieving net-zero carbon emissions and
transitioning to cleaner energy sources.
- The long-term loan, with a tenure of up to 20 years, will be granted to PFC as part of JBIC’s ‘Global Action
for Reconciling Economic Growth and Environmental Preservation’ (GREEN) initiative.
The World Bank(WB) released its biannual report titled Global Economic Prospects
(GEP) for January 2025. The report has projected that India’s Gross Domestic Product (GDP) will grow at a
rate of ____ over the next two financial years i.e. for Financial Year 2025-26 (FY26) and FY27.
* The projection for FY26 remained same from its GEP for June 2024 and growth rate for FY27 was
revised downwards by 10 basis point (bps), from its previous estimate of 6.8%.
6.7%
The World Bank(WB) released its biannual report titled Global Economic Prospects
(GEP) for January 2025
The report has estimated India’s GDP growth rate for the current financial year (FY25) at ____, down from
the 8.2% in FY24, due to slowdown in investment and weak manufacturing growth.
6.5%
- The report underscored that India’s services sector is expected to maintain its growth, while
manufacturing activity is projected to strengthen, supported by government initiatives to improve logistics
infrastructure and business conditions through tax reforms.
- It further highlighted that Private Consumption growth is expected to increase due to a stronger
labour market, expanding credit, and decreasing inflation.
- As per the report, investment growth is expected to be stable, strengthened by increasing private
investment, strong balance sheets, and easing financing conditions.
The World Bank(WB) released its biannual report titled Global Economic Prospects
(GEP) for January 2025.
The report has estimated that global growth will remain stable at ____ in both 2025 and 2026. This
projection is based on the gradual decline in inflation and interest rates.
2.7%
* However, the report highlighted that this projection for global growth rate is less than 3.1%
recorded in the decade before the COVID-19 pandemic.
- The report has cautioned about certain risks that may pose certain challenges to the global economy such
as heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation,
and climate-related natural disasters.
- The report projected that South Asia Region (SAR) is estimated to grow at 6.2% in 2025 and 2026,
compared to a 6% growth in 2024. This projection is mainly driven by the robust growth in India.
The Government of _____has signed a Memorandum of Understanding (MoU) with Icelandic
company Verkis Consulting Engineers (Verkis) for geothermal exploration and development in the state.
Uttarakhand
- The agreement was signed in the virtual presence of Chief Minister (CM) Pushkar Singh
Dhami and Icelandic Ambassador Dr Benedict Hoskulsson
- The MoU aims to evaluate and promote geothermal energy across identified sites in Uttarakhand.
- Under the agreement, feasibility studies for these projects will be funded by the Government of Iceland.
Bengaluru (Karnataka)-based ____, India’s largest supply chain finance platform, received approval from the Reserve Bank of India (RBI) to operate as a Trade Receivables Discounting System (TReDS) platform.
* The new business will operate under the brand name DTX (Domestic Trade Exchange).
KredX
- Note: KredX is now the fifth company to receive this license after Receivables Exchange of India (RXIL), M1
Exchange, Invoice Mart, and C2FO (Collaborative Cash Flow Optimization) Factoring Solutions.
About Trade Receivables Discounting System (TReDS) platform:
- TReDS platform launched in 2018 operate under the regulatory framework of the RBI, governed by the
Payment and Settlement Systems Act, 2007 (PSS Act).
- It helps Micro, Small, and Medium Enterprises (MSMEs) access credit by selling their receivables
(bills of exchange, also called factoring units) to financiers, including banks, government departments, and public sector undertakings (PSUs).
Eligibility:
i. To set up a TReDS platform, companies are required to have a minimum paid-up equity capital of Rs 25
crore.
ii. Businesses with a turnover of Rs 250 crore or more are required to register on the TReDS platform.
iii. Additionally, sellers are required to have been in operation for more than a year to participate.
Process:
i. On the TReDS platform, the process begins when the seller uploads an invoice, which is listed as a
Factoring Unit (FU). Buyers, review and approve the FU, making it available for financiers to bid.
ii. The seller chooses the most favorable bid and receives an advance payment, typically 80-90% of the invoice value.
iii. On the due date, the buyer settles the full invoice amount directly with the financier, ensuring timely payments and improved cash flow for the seller.
- TReDS transaction volumes are expected to grow significantly, increasing from
approximately USD 30 billion annually in January 2025 to around USD 50 billion annually by 2026.
The Reserve Bank of India (RBI) has introduced new credit reporting rule. It has mandated that all lenders
must update credit bureau records every ______instead of previous monthly cycle. This direction came
into effect from _____.
15 days ; January 01, 2025
- This new change aims to enhance credit score accuracy and ensure timely reflection of financial
activities of borrowers. - This direction was previously issued by the RBI in August 2024, allows lenders and credit
bureaus to transition to 15-day cycle to upgrade their systems and processes.
Key Impact on Borrowers and Lenders:
i.Halting loan ‘evergreening’: The new rule will help to curb loan ‘evergreening’, where borrower take
new loan to repay old loan, creating an unsustainable debt cycle. The new rule enable the lender to detect
such cases sooner, reducing financial risk for both financial institutions and borrowers.
ii.Faster Updating of Credit Scores: Earlier, under the monthly reporting system, missed payments or
defaults could take up 40 days to appear on credit report of borrower. The new 15-day reporting cycle will
significantly reduce these delays and will enable the lenders to have access to more accurate and timely
data.
Key Benefits:
i.Timely Update of Credit Score: The new 15-day reporting cycle will ensure that consumers credit
histories are kept updated. For borrowers who pay their installments on regular basis, could help in
improving their credit scores.
ii.Enhanced Credit Access: More accurate credit scoring will enable the faster access to loans for
consumers with responsible repayment habits, thus making it easier for consumers to secure credit when
required.
iii.Consumer Empowerment: This new change will help borrowers to have better understanding of their
financial well-being, as changes in their credit scores will be promptly reflected.
iv.Improved Risk Management for Lenders: Regular updates will help the lenders in managing risk
effectively by providing information of borrower’s financial actions and will help in reducing default rates.
In January 2025, Mumbai-based ______ , has raised United States Dollar (USD) 1 billion (Rs. 8,570 crores) through 10-year bonds in the
international market, achieving the lowest-ever spread of 100 basis points(bps) over 10-year United States
(US) Treasury securities.
* The milestone makes EXIM Bank the first Indian organization to issue dollar bonds in 2025,
representing a significant achievement for Indian issuers in international capital markets.
Export-Import Bank of India (EXIM Bank), also known as India Exim Bank
- i.The bank will utilise the funds to finance its ongoing and future projects worldwide.
ii.The amount was raised in the 144A/Reg-S format under Rule 144A which allows Qualified Institutional
Buyers (QIBs) to trade debt securities without needing registration or review by the US Securities and
Exchange Commission (SEC).
iii.Bank of America Securities (BofA Securities), Citigroup, Hongkong and Shanghai Banking Corporation
(HSBC), J.P. Morgan Chase, and Standard Chartered Bank (SCB) served as the main managers and
book runners for the bond offering.
