Money & Banking

📊 High-Yield Data & Statistical Fact Sheet

Cue Words	Notes
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. Record surplus transfer: RBI transferred ₹2.87 Lakh Crore to the Centre for FY2025-26 (up from ₹2.69 Lakh Crore in FY24-25) — approved by the Central Board's 623rd meeting (May 2026), on a balance sheet that grew ~20.6% to ₹91.97 Lakh Crore.
RRB Amalgamation — Phase 4 (8 Apr 2025)	2025 Department of Financial Services notified amalgamation of 26 RRBs across 10 states + 1 UT under the "One State One RRB" principle — the 4th phase of RRB amalgamation. History: Phase-1 (FY2006-10) reduced RRBs from 196 → 82; Phase-2 (FY2013-15) from 82 → 56; Phase-3 (FY2019-21) from 56 → 43; Phase-4 (2025) reduces from 43 → 28 RRBs. Post-amalgamation: 28 RRBs across 26 states + 2 UTs, 22,000+ branches, ~700 districts, ~92% of branches in rural/semi-urban areas.
RRB Consolidation — Full History & Effect (21 Jul 2025)	2025 Finance Ministry's Lok Sabha reply (21 July 2025) confirmed Phase-IV effective 1 May 2025 (per GoI notification dated 5 April 2025), taking RRBs from 43 → 28 across 26 states and 2 UTs, under the "One State-One RRB" policy. Full phase history: Phase-I (2005-2010): 196 → 82 (amalgamating RRBs of the same Sponsor Bank within a state); Phase-II (2012-14): 82 → 56 (across Sponsor Banks, contiguous areas); Phase-III (2019, completed by end-March 2021): 56 → 43 (weaker RRBs merged into stronger ones); Phase-IV: 43 → 28. A 2021 NABARD study (published in RBI's "Report on Trend and Progress of Banking in India 2020-21") found amalgamation improved RRB viability/profitability and reduced accumulated losses as a % of total assets. Oversight: State Level Monitoring Committee (SLMC) and National Level Project Monitoring Unit (NLPMU).
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.
Bank Nationalisation Waves	19 July 1969: 14 private banks nationalised (each with deposits >₹50 crore). 16 April 1980: 6 more nationalised (deposits >₹200 crore). Total 27 nationalised banks reduced to 12 PSBs via 2017-2020 mergers.
Payment and Settlement Systems (PSS) Act, 2007	Governs India's payment systems; Section 4 bars any entity except RBI-authorised operators from running a payment system.

📉 Economic Survey 2024-25 — Banking & Financial Sector Snapshot

2025

GNPA of Scheduled Commercial Banks at a 12-year low of 2.6% (Sep 2024); credit-GDP gap narrowed to -0.3% (Q1 FY25) from -10.3% (Q1 FY23).
IBC: ₹3.6 lakh crore realized from 1,068 resolution plans — 161% of liquidation value and 86.1% of fair value.
₹11.1 lakh crore mobilized via equity + debt (Apr-Dec 2024), +5% YoY.
BSE market-cap/GDP ratio at 136% (vs China 65%, Brazil 37%).
Insurance premiums reached ₹11.2 lakh crore (+7.7% in FY24).
Pension subscribers grew +16% YoY (Sep 2024).

📘 Economic Survey 2021-22 — Banking, Markets & Forex Snapshot

2022

Bank credit growth accelerated from 5.3% (April 2021) to 9.2% (31 Dec 2021) YoY.
Gross NPA ratio of Scheduled Commercial Banks declined from 11.2% (2017-18) to 6.9% (Sept 2021); Net NPA ratio declined from 6% to 2.2% over the same period.
Capital-to-risk-weighted-asset ratio (CRAR) rose from 13% (2013-14) to 16.54% (Sept 2021).
₹89,066 crore raised via 75 IPOs (Apr-Nov 2021) — the highest in a decade.
Sensex/Nifty peaked at 61,766/18,477 on 18 October 2021.
Foreign Exchange Reserves touched $633.6 billion (31 Dec 2021) — India was the 4th largest forex reserve holder globally (after China, Japan, Switzerland) as of end-Nov 2021.
External debt rose to $593.1 billion (end-Sept 2021) from $556.8 billion a year earlier.

1. STRUTTING MONEY, BONDS & THE CENTRAL BANK

Cue Words	Notes
Velocity of Money (V)	Velocity of Money (V) = [ (Price Level (P) × Real GDP (Y)) ÷ (Money Supply (M)) ]
Bond Yield Equation	Bond Yield = [ (Fixed Coupon Interest) ÷ (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. Current (26th) Governor: Sanjay Malhotra — took charge 11 Dec 2024 (1990-batch Rajasthan-cadre IAS officer, former Revenue Secretary).
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). Current external members: Dr. Nagesh Kumar, Sougata Bhattacharya, Prof. Ram Singh; RBI-side includes Dr. Poonam Gupta and Indranil Bhattacharya.
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

Cue Words	Notes
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.
Fiat Money & Seigniorage	Fiat Money: Legal tender currency declared by law as medium of exchange without intrinsic commodity value. Seigniorage: Profit earned by RBI on currency issuance (Face Value minus Production Cost). Part retained by RBI, surplus transferred to Central Government.
RBI Origins & Hilton Young Commission	Established on April 1, 1935 under RBI Act 1934 based on Hilton Young Commission (1926) recommendations. Nationalised in 1949.
Regional Rural Banks (RRB Ownership Shareholding)	Established under Narasimham Working Group (1975). Shareholding Ratio: Central Government (50%), Sponsor Bank (35%), State Government (15%). Supervised by NABARD.
Cooperative Banks & 2020 Amendment Act	Function on 'one member, one vote' democratic principle. Banking Regulation (Amendment) Act 2020: Brought Urban Cooperative Banks (UCBs) and Multi-State Cooperative Banks under direct supervision of RBI for governance and capital norms.
Small Finance Banks vs Payments Banks	Small Finance Banks (SFBs): Provide basic banking to unserved sections (75% PSL target; min ₹200 Cr capital). Can grant loans and issue credit cards. Payments Banks: Accept demand deposits (up to ₹2 Lakh/individual), issue debit cards, handle remittances. Prohibited from granting loans or issuing credit cards.
National Strategy for Financial Education (NSFE 2020-25)	Prepared by National Centre for Financial Education (NCFE) with RBI, SEBI, IRDAI, PFRDA. '5 C' Strategic Pillars: Content, Capacity, Community, Communication, and Collaboration.
Public Credit Registry (PCR)	Centralized digital database managed by RBI storing comprehensive financial credit data of all borrowers to eliminate information asymmetry and prevent fresh NPAs.
RBI Master Directions Consolidation	RBI issued 244 consolidated Master Directions after reviewing ~3,500 circulars/guidelines to cut compliance burden. Covers 11 Regulated Entities: commercial banks, SFBs, payments banks, local area banks, RRBs, urban/rural coop banks, AIFIs, NBFCs, ARCs, CICs.
RBI Digital Banking & SRO Norms	Explicit customer consent mandatory for digital banking channels; cannot be made compulsory to avail debit cards. Payment System Operators' Association recognised as a Self-Regulated Organisation (SRO) under RBI's 2024 Omnibus SRO Framework.
Small Finance Bank → Universal Bank Transition	AU Small Finance Bank got RBI 'in-principle' approval to transition to a Universal Bank. Eligibility: 5-yr scheduled track record; listed with net worth >₹1,000 crore; Gross NPA ≤3%, Net NPA ≤1% (last 2 years).
UPI Intensity & Global Expansion	UPI usage intensity (per capita) highest in Telangana; average transaction 'ticket size' declining, showing small-payment adoption. UPI accepted in 8 countries: Bhutan, Singapore, Qatar, Mauritius, Nepal, UAE, Sri Lanka, France. FY25: Digital payments grew 17.9% in value, forming 97.6% of India's total payments; cheques down to 2.4%.

3. BASEL NORMS, STRESSED ASSET RESOLUTION & DIGITAL CURRENCY

Cue Words	Notes
Basel I (1988)	First international capital accord (Basel Committee on Banking Supervision). Focused only on credit risk; required banks to hold capital ≥ 8% of risk-weighted assets.
Basel II (2004) — Three Pillars	Pillar 1: Minimum capital requirement (credit, market, operational risk). Pillar 2: Supervisory review. Pillar 3: Market discipline via public disclosure.
Basel III (post-2008 crisis)	Raised capital quality/quantity, added Capital Conservation Buffer (2.5%) and Countercyclical Buffer, and introduced two new liquidity standards: LCR and NSFR.
Liquidity Coverage Ratio (LCR)	Requires banks to hold enough High Quality Liquid Assets (HQLA) to survive a 30-day acute stress scenario. Ensures short-term resilience.
Net Stable Funding Ratio (NSFR)	Basel III's longer-horizon counterpart to LCR — requires stable funding sources relative to the liquidity profile of assets over a 1-year horizon.
SARFAESI Act, 2002	Lets banks/FIs seize and sell a defaulting borrower's secured collateral without court intervention to recover NPAs. Does not cover unsecured loans or loans below a threshold.
Bad Bank / NARCL	National Asset Reconstruction Company Ltd (NARCL) — a govt-backed "bad bank" that buys stressed loans from banks and works with India Debt Resolution Company (IDRCL) to resolve/recover them, freeing bank balance sheets.
Insolvency and Bankruptcy Code (IBC), 2016	Unified insolvency law consolidating earlier fragmented laws (SICA, SARFAESI's recovery role, Companies Act provisions) into a time-bound resolution process via NCLT/DRT.
Central Bank Digital Currency (CBDC) — e₹	RBI-issued digital form of fiat currency, legal tender, distinct from private cryptocurrency. Two variants: CBDC-Retail (e₹-R, for public transactions) and CBDC-Wholesale (e₹-W, for interbank settlement). Adoption status: Retail e₹ pilot reached ~6 million users by 2025, though transaction volumes remain a tiny fraction of UPI's. Welfare integration: Gujarat, Puducherry, and Chandigarh piloted programmable e₹ for PDS food-subsidy disbursal (FY25-26), redeemable only at designated fair-price shops/merchants. Next phase: Deposit-tokenisation trials (blockchain-based settlement) launched, alongside plans for cross-border CBDC pilots in 2026-27.
CBDC-based PDS Pilot — Gandhinagar (15 Feb 2026)	2026 Union Home Minister Amit Shah launched a CBDC-based Public Distribution System (PDS) pilot in Gandhinagar, Gujarat, aimed at making ration/foodgrain distribution corruption-free and transparent using CBDC/digital rupee technology. The 'Annapurna' machine, also inaugurated, dispenses 25 kg of foodgrain in 35 seconds. Full national rollout planned over the next 3-4 years. (Context: PM Garib Kalyan Anna Yojana currently provides 5 kg free foodgrain/month to 80 crore people.)
CBDC vs Cryptocurrency	CBDC is centralised, sovereign-backed, and stable in value; cryptocurrency is typically decentralised, unbacked, and volatile — RBI has flagged crypto as a financial stability risk.
Digital Rupee — Origin Budget Announcement	2022 Union Budget 2022-23 announced that the Digital Rupee (CBDC) would be introduced by the RBI starting 2022-23, using blockchain and other technologies — the origin announcement for the e₹ subsequently rolled out in pilot phases (see the CBDC — e₹ Cornell row above for adoption status and later pilots).
Stablecoins & GENIUS Act (US)	Stablecoins: cryptocurrencies pegged to fiat/commodities to maintain stable value (fiat-backed, crypto-backed, or algorithmic types). US GENIUS Act (2025): mandates full reserve backing, monthly audits, AML compliance for stablecoin issuers. Hong Kong's Stablecoins Ordinance introduced a licensing regime for fiat-referenced stablecoins. India has not legalised cryptocurrencies but taxes transactions; RBI favours a ban, is piloting CBDC as alternative.
Crypto Transactions & TDS in India	Value of crypto transactions in India crossed ₹51,000 crore in FY 2024-25, up 41% YoY. 1% TDS on transfer of Virtual Digital Assets (VDAs) under Finance Act 2022, retained in I-T Act 2025; ₹511.8 crore TDS collected. RBI's 2018 ban on banks dealing with crypto firms was struck down by Supreme Court in 2020.
RBI Draft Gold Loan Rules (2025)	Harmonises gold-loan norms across banks/NBFCs; combined gold loan portfolio grew >50% in FY24. LTV ratio retained at 75%; for bullet-repayment loans, accrued interest now counted within LTV. Concurrent consumption + income-generation loans against gold prohibited; gold valued at 22-carat price. Delay in returning collateral beyond 7 days attracts ₹5,000/day compensation to borrower.

