Money & Banking
📊 High-Yield Data & Statistical Fact Sheet
| M0 (Reserve Money) | - Currency in circulation + Bankers' deposits with RBI + 'Other' deposits with RBI. |
| M1 (Narrow Money) | - Currency with public + Demand deposits + 'Other' deposits with RBI. |
| M2 Monetary Aggregate | - M1 + Savings deposits with Post Office savings banks. |
| M3 (Broad Money) | - M1 + Time deposits with banking system. |
| M4 Monetary Aggregate | - M3 + Total deposits with Post Office (excl. NSC). |
| Liquidity Gradient | - $M0 > M1 > M2 > M3 > M4$ (M0 is most liquid; M4 is least liquid). |
| RBI Minimum Reserve System | - Maintains a minimum reserve of ₹200 crore (at least ₹115 crore in gold/bullion and ₹85 crore in forex). |
| Bimal Jalan ECF Framework | - Mandates a Contingent Risk Buffer (CRB) between 5.5% and 6.5% of RBI balance sheet. |
| DICGC Deposit Insurance | - Insures deposits (savings, fixed, current, recurring) up to ₹5 Lakh per depositor per bank. |
| MUDRA Shishu Slab | - Loans up to ₹50,000. |
| MUDRA Kishor Slab | - Loans between ₹50,000 and ₹5 Lakh. |
| MUDRA Tarun Slab | - Loans between ₹5 Lakh and ₹10 Lakh. |
| MUDRA Tarun Plus Slab (2025) | - Loans between ₹10 Lakh and ₹20 Lakh for proven entrepreneurs. |
1. STRUTTING MONEY, BONDS & THE CENTRAL BANK
| Velocity of Money (V) | - $$V = \frac{P \times Y}{M}$$ (where $P = \text{Price level}$, $Y = \text{Real GDP}$, $M = \text{Money supply}$). |
| Bond Yield Equation | - $$\text{Bond Yield} = \frac{\text{Fixed Coupon Interest}}{\text{Market Price of Bond}}$$ |
| Bond Price vs Yield Rule | - Bond prices and bond yields are inversely proportional. |
| RBI Governor Office | - Appointed by Central Govt under RBI Act, 1934 for up to 3 years. |
| Section 7 of RBI Act | - Empowers Central Govt to issue binding directions to RBI in public interest. |
| MPC Composition | - 6 members (3 RBI officials including Governor, 3 external members appointed by Centre). |
| MPC Voting Rules | - Each member gets 1 vote; Governor holds casting vote in case of a tie. Quorum: 4 members. |
| Quantitative Credit Instruments | - Repo, Reverse Repo, SDF, MSF, Bank Rate, CRR, SLR, OMO. |
| Qualitative Credit Instruments | - Margin requirements, moral suasion, credit rationing, direct action. |
2. ADVANCED CREDIT AND BANKING SUPERVISION
| Base Rate | - Minimum lending rate based on average cost of funds. |
| MCLR (2016) | - Marginal Cost of Funds based Lending Rate for faster transmission. |
| EBLR (2019) | - External Benchmark Lending Rate (floating loans linked to Repo Rate or T-Bills). |
| SMA-0 Asset | - Principal or interest overdue between 1 and 30 days. |
| SMA-1 Asset | - Principal or interest overdue between 31 and 60 days. |
| SMA-2 Asset | - Principal or interest overdue between 61 and 90 days. |
| Substandard NPA Asset | - Overdue >90 days up to 12 months. |
| Doubtful Asset | - Overdue for a period exceeding 12 months. |
| Loss Asset | - Identified as uncollectible by bank, auditors, or RBI inspection. |
| IBC CIRP Time Limit | - 180 days (extendable up to 270 or 330 days). |
| IBC Adjudicating Bodies | - NCLT for corporate entities; DRT for individuals & partnership firms. |
| Capital Adequacy Ratio (CAR/CRAR) | - Minimum CRAR set at 9.0% in India (vs Basel III global 8.0%). |
| Capital Conservation Buffer (CCB) | - Mandates 2.5% common equity cushion. |
| D-SIBs (Too Big to Fail) | - SBI, HDFC Bank, ICICI Bank (subject to higher capital surcharges). |