Note: India Exim Bank, established in 1982, has been rated as Baa3 (Stable) by Moody’s Investors Service,
BBB- (Positive) by Standard & Poor’s (S&P), and BBB- (Stable) by Fitch Ratings.
the Reserve Bank of India (RBI) released a ‘Master Direction – Reserve Bank of India
(Credit Information Reporting) Directions, 2025’, consolidating its various guidelines for banks and
financial institutions regarding the reporting of Customer Credit Information(CCI).
RBI issued these directions in the exercise of the powers conferred under Section 11 of the Credit
Information Companies (CICs) (Regulation) Act, 2005.
* The purpose of issuing the MD is to establish a standardized framework for the reporting and
dissemination of credit information, ensure the confidentiality and security of sensitive credit
data, and address other related objectives.
Key Points:
i.Credit Information Companies (CICs) are required to notify customers via Short Message Service(SMS) or
electronic mail(e-mail) whenever their Credit Information Report (CIR) is accessed by specified users (SUs).
* CICs shall send alerts only when the Credit Information Report (CIR) inquiry is reflected in the
customer’s CIR.
ii.Credit Institutions (CIs), including banks and Non-Banking Financial Companies (NBFCs), must inform
customers of the reasons for rejecting their requests for data correction, if applicable, to help them better
understand the issues in their CIR.
iii.Complainants are entitled to a compensation of Rs. 100 per calendar day if their complaint is not
resolved within thirty (30) calendar days from the date of the initial filing with a CI or CIC.
Note: RBI has mandated that all lenders must update credit bureau records every 15 days, effective January
1, 2025.
About Credit Information Companies (CICs):
i.CICs collect public data, credit transactions, and payment histories of people and businesses, mainly for
loans and credit cards.
ii.They collect data from banks, financial institutions, lenders, and other credit-granting entities, and then
compile it into credit reports.
iii.Banks and financial institutions use CIC reports and scores to evaluate your creditworthiness before
approving loans or credit cards.
iv.CICs in India are licensed by RBI and regulated by the Credit Information Companies Regulation Act, 2005
(CICRA), and RBI guidelines.
* Under Section 15 of the CICRA, every credit institution, such as banks, must be a member of at
least one CIC.
* The act states that a CIC can only obtain information from its member institutions.
v.India currently has only four credit information companies registered with the RBI. They are
* Credit Information Bureau (India) Limited (CIBIL)
* Equifax Credit Information Services Private Limited
* Experian Credit Information Company of India Private Limited
* CRIF High Mark Credit Information Services Private Limited
the Securities and Exchange Board of India (SEBI) eased settlement norms for brokerage accounts that remain inactive for over _____. It will takes effect immediately,
replacing SEBI’s August 2024 circular on the same matter.
30 calendar days
- This change aims to reduce procedural inefficiencies for brokers, making the process smoother by
eliminating the daily settlement requirement.
i.Previously, brokers were obligated to identify inactive clients and return their funds within 3 working
days.
ii.The new SEBI guidelines allow brokers to settle the funds of clients who haven’t traded for 30 calendar
days on the upcoming settlement dates as per the monthly cycle, specified in stock exchanges’ annual
calendars.
Note:A brokerage account is considered inactive if the client has not made any trades (buying or selling
stocks) for 30 days in a row.
In January 2025, Mumbai (Maharashtra) based Microfinance Institutions Network (MFIN), the selfregulatory organization (SRO) for the microfinance sector, announced a further three-month postponement
for implementing its new rule that limits the number of lenders per borrower to 3, down from 4, to manage
microfinance risks.
* Initially set to take effect on January 1, 2025, but now the implementation of this regulation
postponed to _____.
* The new regulations are aimed at ensuring better financial management and preventing overindebtedness.
April 1, 2025.
- i.The postponement is to provide financial institutions enough time to adapt their Information Technology
(IT) systems and business rule engines for smoother implementation.
ii.Other regulations, such as capping outstanding loans at Rs.2 lakh per borrower and stopping lending to
delinquent customers took effect on January 1, 2025. And also directed its members to stop providing
loans to customers whose overdue amounts exceed ₹3,000 and have been pending for more than 60 days.
Note- The Microfinance Institutions Network (MFIN) and Sa-Dhan (Self-Regulatory Organization for
Microfinance Institutions) are two self-regulatory organizations (SROs) that play important roles in the
microfinance sector in India.
the National Statistics Office (NSO), Ministry of Statistics and Programme
Implementation (MoSPI) released the _____ for the Financial Year 2024-25 (FY25), along with its expenditure components both at Constant
(2011-12) and Current Prices.
First Advanced Estimates (FAE) of Annual Gross Domestic Product
(GDP)
-Key Highlights
i.Real GDP Growth: As per the NSO data, India’s Real GDP is expected to grow at a 4-year low i.e. at 6.4% in
FY25 against the growth rate of 8.2% in Provisional Estimate (PE)of GDP for FY24 (2023-24).
* Real GDP or GDP at Constant (2011-12) prices is estimated at Rs
184.88 lakh crore in FY25, compared to the PE of GDP at Rs 173.82 lakh crore in FY24.
While, Government Final Consumption
Expenditure (GFCE), which refers to centre
government spending on goods and services, at
Constant Prices, has rebounded to a growth rate
of 4.1% as against the growth rate of 2.5% in FY24.
v.Investment: The report has further estimated that Gross Fixed
Capital Formation (GFCF), an indicator of new investments in the
economy, will grow at 6.4% in FY25 compared with a 9%
increase in FY24.
Sector-Wise Real GVA Growth in FY25:
i.The report highlighted that out of 8 broad economic sectors, only two are estimated to register higher
growth than previous year.
1.Primary Sector:
* Agriculture and its allied sector are estimated to increase to 3.8% (in FY25) from 1.4% (in FY24).
* Public, Administration, Defence and Other Services, estimated to increase from 7.8% (in FY24) to
9.1% (in FY25).
* GVA growth of Mining & Quarrying is expected to increase to 2.9% in FY25, compared to 7.1%
registered in FY24.
2.Secondary sector:
* The cumulative growth of sectors like: electricity, gas, water supply and other utility
services from 7.5% (in FY24) to 6.8% (in FY25).
* The construction segment is estimated to grow at 8.6% in FY25 from 9.9% during the previous
financial year.
* While, GVA growth of manufacturing sector is expected to decelerate to 5.3% (in FY25) from a
high of 9.9% recorded (in FY24) .
3.Tertiary sector: According to NSO data, GVA of sectors like: financial, real estates and professional
services expected to grow at 7.3% (in FY25), down from 8.4% (in FY24).
* The combined growth rate of hotel, trade, transport, and services related to broadcasting, is
estimated to grow at 5.8% (in FY25) as against 6.4% registered in last financial year.
Assessment:
i.These estimates are indicator based and compiled using the bench-mark indicator method(estimates
available for FY24) are extrapolated using the relevant indicators showing the performance of indicators.
ii.The sector-estimates are prepared using different indicators/data sources like: Index of Industrial
Production (IIP), financial performances of listed companies based on available quarterly financial results of
these companies for Q1 and Q2 of FY25, premium related information of life and non-life insurance
companies, among others.