4. BANKING LAWS (RBI ACT 1934 & BR ACT 1949), NARASIMHAM COMMITTEES & DFIs

Cue Words	Notes
Banking Laws (Amendment) Act, 2025 — provisions effective 1 Aug 2025	2025 Act notified 15 April 2025, containing 19 amendments across 5 banking laws: RBI Act 1934, Banking Regulation Act 1949, SBI Act 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. Key changes effective 1 August 2025 (per Gazette Notification dated 29 July 2025): redefines "substantial interest" threshold from ₹5 lakh to ₹2 crore (unchanged since 1968); aligns cooperative bank director tenure with the 97th Constitutional Amendment, raising maximum tenure from 8 to 10 years (excluding chairperson/whole-time directors). Allows Public Sector Banks (PSBs) to transfer unclaimed shares/interest/bond redemption amounts to the Investor Education and Protection Fund (IEPF), aligning with Companies Act practice; empowers PSBs to remunerate statutory auditors (to attract higher-quality audit professionals).
RBI Act 1934 — Key Sections	Sec 3: Establishes RBI as a body corporate. Sec 4: Original paid-up capital ₹5 crore. Sec 7: Central Govt can issue binding directions to RBI in public interest (Board superseded under Sec 30 if RBI fails its statutory obligations). Sec 17: Business RBI may transact (accept deposits, forex/securities dealing, SDF). Sec 19: Business RBI cannot transact (trade, own shares of banks, lend on mortgage, pay interest on current accounts). Sec 22: RBI's sole right to issue currency notes. Sec 24: Currency denominations (up to ₹10,000, Govt-notified). Sec 26: Legal tender status of notes. Sec 42: Empowers RBI to prescribe CRR for scheduled banks (no statutory min/max %). Sec 45-IA: NBFC registration & Net Owned Fund norms. Sec 49: Publication of Bank Rate. Sec 48: RBI exempt from Income Tax. Sec 59: RBI cannot be wound up except by Central Govt order.
Banking Regulation (BR) Act, 1949 — Key Sections	Sec 5(b)/(c): Defines "banking" and "banking company". Sec 6: Permitted forms of business (lending, LCs, bullion dealing, safe deposit, etc.) Sec 7: Only a "banking company" may use the words bank/banker/banking in its name. Sec 8/9: Banks barred from trading in goods; cannot hold immovable property >7 years (except own use). Sec 10: Management norms (no managing agents; ≥51% of Board must have professional/practical expertise). Sec 11/12: Minimum capital & reserves (₹5 lakh baseline); voting rights capped at 10% of total (RBI may raise in phases to 26%). Sec 17: Statutory Reserve Fund — 20% of profits transferred yearly until it equals paid-up capital. Sec 20: Bars loans to a bank's own directors/related parties. Sec 21: RBI's power to control advances policy of banks. Sec 22: Licensing of banking companies by RBI. Sec 23: Prior RBI permission needed to open/shift branches. Sec 24: Governs Statutory Liquidity Ratio (SLR — liquid reserve of cash/gold/approved securities, originally up to 40% of DTL). Sec 35A: RBI's power to issue binding directions to banks. Sec 35AA/35AB (post-2017): RBI can direct banks to initiate IBC proceedings against stressed corporates — invoked for the 2015 Asset Quality Review (AQR). Sec 36ACA: RBI may supersede a bank's Board for up to 12 months. Sec 56: Extends BR Act to Cooperative Banks (effective 1 March 1966); the 2020 Amendment widened RBI's powers over UCBs/Multi-State Cooperative Banks.
Narasimham Committee I (1991)	Recommended: 4-tier banking structure; phased SLR cut (38.5%→25%) and CRR cut (15%→4.1% by 2003); 8% Capital Adequacy Ratio by 1996; deregulation of interest rates; new private banks permitted; Debt Recovery Tribunals (DRT Act, 1993); Board for Financial Supervision (BFS) set up by RBI.
Narasimham Committee II (1998)	Recommended: bank mergers for a "multiplier effect"; Narrow Banking for weak PSBs (park funds only in risk-free short-term assets); raise minimum CRAR to 9%; greater bank autonomy from Govt ownership; review of RBI Act/BR Act/SBI Act.
Evolution of Development Financial Institutions (DFIs)	IFCI (1948) — India's first DFI, project financing. ICICI (1955) — World Bank-backed, pioneered underwriting; merged into ICICI Bank (2002). IDBI (1964) — apex DFI, spun off from RBI; became IDBI Bank (2004). NABARD & EXIM Bank (1982), NHB (1988), SIDBI (1990) — carved out of IDBI/RBI for agriculture, trade finance, housing, and MSMEs respectively. Narasimham-II push + interest deregulation made the DFI model (borrow long-term at fixed rates, no deposit access) unsustainable, driving the Universal Banking transition (ICICI, IDBI → banks). 2021 Union Budget 2021-22 origin announcement (1 Feb 2021): ₹20,000 crore proposed to set up and capitalise a new DFI, with a ₹5 lakh crore lending portfolio targeted within 3 years — the origin announcement that led to NaBFID (below); see also the Investment Models notes' Development Financial Institution row for the accompanying InvIT/REIT FPI debt-financing amendment proposed in the same Budget. NaBFID (2021): Revives the DFI model for infrastructure — authorised capital ₹1 lakh crore, Govt holds 100% initially (may reduce to 26%); first Chairperson K.V. Kamath. 2025 Union Budget 2025-26: NaBFID to set up a 'Partial Credit Enhancement Facility' for corporate bonds in infrastructure.
Union Budget 2025-26 — Financial Sector Reforms	2025 'Grameen Credit Score' framework to be developed by Public Sector Banks for rural/SHG credit needs. High-Level Committee for Regulatory Reforms: To review all non-financial-sector regulations, certifications, licenses, and permissions. Investment Friendliness Index of States: To be launched in 2025. Jan Vishwas Bill 2.0: To decriminalize more than 100 legal provisions.
NARCL-IDRCL Structure & Timeline	NARCL incorporated 7 July 2021; targets ~₹2 lakh crore NPAs (1.8% of total bank loans) with ₹90,000 crore in Phase 1; acquisition funded 15% cash + 85% Security Receipts, Govt SR guarantee of ₹30,600 crore valid for 5 years.
EASE Reforms Agenda for PSBs	PSB Manthan (Nov 2017) launched EASE (Enhanced/Ease of Access & Service Excellence) — sequential annual editions: EASE 1.0 (2018-19, 6 themes incl. Responsible Banking, Udyamimitra for MSMEs); EASE 2.0 (irreversibility of reforms, EWS systems); EASE 3.0 (FY21, Smart Lending, AI/analytics); EASE 4.0 (FY22, 24x7 banking, co-lending with NBFCs); EASE 5.0/"EASENext" (June 2022) — common reforms agenda + bank-specific 3-year roadmaps. Preceded by PSB consolidation: 27 nationalised banks (1969-80) reduced to 12 via mergers (2017-2020). 2025 Priority sector credit disbursement by banks rose 85% — from ₹23,01,567 crore (2019) to ₹42,73,161 crore (2024). Within this, agriculture-sector credit rose from ₹8,86,791 crore (2019) to ₹18,27,666 crore (2024); MSME-sector credit rose from ₹10,99,055 crore (2019) to ₹21,73,679 crore (2024). 2025 Reforms cited by the Finance Ministry for this growth: the EASE reform agenda for PSBs, the Insolvency and Bankruptcy Code, amendments to the SARFAESI Act and Recovery of Debt and Bankruptcy Act, Early Warning Systems in banks, and bank amalgamation.
NPCI & Retail Payment Products	NPCI (2009): Section-8 not-for-profit umbrella body (RBI + IBA initiative) for retail payment systems; 10 core promoter banks (SBI, PNB, ICICI, HDFC, Citibank, HSBC, etc.). Key products: RuPay (domestic card scheme), IMPS (real-time P2P transfer, distinct from RBI-run NEFT), UPI, NACH (bulk mandates), AePS/APBS (Aadhaar-linked DBT), BBPS (bill payments), NETC/FASTag. RTGS: floor ₹2 lakh, gross + real-time settlement, 24x7 since Dec 2020. NEFT: no floor/ceiling, half-hourly batches, 24x7 since Dec 2019. Both are Centralised Payment Systems (CPS) owned by RBI.

5. NRI DEPOSITS, NIDHI COMPANIES & CHIT FUNDS

Cue Words	Notes
FCNR(B) Account	Foreign Currency Non-Resident (Bank) Account — opened by NRIs/OCBs as term deposits only, in permitted foreign currencies (Pound Sterling, US Dollar, Yen, Euro, etc.). Fully repatriable (principal + interest); hence included in India's external debt.
NRE Account	Non-Resident External Account — rupee-denominated; can be savings, current, recurring, or fixed deposit. Funded from any permitted foreign currency. Fully repatriable (principal + interest); included in India's external debt.
NRO Account	Non-Resident Ordinary Rupee Account — for a person resident outside India to hold local (Indian-sourced) income/transactions in rupees. Opened by any NRI (or created automatically when a resident's account is re-designated on becoming NRI). Principal is non-repatriable; only current income/interest is repatriable. Account-holders may remit up to US$1 million per year out of NRO balances — this repatriable portion is also counted in India's external debt.
Discontinued NRI Deposit Schemes	NR(NR)RD (Non-Resident Non-Repatriable Rupee Deposit) and NRSR (Non-Resident Special Rupee) accounts — discontinued for fresh deposits from April 2002 (2002 amendment to FEMA Deposit Regulations); existing deposits could only be renewed, not opened afresh.
Legal Basis for NRI Deposits	Governed by the Foreign Exchange Management (Deposit) Regulations, 2000 under FEMA — deposits permitted only with RBI-authorised dealers/banks.
Nidhi Companies	Mutual benefit societies ('treasure') registered under the Companies Act, borrowing from and lending only to their own members; regulated by the Ministry of Corporate Affairs, not RBI. Classified as a type of NBFC but exempted from core RBI directions since dealings are confined to shareholder-members.
Chit Funds	India's version of a Rotating Savings and Credit Association (ROSCA) — members make periodic subscriptions; the pooled amount goes each cycle to one member chosen by bid/lot/auction/tender. Regulated under the Chit Funds Act, 1982, with registration/regulation carried out by State Governments (Centre has framed no central rules); classified as a Miscellaneous NBFC (MNBC) but RBI has no separate regulatory framework for them.

6. GLOSSARY: INSURANCE MARKET FAILURES, BANKING RATES & TECHNIQUES

Cue Words	Notes
Adverse Selection	Market-failure problem in insurance arising from information asymmetry: buyers know their own risk better than the insurer, so those most likely to claim are also most likely to buy cover, making the pool unprofitable at "average-risk" premiums.
Moral Hazard	The other classic insurance-market failure: once covered, insured persons take greater risks than they would uncovered, since they know the insurer bears the loss — leading to more claims than the insurer priced for.
CAMELS Rating	Acronym for the global bank-supervision framework: Capital adequacy, Asset quality, Management, Earnings, Liquidity, Systems for control — used to evaluate and rate bank performance worldwide.
Islamic Banking	Shariah-compliant banking (Fiqh al-Muamalat) prohibiting interest (riba) on loans/deposits; operates on profit-and-loss sharing — Musharka (bank as joint-venture partner) and Mudaraba (bank provides finance, client provides expertise, profit shared, loss borne by bank) are its core investment-finance modes. RBI has examined introducing Islamic banking products in India; none fully operational as of the source period.
Fractional (Reserve) Banking	Banking system requiring banks to hold only a fraction of deposits as reserves (India's SLR/CRR are such provisions) to maintain adequate liquidity for everyday withdrawal demand while lending out the rest.
LIBOR & Federal Fund Rate	LIBOR (London Interbank Offered Rate): benchmark rate at which large banks lend/borrow dollar and other foreign-currency deposits in the Eurocurrency market (now phased out in favour of ARRs/domestic benchmarks post the 2021-22 transition). Federal Fund Rate: the US equivalent of India's Repo Rate — overnight interbank lending rate set by the US Federal Reserve.
MIBID & MIBOR	MIBID (Mumbai Inter-Bank Bid rate): weighted-average rate at which Mumbai banks are willing to borrow in the call-money market. MIBOR (Mumbai Inter-Bank Offer Rate): weighted-average rate at which they are willing to lend — together forming the domestic benchmark analogous to LIBOR.
Vostro Account & Till Money	Vostro Account: a rupee account maintained in India by a foreign (non-resident) bank/exchange house — "an account that one party holds for another"; used for Rupee Drawing Arrangements with Gulf/Hong Kong/Singapore/Malaysia exchange houses. Till Money: notes and coins commercial banks physically hold to meet day-to-day customer cash demand — counted as part of CRR.

