What is the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance limit per depositor?

DICGC (a wholly owned subsidiary of RBI established under the DICGC Act 1961) insures all bank deposits (savings, fixed, current, recurring) up to a maximum of Rs. 5,00,000 (principal + interest combined) per depositor per bank in the same capacity and same right.

SBR classifies NBFCs into four layers based on size, activity, and perceived riskiness: 1) Base Layer (NBFC-BL: non-deposit taking NBFCs with asset size < Rs.

Repo Rate is the policy rate at which RBI lends short-term funds to banks against government securities.

Payments Banks (Nachiket Mor Committee): Can accept demand deposits up to Rs.

What are the three pillars and minimum Capital Adequacy Ratio (CRAR) requirements under Basel III norms in India vs international BCBS standards?

Three Pillars: 1) Minimum Capital Requirements, 2) Supervisory Review Process, 3) Market Discipline. RBI prescribes a minimum Total CRAR of 9% of Risk-Weighted Assets (vs 8% under BCBS), including Common Equity Tier 1 (CET1) of 5.5% and Tier 1 capital of 7%, plus a Capital Conservation Buffer (CCB) of 2.5% (making total CRAR + CCB = 11.5%).

NARCL (National Asset Reconstruction Company Ltd - majority owned by Public Sector Banks) acquires stressed legacy NPAs (>= Rs.

Standard UPI P2P/P2M limit: Rs.

Under the Arvind Mayaram Committee benchmark, any foreign investment in a listed Indian company of 10% or more of the post-issue paid-up equity capital is treated as FDI (long-term strategic stake with…

What is RBI's Scale-Based Regulation (SBR) framework for NBFCs?

SBR classifies NBFCs into four layers based on size, activity, and perceived riskiness: 1) Base Layer (NBFC-BL: non-deposit taking NBFCs with asset size = Rs. 1,000 Cr, HFCs,CICs), 3) Upper Layer (NBFC-UL: top systemically significant NBFCs identified by RBI), and 4) Top Layer (NBFC-TL: ideally empty unless extreme systemic risk arises).

Narasimham I (1991) & II (1998): Banking sector reforms, SLR/CRR reduction, NPA classification & SARFAESI; Nachiket Mor (2013): Financial inclusion, Payments Banks & Small Finance Banks; P.J.

A loan becomes an NPA when interest or installment of principal remains overdue for > 90 days (for agricultural loans: 2 crop seasons for short-duration crops, 1 crop season for long-duration crops).

RTGS (Real Time Gross Settlement - managed by RBI): Real-time instruction-by-instruction settlement for high-value transactions, minimum Rs.

What is the dual structure of India's Twin Bad Bank (NARCL and IDRCL)?

NARCL (National Asset Reconstruction Company Ltd - majority owned by Public Sector Banks) acquires stressed legacy NPAs (>= Rs. 500 Cr) under a 15% Cash + 85% Security Receipts (SRs, backed by sovereign guarantee) model, while IDRCL (India Debt Resolution Company Ltd - majority owned by private sector banks) manages the assets and executes operational turnaround/resolution.

1) EXIM Bank (1982), 2) NABARD (1982), 3) NHB - National Housing Bank (1988), 4) SIDBI - Small Industries Development Bank of India (1990, HQ Lucknow), and 5) NaBFID - National Bank for Financing…

IFSC (Indian Financial System Code): 11-character alphanumeric code (first 4 alphabets = Bank, 5th character is always '0' reserved for future use, last 6 characters = Branch).

MPC has 6 members: 3 from RBI (Governor as ex-officio Chairperson, Deputy Governor in charge of Monetary Policy, and 1 RBI officer) and 3 external members appointed by the Central Government for 4 years.

What is the composition and mandate of the Monetary Policy Committee (MPC) under Section 45ZB of the RBI Act 1934?

MPC has 6 members: 3 from RBI (Governor as ex-officio Chairperson, Deputy Governor in charge of Monetary Policy, and 1 RBI officer) and 3 external members appointed by the Central Government for 4 years. Its statutory inflation target (CPI-Combined) is 4% with a tolerance band of +/- 2% (2% to 6%).

