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Why in the News? RBI superseded the board of New India Co-operative Bank due to governance issues and financial irregularities. Revised norms expand small-value loan definition, increase real estate exposure limits, and update provisioning for security receipts (SRs). New regulations aim to enhance operational flexibility while maintaining regulatory oversight. RBI Revises Co-operative Bank Norms: RBI …
Read MoreWhy in the News? The RBI’s latest report on the Quality of Public Expenditure (QPE) Index highlights improved fiscal management in India. It assesses capital and revenue spending trends since 1991, showing better public expenditure quality, especially with a focus on capital investment post-COVID-19. Context & Background: The Reserve Bank of India (RBI) has developed …
Read MoreWhy in the news? The government is considering raising the deposit insurance limit beyond ₹5 lakh to enhance depositor protection. This follows RBI’s restrictions on New India Co-operative Bank due to governance concerns, highlighting the need for stronger financial security measures. Government’s Plan for Deposit Insurance: The Indian government is considering raising deposit insurance beyond …
Read MoreWhy in the news? The Reserve Bank of India cut the repo rate by 0.25% to 6.25%, the first reduction since May 2020, aiming to stimulate growth, ease borrowing costs, and manage inflation projected to decline to 4.2% in 2025-26. Policy Decision and Implications: The Reserve Bank of India (RBI) cut the repo rate by …
Read MoreWhy in the news? UPI’s dominance in India’s digital payment ecosystem has grown substantially, contributing to a ten-fold increase in payment volumes and values since 2018. It now accounts for 83% of digital payment transactions, transforming India’s financial landscape. Growth in Digital Payments (2013–2024): Digital payments in India increased over 3.5 times in value from …
Read MoreWhy in the news? The Reserve Bank of India is likely to reduce the repo rate by 25 bps in its upcoming meeting, responding to economic growth measures in the Union Budget and easing inflation, marking its first rate cut in five years. Impending Rate Cut: The Reserve Bank of India (RBI) is expected to …
Read MoreWhy in the news? The Supreme Court ruled that only the Reserve Bank of India can regulate credit card interest rates, overturning a 2008 NCDRC order capping rates, and clarified that high rates aren’t “unfair trade practices” under consumer laws. Key Decision Highlights: The Supreme Court ruled that high interest rates on credit card loans …
Read MoreWhy in the news? Government Review: Sovereign Gold Bond (SGB) Scheme may be discontinued due to high fiscal financing costs. Policy Alignment: Budget 2024-25 reduced gold import duty, achieving the objective of boosting gold demand, initially addressed by SGBs. Market Adjustment: No SGB issuances have been made in the current financial year despite budget allocation …
Read MoreWhy in the news? RBI has rolled out new guidelines requiring FPIs to seek government approval if their stake in Indian companies exceeds 10%, amid increased scrutiny of foreign investments. About the New RBI Rules for FPI and FDI Classification: The Reserve Bank of India (RBI) introduced updated rules to guide foreign portfolio investors (FPIs) …
Read MoreRelevance: GS – 3 – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Why in the News? The Reserve Bank of India (RBI) has retrieved approximately 130 metric tonnes of gold previously held in safe custody with the Bank of England over the last two-and-a-half years. This strategic shift …
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