7. PRIORITY SECTOR LENDING MECHANICS, LEAD BANK SCHEME & LAST-MILE DELIVERY

Cue Words	Notes
On-Lending Model (Bank Credit to NBFCs for PSL)	Banks may classify only fresh loans sanctioned by NBFCs (out of bank borrowing) as Priority Sector Lending (PSL) — capped at 5% of the individual bank's total PSL, on an ongoing basis.
District-wise PSL Incentive Weighting (from FY 2021-22)	RBI ranks districts by per-capita PSL credit flow: 125% weight for incremental PSL credit in districts with per-capita PSL below ₹6,000 (incentive); 90% weight in districts with per-capita PSL above ₹25,000 (disincentive) — applies only to fresh/incremental loans from 1 April 2021, making growth inclusive across geography, not just sectors.
Co-Lending Model (RBI, Nov 2020)	Replaced the 2018 co-origination guidelines. Banks and NBFCs share risk/reward on a pre-decided ratio over a loan's lifecycle; NBFC must retain a minimum 20% share of each individual loan on its own books, with the bank booking the rest. Interest rate seen by the borrower is a blended rate of the bank's and NBFC's respective pricing.
Lead Bank Scheme (Dec 1969)	RBI-administered scheme assigning one lead bank per district to coordinate credit deployment, deposit mobilisation, and PSL flow among all banks/agencies in that district. Extended to metropolitan districts too; as of June 2017, 25 PSBs + 1 private bank cover 706 districts.
Kisan Credit Card (1998-99) & Modified Interest Subvention Scheme	KCC (RBI scheme) funds short-term crop credit, post-harvest expenses, consumption needs, and farm-asset maintenance under a single window. Separately, GoI's (Ministry of Agriculture) Modified Interest Subvention Scheme funds short-term agri loans up to ₹3 lakh at 7% p.a., with an additional 3% Prompt Repayment Incentive taking the effective rate to 4% p.a. — KCC and Interest Subvention are administratively independent of each other.
e-RUPI — Digital Voucher (Distinct from CBDC)	NPCI UPI-powered digital voucher (not a currency) — cashless, contactless, person- and purpose-specific, redeemable only at designated centres, non-transferable and non-convertible to cash. Works via QR code/SMS without needing a bank account or internet to redeem. First deployed for India's Covid-19 vaccination programme (1,600+ tied-up hospitals).
Peer-to-Peer (P2P) Lending — RBI 2017 Norms	NBFC-P2P is only an online marketplace/intermediary — cannot raise deposits, lend on its own book, provide credit guarantees, or facilitate secured lending. Fund transfers must route through an escrow account; aggregate lending exposure capped at ₹50 lakh per lender (with borrower/time-period limits too).
Local Area Banks (1996 Scheme)	Only 4 Local Area Banks exist in India, set up as non-scheduled private banks with jurisdiction restricted to 2-3 contiguous districts, aimed at mobilising local rural savings for local investment (e.g., Coastal Local Area Bank, Vijayawada).
Scheduled Bank — Legal Definition	A bank is "scheduled" once listed in the Second Schedule of the RBI Act, 1934 — must be a corporation with paid-up capital ≥ ₹500 crore. Non-scheduled banks maintain reserves per the BR Act (not necessarily with RBI) and cannot deal in foreign exchange.

8. BASEL CAPITAL BREAKDOWN, PCA/SAF TRIGGERS & SYSTEMICALLY IMPORTANT FIs (INDIA)

Cue Words	Notes
India's CRAR — Full Breakdown	Minimum Total Capital Requirement in India: 11.5% = Tier 1 (equity-like) 7% + Tier 2 (bonds) 2% + Capital Conservation Buffer (equity) 2.5% — versus Basel III's global minimum of 10.5% (8% + 2.5% CCB). Higher capital above the regulatory floor gives banks more lending freedom; falling below it triggers lending restrictions.
PCA — Three Trigger Parameters	RBI's Prompt Corrective Action framework is triggered on Capital (CRAR), Asset Quality (Net NPA), and Leverage (equity capital/total assets) thresholds. Applicable to Scheduled Commercial Banks excluding RRBs, Payments Banks, and Small Finance Banks; RBI has separately extended a PCA framework to NBFCs.
Supervisory Action Framework (SAF) — UCBs & RRBs	RBI's PCA-equivalent for Urban Cooperative Banks, triggered by the same 3 parameters (different threshold levels) plus 2 consecutive years of loss or serious governance lapses; can restrict dividends, donations, new loans, and capex. NABARD runs a parallel SAF for Regional Rural Banks (and plans one for Rural Cooperative Banks).
Domestically Systemically Important Banks/NBFCs (DSIBs)	RBI classifies a bank as a DSIB if its asset size exceeds 2% of GDP — currently SBI, HDFC Bank, and ICICI Bank. A Domestic Systemically Important NBFC is one with asset size > ₹500 crore.
Sector-wise Systemic Importance Declarations	IRDAI declares Domestic Systemically Important Insurers (D-SII) — for 2020-21: LIC, GIC, New India Assurance. SEBI declares systemically important Financial Market Infrastructure (FMI), e.g. commodity exchanges MCX/NCDEX.

9. P J NAYAK COMMITTEE, SARFAESI PROCESS & IBC INSTITUTIONAL PILLARS

Cue Words	Notes
P J Nayak Committee (2014)	Constituted Jan 2014 to review PSB board governance; recommended a Bank Investment Company (BIC) — Govt to transfer its PSB ownership to BIC (registered under Companies Act 2013), converting PSBs into "Limited" companies and reducing Govt stake below 50% to end open-ended sovereign liability. Interim step: Banks Board Bureau (BBB) via executive order to select PSB/FI top management — later replaced by the Financial Services Institutions Bureau (FSIB) from 1 July 2022, which also recommends WTDs/NECs and advises on performance-appraisal systems for PSBs, FIs (NABARD/SIDBI/EXIM/NHB) and Public Sector Insurers.
SARFAESI Act 2002 — Three Recovery Processes	Security Enforcement without court intervention: 60-day notice to defaulter/guarantor; on non-compliance, bank can seize and sell the secured asset directly. Asset Reconstruction: ARC acquires a bank/FI's right/interest in a debt for recovery. Securitization: ARC converts acquired debt into marketable securities (illiquid → liquid). Enacted on Narasimham Committee I & II recommendations to end the earlier court-dependent, slow recovery process.
RBI's June 2019 NPA Resolution Framework	On default, lenders get a 30-day review period, then must sign an Inter-Creditor Agreement (ICA) binding all lenders if 75% by value + 60% by number agree; Resolution Plan (RP) must be implemented within 180 days of review-period end. Disincentive for delay: 20% additional provisioning if RP not implemented within 180 days, another 15% if not done within 365 days — reversible if the case moves to IBC instead (splitting the incentive toward NCLT referral). Applies to Scheduled Commercial Banks (ex-RRBs), SFBs, NBFCs, and DFIs (NABARD/SIDBI/EXIM/NHB); Sec 35AA of BR Act (1949, amended 2017) requires Central Govt authorisation before RBI can direct IBC action against specific defaulters (SC, April 2019).
IBC 2016 — Four Institutional Pillars & CIRP Mechanics	Pillar 1 — Insolvency Professionals (regulated by Insolvency Professional Agencies); Pillar 2 — Information Utilities (electronic lending-fact databases); Pillar 3 — Adjudication (NCLT for corporates, DRT for individuals; NCLAT/DRAT as appellate bodies); Pillar 4 — Insolvency and Bankruptcy Board of India (IBBI) (regulator over all three). CIRP trigger: default >₹1 crore; creditor gives 10-day demand notice before NCLT; process completed in 180 days (extendable 90 days; up to 330 days if under litigation). CoC (financial creditors only) approves the Resolution Plan by 66% value-weighted majority; NCLT cannot second-guess CoC's commercial wisdom (only "limited judicial review"). Section 227 (notified 15 Nov 2019): Extended IBC to NBFCs/Financial Service Providers (>₹500 cr assets) — insolvency can be triggered only by the regulator (RBI), not creditor/debtor; DHFL was the first NBFC referred under it. Pre-Pack scheme (2021 amendment): For MSME defaults <₹1 crore — existing promoters (not Resolution Professionals) retain management and submit the plan to NCLT within 120 days; a "Swiss Challenge" (open bidding) is triggered if operational creditors aren't fully covered.
Advance Pricing Agreement (APA) & MLI	APA: A multi-year contract between a taxpayer and tax authority pre-fixing the transfer price for related-party transactions, per the Arm's Length Principle — pre-empts Base Erosion and Profit Shifting (BEPS) disputes, gives tax certainty, and is binding on both sides. Multilateral Instrument (MLI): Signed by India (June 2017, Paris), ratified June 2019, in force from 1 Oct 2019 — modifies India's existing DTAAs in-place (rather than renegotiating each bilaterally) to close treaty-abuse/BEPS loopholes, taxing profits where real economic activity occurs.

10. GLOSSARY: BANK LENDING, DISTRESS & MONETARY-POLICY TERMS

Cue Words	Notes
Asset-Liability Mismatch (ALM)	Occurs when a bank/NBFC borrows short-term (e.g., 5-year deposits) but lends long-term (e.g., 10-year loans) — the liability falls due before the matching asset matures, forcing the institution to arrange fresh funding from other sources.
Bail-in vs Bail-out	Bail-in: A failing financial institution is rescued by forcing its own creditors/depositors to absorb losses on their holdings. Bail-out: Rescue by an external party (typically government, using taxpayer money) — the opposite of a bail-in.
Cash-Deposit Ratio (CDR)	Ratio of cash held by banks (in hand + balances with RBI) to their aggregate (demand + time) deposits.
Cash Flow-based Lending	Loan granted against a business's anticipated regular income (cash flow) rather than against collateral/assets — widens credit access and can raise the Credit/GDP ratio.
Debt Overhang, Restructuring & Debt Trap	Debt Overhang: Debt burden so large that an entity cannot raise further financing for new projects, since all future earnings would go toward repayment. Debt Restructuring: Renegotiating interest rates/tenure, a bond haircut, or a debt-for-equity swap to help a distressed borrower avoid default. Debt Trap: A cycle of re-borrowing/rolling over loans because high interest payments prevent repayment of the principal.
Deleveraging & Ever-greening of Loans	Deleverage: Reducing debt load, typically by selling assets. Ever-greening: Banks extend fresh loans to a debt-laden borrower so it can repay earlier loans — masks the true NPA position.
Digital Banking Units (DBUs)	Paperless physical banking units offering self-service (24×7×365) and assisted-mode services; 75 DBUs launched across 75 districts by Scheduled Commercial Banks (Oct 2022).
Financial Repression	Policies (interest-rate caps, SLR-type mandated holdings, capital controls) through which governments channel funds to themselves that would otherwise flow elsewhere in a deregulated market.
Forward Guidance & Monetary Transmission	Forward Guidance: Central bank communication about the state of the economy and the likely future path of monetary policy, to anchor market expectations. Monetary Transmission: The pass-through of RBI's policy actions to asset prices and the broader economy.
Inter-connected Lending	A bank/NBFC promoter is also a borrower, enabling depositors' funds to be channelled into the promoter's own group companies — a governance/related-party risk.
Letter of Credit, Letter of Undertaking & Line of Credit	Letter of Credit (LC): Bank guarantee that a buyer's payment to a seller will be received on time/in full; bank covers the amount if the buyer defaults. Letter of Undertaking (LoU): Bank guarantee letting a customer raise short-term credit from another Indian bank's foreign branch (misused in the PNB-Nirav Modi case). Line of Credit: A pre-set borrowing limit from a bank; interest is paid only on the amount actually drawn.
Leverage Ratio	Proportion of a company's debt relative to its equity/shareholders' capital; a highly leveraged firm carries heavy debt on its balance sheet.
Overdraft, Refinance & Rollover Credit	Overdraft: Short-term facility letting a (usually retail) account holder withdraw beyond a zero/insufficient balance. Refinance: Replacing an existing loan with a new one, typically to capture better interest-rate terms. Rollover Loan: Automatically renewed when not repaid in full at term-end, rather than going into default.
Regulatory Forbearance	A regulator's tolerance in relaxing/deferring strict enforcement of prudential norms (e.g., NPA classification, provisioning) against a bank or borrower.
Zombie Firms	Identified via the Interest Coverage Ratio (ICR) = profit after tax ÷ total interest expense; firms with ICR < 1 cannot meet interest obligations from income and are classified as zombies.