Kolkata (West Bengal) based Coal India Limited (CIL) under the Ministry of Coal(MoC),
signed a non-binding Memorandum of Understanding (MoU) with Mumbai (Maharashtra) based Indian
_____, a Public Sector Undertaking(PSU) under the Department of Atomic Energy
(DAE) to collaborate on the development of critical minerals.
Rare Earths Limited (IREL)
- * The partnership aims to boost India’s ability to mine, extract, refine, and source critical minerals
like mineral sands and Rare Earth Elements (REE), essential for electronics, Renewable
Energy(RE), and defense industries.
* This collaboration is a key component of CIL’s initiative to lessen India’s reliance on essential
minerals such as lithium and cobalt imports.
Tata Elxsi Limited, Bengaluru (Karnataka)-based global design and technology services
provider, signed a Memorandum of Understanding (MoU) with the Council of Scientific & Industrial
Research–National Aerospace Laboratories (CSIR-NAL) to innovate in _____.
Advanced Air Mobility (AAM)
* The collaboration aimed to develop cutting-edge technologies for Unmanned Aerial Vehicles
(UAVs), Urban Air Mobility (UAM) and electric vertical take-off and landing (eVTOL) aircraft.
* It focuses on technologies such as aerodynamic design, autonomous systems and secure
communications to address the unique needs of both manned and unmanned AAM.
the Reserve Bank India (RBI) has announced the interest rate for RBI Floating Rate Savings
Bonds (Taxable) FRSB 2020 (T) for the period of January 1 to June 30, 2025 will remain at _____, comprising the National Savings Certificate (NSC) rate of 7.70% and an additional spread
of 0.35%.
* The interest rate on RBI FRSB is not fixed, adjusted semi-annually based on the interest rate of
the NSC
8.05%
i.Interest earned on RBI FRSB is taxable, with no tax deductions allowed for the investment. Tax Deducted at Source (TDS) applies if annual interest exceeds Rs.10,000.
ii.The bonds require a minimum investment of Rs.1,000 additional investments in multiples of Rs.1,000, and no upper limit. The bonds cannot be pledged as collateral for loans.
iii.The RBI FRSB has a seven-year lock-in period and does not allow early withdrawal, except for senior citizens.
- * Seniors can withdraw early with a penalty after a minimum lock-in period include six years for
aged 60–70, five years for aged 70–80, and four years for those aged over 80.
_____, an Indian online food delivery and e-commerce
platform,headquartered in Bengaluru, Karnataka, signed a Memorandum of Understanding (MoU) with the
Mumbai (Maharashtra)-based National Stock Exchange of India Limited (NSE). The partnership aims to
introduce a financial literacy program designed specifically for Swiggy’s delivery partners, with a strong
focus on empowering women in the workforce.
Swiggy Limited
- The Chief Guest for the event was Amruta Fadnavis, Vice-President of Axis Bank Limited and the
wife of Chief Minister (CM) of Maharashtra Devendra Fadnavis.
i.Swiggy Limited aims to have 1 lakh women delivery partners by 2030, offering them financial training led by trainers certified by the Securities and Exchange Board of India (SEBI).
ii.The program is part of Swiggy’s comprehensive initiatives, such as “She the Change” and “Swiggy Skills”, to empower its workforce and promote financial inclusion.
iii.Swiggy founded in 2014 and the current Managing Director(MD)and Group Chief Executive Officer( CEO) is Sriharsha Majety.
______ was appointed as the Chief Executive Officer(CEO) of the DBS Bank India
Limited (DBIL), a subsidiary of the Singapore-based DBS Group, effective from 1st March 2025. He will also
become a member of DBS’s Group Management Committee.
Rajat Verma
About DBS Bank India Limited(DBIL):
In 2019, DBS Bank announced the launch of DBIL, which was the first large foreign bank in India to operate
as a wholly-owned subsidiary of a global bank. DBIL has expanded to over 350 locations across 19 states in
India.
Chief Executive Officer(CEO) – Rajat Verma
Headquarters – Mumbai, Maharashtra
Nagaraju Maddirala, Secretary of the Department of Financial Services (DFS), Ministry of
Finance (MoF) launched a revamped e-auction portal ______ in New Delhi,
Delhi, designed for the e-auction of properties from all Public Sector Banks(PSB).
‘Bank Asset Auction Network(BAANKNET)’
- About BAANKNET portal:
i.The portal serves as a one-stop destination for buyers and investors, making it easier to explore a wide range of
assets, participate in property e-auctions, and discover valuable opportunities.
ii.The portal features listings that encompass a variety of assets, including residential properties like flats, independent houses, and open plots, along with commercial spaces, industrial lands and buildings, shops,
vehicles, machinery, and both agricultural and non-agricultural land.
iii.The portal supports PSBs in recovering dues, strengthening their balance sheets, and boosting credit
availability for businesses and individuals.
iv.The collaboration between PSBs, the Insolvency and Bankruptcy Board of India (IBBI), and Debt Recovery
Tribunals (DRTs) would be critical to the success of this initiative.
v.The DFS has conducted training sessions on the features of the ‘BAANKNET‘ portal for executives of all PSBs and recovery officers in Debt Recovery Tribunals (DRT) to ensure the portal is used effectively and efficiently.
Note: Over 1,22,500 properties have already been transferred to the new BAANKNET portal, ready for auction. - Key Features:
i.The platform ensures frictionless user journeys across the entire process, from pre-auction to auction and post auction, making each step seamless and efficient.
ii.The platform features an automated and integrated payment gateway along with Know Your Customer(KYC)
tools.
iii.It is built on a microservices-based architecture, utilising an open Application Programming Interface(API)
that allows seamless integration with third-party services.
iv.It offers a dashboard feature for ‘Spend Analytics’ and various Management Information System (MIS) Reports.
v.It provides a dedicated helpdesk and call centre facility, complete with a callback request option.
About Department of Financial Services (DFS):
The DFS, under the Ministry of Finance (MoF), serves as the nodal department for the Banking, Financial
Services, and Insurance (BFSI) sector, administers various Acts related to banking, insurance, and pension
sectors.
Secretary – Nagaraju Maddirala
In December 2024, Gurgaon(Haryana) based ______, a Maharatna Public Sector Undertaking (PSU) under the Ministry of Power(MoP), signed a ‘green loan agreement’ with Japan based Sumitomo Mitsui Banking Corporation (SMBC) at Gujarat International Finance Tec-City (GIFT) in Gandhinagar, Gujarat.
* The loan facility, denominated in Japanese Yen (JPY), is valued at an equivalent of USD 200
million with an additional greenshoe option of USD 150 million.
Power Grid Corporation of India Limited (POWERGRID)
Mumbai(Maharashtra) based TATA AIG General Insurance Company Limited has appointed ______ as its Managing Director(MD) and Chief Executive Officer (CEO), effective from 1st January 2025.
* He succeeds Neelesh Garg, who resigned from the company after leading it for over nine years
‘Amit Ganorkar’
_____ was appointed Chief Executive Officer(CEO) of National Association of
Software and Service Companies (NASSCOM) foundation with immediate effect.
