April '25 Flashcards
(84 cards)
1
Q
the Reserve Bank of India (RBI) released India’s latest International Investment Position (IIP) data.
- As per IIP data, net claims of non-residents in India increased by USD 11 billion, to _______ during the 3rd Quarter (Q3: October to December) of Financial Year 2024-25 (FY25).
- The data showed a decrease in foreign assets of Indian residents by ______ and also, the claims of non-residents’ in India decreased by USD 29.1 billion. This results in an increase in India’s total foreign liabilities.
- RBI cited that the decrease in Indian residents’ foreign assets during Q3FY25 was mainly due to the decline of USD 70.1 billion in reserve assets. However, reserve assets witnessed an increase of USD 13.2 billion compared to December 2023.
A
USD 364.5 billion ;
USD 40.1 billion ;
2
Q
As per RBI’s latest data, the decline in foreign liabilities of India was due to the decrease in inward direct and portfolio investments during Q3FY25, though trade credit, loans and currency & deposits registered an increase.
- The data showed that reserve accounts represented _____ of India’s total international financial assets in December 2024. It further highlighted that difference in the exchange rate vis-à-vis other currencies impacted the change in liabilities, when valued in the United States of America (USA) dollar terms.
- The data revealed that the ratio of India’s international assets to international liabilities increased from 73.1 % (in December 2023) to 74.7% (in December 2024).
- The data showed that the share of debt liabilities in total external liabilities increased to 53.6% (in December 2024), compared to 52.9% (in Q2FY25) and 51.2% (in December 2023).
A
59%
3
Q
According to RBI’s latest data, India’s Current Account Deficit (CAD) has increased slightly to USD 11.5 billion, which accounts _____ of country’s Gross Domestic Product (GDP), during Q3FY25 from USD 10.4 billion during Q3FY24, amid increase in service exports.
- However, India’s CAD moderated sequentially from USD 16.7 billion in Q2FY25, which represents 1.8% of country’s GDP, on the account of higher software services income and remittances to the Indian diaspora. The data further revealed that overall India’s foreign exchange reserves (FER) declined by USD 37.7 billion, on Balance of Payment (BoP) basis in Q3FY25 compared to an increase of USD 6.0 billion in Q3FY24.
A
1.1%
4
Q
the Reserve Bank of India (RBI) released India’s latest International Investment Position (IIP) data.
i. Foreign Direct Investment (FDI): As per the data, FDI registered a net outflow of USD2.8 billion in Q3FY25 compared to inflow of USD 4.0 billion in the corresponding period of FY24.
ii. Foreign Portfolio Investment (FPI): The data highlighted that FPI recorded a net outflow of USD 11.4 billion (in Q3FY25) as against an inflow of USD 12 billion in (Q3FY24).
iii. External Commercial Borrowings (ECBs): The net inflows under ECBs to India reached to USD 4.3 billion (in Q3FY25), compared to an outflow of USD 2.7 billion in the same period of last financial year.
iv. NRI Deposits: The net inflow of Non-Resident Indian (NRI) deposits amounted to ______, lower than USD 3.9 billion in FY24.
A
USD 3.1 billion
5
Q
i. As per RBI, India’s CAD has increased to USD 37 billion (_____of GDP) during 9 months (from April, 2024 to December, 2024) of FY25, from USD 30.6 billion (1.1% of GDP) during 9MFY24 mainly due to higher merchandise trade deficit.
- Also, net invisible receipts were higher during 9MFY25 compared to the same period of FY24, on account of services and transfers.
ii. Net FDI inflow stood at USD 1.6 billion during 9MFY25, which was lower than USD 7.8 billion recorded during 9MFY24.
iii. Also, net FPI inflow amounted to USD 9.4 billion during 9MFY25, lower than USD 32.7 billion during the corresponding period a year ago.
iv. India’s FER (on BoP basis) saw a decrease of USD 13.8 billion during 9MFY25.
A
1.3%
6
Q
In March 2025, Mumbai (Maharashtra)-based Reserve Bank of India (RBI) has announced to increase the aggregate limit available to Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility at the existing repo rate, from Rs 10,000 crore to _______, with effect from (w.e.f) April 02, 2025.
- This decision was taken based on an assessment of the prevailing and evolving liquidity conditions.
- RBI has clarified that the limit for individual SPDs is being conveyed to them separately and also all other terms and conditions of the facility will remain unchanged.
A
Rs 15,000 crore
i. Earlier in March 2025, RBI allowed SPDs to participate in all repo operations, irrespective of the tenor conducted by the central bank.
ii. Previously, SPDs were permitted to participate in all overnight liquidity management operations, except the Marginal Standing Facility (MSF).
iii. Further, SPDs were permitted to participate in other operations such as long-term Variable Rate Repo (VRR) operations and daily VRRs on a case-to-basis.
7
Q
At the end of December 2024, India’s external debt rose to _______, marking a 10.7% increase from USD 648.7 billion in December 2023 as per according to ‘India’s Quarterly External Debt Report’ released by the Ministry of Finance (MoF).
- The external debt increased by 0.7% on a quarterly basis, reaching USD 712.7 billion in September 2024. By December 2024, the external debt-to- Gross Domestic Product(GDP) ratio was 19.1%, slightly up from 19% in the previous quarter.
A
USD 717.9 billion (bn)
8
Q
i. The long-term debt (with an original maturity of above one year) at the end of December 2024 was at _____, recording a marginal increase of USD 0.2 bn over its level at end of September 2024.
ii. The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.4% at end of December 2024 from 18.9% at end of September 2024
A
USD 578.3 bn
9
Q
The valuation effect due to the appreciation of the US dollar vis-a-vis the rupee and other major currencies, such as the yen, the euro and Special Drawing Rights (SDR), amounted to _____ during the quarter ended December 2024.
- When the valuation effect is excluded, the increase in external debt would have been USD 17.9 bn instead of USD 5.2 bn at end of December 2024 over September 2024.
- USD denominated debt remained the largest component of India’s external debt, with a share of 54.8% at end of December 2024, followed by Indian Rupee (30.6%), Japanese Yen (6.1%), SDR (4.7%) and Euro (3.0%).
A
USD 12.7 bn
10
Q
Changes in External Debt Distribution:
The central government’s external debt saw a decline, the non-government sector experienced an increase.
i. Among the non-government sectors, non-financial corporations held the largest share at 36.5%, followed by deposit-taking corporations (excluding the central bank) at 27.8%. The central government accounted for 22.1%, and other financial corporations held 8.7%.
ii. In terms of the composition of external debt, loans represented the largest share at _____, followed by currency and deposits at 23.1%, trade credit and advances at 18.8%, and debt securities at 16.8%.
iii. Regarding debt servicing, the ratio of principal repayments and interest payments to current receipts stood at 6.6% by December 2024, slightly lower than 6.7% in September 2024.
A
33.6%
11
Q
the National Bank for Agriculture and Rural Development (NABARD), headquartered in Mumbai (Maharashtra), and State Bank of India (SBI), based in Mumbai , signed a Memorandum of Understanding (MoU) to strengthen rural development in ______.
- The partnership aims to enhance livelihoods and the credit ecosystem through targeted financial interventions.
A
Assam
i. The strategic partnership between NABARD and SBI focuses on promoting economic growth in rural areas, enhancing rural livelihoods, and strengthening the credit ecosystem.
ii. As part of this collaboration, the two institutions have set a target of financing Rs. 500 crores in the Financial Year 2025-26 (FY26) , with an ambitious aim to scale it to Rs. 1,000 crores annually thereafter.
iii. The initiative will focus on providing financial support to the agricultural and rural sectors, ensuring that these areas benefit from improved access to credit, infrastructure, and livelihood opportunities. This partnership is seen as a critical step towards empowering rural Assam and contributing to its long-term economic sustainability.