11. FUNDAMENTALS CHECK — FUNCTIONS OF MONEY, CRR/SLR & POLICY RATES

Cue Words	Notes
Four Basic Functions of Money	Medium of Exchange: Eliminates the need for barter (double coincidence of wants) by acting as a common intermediary for trade. Unit of Account: Provides a common standard/measure to express the value/price of all goods and services. Store of Value: Allows purchasing power to be saved and used later, since money doesn't perish (subject to inflation eroding real value). Standard of Deferred Payment: Allows debt/credit obligations to be denominated and settled in money terms at a future date (e.g., loan repayments).
Cash Reserve Ratio (CRR) — Basic Definition	The minimum percentage of a scheduled bank's Net Demand and Time Liabilities (NDTL) that it must keep as cash reserves with the RBI (not lendable, earns no interest). Prescribed by RBI under Section 42 of the RBI Act, 1934 (no statutory min/max %). Raising CRR sinks liquidity out of the banking system (contractionary); cutting it releases liquidity (expansionary).
Statutory Liquidity Ratio (SLR) — Basic Definition	The minimum percentage of NDTL that every bank must maintain in the form of liquid assets — cash, gold, or RBI-approved securities (mainly G-Secs) — held with itself (not with RBI). Governed by Section 24 of the Banking Regulation Act, 1949. Used both as a monetary-policy tool and to ensure bank solvency/discipline banks into holding government securities.
CRR vs SLR — Key Difference	CRR: cash only, parked with RBI, earns zero interest, purely a liquidity/monetary tool. SLR: cash + gold + approved securities, held by the bank itself, securities earn interest, serves both liquidity management and prudential/solvency purposes. Both are Quantitative Credit Control instruments; raising either contracts credit, lowering either expands it.
Repo Rate — Basic Definition	The rate at which RBI lends short-term funds to commercial banks against government securities as collateral, under a repurchase agreement (bank sells securities to RBI with a promise to buy back later). RBI's key policy rate; hiking it makes bank borrowing costlier (anti-inflationary), cutting it makes borrowing cheaper (growth-supportive).
Reverse Repo Rate — Basic Definition	The rate at which RBI borrows funds from commercial banks (banks park surplus funds with RBI against securities), i.e. the mirror-image of Repo. Used to absorb excess liquidity from the banking system. Under the current LAF corridor it is replaced operationally by the Standing Deposit Facility (SDF) as the floor rate.
Bank Rate — Basic Definition	The rate at which RBI lends long-term funds to banks without any collateral, published under Section 49 of the RBI Act. Historically RBI's main policy tool before LAF (Repo/Reverse Repo) took over; now largely aligned with the MSF rate and used to calculate penal interest on shortfalls (e.g., CRR/SLR default penalties).
Marginal Standing Facility (MSF) — Basic Definition	A window (introduced 2011) under which scheduled banks can borrow overnight funds from RBI against government securities, dipping into their SLR quota (up to a specified limit), when they face an acute, unexpected liquidity crunch. Priced higher than Repo Rate (a penal rate) since it is a last-resort borrowing facility.
Repo vs Reverse Repo vs Bank Rate vs MSF — Quick Comparison	Repo: RBI lends to banks, short-term, against collateral, at the base policy rate. Reverse Repo/SDF: RBI borrows from banks, absorbs liquidity, priced below Repo. Bank Rate: RBI lends long-term, no collateral, priced above Repo (typically = MSF rate). MSF: RBI lends overnight against SLR securities to banks in a liquidity crunch, priced above Repo (penal rate) — ordering is usually Reverse Repo/SDF < Repo < MSF = Bank Rate.
Commercial Banks — Basic Classification	Public Sector Banks (PSBs): Majority government-owned (e.g., SBI, PNB) — currently 12 after mergers. Private Sector Banks: Majority privately owned (e.g., HDFC, ICICI, Axis). Foreign Banks: Incorporated abroad, operating via Indian branches (e.g., Citibank, HSBC, Standard Chartered). Regional Rural Banks (RRBs): Jointly owned by Centre, Sponsor Bank, and State Govt for rural credit. Cooperative Banks: Registered under Cooperative Societies laws, function on 'one member, one vote' principle (urban and rural tiers).

12. FUNDAMENTALS CHECK — NPA BASICS & PAYMENT INSTRUMENTS

Cue Words	Notes
Non-Performing Asset (NPA) — Basic Definition	A loan or advance is classified as an NPA when the borrower stops servicing it — i.e., interest and/or installment of principal remains overdue for more than 90 days. For an NPA, the asset stops generating income for the bank.
Standard Asset	A loan on which principal/interest payments are not overdue (or overdue by less than 90 days) and which does not carry more than normal risk — the "good" asset category, as opposed to the four NPA sub-categories (Sub-standard, Doubtful, Loss — see Section 2 for detailed overdue-period cutoffs).
NPA Classification Ladder — Quick Recap	Standard (not overdue/overdue <90 days) → Sub-standard (NPA for ≤12 months) → Doubtful (NPA for >12 months) → Loss Asset (loss identified but not yet written off). See Section 2 for SMA-0/1/2 (pre-NPA overdue stages) and full definitions.
Scheduled vs Non-Scheduled Banks — Quick Recap	Scheduled Banks: Listed in the Second Schedule of the RBI Act, 1934; eligible for RBI accommodation/refinance and must meet paid-up capital norms. Non-Scheduled Banks: Not listed in the Second Schedule; maintain reserves under the BR Act (not necessarily with RBI) and cannot deal in foreign exchange. (Full legal definition in Section 7.)
Cheque	A negotiable instrument — a written, signed order directing a bank to pay a specified sum from the drawer's account to the named payee (or bearer) on demand. Subject to clearing-cycle delay and dishonour risk (bounced cheque, Sec 138 Negotiable Instruments Act).
Demand Draft (DD)	A pre-paid negotiable instrument issued by a bank on a customer's request, where the bank itself is the drawer, guaranteeing payment to the named payee — unlike a cheque, a DD cannot bounce for insufficient funds since payment is made upfront.
NEFT vs RTGS vs IMPS — Basic Comparison	NEFT (National Electronic Funds Transfer): No minimum/maximum amount limit; settled in half-hourly batches, 24x7 since Dec 2019. RTGS (Real Time Gross Settlement): Minimum ₹2 lakh, no upper limit; settled individually and instantly (real-time, gross basis), 24x7 since Dec 2020. IMPS (Immediate Payment Service): NPCI-run (not RBI-run like NEFT/RTGS); enables instant, 24x7 real-time interbank P2P transfer, typically capped at ₹5 lakh per transaction, usable via mobile/UPI without batch delay.

13. CRR/SLR, DICGC & PCA — INSTITUTION-WISE APPLICABILITY MATRIX

Cue Words	Notes
CRR — Who Must Maintain	CRR does NOT apply to NBFCs. UCBs must maintain CRR & SLR. RRBs must maintain CRR & SLR. Payment Banks & Small Finance Banks must maintain CRR & SLR.
Lower SLR on NBFCs	A lower SLR (15%) applies on deposit-taking NBFCs and on non-deposit-taking NBFCs with assets > ₹10,000 crore.
SLR/CRR Default Penalty	SLR/CRR default attracts an additional interest rate of 0.25% higher than the repo rate. Banks cannot pledge SLR securities in OMO (or in the LAF tools — Repo and Reverse Repo). SLR securities can be pledged only when banks do not have enough other securities to borrow from RBI — that facility is MSF.
DICGC — Covered Institutions	Covered: all commercial banks, RRBs, Urban Cooperative Banks, and only 2 types of short-term Rural Cooperatives — State Cooperative Banks (SCB) and District Central Cooperative Banks (DCCB). Also covered per DICGC listing: Local Area Banks (LABs).
DICGC — NOT Covered	NBFCs; Long-term Cooperatives (PCARDB, SCARDB); PACS (Primary Agricultural Cooperative Societies).
DICGC — Structure & Premium	Wholly owned subsidiary of RBI, operating under the DICGC Act; insurance cover up to ₹5 lakh. Each depositor is insured in every bank separately — but multiple accounts held in one bank are treated as one for insurance purposes. Insurance premium is paid by the insured bank itself (not the depositor). Deposits in UCBs are covered up to ₹5 lakh (unlike NBFCs).
PCA Framework — Coverage (per older series)	PCA "deems banks risky with weak financial metrics"; 3 parameters listed in the older series: Capital Ratio, Asset Quality, Profitability (per older series; superseded by the current triggers already in the file — Capital (CRAR), Asset Quality (Net NPA), and Leverage). PCA only for commercial banks — NBFCs, FMIs and Cooperative Banks excluded (per older series; superseded by the current position already in the file — RBI has since separately extended a PCA framework to NBFCs). PCA is NOT applicable to NBFCs (older series position — see above). For RRBs → PCA is done by NABARD, not RBI. Cooperative Banks are outside RBI's Prompt Corrective Action framework.
Supervisory Action Framework (SAF) for UCBs — Exact Triggers	SAF is in line with PCA (which is imposed on commercial banks). UCBs face restrictions on worsening of 3 parameters: Net NPAs > 6% of net advances; Losses for 2 consecutive financial years, or accumulated losses on balance sheets; CAR < 9%. RBI can also take action for serious governance issues.