Jyoti Sharma
In December 2024, Mumbai (Maharashtra) based _____ has acquired
a 10% stake in Mumbai (Maharashtra) based Bima Sugam India Federation.
SBI Life Insurance Company Limited (SBI Life)
- The investment, totalling Rs. 6.6 crore was made through the purchase of 66 lakh equity shares with
a face value of Rs 10 each.
i.The board of directors of SBI Life Insurance has approved an aggregate investment in Bima Sugam, not exceeding 10% of its paid-up equity share capital.
ii.Bima Sugam India Federation is an unlisted company founded on June 18, 2024, and is supported by the Insurance Regulatory and Development Authority of India (IRDAI).
Note: In November 2024, ICICI Lombard General Insurance Company had approved an investment of Rs 5 crore in Bima Sugam
The Open Network for Digital Commerce (ONDC), a transformative initiative led by the Department for
Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry (MoC&I), Government
of India (GoI), aimed at revolutionizing digital commerce in India.
- The initiative also aimed to promote open networks for all aspects of goods and services over
digital or electrical networks. - It was 1st launched as pilot project in April, 2022 in 5 Indian cities: New Delhi (Delhi), Bengaluru
(Karnataka), Coimbatore (Tamil Nadu (TN)), Bhopal (Madhya Pradesh (MP)) and Shillong
(Meghalaya).
About ONDC:
i.It is based on open-sourced methodology, which uses open
specifications and open network protocols independent of any
specific platform.
ii.It was incorporated as a ‘non-profit’, Section-8 company on
December 31, 2021 with an authorized capital of Rs. 500 crore and was incubated at the Quality Council of India (QCI), an
independent organisation with DPIIT.
* QCI was joined by Mumbai (Maharashtra)-based Protean eGov Technologies Limited as the co-founder for ONDC.
iii.It aspires to create a level playing field for sellers, buyers, and
service providers across India, particularly Micro, Small and Medium Enterprises (MSMEs).
iv.It serves as unified platform where stakeholders can interact freely without constraints of exclusive ecosystems.
Key Investors of ONDC:
- India’s largest Public Sector Bank (PSB), State Bank of India (SBI);
- National Bank for Agriculture and Rural Development(NABARD);
- HDFC Bank Limited;
- Bombay Stock Exchange (BSE);
- Small Industries Development Bank of India (SIDBI);
- ICICI Bank Limited;
- National Securities Depositories Limited (NSDL), among others.
Key Objectives:
i.Democratization of Commerce: To break the monopoly of large e-commerce platforms by enabling
interoperability across networks.
ii.Inclusivity: To promote small businesses, retailers, and local artisans to access the digital marketplace.
iii.Cost Efficiency: To reduce the cost of customer acquisition and transaction processing for sellers.
iv.Market Expansion: To fix regional and linguistic gaps, bringing untapped markets into the fold of digital
commerce.
v.Customer Empowerment: To increase options for buyers by offering access to a wider array of sellers.
How ONDC Operates?
ONDC uses open network protocols to provide seamless interaction between participants. It allows buyers
and sellers from various platforms to transact with each other using standardized APIs.
Key Components of ONDC:
i.Decentralised Architecture: ONDC does not own or operate e-commerce services like conventional
platforms. It acts as an enabler for interconnectivity.
ii.Open Protocols: ONDC which is based on open standards, ensures that any seller or buyer platform
complying to these protocols can participate.
iii.Role Segregation: Participants are categorised into different roles like: buyer applications, seller
applications, and logistics providers, ensuring clear dissemination of responsibilities.
About MSME TEAM Initiative:
i.In June 2024, the Ministry of MSME launched a sub-scheme “MSME Trade Enablement and Marketing
Initiative” (MSME-TEAM initiative) under the central sector scheme (CSS) “Raising and Accelerating
MSME Performance”, with total budget outlay of Rs 277.35 crore for a period of 3 years up to March 2027.
ii.The primary objective of the scheme is to provide financial assistance to 5 lakh MSMEs across the country
to onboard the ONDC platform, through Seller Network participants, for catalogue preparation, account
management, among others.
iii.Out of the total target beneficiaries of 5 lakh MSMEs, 2.5 lakh (50%) MSMEs would be women owned
MSMEs.
iv.As per the scheme, awareness workshops will be conducted preferably in Tier-2 and Tier-3 Indian cities
and MSME clusters for greater outreach, especially among women and Scheduled Caste (SC)/ Scheduled
Tribe (ST) owned MSMEs.
ONDC Startup Mahotsav:
i.In May 2024, Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of
Commerce and Industry, organised the “ONDC Startup Mahotsav”, a 1st of its kind event held in New Delhi
(Delhi).
ii.ONDC Startup Mahotsav is a unique collaboration between Startup India initiative and ONDC, both are
flagship initiatives of DPIIT.
About DRC Portal:
i.In February 2024, ONDC in collaboration with QCI launched the DigiReady Certification (DRC) portal,
which aimed to assess and certify digital readiness of MSME entities.
ii.The certification process examines various aspects of digital readiness, including the presence of
important documentation, for online operations, proficiency in using software and technology, among
others.
Key Initiatives to Promote ONDC:
i.ONDC has been organising awareness workshops in partnership with various industry associations like:
Retailers Association of India (RAI),Federation of Indian Chambers of Commerce and Industry (FICCI),
National Association of Software and Service Companies (NASSCOM), among others, across the country to
educate the small sellers and businesses about ONDC and its benefits.
ii.ONDC has developed a Handbook to help sellers, especially 1st-time sellers succeed in digital commerce in
14 Indian languages.
* ONDC is in partnership with Bhashini to enhance app development and e-commerce in Indian
languages.
iii.In 2023, ONDC has launched a Feet on Street(FoS) program to support the Network Participants (NPs), to
identify and educate sellers about the benefits of ONDC.
iv.WhatsApp Bot “ONDC Sahayak” launched in 5 different languages to help sellers and buyers to get access
of information about ONDC.
Key Accomplishments of ONDC:
Since its launch in 2022, ONDC has achieved significant milestones:
i.Pilot Programs: It has been implemented successfully in select cities like Bengaluru and Delhi.
ii.First ONDC Fair Price Shop: The Department of Food and Public Distribution (DoF&PD), GoI launched a
pilot project to onboard the Fair Price Shops (FPSs) in Una and Hamirpur districts of Himachal Pradesh (HP)
on the ONDC
iii.Expansion of services and products available on ONDC network: The ONDC network was initially
launched with only two categories i.e. Food and Beverage (F&B) and Grocery, and have gradually expanded
to 11 more categories such as: mobility, fashion, beauty and personal care, home & kitchen, electronics and
appliances, among others.
Awards and Recognitions:
i.Global IP Convention (GIPC) bestowed the ONDC with the “Disruptive Technology” award in 2023.
ii.It was awarded with the Start-up of the Year at 14th India Digital Awards (IDA)in New Delhi, Delhi in
2024.
iii.ONDC was honoured with the prestigious National Awards for e-Governance (NAeG 2024)
under “Application of Emerging Technologies for providing citizen centric services” during the 27th
National Conference on e-Governance (NCeG) held in Mumbai, Maharashtra in September, 2024.
