Jan 2025 Flashcards
(79 cards)
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.