14. DIFFERENTIATED BANKS — PAYMENT BANKS vs SMALL FINANCE BANKS

Cue Words	Notes
Differentiated Banks (Niche Banks)	Aka niche banks. Mooted by the Nachiket Mor Committee, 2014 for financial inclusion. Examples: Payment Banks, RRBs, Small Finance Banks, Local Area Banks, Wholesale and Long-Term Finance Banks, etc.
Payment Banks — Core Features	Can accept Demand Deposits (NBFCs CANNOT). No credit lending. NBFCs cannot accept demand deposits, but can accept time deposits like FDs. Functions: provide small savings/current accounts below ₹1 lakh (per older series; superseded by the current cap already in the file — ₹2 lakh per individual); distribution of mutual funds and insurance products; payments/financial services. Cannot accept deposits from NRIs. RBI reserve requirements (CRR/SLR) — yes, applicable. Have to invest 75% of demand deposit balances in SLR-eligible government securities. 7 payment banks as of the source period. Can offer payment and remittance services, internet banking. Objective: increase financial inclusion. Classed as "differentiated banks" as compared to commercial banks.
Comparison — Who Can Promote	Payment Banks: Prepaid card issuers, telecom companies, NBFCs, business correspondents, supermarket chains, corporates, realty sector co-ops and PSUs. Small Finance Banks: Individuals/professionals with 10 years' experience in finance, NBFCs, microfinance companies, local area banks.
Comparison — What They MUST Do	Payment Banks: Minimum capital of ₹100 crore; maintain 75% of deposits in govt. bonds; maintain 25% of deposits in other banks; have at least 26% investment by Indians; get listed if net worth crosses ₹500 crore; have 25% of branches in unbanked areas; be fully networked and technology driven; have a ₹1 lakh cap for deposits in one account. Small Finance Banks: Minimum capital of ₹100 crore (per older series; superseded by the revised minimum paid-up capital of ₹200 crore* noted below and in Section 2); extend 75% of loans to priority sector; have 25% of branches in unbanked areas; maintain reserve requirements; cap loans to individuals and groups at 10% and 15% of net worth*; have a business correspondent network.
Comparison — What They CAN Do	Payment Banks: Offer internet banking; sell mutual funds, insurance, pensions; offer bill payment service for customers; have ATMs and business correspondents; can function as a BC (business correspondent) of another bank. Small Finance Banks: Sell FOREX to customers; sell mutual funds, insurance, pensions; can convert into a full-fledged bank; expand across the country; transform into a full-fledged bank, but only after RBI's approval.
Comparison — What They CANNOT Do	Payment Banks: Offer credit cards; extend loans; handle cross-border remittances; accept NRI deposits. Small Finance Banks: Extend large loans; float subsidiaries; deal in sophisticated financial products.
Small Finance Banks — Objective & Setup	Objective: financial inclusion. Undertake basic lending and deposit activities for small farmers, businessmen, micro and small industries, and the unorganised sector. Registered as a public limited company under the Companies Act, 2013. Can be set up by: resident individuals with 10 years' experience in banking and finance; companies and societies owned by residents; existing NBFCs, MFIs and Local Area Banks owned by residents (who can opt for conversion into an SFB).
SFB — Capital & Conversion Routes	Minimum paid-up capital = ₹200 crore (recently increased by RBI from ₹100 crore earlier). A Payment Bank with ₹200 crore can become an SFB. A UCB with minimum net worth ₹500 crore and CAR > 9% can become an SFB. Foreign investment permitted as in the case of other private sector commercial banks.
SFB — Full-Fledged Bank Obligations	SFBs are full-fledged banks (can do all bank functions — mutual funds, pension accounts, forex business etc.), in contrast to payment banks; all RBI norms apply (CRR, SLR), plus: Required to extend 75% of credit to PSL sectors; At least 50% of loans below ₹25 lakh; At least 25% of branches in unbanked rural centres.
Local Area Banks (LABs)	Introduced in August 1996 to set up new private local banks — jurisdiction over 2-3 districts. Promoters can be individuals, corporates, societies; NRI promoters must be < 20% of total promoters. Existing NBFCs, MFIs and LABs (owned by residents) can convert to SFBs. PSL norms apply to LABs.

15. RRBs & THE COOPERATIVE BANKING SECTOR

Cue Words	Notes
Regional Rural Banks — Origins & Norms	Set up on the recommendation of the Narsimham Working Group, 1975 → Regional Rural Banks Act, 1976. 75% of credit to PSL sectors. Regulated by RBI, supervised by NABARD. Funding: Govt of India (50%), State Govt (15%), Sponsoring Nationalised Bank (35%). RRBs must maintain CRR & SLR; are covered by DICGC; PSL norms apply; PCA for RRBs is done by NABARD.
Cooperative Banking Structure — Rural (Short Term)	Short Term rural cooperatives — regulated by RBI + State Govt: State Cooperative Bank (SCB) — DICGC covered; District Central Cooperative Bank (DCCB) — DICGC covered; Primary Agricultural Credit Societies (PACS) — not DICGC covered.
Cooperative Banking Structure — Rural (Long Term)	Long Term rural cooperatives — NOT regulated by RBI: State Cooperative Agriculture & Rural Development Bank (SCARDB); Primary Cooperative Agriculture & Rural Development Bank (PCARDB) — district level. Both are outside DICGC cover.
Urban Cooperative Banks — Classification	Urban cooperatives are of two kinds: Scheduled and Non-Scheduled.
Cooperative Banks — Ownership & Dual Regulation	Members are owners → one member, one vote (i.e. a borrower can be a shareholder). 2 types — Urban Cooperative and Rural Cooperative Banks. Dual Regulation: Financial → RBI; Management → Registrar of Cooperative Societies under Central Govt or State Govt. Deposits in UCBs covered by DICGC up to ₹5 lakh (unlike NBFCs). Rural Cooperative Banks: no PSL guideline exists for them as per the source (possibly because they already operate in these areas).
Cooperative Credit Societies	Under the Banking Regulation Act, 1949, a cooperative credit society is defined as a cooperative society whose primary objective is to provide finance to its members. Confine activities to members alone; do NOT perform banking functions. Per RBI, they may be allowed to convert to UCBs if they amend their primary objective.
Cooperative Banks & SARFAESI	A Constitution Bench of the Supreme Court held that Cooperative Banks can use SARFAESI for recovery of debts from defaulters. So Banks, FIs (NBFCs), and Cooperative Banks can all use SARFAESI.
Scheduled Commercial Banks — Composition	Listed in the 2nd Schedule of the RBI Act, 1934. Includes: PSBs, Private banks, Foreign banks, RRBs, and Scheduled Cooperative Banks.

16. NBFCs — RESTRICTIONS, CATEGORIES & REGULATORS

Cue Words	Notes
NBFC — Core Restrictions	Cannot accept Demand Deposits (can accept time deposits like FDs). Do not form part of the Payment and Settlement System ⇒ cannot issue cheques. DICGC → not applicable. PCA → not applicable (per older series; RBI has since extended a PCA framework to NBFCs — see Section 8). CRR does not apply; a lower SLR of 15% applies to deposit-taking NBFCs and non-deposit-taking NBFCs with assets > ₹10,000 crore.
NBFC Categories	Asset Finance Company — principal business is financing of physical assets supporting productive/economic activity (automobiles, tractors etc.). Investment Company — acquisition of securities. Loan Company — loans or advances etc. Infrastructure Finance Company — minimum credit rating of A; CRAR of 15%. NBFC-MFI, NBFC-Factors, Mortgage Guarantee Companies, Non-Operative Financial Holding Company.
Systemically Important Core Investment Company (CIC-ND-SI)	ND = Non-Deposit taking. Acquisition of securities, and must satisfy: Holds >90% of total assets in the form of equity shares, preference shares, debt or loans in group companies; Asset size > ₹100 crore; Accepts public funds; Regulated/registered by RBI.
Infrastructure Debt Fund (IDF)	Investment vehicles to accelerate the flow of long-term debt to the sector. Bonds floated by an IDF can be subscribed in dollars or rupees. IDF income is exempt from Income Tax.
P2P Lending Platforms	Enable individuals to borrow and lend money without any financial institution as intermediary ⇒ regulated by RBI.
Regulators of NBFCs — Full Split	RBI: P2P Lending platforms, HFCs (since 2019), CIC-ND-SI. National Housing Bank: earlier regulated HFCs — NOT ANYMORE. SEBI: Merchant Bankers, Venture Capital Funds, stock exchanges, stock brokers. IRDAI: Insurance companies. State Govts: Chit Funds. Ministry of Corporate Affairs: Nidhi Companies.
Chit Funds & Nidhis — Additional Detail	Both come under NBFCs; no FDI allowed in either. Nidhis: regulated by MoCorporateAffairs under the Companies Act, 1956; created mainly for cultivating the habit of savings amongst members; aka "mutual benefit funds"; localized offices, more common in South India; contributions by members; give loans at reasonable rates for house construction etc. Chit Funds: regulated by State Govts under the Chit Funds Act — NOT regulated by SEBI or RBI; come under the Concurrent List; GST is levied on chit funds; NRIs can invest (no upper limit) on a non-repatriation basis.
Partial Credit Guarantee Scheme	To address the liquidity crisis of NBFCs. PSBs (NOT private banks) can purchase securities (minimum AA rating) of financially sound NBFCs — to temporarily address asset-liability mismatch of otherwise solvent NBFCs/HFCs without resorting to distress sale.
A C Shah Committee	Constituted for reforms relating to Non-Banking Financial Companies (NBFCs).

17. PRIORITY SECTOR LENDING — TARGETS & ELIGIBLE SECTORS

Cue Words	Notes
PSL — Basis and Assessment	PSL is specified as a % of Adjusted Net Bank Credit (ANBC). PSL norms prepared by RBI. Assessment of PSL norms is done every year on a quarterly basis. PSL Certificates (PSLCs) exist as a tradable instrument (banks can buy PSLCs, e.g. via E-Kuber).
PSL Targets — Institution-wise Table	Commercial Banks (including foreign banks) — 40% Regional Rural Banks — 75% Small Finance Banks — 75% Payment Banks — They do not give credit (no PSL target) Urban (Primary) Cooperative Banks — 40% (to be increased to 75% by 2024 in a phased manner) Rural Cooperative Banks — as per the source, no PSL guideline exists for these banks (possibly because they already operate in these areas)
PSL — Who PSL Norms Apply To	All commercial banks (foreign also), RRBs, SFBs, and Local Area Banks.
Priority Sectors — Full List (1-4)	1) Agriculture: loans to individual farmers and Farmer Producer Organisations; includes crop loans, machinery loans for all kinds of agri and allied activities; loans for food and agro-processing activities; loans for installation of solar plants and for solarisation of grid-connected pumps; setting up Compressed Bio-Gas plants. 2) MSME. 3) Export. 4) Education (loans till a certain limit).
Priority Sectors — Full List (5-9)	5) Housing (loans till a certain limit). 6) Social Infrastructure: setting up schools, drinking water facilities, sanitation facilities, healthcare facilities. 7) Renewable Energy. 8) Others: distressed persons for prepayment of loans borrowed from money lenders; Start-ups (loans up to ₹50 crore). 9) Weaker Sections: small and marginal farmers, artisans, village and cottage industries, SC/ST, SHGs, persons with disabilities, minority communities etc.
Rural Infrastructure Development Fund (RIDF)	Maintained by NABARD — provides loans to state govts and state-owned corporations to enable them to complete rural infrastructure projects.
MUDRA	Listed in the source alongside PSL/financial-inclusion instruments (slab detail — Shishu/Kishor/Tarun — is in the fact sheet at the top of this file).
Kisan Credit Card (KCC) — Older-Series Details	Launched in 1998 all over India, by NABARD and RBI. Aim: reduce farmers' dependency on informal lenders for credit. KCC offered by cooperative banks, RRBs and PSBs. KCC extended to fishermen also.
TReDS	Launched by RBI in 2014. Addresses the working capital needs of MSMEs. Companies with turnover > ₹500 crore must be registered on the TReDS platform.
Credit Rationing (Qualitative Tool)	Banks deny credit to borrowers even if they are willing to pay a higher interest rate — because of market imperfection, credit is unavailable despite demand. Big corporates capture a large portion of credit, leaving less credit for PSL etc.
Consortium Lending	When several banks finance a borrower based on a common appraisal and documentation, and conduct joint supervision and follow-up exercises. Drawback: leads to delay in loan appraisal, and the inability of banks to share data timely.