12
Q
Mumbai (Maharashtra)-based ______ has transferred corporate loans worth over Rs 10,000 crore to ICICI Bank Limited (Mumbai-based) and Federal Bank Limited (Kochi, Kerala-based) through Inter-Bank Participation Certificates (IBPC) to bolster liquidity amid concerns over potential deposit outflows linked to an ongoing accounting probe.
- The IBPC is a money market instrument used by banks to share loans and meet year-end lending targets. In these transactions, the selling bank receives 40% of the loan amount, which helps in managing liquidity and retiring deposits.
A
IndusInd Bank Limited
13
Q
the Securities and Exchange Board of India (SEBI), headquartered in Mumbai (Maharashtra), has extended the deadline for implementing its retail algorithmic (algo) trading regulations from April 1, 2025, to _____.
A
August 1, 2025
- The decision follows requests from stock exchanges for additional time to finalize technical standards in collaboration with the Brokers’ Industry Standards Forum (ISF).
Key Details of the Regulatory Framework:
- Announcement Date: Introduced on February 4, 2025, the norms target retail investors using automated programs for order execution.
- Scope: Defines roles for brokers (acting as principals) and algo providers (agents using broker authorized Application Programming Interfaces/APIs).
- Tracking Mechanism: All algo orders must carry unique identifiers for audit and tracking purposes.
14
Q
Mumbai (Maharashtra) based ______ received authorization from the New Delhi (Delhi) based Central Pension Accounting Office (CPAO) under the Department of Expenditure(DoE), Ministry of Finance(MoF), to disburse pensions to central government pensioners.
A
IDFC FIRST Bank (Formerly Infrastructure Development Finance Company)
- Pensioners can now receive their pensions directly into their IDFC FIRST Bank Savings Account.
i. This authorization enables the bank to provide pension disbursement services to various categories of pensioners, including:
- All India Service Officers, Former Members of Parliament(MP), Retired Judges of High Courts and the Supreme Court, Former Presidents and Vice Presidents of India and Officials of Civil Ministries and Departments (excluding Railways, Posts, Telecom, and Defence)
ii. Pensioners have the option to open a joint savings account with their spouse to enable uninterrupted family pension payments.
iii. The offers a range of benefits under its Savings Account for pensioners, including zero-fee banking on 36 services such as debit card issuance, IMPS, NEFT, RTGS, chequebooks, and ATM withdrawals.
- Senior citizens also receive Rs. 2 lakh cyber insurance, unlimited online health consultations and free doorstep banking.
- Additionally, the bank provides favourable fixed deposit terms with no penalty on premature withdrawals and an extra 0.5% interest on Fixed Deposit(FDs) for senior citizens.
15
Q
_______, one of the largest Private Sector Banks (PVB) in India partnered with a Fortune 500 company in India to introduce a B2B (Business to Business) collections using Bharat Connect, formerly known as Bharat Bill Payment System (BBPS), developed by NPCI Bharat BillPay Limited (NBBL).
- This makes the Bank the first bank to implement this innovative payment solution, leveraging its advanced Application Programming Interface (API) banking stack.
- It aims to streamlines B2B payments, automates processes in supply chains, and improves digital payment efficiency for corporate clients.
A
Mumbai (Maharashtra)-based Axis Bank Limited
i. The platform integrates with multiple ordering applications across sectors like Fast-Moving Consumer Goods (FMCG), Pharma, Automotives, and Healthcare.
ii. Enables wholesale distributors and retailers to make invoice payments directly from their applications.
iii. Axis Bank acts as a Biller Operating Unit (BOU), offering a customizable and scalable solution.
16
Q
Pune (Maharashtra) based India Energy Storage Alliance (IESA) a leading industry body in India for energy storage, green hydrogen, and e-mobility (electro mobility), appointed _______ as its President effective from April 01, 2025.
A
Debmalya Sen
17
Q
About India Energy Storage Alliance (IESA):
i. Founded by the United States of America(USA)-based Customized Energy Solutions (CES), IESA aims to establish India as a global leader in clean energy technologies.
ii. It has members from 180+ companies across sectors like Electric Vehicle (EV) manufacturing, microgrids, cleantech startups, and research institutes.
iii. It aims to accelerate India’s net-zero emissions target by 2070 through innovation in battery storage, grid modernization, and green hydrogen.
President – Debmalya Sen
Headquarters –Pune, Maharashtra
Established – _____
A
2012
18
Q
the Government of India (GoI) appointed _______, the 5th Chairperson of the New Delhi (Delhi) based Competition Commission of India (CCI), with additional charge as Chairperson of the New Delhi based National Financial Reporting Authority (NFRA) under the Ministry of Corporate Affairs (MoCA).
A
Ravneet Kaur
19
Q
the Reserve Bank of India (RBI) has granted a Non-Banking Financial Company (NBFC) licence to Bengaluru (Karnataka)-based ________, a subsidiary of FirstPay Technologies.
A
Securis Finance Private Limited
- This approval enables the company to address the credit needs of teenagers by providing education loans ranging between Rs 50,000 and Rs 5 lakh.
20
Q
India Post, under the Department of Posts (DoP), has signed a Memorandum of Understanding (MoU) with Mumbai (Maharashtra)-based _______ to offer door-to-door Know Your Customer (KYC) verification services.
- This initiative aims to simplify mutual fund onboarding for investors, particularly in remote regions.
A
Nippon Life India Asset Management Limited (Nippon India Mutual Fund)
21
Q
the Reserve Bank of India (RBI) announced that Foreign Portfolio Investors (FPI) investment limits in Government securities (G-Secs), state development loans (SDLs), and corporate bonds will remain unchanged for the Financial Year _____. The decision aims to balance foreign capital inflows with financial stability.
- The RBI’s maintenance of the current FPI investment limits underscores its commitment to fostering a stable and attractive investment environment
A
2025-26 (FY26)
22
Q
Key Investment Limits and Allocation:
i. The RBI retained the following FPI caps:
* 6% for central government securities.
* 2% for state government securities.
* _____ for corporate bonds.
ii. The general investment limit for G-Secs is set at Rs 2.79 trillion (USD 32.71 billion) for April–September, 2025 and Rs 2.89 trillion for October 2025–March 2026.
iii. For corporate bonds, the ceiling is Rs 8.22 trillion (April–September, 2025) and Rs 8.80 trillion (October 2025–March 2026).
iv. As of April 2025, FPIs have utilized 22.3% of the G-Sec limit and 15.7% of the corporate bond limit, indicating substantial untapped potential for foreign investments
A
15%
23
Q
Hyderabad (Telangana)-based HIL Limited (formerly known as Hyderabad Industries Limited), a C.K. Birla Group, an entity specializing in home and building products, has rebranded as ______ as part of its strategic transformation.
A
BirlaNu Limited
The move aims to unify its brand architecture, enabling synchronized communication across its product categories.
- With 32 manufacturing facilities across India (including Telangana and Andhra Pradesh) and Europe, BirlaNu serves customers in 80+ countries
24
Q
two Indian banks namely, Mumbai (Maharashtra)-based HDFC Bank Limited and IFSC unit of IDFC First Bank and Stock Holding Securities IFSC Limited (SSIL), a broking arm of StockHolding Corporation of India Limited (Stock Holding) are among the 1st entities that have been designated as ______ in Gujarat International Finance Tec-City- International Financial Services Centre (GIFT-IFSC) based in Gandhinagar (Gujarat).
A
corporate agents
- Corporate Agents act as insurance intermediaries that represent an insurance company and sell their insurance products to a wider audience.