State Bank of India (SBI), HDFC Bank, and ICICI Bank are designated as D-SIBs by RBI and are required to maintain additional Common Equity Tier 1 (CET1) capital surcharges ranging from 0.20% to 0.80% of…

National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 under the NABARD Act 1981 on the recommendation of the B.

MUDRA (Micro Units Development & Refinance Agency) provides collateral-free micro-enterprise loans under: 1) Shishu: up to Rs.

When is a loan classified as a Non-Performing Asset (NPA), and what are its three sub-categories and Special Mention Account (SMA) stages?

A loan becomes an NPA when interest or installment of principal remains overdue for > 90 days (for agricultural loans: 2 crop seasons for short-duration crops, 1 crop season for long-duration crops). Before 90 days, stressed accounts are tagged as SMA-0 (1–30 days), SMA-1 (31–60 days), and SMA-2 (61–90 days). NPA categories: Sub-standard Asset (NPA 12 months), and Loss Asset.

Payments Banks (Nachiket Mor Committee): Can accept demand deposits up to Rs.

WMA (Section 17(5) of RBI Act 1934) are temporary advances given by RBI to Central and State Governments to bridge temporary mismatches in receipts and payments (repayable within 90 days at Repo Rate;…

Revenue Deficit = Revenue Expenditure - Revenue Receipts.

When was the Reserve Bank of India (RBI) established, on which commission's recommendation, and when was it nationalized?

Established on 1 April 1935 under the RBI Act, 1934 on the recommendation of the Hilton Young Commission (Royal Commission on Indian Currency and Finance, 1926); nationalized on 1 January 1949. First Governor: Sir Osborne Smith; First Indian Governor: C.D. Deshmukh.

Three Pillars: 1) Minimum Capital Requirements, 2) Supervisory Review Process, 3) Market Discipline.

RRBs were established on 2 October 1975 (First RRB: Prathama Grameen Bank, Moradabad) on the recommendation of the M.

IFSC (Indian Financial System Code): 11-character alphanumeric code (first 4 alphabets = Bank, 5th character is always '0' reserved for future use, last 6 characters = Branch).

What are the Priority Sector Lending (PSL) targets for Domestic Commercial Banks, Regional Rural Banks (RRBs), and Small Finance Banks (SFBs)?

Domestic Commercial Banks & Foreign Banks (>= 20 branches): 40% of Adjusted Net Bank Credit (ANBC) (including 18% to Agriculture, 10% to Small & Marginal Farmers, 7.5% to Micro Enterprises, and 12% to Weaker Sections). RRBs & Small Finance Banks (SFBs): 75% of ANBC. Urban Co-operative Banks (UCBs): phased up to 75% of ANBC.

NPCI is an umbrella not-for-profit organization (incorporated under Section 8 of the Companies Act) established by RBI and IBA under the Payment and Settlement Systems Act, 2007.

MUDRA (Micro Units Development & Refinance Agency) provides collateral-free micro-enterprise loans under: 1) Shishu: up to Rs.

Repo Rate is the policy rate at which RBI lends short-term funds to banks against government securities.

In Balance of Payments (BoP), what are the components of the Current Account vs the Capital Account?

Current Account records trade in Visible Goods (Merchandise Exports/Imports -> Balance of Trade) and Invisibles (Services, Investment Income/Interest/Dividends, and Unilateral Transfers/Remittances). Capital Account records cross-border asset/liability flows: FDI, FPI, External Commercial Borrowings (ECBs), NRI Deposits, and Sovereign External Debt.

Repo Rate is the policy rate at which RBI lends short-term funds to banks against government securities.

NARCL (National Asset Reconstruction Company Ltd - majority owned by Public Sector Banks) acquires stressed legacy NPAs (>= Rs.