18. RBI MONETARY POLICY OPERATIONS — OMO, LAF, MSF, MSS, SDF, QE

Cue Words	Notes
Open Market Operations (OMO)	RBI buys/sells G-secs to influence money supply.
Bank Rate / Discount Rate — Older-Series Definition	Rate of interest at which RBI lends to banks against corporate bonds (NOT against G-secs — that is Repo). Rate of interest at which RBI provides a rediscounting facility to commercial banks against their first-class securities (e.g. Commercial Paper, Commercial Bill). (Per older series; the file's Section 11 gives the current framing — Bank Rate = long-term lending without collateral, published under Sec 49 RBI Act, aligned with MSF.)
Liquidity Adjustment Facility (LAF)	RBI seeks to reduce short-term fluctuations of liquidity through Repo & Reverse Repo operations. Repo: RBI purchases short-term G-secs ⇒ infuses liquidity.
Marginal Standing Facility (MSF) — Older-Series Details	RBI provides banks up to a certain % of their NDTL on an overnight basis. Banks have to pledge G-secs (exempted from SLR). If no G-sec is available ⇒ the bank can still borrow under MSF.
Market Stabilisation Scheme (MSS) / Sterilization	Monetary policy intervention by RBI to withdraw excess liquidity by selling G-secs — to sterilize the inflationary impact of an increase in forex. Devaluation followed by OMO by RBI to control inflation: in devaluation, RBI buys dollars from exchange banks ⇒ dollar demand increases, rupee depreciates ⇒ more rupees in the market (increased money supply) ⇒ can cause inflation ⇒ balanced by OMOs (RBI sells special G-secs and absorbs excess money supply). Amount raised under MSS does NOT get credited to the Govt account — it is maintained in a separate cash account with RBI, used only for buyback of T-bills/dated securities issued under the scheme.
Standing Deposit Facility (SDF) — Older-Series Note	RBI absorbs liquidity from commercial banks without giving G-secs in return (unlike Reverse Repo). Introduced in 2018 by amending the RBI Act, 1934 (enabling amendment; SDF became the operational floor of the LAF corridor later — see Section 11).
Quantitative Easing (QE) & Tapering	Used to stimulate economic growth in developed countries. The central bank keeps purchasing bonds from banks over a period: Money supply increases ⇒ aggregate demand increases; Bond price increases ⇒ interest rate decreases ⇒ investment increases. As growth returns, the central bank gradually withdraws QE — aka Tapering of QE ⇒ leads to instability in India's financial market.
Operation Twist	An Open Market Operation — part of RBI's monetary policy. RBI simultaneously sells short-term securities to buy long-term securities ⇒ lowers long-term interest rates. RBI purchasing long-term debt papers = giving money to the market for the long term ⇒ more funds available long term ⇒ interest rate decreases ⇒ better monetary policy transmission. Mechanism: if RBI purchases long-term bonds ⇒ price of long-term bonds increases ⇒ long-term yield decreases (the desired outcome). E.g. a ₹100 face-value bond at 8% trading at ₹110 yields (8/110)×100 = 7.27%. Illustration (bank's balance sheet before vs after): before, a bank has one-year cash it can lend only short-term, plus a G-sec maturing in 2030 (cash expected only after 10 years). After the twist, the bank gives cash to RBI and buys a short-dated G-sec (maturing 2021), and hands the 2030 bond to RBI for cash now — so the cash it expected only in 2030 arrives today and can be lent for 10 years ⇒ enough long-term liquidity with banks ⇒ long-term interest rates fall.
Liquidity Trap	RBI wants to increase money supply in a recession, but fails to lower interest rates as they are already almost zero ⇒ makes monetary policy ineffective. Low interest rates, but people still hold on to their cash (savings deposits in banks) and spend less.
Natural Rate of Interest / Neutral Real Interest Rate	The theoretical interest rate that supports the economy at full-employment GDP while keeping inflation stable.

19. MPC, ECONOMIC CAPITAL FRAMEWORK, WMA & OTHER RBI FUNCTIONS

Cue Words	Notes
Monetary Policy Committee (MPC) — Older-Series Details	Statutory body ⇒ Finance Act, 2016. Govt sets the inflation target every 5 years. MPC has to meet at least 4 times a year. Quorum = 4 members. Terms & conditions of appointment of members are decided by the Central Govt.
Economic Capital Framework (ECF)	Methodology for determining the appropriate level of risk provisions and the distribution of profits between RBI and GoI. Bimal Jalan Committee to review the Economic Capital Framework, 2018 ⇒ RBI increased net transfer to the Govt.
Ways and Means Advances (WMA)	RBI gives temporary loan facilities to Centre and State govts under WMA. Introduced in 1997 (before that, ad-hoc T-Bills were used). Loan for 3 months (90 days) charged at the Repo Rate; if extended beyond 90 days it is considered an overdraft (interest rate 2% higher, and for a maximum of 10 consecutive days only). Limits for WMA are mutually decided by Govt and RBI (recently increased by 60% due to COVID-19).
Cash Management Bills (CMBs) vs WMA	Issued by Govt to meet temporary cash-flow mismatches; similar function to WMA, but: WMA is a loan facility (not tradeable); CMBs are bonds (tradeable). WMA is for both Centre + States; CMBs are only for the Centre. Non-standard, discounted instruments with maturity < 91 days — issued at a discount and redeemed at face value on maturity. Eligible as G-sec for SLR purpose.
E-Kuber	Core Banking Solution of RBI. A single current account for each bank across the country; enables ease of operations (e.g. banks can buy PSL Certificates from here).
Central Fraud Registry & ABBFF	Central Fraud Registry — maintained by RBI; banks report all frauds > ₹1 lakh to RBI. Advisory Board for Banking and Financial Fraud (ABBFF) — set up by CVC; conducts first-level examination in cases of banking/financial frauds > ₹50 crore in state-run banks and FIs; secretarial services provided by RBI; 4 members including chairman, 2-year term.
Depositor Education and Awareness Fund (DEAF)	By RBI — banks must transfer money from accounts not operated for over 10 years into this fund.
RBI Surveys — OBICUS and Others	OBICUS: quarterly survey by RBI of the manufacturing sector; provides insight into demand conditions faced by manufacturing; covers 2,500 public and private limited companies; company-level data is never disclosed (confidential). Other RBI surveys: Consumer Confidence Survey, Inflation Expectation Survey. Digital Payments Index — by RBI.
Banking Regulation Act & RBI Act — Supersession Powers	Banking Regulation Act, 1949: RBI (in consultation with Govt) supersedes a bank's Board. RBI Act, 1934: recently amended to allow RBI to supersede an NBFC's Board of Directors. Central Govt can supersede RBI's Board.
Consolidated Sinking Fund (CSF)	Set up in 1999-2000 by RBI to meet redemption of market loans of states. Maintained in the Public Account of the state (outside the Consolidated Fund of the state); not used for any other purpose. State govt contributes 1-3% of outstanding market loans to the CSF each year.
Indradhanush 2.0	Comprehensive plan to recapitalise PSBs — ₹70,000 crore by the Govt and ₹1.1 lakh crore to be raised from the markets.

20. MONEY SUPPLY AGGREGATES & DEMAND FOR MONEY

Cue Words	Notes
M0 — Reserve Money (Source Formulation)	M0 = Currency in circulation + Banks' cash deposits with RBI + Other deposits with RBI. Also called High-Powered Money, monetary base, base money.
Money Supply Ladder — Source Table	M1 = Currency (C) + Demand Deposits (D) [alternatively: M0 + Demand deposits]. Narrow Money = currency with public + demand deposits with the banking system (current + savings account) + other deposits with RBI. M2 = M1 + Savings deposits with Post Office savings banks. M3 (Broad Money) = M1 + Time deposits with the banking system. M4 = M3 + Total/All deposits with Post Office savings banks.
Demand for Money — Determinants	Affected by level of income, interest rates, inflation, and uncertainty about the future. 3 motives follow.
Speculative Demand for Money	Money as a store of wealth ⇒ investment, i.e. when money holding is perceived to be less risky than lending or investing it (e.g. when a stock market crash seems imminent). Demand for highly liquid financial assets — not dictated by real transactions such as trade. E.g. if current interest rates are high ⇒ encourages bond holding but discourages money holding, because of the high opportunity cost of holding money in terms of interest forgone.
Transactions Demand	Involves exchange of money. As GDP (income) rises, transaction demand for money also rises.
Precautionary Demand	Demand for money as a precaution against an uncertain future that may require immediate payment.
Velocity of Money — Source Definition	Number of times money changes hands during a unit period. Higher velocity ⇒ higher total nominal value of transactions in the economy.
Commercial Bill	Bonds issued by a firm to another against a credit transaction. Can be discounted by banks (and rediscounted with RBI under the Bank Rate window).
Vaghul Committee	Constituted for the Money Market in India.

21. NPAs, STRESSED ASSETS, SARFAESI & RESOLUTION FRAMEWORK

Cue Words	Notes
NPA — Source Definition & Agri Exception	Interest/installment not paid for > 90 days. Agricultural loans: short-duration crop (<1 year) ⇒ NPA if not paid for 2 seasons; long-duration crop (>1 year) ⇒ NPA if not paid for 1 season.
NPA Types — Source Wording	Substandard Asset — NPA for < 12 months. Doubtful Asset — substandard for 12 months. Loss Asset — loss identified by bank, auditors or RBI, but the amount not written off wholly (some salvage may come later).
Stressed Assets — Composition	Stressed Assets = NPAs + Restructured Loans + Written-Off Assets. Does NOT include SMA.
Provision Coverage Ratio (PCR)	The prescribed % of funds to be set aside by banks for covering prospective losses due to bad loans. Ratio of total provision balances of banks on a particular date to Gross NPAs. Net NPAs = Gross NPAs − Provisions.
Liquidity Coverage Ratio — Source Formula & COVID Relaxation	Highly liquid assets (cash, G-secs) to be maintained by banks to survive an acute stress scenario lasting 30 days. LCR = High Quality Liquid Assets ÷ Bank's net cash outflow for a 30-day period; LCR should be ≥ 100%. Brought down to 80% by RBI in April 2020 during the COVID crisis (temporary crisis-period relaxation; the standing norm is ≥100%).
Prudential Framework for Resolution of Stressed Assets (RBI, 2019)	Voluntary for banks to go for insolvency procedures — lenders' choice whether to go for legal proceedings/insolvency; earlier they had to report to NCLT. 30-day review period instead of launching a resolution plan on the first day of default. Agreement by ALL lenders required (earlier only 75% was required). Applies to: SCBs (excluding RRBs); All-India term financial institutions (NABARD, NHB, EXIM, SIDBI); SFBs; NBFC-ND-SI (systemically important non-deposit-taking NBFCs) and NBFC-D (deposit-taking NBFCs).
SARFAESI Act, 2002 — Scope & Powers (Source Detail)	Only secured creditors (loans backed by security such as a mortgage) can take possession through an ARC — IBC by contrast covers both secured and unsecured creditors. Asset Reconstruction — converting NPAs into performing assets by: proper management of the borrower's business; sale/lease of part or whole of the business; rescheduling of debts payable. Securitization — conversion of existing loans into marketable security by ARCs through issue of security receipts. Creation of a central registry. Applications against measures to recover secured debts can be filed by borrowers/lenders with Debt Recovery Tribunals.
SARFAESI — NOT Applicable To	Agricultural land; Amount due < 20% of principal and interest; Financial asset < ₹1 lakh. Also not applicable to willful defaulters under IBC — willful defaulters come under SARFAESI instead.
CRILC — Central Repository of Information on Large Credits	Set up by RBI in 2014-15 to collect, store and disseminate credit data to lenders for early recognition of financial distress. Banks, RRBs and UCBs (with assets > ₹500 crore) must furnish credit information to CRILC on all borrowers having aggregate exposure > ₹5 crore.
eBkray Platform	E-auction platform to enable auction by banks of attached assets.
Underwriting of Loans	Critical operation of appraising the creditworthiness of a potential customer — done before deciding whether a loan should be granted.
EASE Index — Source Detail	"Enhanced Access and Service Excellence" — measures the performance of each PSB. Prepared by IBA and BCG; released by the Ministry of Finance. Report notes: strengthening of the bank-loan recovery process (success of IBC); recapitalization and reforms; tracked multiple steps taken by PSBs to institutionalize Clean Banking and avoid recurrence of the NPA problem in future.
PSB Performance — FY2025-26 (All-Time High)	2026 PSBs recorded an all-time high net profit of ₹1.98 lakh crore in FY2025-26 (+11.1% YoY) — the 4th straight profitable year. Gross NPA ratio declined to 1.93%, Net NPA ratio to 0.39% (both the lowest levels ever recorded, as of 31 March 2026); each PSB maintained a provisioning coverage ratio above 90%. Total business reached ₹283.3 lakh crore (+12.8% YoY); deposits ₹156.3 lakh crore (+10.6%); gross advances ₹127 lakh crore (+15.7%) — with Retail, Agriculture, and MSME advances growing 18.1%, 15.5%, and 18.2% respectively. Aggregate CRAR improved to 16.6% (well above the regulatory minimum of 11.5%), supported by capital raising of ₹50,551 crore during the year. Slippage ratio declined to 0.7%; total recoveries (including from written-off accounts) stood at ₹86,971 crore.
PSB 5-Year Trend, FY2021-22 to FY2025-26 (RBI Data)	2026 Gross NPA ratio: fell from 7.3% → 5.0% → 3.5% → 2.6% → 1.9% over FY2021-22 to FY2025-26. Capital Adequacy Ratio (CRAR): rose from 14.6% → 15.5% → 15.6% → 16.1% → 16.6% over the same period. Net profit: rose from ₹0.67 lakh crore → ₹1.05 lakh crore → ₹1.41 lakh crore → ₹1.78 lakh crore → ₹1.98 lakh crore. Total business: rose from ₹181.5 lakh crore to ₹283.3 lakh crore. Sectoral credit growth in FY2025-26: MSME loans +19.6%, Retail loans +19.8%, Agriculture & Allied +16.2%, Infrastructure (industries) +4.9%.