Key Points:
i. With this recognition, all these entities have now been allowed to sell insurance products along with their own products to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) living across the world.
ii. The key advantage for an NRI to purchase an insurance product from GIFT City is that the succession will happen under the Indian Succession Act, 1925.
25
i. In March 2025, International Financial Services Centres Authority (IFSCA) had set up a standing committee on insurance to consolidate GIFT-IFSC’s position as a global insurance hub.
ii. The committee chaired by ______, former chairperson of Mumbai (Maharashtra)-based Life Insurance Corporation of India (LIC) .
Chairman– K. Rajaraman
Headquarters– GIFT City, Gandhinagar, Gujarat
Established– 2020
MR Kumar
About International Financial Services Centres Authority (IFSCA): It is the unified regulator for the development and regulation of financial products, financial services and financial institutions such as GIFT-IFSC, in India. It was established under IFSCA Act, 2019.
26
Mumbai (Maharashtra)-based National Bank for Agriculture and Rural Development (NABARD) announced that it has extended Rs 5,830 crore as financial assistance to _____ in Financial Year 2024-25 (FY25) which concluded on April 01, 2025, to boost rural infrastructure across the state.
About National Bank for Agriculture and Rural Development (NABARD): NABARD was established under NABARD Act, 1981. It works under the jurisdiction of Department of Financial Services (DFS), Ministry of Finance (MoF). It was formally established in 1982 based on the recommendations of B.Sivaramman Committee,
Established: 12 July 1982
Chairman- Shaji K.V.
Headquarters- Mumbai, Maharashtra
Jharkhand
This financial assistance has significantly augmented rural infrastructure development, livelihood promotion, institutional strengthening, and financial inclusion in the state.
* The financial support included funds for irrigation projects, rural development, financial inclusion and tribal community empowerment, have benefitted over 2 lakh farmers and 50, 000 rural families.
Key Allocations:
i. The major portion of this financial support was availed by Ranchi (Jharkhand)-based Jharkhand Rajya Gramin Bank and Ranchi (Jharkhand)-based Jharkhand State Cooperative Bank Limited, amounting to Rs 2,143 crore.
ii. NABARD extended Rs 1,988 crore to Jharkhand under the Rural Infrastructure Development Fund (RIDF), for development of critical infrastructure projects.
27
Mumbai (Maharashtra) based Reserve Bank of India (RBI) imposed monetary penalties on two Karnataka-based banks : Karnataka Gramin Bank and the South Canara District Central Co-operative Bank Limited(SCDCC) for non-compliance with specific regulatory provisions.
* The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD), with reference to its financial position as on March 31, 2023.
i. RBI levied a monetary penalty of Rs 1 lakh on Karnataka Gramin Bank for violating directions on Income Recognition, Asset Classification, and Provisioning (IRACP) norms (1996). The bank failed to classify certain loan accounts as Non-Performing Assets (NPAs).
ii. The RBI imposed a penalty of Rs 5 lakh on SCDCC Bank for Sanctioning loans to directors, contravening provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
iii. Penalty imposed under Section 47A(1)(c) of the Banking Regulation Act, 1949 (BR Act).
28
Mumbai (Maharashtra)-based market regulator Securities and Exchange Board of India (SEBI) issued operational framework for a performance validation agency called the_______.
Past Risk and Return Verification Agency (PaRRVA)
* This new framework aims to prevent misleading claims about past performance in advertisements related to financial products by research analysts (RAs), investment advisors (IAs), and stock brokers.
* As per SEBI’s circular, a Credit Rating Agency (CRA) will be recognised as a PaRRVA in terms of Regulation 12A of the ‘SEBI (Credit Rating Agencies) Regulations, 1999’ (“CRA Regulations”) read with Regulation 16E of the Intermediaries Regulations.
* In addition to that, such CRA engages with a recognized Stock Exchange (SE) will act as PaRRVA Data Centre (“PDC”).
29
a report by Mumbai (Maharashtra) based State Bank of India (SBI) projected that India’s retail inflation may remain between _____ and _____ in the first half (April to September) of Financial Year 2025-26 (H1 FY26).
* This could mark the first instance in recent years of inflation staying below 4% for two consecutive quarters.
3.9% and 4.0%
The report highlighted that Consumer Price Index (CPI) inflation is expected to decline to 3.8% in Q4 of FY25, while the average inflation for FY25 is projected to be around 4.6%.
- Core inflation, which excludes food and fuel prices, is forecasted to be in the range of 4.2% to 4.3% in FY26.
- The report also projects that India’s current account balance could be in surplus in Q4 FY25 amid rising net service receipts and a widened merchandise trade deficit.
Note: In Q3 FY25, the Current Account Deficit (CAD) stood at USD 11.5 billion, or 1.1% of India’s Gross Domestic Product (GDP) up from USD 10.4 billion (Q3 FY24) and Merchandise trade deficit rose to USD 79.2 billion from USD 71.6 billion (Q3 FY24).
30
**the Reserve Bank of India (RBI) was honored as the Most Innovative Financial Institution
globally in the 2025 Innovators list** by ________ (United States of America, USA), marking the **first time a central bank has received this accolade**.
* In the 2025 Innovators list, Global Finance magazine also recognized HSBC Holdings plc, headquartered in London, the United Kingdom(UK) and Standard Chartered plc, based in London.
Global Finance magazine
i. The award acknowledges the **Unified Lending Interface (ULI)**, a platform **developed by the Reserve Bank Innovation Hub (RBIH)**, a wholly-owned subsidiary of RBI headquartered in Bengaluru, Karnataka.
ii. Launched as a pilot in August 2023, ULI aims to facilitate frictionless credit delivery by providing lenders with seamless access to authenticated financial and non-financial data through standardized Application Programming Interfaces (APIs)
iii. In its 12th annual Innovators Awards for 2025, Global Finance magazine has honored the Most Innovative Banks and Fintech Companies both globally and regionally.
* The 2025 awards also listed Nubank (São Paulo, Brazil), REGnosys(London,), and Auquan (London) among the most innovative financial technology companies globally.
Regional awards named Taipei Fubon Bank (Asia-Pacific), Bank of America (North America), and Societe Generale (Western Europe) as innovation leaders in their respective geographies.
31
the Reserve Bank of India (RBI) granted final authorization to New Delhi (Delhi)- based ______, a subsidiary of BharatPe Group, to function as **an Online Payment Aggregator (PA)**. This approval follows the in-principle consent received in January 2023.
* With this authorization, it is set to introduce its online PA platform under the brand name ‘BharatPe X’.
Resilient Payments Private Limited
i. This platform aims to enhance BharatPe’s digital payment solutions, focusing on expanding services to a broader merchant base, particularly in Tier 2 and Tier 3 cities.
ii. The PA license permits companies to facilitate e-commerce transactions, bringing them under RBI regulation. Additionally, payment aggregators can offer early settlements to select merchants, a form of short-term credit and collaborate with Non-Banking Financial Companies (NBFCs) and banks to provide term loans.
iii. BharatPe is now the only fintech company in India with an NBFC license (via Trillion Loans), a stake in a Small Finance Bank (Unity SFB), and the PA authorization.
Note: As of April 2025, the RBI has authorized a total of 41 companies to operate as online payment aggregators in India. Additionally, over 28 companies have received in-principle approval from the RBI to function as payment aggregators.
32
Bengaluru (Karnataka) based fintech firm **Razorpay Software Private Limited** partnered with _______, a wholly owned subsidiary of the National Payments Corporation of India (NPCI), and Mumbai (Maharashtra) based **Axis Bank Limited to launch the ‘Razorpay Turbo Unified Payments Interface(UPI) plugin’ on the Bharat Interface for Money (BHIM) Vega platform**.
* With this, Razorpay has become the first payment gateway to integrate the new in-app UPI solution.