About Open Network for Digital Commerce (ONDC):
Managing Director (MD) and Chief Executive Officer (CEO)- Thampi Koshy
Headquarters- New Delhi, Delhi
In January 2025, United Nations- Department of Economic and Social Affairs (UN-DESA) released a report
titled “World Economic Situation and Prospects (WESP) 2025”. The report has projected that India economy
will grow by _____ in 2025, mainly driven by strong private consumption and investment growth.
6.6%
- * Indian economy is further expected to expand by 6.7% in 2026.
* The report revealed that Indian economy registered the growth rate of 6.8% in 2024.
* The report has projected that global economic growth rate will be at 2.8% (in 2025)
and 2.9% (in 2026).
i.The report highlights that capital expenditure (capex) on infrastructure will significantly boost India’s
economic growth in the coming years.
ii.The report underscored that strong export growth in services and certain categories, particularly
pharmaceuticals and electronics,along with expansion in the manufacturing and services sectors will
strengthen economic activity for India.
iii.The public sector in India continues to fund large-scale infrastructure projects, physical and digital
connectivity, and social infrastructure, including
improvements in sanitation and water supply. Strong
investment growth is estimated to continue through 2025.
iv.Consumer price inflation in India is expected to decelerate
from an estimated 4.8% (in 2024) to 4.3% (in 2025). This is in
line with the Reserve Bank of India (RBI)’s 2 to 6% mediumterm target range
- Easing inflation has led most central banks to halt
rate hikes or reduce policy rates in 2024. The RBI
has kept its 6.5% policy rate unchanged since
February 2023 due to ongoing inflation risks.
v.The United Nations (UN) estimates India’s growth rate at
6.6% for this FY 2025-26, slightly higher than the National
Statistics Office (NSO) projection of 6.4% for 2024-25.
Note – National Statistics Office (NSO) is an Indian government agency under the Ministry of Statistics and
Programme Implementation (MoSPI).
Global Scenario:
i.The report has projected that global economic growth rate will be at 2.8% (in 2025) and 2.9% (in 2026).
These projections are largely same from the rate of 2.8% registered in 2023 and estimated for 2024.
ii.The report highlighted that Global inflation has decreased from 5.6% (in 2023) to an estimated 4.0% (in
2024) and is expected to further decrease to 3.4% in 2025.
iii.The United States of America (USA) is expected to grow at 1.9% in 2025 and recover marginally to 2.1%
in 2026 amid weaker labour market performance, modest income growth and cuts in public spending.
iv.As per the report, the growth rate of China is estimated at 4.9% for 2024 and is expected to decrease
marginally by 10 basis points (bps) i.e. to 4.8% in 2025.
v.The Economic growth in the Least Developed Countries (LDCs) is projected to increase from 4.1%
estimated for 2024 to 4.6% in 2025.
* While, the growth rate for Small Island Developing States (SIDS) is projected to increase by an
average of 3.4% in 2025, decrease from 3.8% in 2024.
About United Nations Department of Economic & Social Affairs (UN-DESA):
Under-Secretary-General for Economic and Social Affairs – Li Junhua
Headquarters- New York, the United States of America (USA)
Establishment- 1948
____ was appointed as the Chairman-cum-Managing
Director (CMD) of National Aluminium Company (NALCO) succeeding Sridhar Patra. He will be presiding
over the corporate office of NALCO located in Bhubaneswar, Odisha.
Brijendra Pratap Singh
the Federation of Indian Chambers of Commerce and Industry (FICCI) released
its Economic Outlook Survey. It projects India’s Gross Domestic Product (GDP) growth for 2024-25 is
projected at 6.4% from the 7.0% estimated in September 2024 reflecting a decline as compared to the 8.2%
growth achieved in 2023-24.
* The survey was conducted in December 2024, attributes the economic moderation to global
uncertainties and domestic challenges.
- Consumer Price Index (CPI)-based inflation has been projected at 4.8% for 2024-25, aligning
with the Reserve Bank of India’s (RBI) forecast in its December 2024 monetary policy whereas
the food inflation is expected to decline.
Key Highlights:
i.According to the FICCI Survey, India’s consumer spending, agriculture and rural consumption is expected
to recover. - The agriculture sector, including allied activities, is estimated to grow at 3.6%, while
the industrial and services sectors are expected to rise by 6.3% and 7.3% respectively.
ii.The survey reported that the growth will be driven by government-led investments in infrastructure,
housing, and logistics.
iii.The growth in private capital expenditure is expected to remain low due to geopolitical uncertainties and
uneven domestic demand.
iv.Furthermore, India is expected to benefit from a considerable growth in manufacturing, electronics, and
pharmaceuticals sectors.
v.Economic growth will be supported by factors such as softening inflation in advanced economies, easing
monetary policies, and recovery in interest-effected sectors. - However, risks can be faced by challenges like geopolitical tensions, trade uncertainties, and
climate-induced disruptions and increased public debt levels.
vi.The survey has estimated the median forecast for exports at USD 450.5 billion and
for imports at USD 729.6 billion in 2024-25
About Federation of Indian Chambers of Commerce and Industry (FICCI):
President– Harsha Vardhan Agarwal
Headquarters– New Delhi, Delhi
Founded– 1927
the Reserve Bank of India (RBI) released the list of Non-Banking Finance Companies (NBFCs) in the Upper Layer (UL) segment under the Scale Based Regulation (SBR) for NBFCs for the Financial year 2024-25(FY25).
The updated list comprises _____ companies that include Life Insurance Corporation of India (LIC) Housing Finance Limited (HFL), Bajaj Finance Limited (BHL), and Shriram Finance Limited (SFL), among others.
15
* RBI has retained Tata Sons Private Limited in the NBFC UL list despite its request to de-register
as a NBFC, is under examination.
- Key Points:
i. Muthoot Finance Limited (MFIN), a flagship of Muthoot Group is the only gold loan NBFC included in the RBI’s ‘UL’ list for three consecutive years. - The company received UL status for the 1st time in FY23.
ii. Piramal Enterprise Limited(PEL), which qualified for inclusion on the list based on scoring, has been eliminated for the year 2024-25 due to ongoing reorganization in the business group.
About SBR (Scale Based Regualtion) Framework:
In October 2021, the RBI introduced the SBR framework, which classifies NBFCs into 4 different layers based on their asset size and scoring methodology.
4 different layers under which NBFCs are categorised:
- NBFC-BL (Base Layer, BL): It mainly consists of non-deposit taking NBFCs with assets less than
Rs 1,000 crore. - NBFC-ML (Middle Layer, ML): It consists of all-deposit taking NBFCs and non-deposit taking
NBFCs with assets more than Rs 1,000 crore. - NBFC-UL (Upper Layer, UL): NBFCs in this layer are subjected to enhanced regulatory requirements for at least 5 years, even if they fail to meet the criteria in subsequent reviews.
- NBFC-TL (Top Layer, TL):NBFC-UL will be moved to TL if RBI recognizes a substantial increase
in the potential systemic risk.