22. IBC 2016, NCLT & NCLAT (SOURCE DETAIL)

Cue Words	Notes
IBC 2016 — Trigger & Concepts	Can be initiated when the minimum amount of default is ₹1 crore (amended in the Atmanirbhar package; earlier ₹1 lakh — this shields MSMEs). Insolvency → an economic status; Bankruptcy → declared by a court. Not applicable to willful defaulters — they come under SARFAESI.
IBC Timelines — Source Version	For startups: 90 days (extendable by 45 days). For companies: 180 days (extendable by 90 days) ⇒ now extended to 330 days.
IBC — Four Pillars (Source Version)	IBBI (Insolvency and Bankruptcy Board of India) — regulator. NCLT — adjudicating authority for companies and limited liability partnership firms; constituted under the Companies Act, 2013; all proceedings under the Companies Act, 2013 shall be disposed of by NCLT. NCLAT — appellate authority. DRT (Debt Recovery Tribunal) — for individual firms and unlimited partnership firms. Plus a private industry of Insolvency Professionals.
NCLAT — Composition & Jurisdiction	Constituted under the Companies Act, 2013 for hearing appeals against NCLT orders. Chairperson: a Judge of the Supreme Court or Chief Justice of a High Court. Maximum 11 members. NCLAT is the appellate tribunal for: NCLT; CCI (Competition Commission of India) — under MoCorporateAffairs, established by the Competition Act, 2002; and the Insolvency and Bankruptcy Board of India under the IBC Act. Appeal from NCLAT lies to the Supreme Court.

23. BASEL-III, AT-1 BONDS, BUFFERS & D-SIBs (SOURCE DETAIL)

Cue Words	Notes
Basel-III — Three Mutually Reinforcing Pillars	Minimum Capital Requirements; Supervisory Review Process; Market Discipline.
Basel-III — Four Banking Parameters	Minimum Capital Requirements — 4.5% of common equity as a % of the bank's risk-weighted assets. Leverage Ratio — ratio of Tier 1 capital to average total consolidated assets, minimum 3%. Liquidity Coverage Ratio — banks should hold sufficiently liquid assets to withstand a 30-day stressed funding scenario. Net Stable Funding Ratio (NSFR) — requires a bank to maintain stable funding above the required amount of stable funding for 1 year of extended stress.
Buffers & CAR under Basel	Capital Conservation Buffer — 2.5% of RWA (Risk Weighted Assets) in the form of CET-1. Counter Cyclical Buffer — imposed during times of high credit growth (may be imposed). Capital Adequacy Ratio: CAR = (Tier I + Tier II) ÷ Risk Weighted Assets = 9% in India (more than the Basel recommendation of 8%).
Leverage Ratio (Capital Sense)	Ratio of a bank's core capital/equity (CET-1) to its assets (debt). Higher leverage ratio ⇒ bank is more safe.
Additional Tier-1 (AT-1) Bonds — Yes Bank Crisis	Lowest priority — even lower than shareholders' money. RBI said they would be written off in the Yes Bank case ⇒ AT-1 bondholders lose money. AT-1 bonds are perpetual bonds with a fixed annual coupon, used to fulfil the Basel-III criterion of 9.5% Tier-1 capital. Unsecured bond, no maturity date; higher rate of interest than other secured bonds; listed and traded on the stock exchange.
D-SIB — Source Detail	Banks whose assets > 2% of GDP. RBI declares D-SIBs annually. The assessment methodology for assessing and identifying D-SIBs will be reviewed at least once in 3 years. Current D-SIBs: SBI, HDFC, ICICI.

24. DEVELOPMENT FINANCE — NABARD, SIDBI, NHB, EXIM & DFIs

Cue Words	Notes
NABARD — Establishment & Ownership	Statutory organisation established in July 1982 by transferring the agricultural credit functions of RBI and its refinance functions. HQ — Mumbai. 100% owned by GoI. Does both Direct Financing (to schemes) and Refinancing (SCBs, RRBs etc.). Schemes: SHG-Bank Linkage Scheme, Kisan Credit Card.
Funds of NABARD	Rural Innovation Fund; Rural Infrastructure Development Fund (RIDF); Long Term Irrigation Fund; Micro Irrigation Fund; Climate Change Fund; Green Climate Fund; Dairy Processing & Infrastructure Fund.
NABARD — Financing Activities	Refinance to Rural FIs for investment credit (long term) and marketing credit (short term). Loans to State Govts for developing rural infrastructure and cooperative credit structure — via RIDF. Loans for food parks and food processing industries. For warehouses and cold-chain infrastructure — to individuals also. Credit facilities to marketing federations etc.
EXIM Bank	Wholly owned by GoI — Export-Import Bank of India Act, 1981; established 1 January 1982. Promoting, financing and facilitating foreign trade; extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign govts and other entities overseas. Facilitates two-way technology transfer — by financing import of technology into India, and investment abroad by Indian companies for setting up joint ventures or undertaking overseas operations. India recently extended a $75 million LOC via EXIM Bank for solar parks in Cuba.
NHB (National Housing Bank)	Established in 1988. 100% owned by GoI now (since 2019). No longer regulates HFCs — that function moved to RBI in 2019.
SIDBI	Established in 1990 through an Act of Parliament. DFI headquartered in Lucknow. Operates under the Department of Financial Services. Purpose: facilitate credit flow to MSMEs. NOT fully owned by GoI. Major shareholders: State Bank of India 16.73% (8,90,00,000 shares); Government of India 15.4% (8,19,22,031 shares); Life Insurance Corporation of India 14.25% (7,57,98,889 shares); NABARD 10% (5,31,92,203 shares). Runs Udyam Mitra — to provide improved accessibility of credit to MSMEs. Partner (with World Bank + UN Women) in Women's Livelihood Bonds (WLBs) — exclusively for women, enabling individual women entrepreneurs in food processing, agriculture, services and small units; initial corpus ₹300 crore.
Development Banks — Historical Arc	IFCI (Industrial Finance Corporation of India), 1948 — first development bank of India. 1991 — Narsimham Committee: development banks disbanded and converted to commercial banks. The Finance Minister recently announced setting up a new development bank.
Fisheries & Dairy Funds Routed Through NABARD	FIDF (Fisheries and Aquaculture Infrastructure Development Fund) — nodal entities: NABARD + all scheduled banks + NCDC; subsidised finance to eligible farmer collectives, cooperatives and individuals. DIDF (Dairy Processing and Infrastructure Development Fund) — Central Sector Scheme under NABARD; interest subvention @ 2.5%; repayment period till 2030-31.

25. PAYMENT SYSTEMS, ATMs, PPIs & DIGITAL PAYMENT INFRASTRUCTURE

Cue Words	Notes
Payment and Settlement System Act, 2007	Regulation and supervision of payment systems is under RBI. RBI constitutes the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). No restriction on the types of payment services/systems a foreign entity can provide. No special courts for adjudication of disputes.
NPCI — Source Detail	Founded in 2008, registered under the Companies Act, 2013, established by RBI and IBA under the provisions of the Payment and Settlement Systems Act, 2007. Owned by a consortium of major banks. Services: IMPS (real-time instant inter-bank transfer system managed by NPCI, available 24×7); BBPS (Bharat Bill Payment System) — RBI-conceptualised, NPCI-driven one-stop payment platform for all bills, covering repetitive bill payments online or in cash, with no convenience fee for online transactions; NACH (National Automated Clearing House) — web-based platform for interbank, high-volume electronic transactions for banks/FIs/corporates/govt.
NEFT & RTGS — Source Detail	NEFT: from any branch to any branch; not in real time; settles in 23 half-hourly batches; available 24×7. No charges to savings bank account customers for online NEFT. Foreign remittance under NEFT is only for Nepal. RTGS: real-time transfer, primarily for large transactions (min ₹2 lakh); described in the source as not a 24×7 system (per older series; superseded by the current position already in the file — RTGS has been 24×7 since Dec 2020).
Digital Payment Modes — Older Comparison Table	Introduced by: NEFT — RBI; RTGS — RBI; IMPS — NPCI. Settlement type: NEFT — half-hourly batches; RTGS — one-on-one settlement; IMPS — one-on-one settlement. Minimum transfer limit: NEFT — ₹1; RTGS — ₹2 lakh; IMPS — ₹1. Maximum transfer limit: NEFT — no limit (₹50,000 per transaction); RTGS — no limit; IMPS — ₹2 lakh (per older series; superseded by the current IMPS cap of ₹5 lakh already in the file). Funds transfer speed: NEFT — 2 hours; RTGS — immediate; IMPS — immediate. Service timings: NEFT — 24/7; RTGS — available on certain days of the week between a stipulated time period (till 6 PM) (per older series; superseded — RTGS is now 24×7); IMPS — 24/7. Mode: NEFT — online/offline; RTGS — online/offline; IMPS — online.
Merchant Discount Rate (MDR)	Cost paid by a merchant to the bank for accepting digital payment from customers (a percentage of the transaction amount). Amount distributed between: the bank; the vendor that installs the PoS machine; and the card network provider (Visa, Mastercard, RuPay etc.). From 1 January 2020: businesses with annual turnover > ₹50 crore must offer low-cost digital payment options, and MDR will not be levied on either customers or merchants. RBI and banks will absorb these costs from savings on account of handling less cash. Low-cost digital payment modes: BHIM, UPI, Aadhaar Pay, RTGS, Debit Cards etc.
Prepaid Payment Instruments (PPIs)	Instruments that facilitate the purchase of goods and services against value stored on the instrument (value stored by cash, credit or bank account). E.g. Paytm, MobiKwik. Issuer must be incorporated under the Companies Act, 1956/2013 with minimum paid-up capital ₹5 crore and minimum positive net worth ₹1 crore at all times. Only Indian Rupees in the wallet. No interest payable on PPI balances. 3 types: Closed System PPIs — usable only for the issuer's own facilities (Flipkart wallet, Myntra wallet) ⇒ RBI approval not required; Semi-Closed System PPIs — only for a selected set of services; Open System PPIs — issued only by banks, allow cash withdrawal etc.
ATM Types — Colour Labels	White Label — owned and operated by an NBFC, cash provided by a sponsor bank; non-bank entities can set these up after RBI authorisation; cash deposit facility not present; Govt permitted 100% FDI through the automatic route in White Label ATMs. Green Label — agricultural transactions. Brown Label — owned by a bank but operations done by a third party. Orange Label — share transactions. Yellow Label — e-commerce. Pink Label — only for women, to mitigate long ATM queues for women. Biometric ATM — uses fingerprint and eye scanners to access customer bank details. On-site ATM — inside a bank. Off-site ATM — outside bank premises.
Payments Infrastructure Development Fund (PIDF)	Created by RBI — ₹500 crore (RBI gave half the initial corpus, ₹250 crore; the rest by card-issuing banks). Encourages acquirers to deploy Point of Sale (PoS) infrastructure, physical and digital, in tier 3 to tier 6 centres and NE states. Similarly, RBI set up the Acceptance Development Fund to improve the last-mile payments network in rural India and increase acceptance of credit & debit cards in tier 3-6 cities. NABARD contributes from the Financial Inclusion Fund; RBI contributes from the Depositors' Awareness & Education Fund; operational expenses covered from card-issuing banks and card networks. In line with the Nandan Nilekani Committee on Deepening of Digital Payments.
National Common Mobility Card (NCMC)	India's first indigenously developed payment platform. Users can pay for all segments of transportation — metro, rail, toll, parking, smart city and retail. Supports online and offline transactions. NPCI has prepared the standards for NCMC.
Positive Pay Mechanism	Fraud detection tool used by banks against counterfeit cheques; applies to cheques above ₹50,000.
Bilateral Netting	Two counterparties in a financial contract determine a single net payment obligation due from one party to another — payables and receivables are netted off. Introduced in Budget 2020. Bilateral netting was not allowed in India as of the source period; however multilateral netting is allowed (parties can offset claims against each other through a central counterparty).
SWIFT	Society for Worldwide Interbank Financial Telecommunications — a messaging network that financial institutions use to securely transmit information through a standardized system of codes.
Financial Market Infrastructure (FMI)	A multilateral system among institutions for clearing, settling, or recording payments etc. Refers to: Systemically Important Payment Systems (SIPS) — e.g. RTGS — for transfer of funds among participants; Clearing Corporation of India Ltd; Central Securities Depositories (CSD) — 2 in India: NSDL and CSDL — central safe-keeping services, asset services (administration of corporate actions, record of legal ownership of security etc.); Securities Settlement Systems (SSS) — enables securities to be transferred and settled by book entry; Central Counterparties (CCP) — interposes itself between counterparties to a contract and ensures performance of open contracts; Trade Repositories (TR) — maintains a centralised electronic database of transaction data.