Note: BHIM Vega is a next-generation UPI plugin developed by NBSL and is built on the existing BHIM infrastructure.
NPCI BHIM Services Limited (NBSL)
* The partnership aims to address friction in online payments by minimizing drop-offs and increasing transaction success rates. It streamlines user onboarding and delivers a faster, more efficient payment process for businesses and customers.
Key Features:
i. Seamless In-App Transactions: The Turbo UPI plugin eliminates the need for customers to switch to third-party applications during payments, thereby reducing transaction drop-offs and enhancing user experience.
ii. Enhanced Reliability: By utilizing smart routing through multiple banking partners, the plugin ensures higher transaction success rates, even if one bank’s system encounters issues.
iii. Improved Onboarding: The integration simplifies the onboarding process for businesses, allowing for quicker adoption and implementation of the payment solution.
33
the Mumbai (Maharashtra) based **National Bank for Financing Infrastructure and Development (NaBFID) India’s leading Development Financial Institution (DFI)** signed a Memorandum of Understanding (MoU) with the Shanghai (China) based ________ **to establish a strategic framework for cooperation in infrastructure financing and development**.
New Development Bank (NDB)
34
Mumbai (Maharashtra) -based Securities and Exchange Board of India (SEBI) has introduced a **regulatory framework for Specialized Investment Funds (SIFs), effective from _______**.
April 1, 2025
35
Key Features of the Revised SIF Framework:
1. **PAN-Level Aggregation**:
i. Investors must maintain a minimum total investment of _______ across all SIF strategies under one AMC, calculated at the Permanent Account Number (PAN) level. The revised rule applies across all strategies under a single Asset Management Company (AMC) and not on a per-scheme basis.
ii. Exempted accredited investors and mandatory AMC employee investments.
2. **Systematic Investment Flexibility**:
i. Allows Systematic Investment Plans (SIPs), Systematic Withdrawal Plans (SWPs), and Systematic Transfer Plans (STPs).
ii. Requires immediate redemption if market fluctuations cause investments to drop below Rs. 10 lakh.
Rs. 10 lakh
36
About Specialised Investment Funds (SIFs):
i. SIFs are an investment product, bridging the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS).
ii. Designed for High-Net-Worth Individuals (HNIs) with tailored strategies like long-short equity, sectoral rotation, and multi-asset diversification.
Eligibility Criteria for AMCs to Launch SIFs:
i. The AMC must have a minimum of _____ years of operational history.
ii. Must maintain an Average Assets Under Management (AUM) of **Rs 10,000 crore or more over the last 3 years**.
iii. Each AMC is permitted **to launch only one Specialized Investment Fund (SIF) strategy** per category – equity, debt, or hybrid.
3
Note: In March 2025, SEBI revised the minimum investment limit for Zero Coupon Zero Principal (ZCZP) Instruments listed on the Social Stock Exchange (SSE) from Rs 10,000 to Rs 1,000.
37
SEBI has relaxed disclosure norms for **Foreign Portfolio Investors (FPI) by doubling the asset threshold limit for granular beneficial ownership (BO) disclosures from existing Rs 25,000 crore** to ______.
* These revised norms **are now applicable to subscribers of Offshore Derivative Instruments (ODIs) through SEBI circular** dated December 17, 2024.
* All the provisions of this circular will come into force with immediate effect.
Rs 50, 000 crore
- As per the revised norms, FPIs (either individually or as a group) holding over Rs 50,000 crore of equity assets under management (AUM) in Indian markets are now required to disclose details of all entities holding any ownership, economic interest or exercising control, on a full look-through basis.
* These relaxations were given by SEBI through a circular issued in exercise of the powers conferred under Section 11(1) of the SEBI Act, 1992 read with Regulations 22 (1), 22 (6), 22 (7) and 44 of SEBI (FPI) Regulations, 2019 to safeguard the interests of investors in securities and to promote the development of, and to regulate the securities market.
38
Mumbai (Maharashtra)-based market regulator, Securities Exchange Board of India (SEBI) has announced the **constitution of 6-member High-Level Committee (HLC) under the chairmanship of** _________, former Chief Vigilance Commissioner (CVC) to review provisions for its officials to disclose any conflicts of interest.
* The HLC is expected to **submit its recommendations within 3 months** from the date of constitution, following which SEBI’s board will consider the proposals.
Pratyush Sinha
Key Functions:
i. The HLC has been tasked to conduct comprehensive review of regulations governing property, investments, and liabilities of board members.
ii. The committee is supposed to identify gaps or any ambiguities in existing provisions, and recommend strengthened framework to prevent, mitigate and manage conflicts of interest.
iii. The 6-member panel is required to recommend a mechanism for the public raise their concerns regarding conflict of interest and disclosures, including a clear process for examining such complaints.
39
RBI rules out risk weight reduction on unsecured loans:
i. The RBI clarified it is not promoting uncollateralized lending to boost credit or consumption. Instead, it emphasized that the higher risk weights on unsecured loans, reinstated in November 2023, are simply a return to pre-COVID prudential norms.
ii. RBI Governor Sanjay Malhotra highlighted the need for a clear risk distinction between secured and unsecured loans, maintaining a ______ basis point difference between the two.
25
40
RBI to ensure proactive risk management at banks to prevent frauds:
i. The deputy governor Swaminathan J mentioned that, the RBI to ensure that the fraud risk management and proactive risk management system, which are operational at the bank level, are improvised so that frauds can be prevented.
ii. He also added that the pilots of the ______ were successful with the large banks and the models were proved effective too.
MuleHunter AI
41
Enhancing transaction limits in UPI:
i. At present, the transaction amount for UPI, covering both **Person to Person (P2P) and Person to Merchant payments (P2M)**, is capped at Rs.______ except for specific use cases of P2M payments which have higher limits, some at Rs. 2 lakh and others at Rs. 5 lakh.
ii. It is proposed that NPCI, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs.
iii. Also, appropriate safeguards will be put in place to mitigate risks associated with higher limits.
1 lakh
42
RBI issues draft revised norms for Non-Fund Based (NFB) Credit Facilities:
i. The RBI has issued draft directions to streamline and regulate NFB credit facilities, such as guarantees and letters of credit, across all regulated entities (REs) including commercial banks, cooperative banks, All India Financial Institutions, and NBFCs.
ii. The proposed guidelines aim to establish a consistent framework for the issuance and management of NFB exposures.
iii. REs will issue an NFB facility only on behalf of a ________ having a business relationship with them. The customer must be availing of a funded credit facility or a deposit facility from the RE.
customer
43
RBI issues draft guidelines on gold loan, aims to put in place a ‘harmonised’ framework:
i. The revised guidelines aim to create a more _____-based and harmonised framework for all Regulated Entities (REs), ensuring consistency in practices related to lending against gold collateral.
ii. They also seek to address prudential risks and conduct-related gaps, promoting sound risk
management and fair treatment of customers.
principle
44
RBI expands co-lending framework beyond banks- Non-Banking Financial Company (NBFCs) and priority sector loans:
i. The purpose of “Co-Lending Model” (CLM), is to improve the flow of _____ to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs.
ii. Now, the RBI announced a significant expansion of its co-lending framework, which was previously limited to arrangements between banks and NBFCs for priority sector loans only.
credit
45
RBI to enable securitisation of stressed assets through a _____-based mechanism:
i. Securitisation involves pooling of loans and selling them to a special purpose entity (SPE), which then issues securities backed by the loan pool.
ii. Currently, securitisations of Non-Performing Assets (NPAs) can be undertaken only by Asset Reconstruction Companies (ARCs) licensed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) Act.
iii. Based on market feedback and stakeholder consultations, RBI decided to enable securitisation of NPAs through the SPE route, on the lines of securitisation of standard assets. With this objective, RBI had released a discussion paper on Securitisation of Stressed Assets Framework in January 2023.
iv. After factoring in the suggestions received from the stakeholders on the discussion paper, the draft framework for securitisation of stressed assets is being issued for public comments.
market
46
RBI’s Inflation Projection:
The medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent.
i. CPI inflation for the financial year 2025-26 is projected at _____ per cent, with Q1 at 3.6 per cent; Q2 at 3.9 per cent; Q3 at 3.8 per cent; and Q4 at 4.4 per cent.
ii. Core inflation, which remained steady in December 2024-January 2025, inched up to _____ per cent in February 2025, driven primarily by a sharp pick-up in gold prices.