WMA (Section 17(5) of RBI Act 1934) are temporary advances given by RBI to Central and State Governments to bridge temporary mismatches in receipts and payments (repayable within 90 days at Repo Rate;…

Match the major Indian Banking & Financial Committees to their purposes: Narasimham I & II, Nachiket Mor, P.J. Nayak, Urjit Patel, and N.K. Singh Committees.

Narasimham I (1991) & II (1998): Banking sector reforms, SLR/CRR reduction, NPA classification & SARFAESI; Nachiket Mor (2013): Financial inclusion, Payments Banks & Small Finance Banks; P.J. Nayak (2014): Governance of Boards of Banks in India (led to Banks Board Bureau / FSIB); Urjit Patel (2014): Flexible Inflation Targeting (4% +/- 2%) & MPC; N.K. Singh (2017): Review of FRBM Act.

M0 (Reserve Money / High-Powered Money) = Currency in Circulation + Bankers' Deposits with RBI + 'Other' Deposits with RBI.

Payments Banks (Nachiket Mor Committee): Can accept demand deposits up to Rs.

Launched in November 2021 on the 'One Nation One Ombudsman' principle integrating Banking, NBFC, and Digital Transaction Ombudsman schemes (covering banks, NBFCs, CICs, and PPIs).

How do Ways and Means Advances (WMA) and Cash Management Bills (CMBs) help government liquidity management?

WMA (Section 17(5) of RBI Act 1934) are temporary advances given by RBI to Central and State Governments to bridge temporary mismatches in receipts and payments (repayable within 90 days at Repo Rate; overdraft beyond WMA attracts Repo + 2%). Cash Management Bills (CMBs, introduced in 2010) are non-standard discounted bills issued by the Central Govt for maturities of LESS than 91 days.

RBI's PCA framework monitors banks across three key parameters: 1) Capital (CRAR and CET1 ratio), 2) Asset Quality (Net NPA ratio), and 3) Leverage (Tier 1 Leverage Ratio).

MPC has 6 members: 3 from RBI (Governor as ex-officio Chairperson, Deputy Governor in charge of Monetary Policy, and 1 RBI officer) and 3 external members appointed by the Central Government for 4 years.

Domestic Commercial Banks & Foreign Banks (>= 20 branches): 40% of Adjusted Net Bank Credit (ANBC) (including 18% to Agriculture, 10% to Small & Marginal Farmers, 7.5% to Micro Enterprises, and 12% to…

What are the three loan categories under the Pradhan Mantri MUDRA Yojana (PMMY) including the newly added Tarun Plus category?

MUDRA (Micro Units Development & Refinance Agency) provides collateral-free micro-enterprise loans under: 1) Shishu: up to Rs. 50,000; 2) Kishore: above Rs. 50,000 up to Rs. 5 Lakhs; 3) Tarun: above Rs. 5 Lakhs up to Rs. 10 Lakhs; and 4) Tarun Plus: above Rs. 10 Lakhs up to Rs. 20 Lakhs for entrepreneurs who have successfully repaid previous Tarun loans.

Current Account records trade in Visible Goods (Merchandise Exports/Imports -> Balance of Trade) and Invisibles (Services, Investment Income/Interest/Dividends, and Unilateral Transfers/Remittances).

Three Pillars: 1) Minimum Capital Requirements, 2) Supervisory Review Process, 3) Market Discipline.

1) EXIM Bank (1982), 2) NABARD (1982), 3) NHB - National Housing Bank (1988), 4) SIDBI - Small Industries Development Bank of India (1990, HQ Lucknow), and 5) NaBFID - National Bank for Financing…

How do Repo Rate, Standing Deposit Facility (SDF), Marginal Standing Facility (MSF), and Bank Rate work in RBI's Liquidity Adjustment Facility (LAF) corridor?

Repo Rate is the policy rate at which RBI lends short-term funds to banks against government securities. SDF (introduced in April 2022 at Repo - 25 bps) is the floor of the LAF corridor for absorbing liquidity WITHOUT collateral. MSF (Repo + 25 bps, same as Bank Rate) is the ceiling where scheduled banks borrow overnight by dipping up to 2% into their SLR portfolio.