🧾 Mahila Samman Savings Certificate — Union Budget 2023-24

Cue Words	Notes
Mahila Samman Savings Certificate	2023 Launched via the Union Budget 2023-24 (1 Feb 2023) as a one-time new small savings scheme. Allows deposits up to ₹2 lakh in the name of women/girls, for a 2-year tenure (available till March 2025). Offers a fixed interest rate of 7.5%, with partial withdrawal allowed.

26. FSDC, FSRASC, IBA & BANKING COMMITTEES

Cue Words	Notes
Financial Stability and Development Council (FSDC)	Non-statutory body ⇒ set up on the recommendation of the Raghuram Rajan Committee (2008) on financial sector reforms. Responsibilities: inter-regulatory coordination and resolving their disputes; strengthen and institutionalise the mechanism for maintaining financial stability; financial sector development along with monitoring macro-regulations of the economy. Chairman — Finance Minister. Members: heads of financial regulators (RBI, SEBI, PFRDA, IRDA); Finance Secretary, Dept of Economic Affairs; Secretary, Dept of Financial Services; CEA; Chairman of the Insolvency and Bankruptcy Board.
FSRASC — Financial Sector Regulatory Appointments Search Committee	Created on the recommendation of the Financial Sector Legislative Reforms Commission, 2011. Recommends names of chairpersons and members of Financial Sector Regulatory Bodies — including the Governor and Deputy Governor of RBI. Headed by the Cabinet Secretary. FSRASC recommends candidates (even names that have not applied) and sends them to the Appointments Committee of Cabinet (headed by the PM).
Indian Banks' Association (IBA)	Association of Indian banks and FIs based in Mumbai; a voluntary association of banks from the public sector, private sector, foreign and cooperative banks. CII-IBA Financial Conditions Index (FCI) — based on a quarterly survey of major banks and FIs on their expectations of key financial and economic variables determining financial conditions in the Indian economy. 4 sub-indices of the CII-IBA-FCI: Cost of Funds Index, Funding Liquidity Index, External Financial Linkages Index, Economic Activity Index.
Usha Thorat Committee	To examine issues related to offshore rupee markets and recommend policy measures to ensure the stability of the external value of the domestic currency. To examine the role international financial services centres can play in addressing these concerns. To develop deep and liquid on-shore financial markets that act as a price setter of the Rupee globally.
Banking & Financial Sector Committees — Full Mapping (1)	Urjit Patel Committee — to examine the current monetary policy framework. Vaghul Committee — for the Money Market in India. Rattan P Watal Committee — to boost the digital payment system in India. Raghuram Rajan Committee — for Financial Sector Reforms. Raja Chelliah Committee — for Tax Reforms. Rakesh Mohan Committee — Small Savings. Naresh Chandra Committee — for the 14-member task force on security issues.
Banking & Financial Sector Committees — Full Mapping (2)	P J Nayak Committee — Governance of Boards of Banks in India. Parthasarathi Shome — for the Tax Administration Reform Commission. Narasimham Committee — for Banking Sector Reforms. Nachiket Mor Committee — for comprehensive financial services for small businesses and low-income households. N. K. Singh Committee — to review the Fiscal Responsibility and Budget Management Act. Kelkar Committee — for Tax Structure Reforms. Deepak Parekh Committee — for Financing the Infrastructure sector. Deepak Mohanty Committee — Data and information management in the RBI. Damodaran Committee — for improvement of customer services in banks. C. Rangarajan Committee — for poverty scale estimates in the country. Bimal Jalan panel — to scrutinize applications for new bank licenses (distinct from the Bimal Jalan Committee on the Economic Capital Framework, 2018). A C Shah Committee — for reforms relating to NBFCs.

27. CBDC, E-CURRENCY & CRYPTOCURRENCY (OLDER-SERIES BASELINE)

Cue Words	Notes
E-Renminbi / Digital Yuan	Digital currency launched by China. The People's Bank of China will be the sole issuer. Provides an alternative to the dollar settlement system. Based on blockchain technology.
Early Sovereign Digital/Crypto Currencies	Marshall Islands — first digital currency, 'Sovereign'. Venezuela (2018) launched Petro — the first country to officially launch its own cryptocurrency. Libra — by Facebook. (Older-series baseline; India's own CBDC position — the RBI e₹ retail/wholesale pilots — is covered in Section 3.)
Bond-i / Bondi Bond	Blockchain-operated bond launched by the World Bank — the first blockchain bond.

28. FOREX & CURRENCY SWAPS, CURRENCY TYPES & EXTERNAL LIQUIDITY TOOLS

Cue Words	Notes
Foreign Exchange Swap (RBI Tool)	RBI buys dollars from banks; banks buy the dollars back at the end of the swap period. Purpose: to improve domestic liquidity conditions. Done by RBI after the IL&FS breakdown induced a liquidity crunch.
Currency Swap Agreement — Worked Example	Two parties exchange principal and interest of a loan in one currency for principal and interest in another currency; used to obtain foreign currency loans at a better interest rate. Example at $1 = ₹70: In the US, a US company can raise a loan at 6%, but an Indian company doing business in the US faces 8%. In India, an Indian company can raise a loan at 9%, but a US company doing business in India faces 11%. So the US company raises $1 billion at 6% and gives it to the Indian company working in the US; the Indian company raises ₹70 billion at 9% and gives it to the US company operating in India. The Indian company keeps paying interest at 6% and returns the $1 billion at term end; the US company keeps paying 9% and returns the ₹70 billion at term end.
Types of Currency	Hard Currency — strong, highly demanded by every economy ⇒ scarce availability. Soft Currency — opposite of hard, low demand ⇒ easily available in the forex market (e.g. domestic currency in the forex market). Hot Currency — when hard currency is exiting the economy at a faster pace. Heated Currency — when hard currency becomes hot and exits the economy rapidly.

30. FINANCIAL INCLUSION & PENSION SCHEMES — PMJDY, APY & NPS VATSALYA

2026

Cue Words	Notes
PMJDY (Pradhan Mantri Jan Dhan Yojana) — Economic Survey 2025-26	55.02 crore bank accounts opened as of March 2025 under PMJDY, of which 36.63 crore are in rural/semi-urban areas.
PMJDY completes 11 years (28 August 2025)	2025 PMJDY (Pradhan Mantri Jan Dhan Yojana) completed 11 years on 28 August 2025 (scheme launched 28 August 2014). As of 13 August 2025: 56.16 crore Jan Dhan accounts opened (up from ~19 crore accounts historically, a 3x increase over 11 years); total deposit balance ₹2,67,756 crore (~₹2.68 lakh crore) — deposits grew ~12x over the same period; average deposit per account ₹4,768 (3.7x higher than August 2015). 55.7% of accounts held by women; 66.7% of accounts in rural/semi-urban areas. 38.68 crore free RuPay debit cards issued (each with ₹2 lakh accidental insurance cover, zero balance requirement, up to ₹10,000 overdraft facility). PMJDY is the core of the Jan-Dhan-Aadhaar-Mobile (JAM) trinity — a "diversion-proof" DBT mechanism; ₹6.9 lakh crore credited via DBT schemes in FY2024-25 alone. Digital transactions via PMJDY-linked infrastructure grew from 2,338 crore (FY2018-19) to 22,198 crore (FY2024-25).
Atal Pension Yojana (APY) — Cabinet Continuation (21 Jan 2026)	Union Cabinet approved continuation of APY up to FY 2030-31, with extended funding support for promotional/developmental activities and gap funding. APY was launched 9 May 2015 to provide old-age income security for unorganised-sector workers.
Jan Suraksha Schemes — 10 Years (May 2025)	2025 Three Jan Suraksha schemes — PMJJBY, PMSBY, and APY, all launched 9 May 2015 — completed 10 years in May 2025. PMJJBY (life insurance cover ₹2 lakh, premium ₹436/year): as of ~23 April 2025, 23.63 crore cumulative enrolments, ₹18,397.92 crore paid across 9.2 lakh claims. PMSBY (accident insurance cover ₹2 lakh, premium ₹20/year): 51.06 crore cumulative enrolments, ₹3,121.02 crore paid across 1,57,155 claims. APY (guaranteed pension of ₹1,000-5,000/month after age 60): 7.66 crore subscribers (as of 29 April 2025); women constituted ~47% of subscribers.
Jan Suraksha Schemes — 11 Years (May 2026)	2026 Three Jan Suraksha schemes — PMJJBY, PMSBY, and APY, all launched 9 May 2015 — completed 11 years in May 2026. PMJJBY (life insurance cover ₹2 lakh, premium ₹436/year, age eligibility 18-50): as of end-April 2026, 27.43 crore cumulative enrollments, ₹21,512.50 crore paid for 10.75 lakh claims. PMSBY (accidental death/disability cover up to ₹2 lakh, premium ₹20/year, age eligibility 18-70): 58.09 crore cumulative enrollments, ₹3,667.52 crore paid for 1,84,662 claims. APY (guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60, age eligibility 18-40, administered by PFRDA): 9.04 crore cumulative enrollments; women constitute ~49% of APY enrollments.
NPS Vatsalya Scheme Guidelines 2025 (PFRDA, 13 Jan 2026)	PFRDA issued NPS Vatsalya Scheme Guidelines 2025. NPS Vatsalya is a contributory long-term savings scheme exclusively for minors, announced in Union Budget FY2024-25 and launched 18 September 2024. Allows parents/guardians to build savings for children, with a provision to shift to regular NPS upon the child attaining majority.
Unified Pension Scheme (UPS) — PFRDA Regulations (March 2025)	2025 - PFRDA notified Regulations for operationalisation of the Unified Pension Scheme (UPS) under NPS on 20 March 2025 (gazette notification dated 19 March 2025), effective from 1 April 2025. This follows the original UPS notification by the Government of India dated 24 January 2025, for Central Government employees covered under NPS. 2025 The regulations enable enrolment of three categories: (i) existing Central Government employees in service as of 1 April 2025 covered under NPS; (ii) new recruits joining Central Government service on or after 1 April 2025; (iii) Central Government employees covered under NPS who superannuated, voluntarily retired, or retired under Fundamental Rule 56(j) on or before 31 March 2025 and are eligible for UPS (or their legally-wedded spouse, if the employee died before exercising the UPS option). 2025 Enrolment/claim forms available online from 1 April 2025 via Protean CRA (npscra.nsdl.co.in), with a physical-submission option also available.

29. ECONOMIC OFFENCES MACHINERY — FEO ACT, PMLA, SFIO, FIU & FCRA

Cue Words	Notes
Fugitive Economic Offender (FEO) Act, 2018	An FEO is any individual who has left India to avoid criminal prosecution, or who — being abroad — refuses to return to India to face criminal prosecution. Threshold: the offence involved should be > ₹100 crore. A person is declared an FEO on an application filed in a Special Court under the PMLA, 2002. Consequence: properties of the person can be confiscated.
Serious Fraud Investigation Office (SFIO)	Statutory body under the Companies Act, 2013, functioning under the Ministry of Corporate Affairs. Investigates corporate frauds of a very serious and complex nature; mandated to investigate frauds relating to a company under the Companies Act.
Financial Intelligence Unit — India (FIU-IND)	Set up in 2004. Receives cash transaction reports and suspicious transaction reports, and analyses them. An independent body reporting to the Economic Intelligence Council (headed by the Finance Minister) — note: it reports to the EIC, not to the Ministry of Finance directly.
EGMONT Group	A global association/grouping of Financial Intelligence Units (FIUs) of countries.
FCRA, 2010 (Foreign Contribution Regulation Act)	Implemented by the Ministry of Home Affairs (MHA). If an NGO is substantially funded by the Government of India, it comes under the RTI Act.

Money & Banking ​

Money & Banking