4.0 ;
4.1
47
MPC
i. The committee unanimously decided to: Reduce the policy repo rate by 25 basis points to _____ per cent with immediate effect.
ii. Consequently, **the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) was adjusted to 5.75 per cent** and **the marginal standing facility (MSF) rate and the Bank Rate were set to 6.25 per cent**.
iii. RBI projected real GDP growth for FY26 for Quarter 1 (Q1: April-June 2025) at 6.5 per cent; Q2 (July-September 2025) at 6.7 per cent; Q3 (October-December 2025) at 6.6 per cent; and Q4 (January-March 2026) at 6.3 per cent.
iv. **RBI also decided to change the stance from neutral to accommodative** as moderate growth outlook demanded that the MPC continues to support growth
6.00
48
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) held its 54th meeting from April 7 to 9, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India.
* The meeting was attended by the MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Rajiv Ranjan, and Shri M. Rajeshwar Rao.
* The committee revised the Gross Domestic Product (GDP) growth projection for FY 2025-26
(FY26) to _____ from 6.7%.
6.5%
49
Hyderabad (Telangana) based Insurance Regulatory and Development Authority of India (IRDAI) imposed a monetary penalty of Rs 1.06 crore on e-commerce platform Bengaluru (Karnataka) based ______ for violating e-commerce rules in a matter related to online insurance distribution.
Flipkart Internet Private Limited (FILP)
* FIPL has been directed by the IRDAI to remit Rs 1.06 crore penalty within 45 days and has an option to make an appeal before the Securities Appellate Tribunal (SAT).
50
New York (the United States of America, USA) based Moody’s Analytics, a subsidiary of Moody’s Corporation released its latest report titled ‘APAC Outlook: US Versus Them’. **The report has revised down India’s Gross Domestic Product (GDP) growth forecast by 30 basis points (bps), to _____ for Calendar Year 2025 (CY25), from its previous estimate of 6.4% (in March 2025).**
6.1%
* The report cited potential risks to certain sectors like gems and jewellery, textiles and medical devices due to the new tariffs imposed by the USA.
* However, the report highlighted that overall Indian economy growth will remain insulated from the shock since external demand accounts a relatively small share of its GDP
About Moody Analytics:
President- Stephen Tulenko
Headquarters- New York, the United States of America (USA)
Established- 2008
51
the Mumbai (Maharashtra) based National Payments Corporation of India (NPCI) introduced significant revisions to the Unified Payments Interface (UPI) framework, focusing on enhancing security and curbing fraud risks effective from 4th April 2025.
* The major changes include the discontinuation of international Quick Response (QR) code payments, limits on domestic QR code transactions with unverified merchants, and stricter wallet reload protocols.
About National Payments Corporation of India (NPCI):
Managing Director (MD) and Chief Executive Officer (CEO) – Dilip Asbe
Headquarters – Mumbai, Maharashtra
Established – 2008
International QR Code Payments Discontinued:
* NPCI has banned QR-based international UPI transactions, specifically the “QR Share & Pay” method, effective from April 4, 2025.
* Indian users abroad, including Non-Resident Indians (NRIs), will no longer be able to scan QR codes shared via messaging apps like WhatsApp or other social media platforms for making payments.
* Live, in-person scanning at merchant locations overseas will still be possible, but the convenience of scanning saved QR codes will no longer be allowed.
Domestic Transaction Cap on QR Payments:
* A limit of Rs.2,000 per transaction has been set for QR Share & Pay transactions made to nonverified offline merchants within India.
* This measure aims to limit fraud in peer-to-merchant (P2M) transactions and encourages the formal registration of small merchants.
Prohibition on Collect Requests for Wallet Reloading:
* NPCI has prohibited merchants from initiating collect requests to load prepaid wallets or gift cards, which had been prone to exploitation in scams.
* Users will now need to initiate wallet reloads themselves, using “push requests” to enhance control and reduce unauthorised deductions.
52
Reserve Bank of India (RBI) imposed a monetary penalty of Rs. 3,20,000 on New York (United State of America, USA) based _____ for contravention of Section 10 (4) of FEMA, 1999, which mandates adherence to the regulations governing foreign exchange transactions.
* The penalty was levied under Section 11(3) of FEMA for the bank’s failure in conducting proper due diligence while processing inward remittances.
Citibank N.A.
53
Mumbai (Maharashtra)-based Godrej Capital Limited, the financial services arm of Godrej Industries Group, has signed a Memorandum of Understanding (MoU) with the state government of ______to boost growth and development of Micro, Small and Medium Enterprises (MSMEs) in the state by enhancing access to credit facilities and business opportunities.
Telangana
* As per the MoU, the Telangana government and Godrej Capital will work closely to accelerate large-scale MSME credit penetration across the state.
i. This strategic partnership aims to bolster the MSME ecosystem across the state by enabling improved access to formal credit, particularly for underserved and 1st time borrowers. It also aims to bridge the credit gap, promote entrepreneurships and drive economic growth across emerging business hubs in Telangana.
ii. The initiative primarily focuses on digital-first lending solutions customised to cater the unique requirements of MSMEs.
iii. Through Godrej Capital’s women-centric initiative called ‘Aarohi’, a special focus will be on supporting women entrepreneurs.
54
Union Minister Nirmala Sitharaman, Ministry of Finance (MoF) unveiled a ______ commemorative coin to celebrate the **150 years of Bombay Stock Exchange (BSE), Asia’s oldest stock exchange and one of the largest** in the world at Jio World Convention Centre in Mumbai, Maharashtra.
Rs 150
* Apart from this coin, Union Minister Nirmala Sitharaman also launched BSE@150 Logo and BSE 150 Index, a new benchmark index designed to monitor the performance of the top 150 listed companies based on market capitalization and liquidity.
About the coin:
This is the eighth commemorative coin released by the India Government Mint, Mumbai(Maharashtra) in 2025.
55
the Reserve Bank of India (RBI) granted an in-principle authorisation to PB Pay Private Limited, a wholly owned subsidiary of Gurugram (Haryana)-based PB Fintech Limited, to operate as an Online Payment Aggregator (PA) under the ______.
The Payment Aggregator (PA) framework was introduced by the RBI in March 2020, mandating entities to obtain a license for acquiring merchants and providing digital payment acceptance solutions.
Payment and Settlement Systems Act, 2007
* The RBI’s approval allows PB Pay to enter the digital payments ecosystem, offering payment processing services and competing with established players like Razorpay, Cashfree, and
CCAvenue.
i. In March 2024, PB Fintech’s board approved the incorporation of PB Pay Private Limited to engage in the business of payment aggregation, both domestic and cross-border, facilitating merchants with offline and/or digital payment acceptance infrastructure.
ii. The subsidiary was incorporated in April 2024 with a proposed authorised share capital of Rs 50 crore and a paid-up share capital of Rs 27 crore.
56
______-based Capitalmind Financial Services, founded by Deepak Shenoy, received approval from the Mumbai (Maharashtra) based Securities and Exchange Board of India (SEBI) to operate as Capitalmind Mutual Fund under Capitalmind Asset Management Private Limited (Capitalmind AMC).