A loan becomes an NPA when interest or installment of principal remains overdue for > 90 days (for agricultural loans: 2 crop seasons for short-duration crops, 1 crop season for long-duration crops).

1) EXIM Bank (1982), 2) NABARD (1982), 3) NHB - National Housing Bank (1988), 4) SIDBI - Small Industries Development Bank of India (1990, HQ Lucknow), and 5) NaBFID - National Bank for Financing…

RBI's PCA framework monitors banks across three key parameters: 1) Capital (CRAR and CET1 ratio), 2) Asset Quality (Net NPA ratio), and 3) Leverage (Tier 1 Leverage Ratio).

What are the timelines and Adjudicating Authorities under the Insolvency and Bankruptcy Code (IBC) 2016?

Under IBC 2016, the Corporate Insolvency Resolution Process (CIRP) must be completed within 180 days (extendable by 90 days, with an overall outer limit of 330 days) approved by a minimum 66% voting share of the Committee of Creditors (CoC). Adjudicating Authority: NCLT (National Company Law Tribunal) for companies/LLPs and DRT (Debt Recovery Tribunal) for individuals/partnerships; regulator is IBBI.

National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 under the NABARD Act 1981 on the recommendation of the B.

Launched in November 2021 on the 'One Nation One Ombudsman' principle integrating Banking, NBFC, and Digital Transaction Ombudsman schemes (covering banks, NBFCs, CICs, and PPIs).

Established on 1 April 1935 under the RBI Act, 1934 on the recommendation of the Hilton Young Commission (Royal Commission on Indian Currency and Finance, 1926); nationalized on 1 January 1949.

What is the National Payments Corporation of India (NPCI), under which Act was it established, and what are its major products?

NPCI is an umbrella not-for-profit organization (incorporated under Section 8 of the Companies Act) established by RBI and IBA under the Payment and Settlement Systems Act, 2007. Products include UPI (Unified Payments Interface, 2016), IMPS, RuPay, NACH, AePS (Aadhaar Enabled Payment System), CTS, NETC (FASTag), Bharat BillPay, and e-RUPI.

DICGC (a wholly owned subsidiary of RBI established under the DICGC Act 1961) insures all bank deposits (savings, fixed, current, recurring) up to a maximum of Rs.

Current Account records trade in Visible Goods (Merchandise Exports/Imports -> Balance of Trade) and Invisibles (Services, Investment Income/Interest/Dividends, and Unilateral Transfers/Remittances).

A loan becomes an NPA when interest or installment of principal remains overdue for > 90 days (for agricultural loans: 2 crop seasons for short-duration crops, 1 crop season for long-duration crops).

What are India's five All-India Financial Institutions (AIFIs) regulated by the RBI?

1) EXIM Bank (1982), 2) NABARD (1982), 3) NHB - National Housing Bank (1988), 4) SIDBI - Small Industries Development Bank of India (1990, HQ Lucknow), and 5) NaBFID - National Bank for Financing Infrastructure and Development (2021, HQ Mumbai).

WMA (Section 17(5) of RBI Act 1934) are temporary advances given by RBI to Central and State Governments to bridge temporary mismatches in receipts and payments (repayable within 90 days at Repo Rate;…

Under the Arvind Mayaram Committee benchmark, any foreign investment in a listed Indian company of 10% or more of the post-issue paid-up equity capital is treated as FDI (long-term strategic stake with…

State Bank of India (SBI), HDFC Bank, and ICICI Bank are designated as D-SIBs by RBI and are required to maintain additional Common Equity Tier 1 (CET1) capital surcharges ranging from 0.20% to 0.80% of…

What are the transaction limits for UPI Standard, UPI for Capital Markets/Hospitals/Education, UPI 123Pay, and UPI Lite?