According to the CRISIL Ratings Limited (formerly Credit Rating and Information Services of India Limited),
India’s 1st credit rating agency, the growth in Assets Under Management (AUM) of Non-Banking Financial
Companies (NBFCs) is expected to moderate to _____ in Financial Year 2024-25 (FY25) as well as in FY26.
- This marks a sharp decline of 600-800 basis points (bps) from a strong growth of 23% in FY24.
15-17%
London, the United Kingdom (UK) based data analytics and research
company GlobalData Plc released a report on the Top 25 Global Banks by Market Capitalization in the fourth quarter (Q4) of 2024, with the New York, United States of America (USA) based JPMorgan
Chase & Co remains as the world’s largest bank by market capitalization (MCap) recording an increase of _____ to USD 674.9 billion by the end of Q4 of 2024 from Q4 of 2023.
37.2%
- USA-based Bank of America Corporation (BAC) secured the 2nd position with USD 337.2 billion,
while China-based Industrial and Commercial Bank of China (ICBC) ranked 3rd with USD 328.2
billion. - In Q4 2024, India’s HDFC bank Limited dropped from 7th to 13th position compared to Q4 2023, ICICI bank Limited moved up one spot to 19th from 20th position, and State Bank of India (SBI) retained its 24th position.
Key Highlights:
i.The aggregate MCap of the top 25 global banks rose by 27.1% year-on-year (YoY), reaching USD 4.6
trillion in Q4 ended December 31, 2024, compared to the same period in 2023.
ii.Indian banks showed resilience, with ICICI Bank leading with a 25.8% rise in MCap to USD 105.7 billion,
highlighting the growth of India’s digital banking and credit ecosystem.
* HDFC Bank’s MCap grew by 1.6% to USD 158.5 billion, driven by rising competition and cost
pressures.
iii.USA-based Goldman Sachs saw a remarkable 42.9% growth, climbing from 13th to 9th place in the rankings.
iv.China’s top four banks-ICBC, Bank of China, ABC, and China Construction Bank, recorded annual market
value growth of 30% to 40%.
About GlobalData Plc:
Chief Executive Officer (CEO) – Mike Danson
Headquarters – London, the United Kingdom (UK)
Founded – 1999
Shriram Housing Finance Limited(SHFL), a housing finance company in India, has rebranded as ______. The rebranding follows its acquisition by Warburg Pincus and coinvestors, including Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund from Shriram Finance.
Truhome Finance
- i. Shriram Finance Group received an investment of Rs 1,225 crore, increasing the Company’s net worth to over Rs 3,300 crore.
ii. In December 2024, Shriram Finance sold its entire 84.44% stake in its affordable housing finance
subsidiary SHFL to Warburg Pincus for a sale consideration of Rs 3,929 crores.
the International Monetary Fund (IMF) maintained its growth forecast for India’s
economy at ____ for both Financial Year 2025-26 (FY26) and FY27.
- The IMF’s World Economic Outlook report stated that India’s growth is expected to remain solid at ____, consistent with previous projections made in October 2024.
Global Economic Outlook:
i.The IMF’s global growth forecast remains at ____ for both 2025 and 2026, which is below the historical average of 3.7%
.
ii.The global economy faces risks such as protectionist policies, geopolitical tensions, and inflationary pressures, which could negatively impact trade and investment.
6.5% ; 6.5%
3.3%
India’s Economic Performance:
i.India’s Gross Domestic Product (GDP) growth slowdown in the 2nd quarter of Financial Year
2025 (FY25) to 5.4%, lower than the 6.7% recorded in the same period of the previous financial year
2024 (FY24). The slowdown is attributed to a sharp deceleration in industrial activity.
ii.In FY24, India’s GDP growth was 8.4%, indicating a significant slowdown compared to the previous year 2023.
Key Risks:
i.The IMF warned of risks such as the intensification of protectionist policies, could lead to higher tariffs,
disrupt global trade flows, and lower investment.
ii.Geopolitical tensions in regions like the Middle East and Ukraine could affect commodity prices,
particularly in energy and food sectors.
About International Monetary Fund (IMF):
Managing Director(MD) – Kristalina Georgieva
Headquarters – Washington, D.C., the United States of America(USA)
Founded – 1944
Moody’s Corporation revised India’s economic growth forecast for the financial year 2024-25 (FY25), lowering it to ____, down from 8.2% in the previous FY2024.
- The slowdown is partly due to tight monetary policies aimed at curbing inflation and global
challenges, including geopolitical tensions and adverse weather conditions.
7%
Key Points:
i.Economic Outlook: India’s Gross Domestic Product (GDP) growth is projected to slow to 7% in FY25,
down from 8.2% in FY24.While the growth rate is lower, it remains strong compared to global averages.
ii.Sector Contributions: Despite the slowdown, sectors such as agriculture and services continue to show positive growth. Agriculture grew by 3.5%, and services expanded by 7.1%. However, industrial growth remained weak at 3.6% year-on-year.
iii.India’s GDP per capita, adjusted for purchasing power parity, increased by 11% year-on-year,
reaching USD 10,233 in FY 2023.
Points to be noted
* The Federation of Indian Chambers of Commerce and Industry (FICCI) also revised its growth
forecast for FY25 down to 6.4%, from 7%.
* The Asian Development Bank (ADB) lowered its forecast to 6.5% for FY2024.The ADB also
revised its FY2025-26 forecast to 7% from 7.2% due to tighter monetary policies impacting
demand.
* Reserve Bank of India (RBI) projected a growth rate of 7.2% for FY 2025, but due to changing
economic conditions, it lowered the forecast to 6.6%
Colombo Stock Exchange(CSE) of Sri Lanka and National Commodity and Derivatives
Exchange (NCDEX) of India signed a Memorandum of Understanding (MoU) to enhance commodities and derivatives trading in ______.
Sri Lanka
- The MoU aims to foster knowledge transfer between NCDEX and CSE, focusing on the development of trading systems, regulatory frameworks, and innovative product design benefiting traders and market participants in both countries.
the Reserve Bank of India (RBI) formed a five-member Standing External Advisory
Committee (SEAC) chaired by the former Deputy Governor of RBI _____, to evaluate the applications for Universal Banks (UBs) and Small Finance Banks (SFBs).
The committee has a _____-year tenure, supported by the Department of Regulation, RBI for
secretarial assistance
Mahesh Kumar (MK) Jain ; three (3)
About Standing External Advisory Committee(SEAC)
Members:
The other 4-members of the committee are Revathy Iyer, Director of Central Board of RBI; Parvathy
V Sundaram, former Executive Director (ED) of RBI; Hemant G Contractor, former Managing Director
(MD) of State Bank of India (SBI) and former Chairman of Pension Fund Regulatory and Development Authority (PFRDA) and NS Kannan, former MD & Chief Executive Officer (CEO) of ICICI Prudential Life Insurance Company Limited.