Bengaluru (Karnataka)
* The move expands its services beyond Portfolio Management Services (PMS) and Alternative Investment Funds (AIF).
i. The AMC will launch actively managed equity schemes using existing quantitative strategies like Adaptive Momentum and Surge India, which delivered strong post-fee returns over the past five years.
ii. It manages over Rs. 2,200 crore in assets under management (AUM) for more than 1,400 clients, maintaining a strong annual client retention rate of 98%
57
Pune (Maharashtra)-based Bajaj Allianz Life Insurance has launched a new term insurance product named _______, designed exclusively for women which aim to provide financial protection, health benefits, and support for child care.
* The new product covers 60 critical illnesses, including breast, cervix, and ovarian cancers.
* The new product will provide a lump-sum amount to nominees in case of the death of policy holder.
Superwoman Term (SWT)
i. The new insurance product will provide complimentary Health Management Services (HMS) for women worth Rs 36,500 annually.
* These services will include health check-ups, OPD consultations, pregnancy-related support, and nutrition counseling.
Note: As of March 31 2024, Bajaj Allianz Life Insurance reported a claim settlement ratio (CSR) of 99.23%, with solvency ratio of 432%.
58
India’s retail inflation, measured by the Consumer Price Index (CPI), declined to ______, for March 2025 marking the lowest monthly inflation rate since August 2019. This decrease from 3.61% in February 2025 is primarily attributed to a significant drop in food prices, especially vegetables, eggs, and pulses.
* India’s retail inflation has shown a consistent downward trend over the past three Financial Years (FY), declining from 6.7% in FY 2022-23 (FY23) to 5.4% in FY24, and further easing to 4.6% in FY25.
3.34%
Key Highlights:
i. Food Inflation: Fell to 2.69% in March from 3.75% in February, the lowest since November 2021. Urban food inflation stood at 2.48%, while rural areas recorded 2.82%
ii. Core Inflation: Excluding food and fuel, core inflation edged up to 4.1%, influenced by rising costs in gold, transport, and education
iii. Wholesale Price Inflation: Also eased to a six-month low of 2.05%, reflecting broader disinflationary trends.
iv. Items with Highest Inflation: In March 2025, the top five items with the highest year-on-year inflation were coconut oil (56.81%), coconut (42.05%), gold (34.09%), silver (31.57%), and grapes (25.55%).
v. Items with Lowest Inflation: The items witnessing the steepest decline in prices were ginger (-38.11%), tomato (-34.96%), cauliflower (-25.99%), jeera (-25.86%), and garlic (-25.22%).
59
the Geneva (Switzerland) based World Trade Organization (WTO) released its latest Global Trade Outlook and Statistics report, forecasting a _____ decline in global merchandise trade volume for 2025 under current tariff conditions.
* This marks a sharp downward revision from the 3.0% growth forecast made in October 2024 and reflects rising trade tensions and policy volatility
0.2%
Key Highlights from the WTO Report in 2025:
i. The global commercial services trade is projected to grow by 4.0% in 2025, slower than the previous estimates.
ii. North America faces the steepest fall, with exports dropping 12.6% and imports by 9.6%, reducing global trade growth by 1.7 percentage points.
iii. Asia expects modest growth of 1.6% in exports and imports, while Europe projects 1.0% export and 1.9% import growth.
iv. Reciprocal tariffs could reduce global trade growth by 0.6 percentage points while Trade policy uncertainty may further cut growth by 0.8 percentage points.
60
Mumbai (Maharashtra)-based Reserve Bank of India (RBI) has issued revised directions regarding the opening and operation in the deposit accounts of minors. As per RBI directions, minors above the age _____ are now allowed to open and operate their own savings as well as term deposit accounts independently, subject to limits and terms defined by individual banks. These directions **came into force from April 21, 2025**.
10
* It has further permitted the banks to offer additional banking facilities like: internet banking, debit cards, cheque book facility, among others to minor accounts based on their risk management policies
Also, banks including, Commercial Banks (CBs), Urban Co-operative Banks (UCBs), State Cooperative Banks (StCBs) and District Central Co-operative Banks (DCCBs) have been directed by RBI to frame new or amend existing policies to align them with the revised guidelines, latest by July 01, 2025.
61
Key Points:
i. Opening of minor accounts under the age of 10: RBI has also allowed minors below the age of 10 to open their accounts subject to condition that it has to be done through his/her natural or legal guardian. It has further clarified that minors under the age of 10 years are now allowed to open such bank accounts with their mother as a guardian.
ii. Transition on attaining majority: As per new directions, banks are required to obtain fresh signatures and operating instructions from the account holder, on attaining majority i.e. 18 years. If the account was managed by a guardian, the balance must be confirmed. Banks are directed to take proactive action, including communicating these requirements to minor account holders attaining the age of majority, to ensure a smooth transition.
iii. No _______ Allowed: It is mandatory for banks to ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and these always remain in a credit balance.
iv. Know Your Customer (KYC) Compliance Mandatory: Banks are required to perform customer due diligence while opening minor accounts and undertake ongoing due diligence, in line with RBI’s Master Direction (MD) on KYC, 2016.
Overdraft Facility
62
Mumbai (Maharashtra)-based Securities and Exchange Board of India (SEBI) has decided to **extend its automated trading window closure mechanism to include immediate relatives of _______ in listed companies, ahead of the declaration of financial results**.
Designated Persons (DPs)
This move aims to curb inadvertent non-compliance with insider trading regulations by ensuring that those who may have access to Unpublished Price-Sensitive Information (UPSI) such as quarterly results are restricted from trading during specific periods.
63
i. **Designated Depository (DD)** is required to provide portal access to listed companies. These companies have been mandated to upload details such as Permanent Account Number (PAN), names and demat account numbers of both designated persons and their immediate relatives.
* Depositories have been mandated to submit quarterly reports to SEBI in the format mentioned in the circular.
ii. The implementation of the PAN-based trading freeze mechanism will be carried out in two phases. Phase-I will commence on **July 01, 2025**, and will be applicable to the top 500 listed companies based on market capitalization.
* While remaining listed companies will be covered in phase-II, starting from October 01, 2025.
iii. The listed companies have been directed to confirm the submitted data minimum _______ days prior to the commencement of the trading window closure date (T-2 days).
* After that, DD will share this information with the stock exchanges and other depository at least one day before the closure period.
iv. Depositories will issue standardized formats and timelines for data submission, ensuring consistency.
* As per SEBI, any disputes or discrepancies will be resolved through coordination among the depositories, stock exchanges, and the listed companies involved.
two trading
64
the Government of Jharkhand and Mumbai (Maharashtra)-based State Bank of India (SBI) signed a Memorandum of Understanding (MoU) to extend insurance and financial benefits to Jharkhand government employees holding salary accounts with SBI.
i. Employees will receive accidental insurance coverage of up to _______ in case of death or disability due to accidents.
ii. Health insurance and life insurance benefits at no additional cost.
iii. Previously, approximately 70,000 police personnel were covered under similar benefits (September 2024). With this MoU, an additional 1.05 lakh employees will now be included, bringing the total to around 1.75 lakh state government employees
Rs. 1 crore
65
the Reserve Bank of India (RBI) canceled the certificate of registration (CoR) of Shankarrao Mohite Patil Sahakari Bank Limited located in Indapur, Maharashtra.
* The decision, effective from the close of business on _______, prohibits the bank from carrying out any banking activities, including accepting or repaying deposits.
April 11, 2025
66
Anumula Revanth Reddy, Chief Minister(CM) of Telangana, signed Letters of Intent (LoI) with several Japanese companies to establish an ______ in Hyderabad, Telangana. This initiative focuses on recycling, waste management, environmental restoration, and promoting a circular economy.