Standard UPI P2P/P2M limit: Rs. 1,00,000 per day; Capital Markets/IPO/Insurance: Rs. 2,00,000 (up to Rs. 5,00,000 for verified hospitals, educational institutions, IPOs, and RBI Retail Direct); UPI 123Pay (feature phones): Rs. 10,000 per transaction; UPI Lite (on-device wallet without PIN): Rs. 1,000 per transaction with Rs. 5,000 total wallet balance limit.

IFSC (Indian Financial System Code): 11-character alphanumeric code (first 4 alphabets = Bank, 5th character is always '0' reserved for future use, last 6 characters = Branch).

Narasimham I (1991) & II (1998): Banking sector reforms, SLR/CRR reduction, NPA classification & SARFAESI; Nachiket Mor (2013): Financial inclusion, Payments Banks & Small Finance Banks; P.J.

Under IBC 2016, the Corporate Insolvency Resolution Process (CIRP) must be completed within 180 days (extendable by 90 days, with an overall outer limit of 330 days) approved by a minimum 66% voting share…

When was SEBI established, when did it get statutory status, and what is the T+1 / T+0 settlement cycle in Indian equity markets?

Securities and Exchange Board of India (SEBI) was established on 12 April 1988 and given statutory powers on 30 January 1992 under the SEBI Act, 1992 (HQ Mumbai) following the Narasimham Committee reforms. India transitioned fully to the T+1 (Trade plus 1 business day) rolling settlement cycle in January 2023 and introduced optional T+0 (same-day) beta settlement in 2024.

Established on 1 April 1935 under the RBI Act, 1934 on the recommendation of the Hilton Young Commission (Royal Commission on Indian Currency and Finance, 1926); nationalized on 1 January 1949.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 empowers banks/FIs to seize and auction secured residential/commercial assets of…

Standard UPI P2P/P2M limit: Rs.

Under the FRBM Act 2003 and Union Budget Accounting, what are the formulas for Fiscal Deficit, Revenue Deficit, Effective Revenue Deficit, and Primary Deficit?

Revenue Deficit = Revenue Expenditure - Revenue Receipts. Effective Revenue Deficit = Revenue Deficit - Grants for Creation of Capital Assets. Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-Debt Capital Receipts) = Total Borrowings requirement. Primary Deficit = Fiscal Deficit - Interest Payments.

CRR (Section 42(1) of RBI Act 1934): Percentage of Net Demand and Time Liabilities (NDTL) that banks must maintain as cash balances with RBI (earns no interest, no statutory floor or ceiling).

Domestic Commercial Banks & Foreign Banks (>= 20 branches): 40% of Adjusted Net Bank Credit (ANBC) (including 18% to Agriculture, 10% to Small & Marginal Farmers, 7.5% to Micro Enterprises, and 12% to…

DICGC (a wholly owned subsidiary of RBI established under the DICGC Act 1961) insures all bank deposits (savings, fixed, current, recurring) up to a maximum of Rs.

What is the statutory distinction between Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)?

CRR (Section 42(1) of RBI Act 1934): Percentage of Net Demand and Time Liabilities (NDTL) that banks must maintain as cash balances with RBI (earns no interest, no statutory floor or ceiling). SLR (Section 24 of Banking Regulation Act 1949): Percentage of NDTL that banks must maintain with themselves in liquid assets (cash, gold, unencumbered approved G-Secs; maximum ceiling 40%).

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 empowers banks/FIs to seize and auction secured residential/commercial assets of…

NPCI is an umbrella not-for-profit organization (incorporated under Section 8 of the Companies Act) established by RBI and IBA under the Payment and Settlement Systems Act, 2007.

SBR classifies NBFCs into four layers based on size, activity, and perceived riskiness: 1) Base Layer (NBFC-BL: non-deposit taking NBFCs with asset size < Rs.

How does RBI classify Money Supply aggregates M0, M1, M2, M3, and M4, and which represent Narrow vs Broad Money?