Eligibility Criteria for Conversion into SFBs:
i. Existing Non-Banking Financial Companies (NBFCs), Local Area Banks (LABs), and Micro Finance
Institutions (MFIs) owned by residents are eligible to apply for a license.
ii. The applicant must have a minimum of _____ in paid-up capital
iii. The applicant must have a successful track record of at least ____ years
iv. The promoter must have at least 10 years of experience in the banking sector.
Rs 200 crore ; 10
Eligibility Criteria for Conversion of SFBs into UBs:
i. SFBs must have a minimum net worth of _____, as per the audited figures at the end of the
previous quarter.
ii. Interested SFBs must have scheduled status and a satisfactory performance record for at least ___ years.
iii. It must meet the prescribed Capital to Risk-Weighted Assets Ratio (CRAR) requirement of ____ for SFBs.
iv. Gross non-performing assets (G-NPA) and net NPA (N-NPA) must be less than or equal to 3% and 1%, respectively in the past ____ Financial Years (FYs)
v. The bank’s shares should be listed on a recognized stock exchange.
Rs 1,000 crore ; 5 ; 15% ; two (2)
Note: CRAR is a measure of a bank’s capital relative to its risk-weighted assets.
the Reserve Bank of India (RBI) introduced revised guidelines for the settlement of dues payable by borrowers to Asset Reconstruction Companies (ARCs) under the Master Direction- Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024.
These guidelines
came into force with immediate effect.
These revised guidelines were issued through a circular in exercise of powers given by Sections ___ and _____ of the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security (SARFAESI ) Act, 2002 (54 of 2002).
9 and 12
- These revised norms aimed to enhance transparency, accountability, and efficiency in settlement
processes carried out by ARCs.
Key Changes:
i. As per the new norms, it is mandatory for every ARC to frame a Board-approved policy for settlement of
dues payable by the borrowers.
* These policies are required to cover important aspects such as: cut-off date for one-time
settlement eligibility, permissible concessions based on exposure categories, and valuation
methodologies for settling dues.
* The revised norms mandated that the ARC’s Board of Directors should include a minimum two
independent directors.
settlement of dues payable by borrowers to Asset Reconstruction Companies (ARCs) under the Master Direction- Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024.
Other Key Points:
i. ARC has been mandated to constitute an IAC for examining the proposals related to change in or takeover of management of business of the borrower.
ii. The Committee is chaired by an independent director and has at least two independent directors,
including the chair.
- Or, it should consist of minimum 1/3rd (33%) of the total strength of the board or 3 directors, whichever is higher
Criteria Settlement of Dues Based on Outstanding Amount:
i. For Borrowers with outstanding dues more than 1 crore: In this case, settlement of dues will be done only after the proposal is thoroughly examined by an Independent Advisory Committee (IAC), which shall comprise professionals with expertise in finance, law, or technical fields.
ii. For Borrowers with outstanding dues of Rs 1 crore or below: In this case, settlements can be
approved by an official who was not part of the acquisition (as an individual or part of a committee).
* A quarterly report detailing trends and recovery timelines for these accounts must be submitted before the Board or Committee of the Board.
About Asset Reconstruction Company (ARC):
i. It is a Financial Institution (FI) that buys Non-Performing Assets (NPAs) or bad loans from banks and FI and help them to recover from the NPAs.
ii. They are registered with RBI and are regulated under SARFAESI Act, 2002.
iii. The Net Owned Funds (NOFs) of ARCs should be Rs 100 crore or more and they are also require to
maintain a capital adequacy ratio (CAR) of 15% of its risk-weighted assets.
iv. Some of the renowned ARCs in India are: Edelweiss Asset Reconstruction Company Limited (EARCL),
National Asset Reconstruction Company Limited (NARCL), among others.
_____, a cross-border fintech company based in
Bengaluru, Karnataka, received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB).
- It also secured Payment Service Provider (PSP) approval from Amazon, an American multinational technology company headquartered in Washington, United States of America (USA). This approval allows the to process payments for exporters participating in Amazon’s Global Selling programme.
Currently, only five companies have received final approval from the RBI to function as PA-CB, including Adyen India Technology Services Private, Amazon Pay India Private Limited, Cashfree Payments, IndiaIdeas.com, and Pay10 Services Private Limited.
Skydo Technologies Private Limited
Founded in 2022, Skydo is among the first in the cross-border payments industry to receive RBI’s
approval. It primarily serves small and medium-sized businesses and freelancers by providing virtual foreign accounts for receiving international payments.
The company works with global banks to provide a comprehensive solution for invoicing, payments, and reconciliation, processing over USD 250 million (mn) in annual export payments.
The Reserve Bank of India (RBI) has approved the establishment of National Urban Co-operative Finance and Development Cooperation (NUCFDC) 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).
- In January 2025, Union Minister Amit Shah, the Ministry of Cooperation inaugurated the corporate office of the NUCFDC during the inaugural function of International Year of
Cooperatives 2025 held in Mumbai, Maharashtra.
i. In February 2024, NUCFDC obtained registration from RBI after raising paid up capital of Rs 117.95 crore.
ii. NUCFDC requires the RBI approval to act as Self-Regulatory Organisation (SRO) for UCBs, with functions
prescribed by the RBI.
- However, NUCFDC will receive this approval only if it attains the paid up capital of Rs 300 crore
within 1 year from the date of registration by RBI i.e. up to 7th February, 2025.
About National Urban Co-operative Finance and Development Cooperation (NUCFDC):
Chairman- Jyotindra M. Mehta
Chief Executive Officer (CEO) – Prabhat Chaturvedi
Headquarters- Mumbai, Maharashtra
Key Functions of NUCFDC:
RBI has mandated NUCFDC to provide two types of services: Fund-based support and Non-fund based support to UCBs which are its shareholder-members.
i. Fund-based support: NUCFDC is required to provide capital support to UCBs as per regulations and guidelines & terms and conditions.
* It is also required to offer secured credit lines on merits to UCBs to handle temporary liquidity
mismatches.
* It will help in re-financing UCBs against their loans.
* It will manage deposits and borrowings from UCBs and Financial Institutions (FIs).
* Investments
ii. Non-Fund based services: NUCFDC will support the rollout of a shared Information Technology (IT)
platform offering a comprehensive suite of services.
- It will provide treasury management, payment and settlement services, and other operational
solutions to enhance the capabilities of UCBs. - It will also provide training, consultancy and Human Resource (HR) support to ensure UCBs are well-equipped to adapt evolving regulatory and market demands
the Reserve Bank of India (RBI) replaced the board of directors of New Delhi (Delhi) based
______ over governance issues and payment defaults after
audits revealed fraud and governance lapses.
Aviom India Housing Finance Private Limited (AIHFPL)
This action was taken under Section 45-IE(1) of the RBI Act, 1934, following the recommendation
of the National Housing Bank (NHB).
i. The RBI appointed Ram Kumar, former Chief General Manager (CGM) of Punjab National Bank (PNB), as the administrator of AIHFPL under Section 45-IE(2) of the RBI Act, 1934.
ii. RBI to initiate the resolution process of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 (FSP Rules, 2019).