* The agreements were signed during CM Anumula Revanth Reddy’s visit to Kitakyushu, Japan from April 16 to 22, 2025.
* During the visit he inaugurated the Telangana pavilion at the Osaka World Expo in Kansai, Japan. With this, Telangana became the first Indian state to participate in the World Expo 2025.
‘Eco Town’
Note: Kitakyushu is renowned for its efforts in environmental sustainability and serves as a model for the proposed Eco Town.
67
New York, the United States of America (USA), and London, the United Kingdom (UK) based Fitch Ratings has revised India’s Gross Domestic Product (GDP) growth forecast for the current fiscal year 2025-26 (FY26) downward by 10 basis points (bps) to ______ from 6.5% earlier, citing escalating global trade tensions.
* The growth estimate for FY2024-25 (FY25) has been trimmed by 10 basis points (bps) to 6.2%, while the growth projection for FY2026-27 (FY27) has been retained at 6.3%.
6.4%
i. The downgrade reflects risks from a “severe escalation” in global trade conflicts, particularly due to US trade policy uncertainty, which has dampened business investments and equity markets.
ii. Fitch lowered its 2025 global growth forecast by 0.4 percentage points (pp), with China and the US each seeing a 0.5 pp cut.
iii. World growth is projected at below 2% in 2025, the weakest since the 2009 financial crisis (excluding pandemic years).
Note: In February 2025, Moody’s ratings revised its forecast of India’s 2025 GDP growth to 5.5–6.5% from 6.6%.
68
the Reserve Bank of India (RBI) has announced amendments to the existing Liquidity Coverage Ratio (LCR) framework.
* These amendments shall be applicable to all Commercial Banks (excluding Payments Banks, Regional Rural Banks and Local Area Banks).
* To give the banks adequate time to transition their systems to the new standards for LCR computation, the revised instructions shall become applicable w.e.f. (with effective from) _______.
April 01, 2026
RBI mandates 2.5% additional run-off factor:
i. The following amendment has been made by the RBI:
* A bank shall assign an additional 2.5 per cent run-off factor for retail deposits which are enabled with internet and mobile banking facilities (IMB).
* Therefore, the stable retail deposits enabled with IMB shall have 7.5 per cent run-off factor and less stable deposits enabled with IMB shall have 12.5 per cent run-off factor (as against 5 and 10 per cent respectively, prescribed currently).
Other Amendments made by the RBI:
i. Level 1 HQLA in the form of Government securities shall be valued at an amount not greater than their current market value.
ii. Funds received from non-financial groups—such as trusts, partnerships, proprietorships, and similar entities—will now be categorized as funding from ‘non-financial corporates’ and will attract a lower run-off rate of 40% instead of the current 100%, unless these groups are considered Small Business Customers (SBC) under the LCR rules
69
i. High Quality Liquid Assets: Liquid assets comprise of high quality assets that can be readily sold or used as collateral to obtain funds in a range of stress scenarios.
ii. Run-off Factor: The run-off factor estimates how much of a bank’s liabilities (like deposits or borrowed funds) are expected to be withdrawn or “run off” during a period of financial stress, usually over _____ days.
* If a deposit has a run-off rate of 40%, it means that 40% of that deposit is expected to be withdrawn in a stress scenario, and the bank must hold enough high-quality liquid assets (HQLA) to cover that.
30
70
Washington DC (the United States of America, USA)-based International Monetary Fund (IMF) released “April 2025 World Economic Outlook (WEO): A Critical Juncture amid Policy Shifts” report. The report has revised down India’s Gross Domestic Product (GDP) growth forecast for Financial Year 2025- 26 (FY26) by 30 basis points (bps) to ______, from its previous estimate of 6.5%.
* It has further reduced India’s growth projection for FY27 from 6.5% to 6.3%.
6.2%
* The report cited that growth for FY26 is supported by private consumption, particularly in rural areas of the country which is slightly lower compared to growth rate for FY27 which is due to higher levels of trade tensions and global uncertainty.
71
the Government of Telangana has signed a tripartite agreement with Japanese Information Technology (IT) firms, NTT(Nippon Telegraph and Telephone) DATA Group Corporation, a global leader in digital transformation and IT services, and Neysa Networks, an Artificial Intelligence (AI)-1st cloud platform company, to set up _______ in Hyderabad, Telangana with an investment worth Rs 10, 500 crore.
AI Data Center Cluster
i. The proposed facility will feature a 400 MegaWatt (MW) data centre cluster, designed to host India’s most powerful AI super computing infrastructure with 25,000 Graphics Processing Units (GPUs).
ii. As per the MoU, it will combine global leadership in data centers of NTT DATA with AI acceleration platform of Neysa to jointly develop advanced AI-1st solutions.
iii. Additionally, it will run on a mix of grid and renewable energy (RE) i.e. maximum 500 MW along with advanced technologies, including liquid immersion to comply with Environmental, Social and Governance (ESG) standards.
72
Outward remittances under the Reserve Bank of India’s (RBI) **Liberalised Remittance Scheme (LRS)** during April 2024 to February 2025 in Financial Year (FY)25 remain lower compared to the same period last year.
* Remittances dropped _____ year-on-year (Y-o-Y) to USD 27.02 billion from USD 29.43 billion in the year-ago period.
About LRS Scheme:
* It was introduced in 2004, where all resident individuals, including minors, are allowed to remit up to USD 250,000 per financial year for any permissible current or capital account transaction or a combination of both.
* Initially, the scheme was introduced with a limit of USD 25,000. The LRS limit has been revised in stages, consistent with prevailing macroeconomic and microeconomic conditions
8.21 per cent
Key Findings:
i. International travel, the largest segment, recorded a marginal decline of about 1 per cent, falling to USD 15.84 billion during April–February of FY25 from USD 16 billion in the same period last year.
ii. Remittances for the maintenance of close relatives saw a sharp year-on-year drop of nearly 22 per cent, declining to USD 3,300.5 million.
iii. Remittances for overseas education declined 16 per cent to USD 2758.9 million from last year.
iv. Overseas remittances for purchase of immovable property rose by 28.32 per cent to USD 277.7 million.
v. Investment in equity/debt increased 8.27% to USD 1392.55 million
73
the Mumbai (Maharashtra) based State Bank of India (SBI), India’s largest Public Sector Bank (PSB), announced the deployment of ______ across 4,500 branches, which accounts for nearly 20% of its total 22,740 branches across India to promote customers to use selfservice banking channels and reduce branch congestion.
* They will be sourced from New Delhi (Delhi) based State Bank Operations Support Services (SBOSS), a wholly-owned subsidiary of SBI.
* Focus on branches with high footfall that manage government salary accounts, pensions, and Direct Benefit Transfers (DBT)
“Grahak Mitras” (Customers’ Friends)
SBI’s Alternate Banking Channels SBI offers various self-service options, including:
* Automated Teller machine (ATM) and Automated Deposit Cum Withdrawal Machines (ADWMs)
* Self-service kiosks
* SWAYAM barcode-based passbook printing kiosks
* Cheque deposit kiosks
* Internet banking
* Mobile banking via the You Only Need One (YONO) Application(app)
* WhatsApp banking services
These platforms ensure 24/7 access to banking services with ease and security.
Note: As of December 2024, 98.1% of SBI’s total transactions were conducted through these alternate channels, up from 88.1% in March 2019, indicating a significant shift towards digital banking.
74
Mumbai (Maharashtra)-based _______ achieved a significant milestone by surpassing a market capitalisation (m-cap) of Rs 15 lakh crore, becoming the third Indian company to reach this valuation after Mumbai based Reliance Industries Limited (RIL) and Tata Consultancy Services (TCS).