M0 (Reserve Money / High-Powered Money) = Currency in Circulation + Bankers' Deposits with RBI + 'Other' Deposits with RBI. M1 (Narrow Money) = Currency with the Public + Demand Deposits with Banks + 'Other' Deposits with RBI. M3 (Broad Money) = M1 + Time Deposits with the Banking System. Money Multiplier = M3 / M0.

Under IBC 2016, the Corporate Insolvency Resolution Process (CIRP) must be completed within 180 days (extendable by 90 days, with an overall outer limit of 330 days) approved by a minimum 66% voting share…

RTGS (Real Time Gross Settlement - managed by RBI): Real-time instruction-by-instruction settlement for high-value transactions, minimum Rs.

Securities and Exchange Board of India (SEBI) was established on 12 April 1988 and given statutory powers on 30 January 1992 under the SEBI Act, 1992 (HQ Mumbai) following the Narasimham Committee reforms.

Which banks are designated as Domestic Systemically Important Banks (D-SIBs) by RBI, and what does 'Too Big To Fail' entail?

State Bank of India (SBI), HDFC Bank, and ICICI Bank are designated as D-SIBs by RBI and are required to maintain additional Common Equity Tier 1 (CET1) capital surcharges ranging from 0.20% to 0.80% of Risk-Weighted Assets depending on their bucket.

Domestic Commercial Banks & Foreign Banks (>= 20 branches): 40% of Adjusted Net Bank Credit (ANBC) (including 18% to Agriculture, 10% to Small & Marginal Farmers, 7.5% to Micro Enterprises, and 12% to…

Call Money: overnight (1 day); Notice Money: 2 to 14 days; Term Money: 15 days to 1 year.

Current Account records trade in Visible Goods (Merchandise Exports/Imports -> Balance of Trade) and Invisibles (Services, Investment Income/Interest/Dividends, and Unilateral Transfers/Remittances).

What are the structure and components of an IFSC Code, MICR Code, and Legal Entity Identifier (LEI)?

IFSC (Indian Financial System Code): 11-character alphanumeric code (first 4 alphabets = Bank, 5th character is always '0' reserved for future use, last 6 characters = Branch). MICR (Magnetic Ink Character Recognition): 9-digit numeric code on cheques (first 3 digits = City, next 3 = Bank, last 3 = Branch). LEI: 20-character global alphanumeric code mandatory for large corporate borrowers and cross-border/RTGS/NEFT transactions >= Rs. 50 Crore.

Under the Arvind Mayaram Committee benchmark, any foreign investment in a listed Indian company of 10% or more of the post-issue paid-up equity capital is treated as FDI (long-term strategic stake with…

M0 (Reserve Money / High-Powered Money) = Currency in Circulation + Bankers' Deposits with RBI + 'Other' Deposits with RBI.

National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 under the NABARD Act 1981 on the recommendation of the B.

What are the key money market instruments in India: Call/Notice/Term Money, Treasury Bills (T-Bills), Commercial Paper (CP), and Certificate of Deposit (CD)?

Call Money: overnight (1 day); Notice Money: 2 to 14 days; Term Money: 15 days to 1 year. Treasury Bills (issued by Central Govt at discount): 91-day, 182-day, and 364-day tenors (min Rs. 25,000; States cannot issue T-Bills). Commercial Paper (unsecured promissory note by corporates/NBFCs): 7 days to 1 year, multiples of Rs. 5 Lakh. Certificate of Deposit (by banks/AIFIs): 7 days to 1 year for banks, multiples of Rs. 5 Lakh.

MUDRA (Micro Units Development & Refinance Agency) provides collateral-free micro-enterprise loans under: 1) Shishu: up to Rs.

Established on 1 April 1935 under the RBI Act, 1934 on the recommendation of the Hilton Young Commission (Royal Commission on Indian Currency and Finance, 1926); nationalized on 1 January 1949.

NARCL (National Asset Reconstruction Company Ltd - majority owned by Public Sector Banks) acquires stressed legacy NPAs (>= Rs.

What is the SARFAESI Act 2002 and which loans are exempt from SARFAESI enforcement?