About Aviom India Housing Finance Private Limited (AIHFPL):
Managing Director (MD) & Chief Executive Officer (CEO) – Kaajal Aijaz Ilmi
Headquarters – New Delhi, Delhi
Founded – 2016
______ , India’s flagship digital payments application (app)
powered by Mumbai (Maharashtra)-based NPCI BHIM Services Limited(NBSL), a subsidiary of the National
Payments Corporation of India (NPCI), has partnered with the Fintech Yatra 2025 as a Principal Partner.
- This strategic collaboration aims to accelerate the adoption of digital payments, enhance financial inclusion, and promote digital literacy across the country
Bharat Interface Money (BHIM)
The Fintech Yatra is a 10,000 kilometer (km) long epic road journey, which aimed to identify, understand, and boost players in financial services across India. It is a platform that connects startups, Financial
Institutions (FIs), and investors while simultaneously promoting digital independence.
As part of this collaboration, over 200 individuals from select Non-Government Organisations (NGOs) will
be trained under a train-the-trainer model, empowering them to raise awareness about digital payments.
Mumbai (Maharashtra) based HDFC Securities Limited, a subsidiary of HDFC Bank Limited, entered into a strategic partnership with Hyderabad (Telangana)
based _____ to improve accessibility and adoption of the National Pension System (NPS).
- The partnership aims to simplify NPS management by offering features like flexible transaction downloads and real-time Short Message Service (SMS) notifications.
- The collaboration brings together HDFC Securities’ network of more than 3.5 lakh subscribers and 2,700 corporate clients with KFintech’s Central Recordkeeping Agency (CRA) platform.
KFin Technologies Limited
the Reserve Bank of India (RBI) announced a series of steps to inject about ______ into the banking system in a phased manner. The main objective of these steps is to address the liquidity shortfall caused by the RBI’s intervention in selling dollars to stabilize the Indian Rupee (INR)
Rs 1.5 lakh crore
i. RBI will purchase Government Securities (G-secs) through Open Market Operations (OMO) worth Rs 60,000 crore in three tranches of Rs 20,000 crore each.
* The OMO auctions will be held on January 30, February 13, and February 20, 2025.
ii. RBI has further announced a 56-day Variable Rate Repo (VRR) auction for a notified amount of Rs 50,000 crore which is scheduled to be held on February 7, 2025.
* The VRR aims to ensure liquidity requirements of banks till March 31, 2025.
iii. As part of various steps to manage liquidity conditions, RBI announced a USD/INR Buy/Sell Swap auction of USD 5 billion for a tenor of 6 months to be held on January 31, 2025.
* Under this swap arrangement, RBI will borrow dollars in exchange for rupees, with the interest cost determined by the price at which it agrees to repurchase the dollars at the end of the tenure
VRR: It acts as a means to infuse short-term liquidity into the banking system. It is a process through which RBI allows banks to borrow at a rate determined by the market generally ____ than Repo rate for a maximum period of 14 days.
ii. OMO (open market operations): It is a quantitative tool of RBI’s Monetary Policy, which is used to maintain liquidity in the banking system. It involves buying or selling of ____ from or to the public and banks.
lower ; G-secs
the Indian Software Product Industry Round Table (iSPIRT), a think tank for India’s software industry, launched the _____ which was formed
under Section 8 of the Companies Act
Priority Sector Lenders Association of India (PSLAI)
PSLAI aims to streamline and enhance the availability of loans under Priority Sector Lending
(PSL) norms, a critical financial sector for banks and Non-Banking Financial Companies (NBFCs)
in India
- i. As per RBI guidelines, banks must allocate at least 40% of their Adjusted Net Bank Credit (ANBC) to PSL loans, which leads to an annual disbursement of Rs 64 trillion towards sectors like agriculture, Micro, Small, and Medium Enterprises (MSMEs), and affordable housing.
ii. Currently, the MSME sector which contributes 29% of India’s Gross Domestic Product (GDP) and 45.73% of exports faces a credit gap of about Rs 103 trillion in the Financial Year 2024 (FY24).
iii. Despite a demand for credit of Rs.138 trillion, only 25% of the formal financing needs of MSMEs are met, with the majority relying on informal credit sources.
* To address this issue, the PSLAI was established to improve credit access for MSMEs by leveraging technology
Objectives of PSLAI:
About Priority Sector Lenders Association of India (PSLAI):
Chief Executive Officer (CEO)- Priyashmita Guha
Headquarters- Mumbai, Maharashtra
Established- 2025
i. Credit Disbursements: PSLAI aims to double the Rs 64 trillion currently disbursed annually under PSL and reach Rs 130 trillion in the next 3-5 years.
ii. MSME Growth: MSMEs will benefit from innovative lending solutions using Digital Public Infrastructure
(DPI), such as Open Credit Enablement Network (OCEN), which assesses borrowers’ creditworthiness based
on cash flow data.
iii. New Lender Categories: PSLAI plans to establish a new category of NBFC-PSL focusing on PSL loans,
similar to existing categories like NBFC-Micro Finance Institutions (NBFC-MFIs) & NBFC-Housing Finance Companies (NBFC-HFCs).
_____, based in Mumbai, Maharashtra, in partnership with the Reserve Bank
Innovation Hub (RBIH) in Bengaluru, Karnataka, and the S.P. Jain Institute of Management and
Research (SPJIMR) in Mumbai, launched the Frictionless Finance Accelerator Programme on the occasion of National Startup Day (January 16 2025).
YES Bank Limited
- This initiative aims to assist fintech startups in overcoming challenges, scaling their innovations,
and promoting financial inclusion in India.
i. The programme will focus on innovations in digital lending, Artificial Intelligence (A)I-powered risk management, blockchain-based payments, and financial inclusion (FI).
ii. Startups will receive support from RBIH, SPJIMR, and YES Bank, with platforms like YES Connect helping them navigate regulations, improve business models, and foster growth through partnerships with fintechs,
industry leaders, and regulators.
iii. The programme is in line with the growing investment in global venture capital, which reached USD 314
billion in 2024, and the projected USD 20 trillion global digital economy by 2030
, the Reserve Bank of India (RBI) imposed penalties on 3 major banks for failing to comply with regulatory guidelines.
- The banks include the Srinagar, Jammu & Kashmir based Jammu and Kashmir Bank Limited (J&K
Bank),
Mumbai (Maharashtra) based Bank of India Limited (BoI) and
Bengaluru (Karnataka)
based Canara Bank Limited.
Birla Institute of Management Technology (BIMTECH) in Greater Noida, Uttar Pradesh
(UP), a top Indian business school, launched ______, a blockchain-based digital currency for its ecosystem.
‘BIMCOIN’
- Following the Indian Institute of Technology (IIT) Madras, Chennai, (Tamil Nadu, TN), BIMTECH
has become the 1st business management institute in India to launch a blockchain-based
digital currency. - This initiative aligns with the Viksit Bharat 2047 aims to streamline payments and transactions among students, vendors, and administrators through a secure, transparent, and decentralized platform.
i. BIMCOIN operates on a blockchain, offers features like decentralization, transparency, and smart
contracts.
ii. It enhances security, protects against fraud, and promotes ethical practices while serving as a comprehensive educational tool for students to gain hands-on experience in blockchain technology and digital currencies.