HDFC Bank Limited
* As of 31 March 2025, HDFC Bank’s m-cap stood at Rs 15,01,289.37 crore, driven by steady share price growth and strong investor confidence.
Financial Highlights for Q4 of FY25:
i. Net Profit: The bank reported a standalone net profit of Rs 17,616 crore for the fourth quarter of 2024-25 (Q4 FY25), a 6.7% increase from Rs 16,512 crore in the same quarter the previous year.
ii. Net Interest Income (NII): NII rose by 10.3% year-on-year to Rs 32,070 crore, up from Rs 29,080 crore in Q4 of FY24.
iii. Total Income: The total income for the quarter stood at Rs 89,488 crore, marginally lower than Rs 89,639 crore in the corresponding period of the previous year.
75
the Mumbai (Maharashtra) based Reserve Bank of India (RBI) issued a directive mandating all banks to migrate their digital operations to the exclusive ______ domain by October 31, 2025. This initiative aims to enhance the security infrastructure of online banking services across the nation.
* The primary objective of this move is to combat the increasing threats posed by cybercriminals who exploit vulnerabilities in online platforms.
* This initiative was introduced on February 7, 2025, to strengthen cybersecurity in the financial sector.
‘.bank.in’
Implementation Framework
i. Registrar Authority: Hyderabad (Telangana) based Institute for Development and Research in Banking Technology (IDRBT) will serve as the registrar for the ‘.bank.in’ domain, authorized by the National Internet Exchange of India (NIXI) under the Ministry of Electronics and Information Technology (MeitY).
ii. Registration Process: Banks must contact IDRBT at sahyog@idrbt.ac.in to initiate migration. IDRBT will guide them on technical and procedural aspects.
iii. Banks will have to modernize their IT infrastructure in response to the new domain mandate, ensuring secure and uninterrupted digital banking services for their customers.
76
Washington D.C. (United States of America, USA) headquartered World Bank (WB) released “South Asia Development Update April 2025” lowered India’s Gross Domestic Product (GDP) growth forecast for the fiscal year 2025-26 (FY26) to ______, a 0.4% point cut from its previous estimate of 6.7%.
* This revision is due to slower growth in private investment and public capital expenditures, coupled with global economic challenges and policy uncertainties.
6.3%
77
Edelweiss Mutual Fund (EMF) also known as Edelweiss Asset Management Limited (EAML), is a subsidiary of Mumbai(Maharashtra) based Edelweiss Financial Services Limited (EFSL), has announced the launch of ‘Edelweiss BSE Internet Economy Index Fund’, India’s first index fund offering exposure to the ________.
BSE Internet Economy Index
* The scheme’s investment objective is to provide returns before expenses that closely correspond to the total returns of the BSE Internet Economy Total Return Index, subject to tracking errors.
78
the Reserve Bank of India (RBI) cancelled the ______ licence of Aurangabad (Maharashtra)- based Ajantha Urban Co-operative Bank Maryadit under the Banking Regulation Act, 1949, citing inadequate capital, poor earning prospects, and non-compliance with regulatory norms.
banking
79
the Reserve Bank of India (RBI) has cancelled the license of the _______- based Imperial Urban Co-operative Bank as the lender does not have adequate capital and earning prospects.
* With immediate effect, the bank has been prohibited from conducting the business of banking, which includes acceptance of deposits and repayment of deposits, as defined under Section 5(b) read with Section 56 of the Banking Regulation Act, 1949.
Jalandhar (Punjab)
i. The Registrar of Cooperative Societies, Government of Punjab has also been requested to issue an order for winding up of the bank and appoint a liquidator for the bank.
ii. On liquidation, every depositor would be entitled to receive deposit insurance claim amount up to Rs. 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961.
iii. As per the data submitted to RBI by the bank, 97.79 depositors are entitled to receive the full amount of their deposits from DICGC. As on January 31, 2025 DICGC has paid Rs.541 crore of the total insured deposits.
80
Reserve Bank of India (RBI) has imposed penalties on three financial institutions: ________ based **Indian Bank (IB)**, _______ based Indian Overseas Bank (IOB) and _______ based Mahindra & Mahindra Financial Services Ltd (MMFSL) for various regulatory non-compliances.
Chennai, Tamil Nadu (TN) ;
Chennai ;
Mumbai (Maharashtra)
i. The RBI imposed a fine of Rs 1.61 crore on Indian Bank for non-compliance with some directions on ‘Interest Rate on Advances’, ‘Kissan Credit Card (KCC) Scheme’ and ‘Lending to Micro, Small and Medium Enterprises (MSME) Sector. The penalty was imposed for violating provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act(BR Act), 1949
ii. IOB faced a penalty of Rs 63.60 lakh “non-compliance with certain directions issued by RBI on ‘Credit Flow to Agriculture – Collateral free agricultural loans’ and ‘Lending to Micro, Small and Medium Enterprises (MSME) Sector. The penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)( c ) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
iii. MMFSL faced a penalty of Rs 71.30 lakh for non-compliance with certain provisions of the ‘Non-Banking Financial Company- Systematically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ and Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016. The penalty has been imposed by RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
81
The Reserve Bank of India (RBI) announced that starting from _______, all banks, financial companies, and regulated entities must submit their applications for regulatory authorisations, licences, and approvals exclusively through the **Platform for Regulatory Application, Validation And AutHorisation (PRAVAAH) portal**.
1st May 2025
- This instruction applies to Scheduled Commercial Banks (SCBs), including Small Finance Banks (SFBs), Local Area Banks (LAB)s, and Regional Rural Banks (RRBs), Urban Co-operative Banks (UCBs), State Co-operative Banks (SCBs), Central Co-operative Banks (CCBs), All-India Financial Institutions (AIFI), Non-Banking Financial Companies (NBFC) (including Housing Finance Companies (HFC)), Primary Dealers (PDs), Payment System Operators (PSOs), and Credit Information Companies (CICs)
82
i. In ______, the RBI launched PRAVAAH as a secure and centralised web-based portal for any entity or individual to seek authorisation, license or regulatory approval on any reference made by it to the Reserve Bank. Since its launch, the PRAVAAH portal has facilitated receipt of nearly 4,000 applications/requests.
ii. For the convenience of users, the user manual, Instructions related to accessing the portal, submission and tracking of applications, FAQs and videos are also available on the portal.
iii. In exceptional cases, where members of the public are unable to submit their applications through PRAVAAH system, they may submit their applications directly to the RBI. However, such applications also will be processed through the PRAVAAH system by the RBI and the applicants will be duly notified of the same.
iv. This portal acts as an evidence that RBI is committed to achieving end-to-end digitization of all internal workflows involved in regulatory approval processes to enhance efficiency, transparency, and timeliness in service delivery.
May 2024
Key features of the portal:
* Submit the application online on the portal;
* Track and Monitor the status of the application/reference;
* Respond to any clarification/query sought by the RBI in connection with the application/reference; and
* Receive a decision from the Reserve Bank in a time bound manner.
83
the Reserve Bank of India (RBI) has decided to extend the timeline for Banks to deploy the latest Bureau of Indian Standards (BIS) standards Note Sorting Machines (NSM) by six months i.e. (that is), up to _______.
* Also, RBI has directed banks and White Label ATM Operators(WLAOs) to ensure Automated Teller Machines (ATMs) dispense Rs.100 and Rs.200 notes on a regular basis.
November 01, 2025
84
New Delhi(Delhi) based ________, subsidiary of Bharti Airtel, has partnered with Mumbai (Maharashtra) based National Payments Corporation of India (NPCI) to launch the National Common Mobility Cards (NCMC) enabled Rupay cards.
* This initiative supports the Government of India (GoI)’s ‘One Nation, One Card’ vision, aiming to provide seamless and interoperable digital payments across India.
Airtel Payments Bank