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 empowers banks/FIs to seize and auction secured residential/commercial assets of defaulting borrowers (after a 60-day notice post-NPA classification) without court intervention. Exemptions: Agricultural land, unsecured loans, loans <= Rs. 1 Lakh, or where remaining debt is < 20% of principal + interest.

RRBs were established on 2 October 1975 (First RRB: Prathama Grameen Bank, Moradabad) on the recommendation of the M.

DICGC (a wholly owned subsidiary of RBI established under the DICGC Act 1961) insures all bank deposits (savings, fixed, current, recurring) up to a maximum of Rs.

Narasimham I (1991) & II (1998): Banking sector reforms, SLR/CRR reduction, NPA classification & SARFAESI; Nachiket Mor (2013): Financial inclusion, Payments Banks & Small Finance Banks; P.J.

When was NABARD established, on which committee's recommendation, and what is the RIDF?

National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 under the NABARD Act 1981 on the recommendation of the B. Sivaraman Committee (CRAFICARD), headquartered in Mumbai. It manages the Rural Infrastructure Development Fund (RIDF, created in 1995-96), into which commercial banks deposit shortfalls in Priority Sector Lending.

Call Money: overnight (1 day); Notice Money: 2 to 14 days; Term Money: 15 days to 1 year.

Securities and Exchange Board of India (SEBI) was established on 12 April 1988 and given statutory powers on 30 January 1992 under the SEBI Act, 1992 (HQ Mumbai) following the Narasimham Committee reforms.

Three Pillars: 1) Minimum Capital Requirements, 2) Supervisory Review Process, 3) Market Discipline.

What is Prompt Corrective Action (PCA) framework of RBI for Scheduled Commercial Banks and NBFCs?

RBI's PCA framework monitors banks across three key parameters: 1) Capital (CRAR and CET1 ratio), 2) Asset Quality (Net NPA ratio), and 3) Leverage (Tier 1 Leverage Ratio). Breaching Risk Thresholds 1, 2, or 3 triggers restrictions on dividend distribution, branch expansion, management compensation, and capital expenditure.

Revenue Deficit = Revenue Expenditure - Revenue Receipts.

State Bank of India (SBI), HDFC Bank, and ICICI Bank are designated as D-SIBs by RBI and are required to maintain additional Common Equity Tier 1 (CET1) capital surcharges ranging from 0.20% to 0.80% of…

NPCI is an umbrella not-for-profit organization (incorporated under Section 8 of the Companies Act) established by RBI and IBA under the Payment and Settlement Systems Act, 2007.

How do Small Finance Banks (SFBs) and Payments Banks differ in India (Nachiket Mor & Usha Thorat Committees)?

Payments Banks (Nachiket Mor Committee): Can accept demand deposits up to Rs. 2,00,000 per customer, CANNOT lend (no loans or credit cards), and must invest 75% of deposits in G-Secs/T-Bills. Small Finance Banks (Usha Thorat Committee): Can accept all deposits and lend, must extend 75% of ANBC to Priority Sector, and at least 50% of their loan portfolio must comprise loans up to Rs. 25 Lakhs.

RTGS (Real Time Gross Settlement - managed by RBI): Real-time instruction-by-instruction settlement for high-value transactions, minimum Rs.

RBI's PCA framework monitors banks across three key parameters: 1) Capital (CRAR and CET1 ratio), 2) Asset Quality (Net NPA ratio), and 3) Leverage (Tier 1 Leverage Ratio).

CRR (Section 42(1) of RBI Act 1934): Percentage of Net Demand and Time Liabilities (NDTL) that banks must maintain as cash balances with RBI (earns no interest, no statutory floor or ceiling).

What is the shareholding pattern of a Regional Rural Bank (RRB) and on which committee's recommendation were RRBs established?

RRBs were established on 2 October 1975 (First RRB: Prathama Grameen Bank, Moradabad) on the recommendation of the M. Narasimham Working Group under the RRB Act 1976. Shareholding ratio is Central Government (50%) : Sponsor Bank (35%) : State Government (15%).

Standard UPI P2P/P2M limit: Rs.

SBR classifies NBFCs into four layers based on size, activity, and perceived riskiness: 1) Base Layer (NBFC-BL: non-deposit taking NBFCs with asset size < Rs.

M0 (Reserve Money / High-Powered Money) = Currency in Circulation + Bankers' Deposits with RBI + 'Other' Deposits with RBI.

What is the RBI Integrated Ombudsman Scheme (RB-IOS) 2021 and its maximum compensation limit?

Launched in November 2021 on the 'One Nation One Ombudsman' principle integrating Banking, NBFC, and Digital Transaction Ombudsman schemes (covering banks, NBFCs, CICs, and PPIs). The Ombudsman can award compensation up to Rs. 20 Lakhs for consequential loss plus up to Rs. 1 Lakh for mental agony and harassment.

Securities and Exchange Board of India (SEBI) was established on 12 April 1988 and given statutory powers on 30 January 1992 under the SEBI Act, 1992 (HQ Mumbai) following the Narasimham Committee reforms.

CRR (Section 42(1) of RBI Act 1934): Percentage of Net Demand and Time Liabilities (NDTL) that banks must maintain as cash balances with RBI (earns no interest, no statutory floor or ceiling).

RRBs were established on 2 October 1975 (First RRB: Prathama Grameen Bank, Moradabad) on the recommendation of the M.

How do RTGS, NEFT, and IMPS compare in minimum/maximum transfer limits and settlement mechanisms?

RTGS (Real Time Gross Settlement - managed by RBI): Real-time instruction-by-instruction settlement for high-value transactions, minimum Rs. 2,00,000, no upper ceiling, available 24x7x365. NEFT (National Electronic Funds Transfer - RBI): Deferred Net Settlement (DNS) in half-hourly batches, no min or max limit, available 24x7x365. IMPS (NPCI): Instant 24x7 interbank transfer up to Rs. 5,00,000.

Launched in November 2021 on the 'One Nation One Ombudsman' principle integrating Banking, NBFC, and Digital Transaction Ombudsman schemes (covering banks, NBFCs, CICs, and PPIs).

Revenue Deficit = Revenue Expenditure - Revenue Receipts.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 empowers banks/FIs to seize and auction secured residential/commercial assets of…

How do Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) differ according to the Arvind Mayaram Committee?

Under the Arvind Mayaram Committee benchmark, any foreign investment in a listed Indian company of 10% or more of the post-issue paid-up equity capital is treated as FDI (long-term strategic stake with management interest), whereas investment of less than 10% is classified as FPI (short-term financial portfolio investment regulated by SEBI).

MPC has 6 members: 3 from RBI (Governor as ex-officio Chairperson, Deputy Governor in charge of Monetary Policy, and 1 RBI officer) and 3 external members appointed by the Central Government for 4 years.

Under IBC 2016, the Corporate Insolvency Resolution Process (CIRP) must be completed within 180 days (extendable by 90 days, with an overall outer limit of 330 days) approved by a minimum 66% voting share…

Call Money: overnight (1 day); Notice Money: 2 to 14 days; Term Money: 15 days to 1 year.

IBPS PO, SBI PO & RBI Grade B Banking Awareness: RBI Functions, Monetary Policy (Repo, CRR, SLR), Basel III Norms, NPAs (SARFAESI/IBC), NPCI/UPI & SEBI

High-yield Banking and Financial Awareness flashcards for IBPS PO, SBI PO, and RBI Grade B covering RBI Act 1934, Monetary Policy Committee, Basel III, Priority Sector Lending, NPAs, SARFAESI, NPCI payment systems, and SEBI.

Level: basic
Languages: en → en
Cards: 32
Markdown: IBPS PO, SBI PO & RBI Grade B Banking Awareness: RBI Functions, Monetary Policy (Repo, CRR, SLR), Basel III Norms, NPAs (SARFAESI/IBC), NPCI/UPI & SEBI (.md)

Flashcards (32)