Banking Current Affairs, February 2025

• Launched "Scam se Bacho," a joint initiative by the Government of India and Meta Platforms Inc. to combat online scams and raise awareness about online fraud.
• MSDE and Meta are collaborating to enhance the Skill India Mission through Al and Virtual Reality (VR).
• The collaboration includes establishing five Centers of Excellence to provide advanced skills development.

Banking Current Affairs of February 2025

• Airtel Payments Bank partnered with Karnataka Bulldozers for Celebrity Cricket League (CCL) 2025.
• Sponsorship promotes secure digital banking and financial literacy among cricket supporters.
• Ujjivan Small Finance Bank (USFB) applied for a universal banking license for broader services including corporate banking.
• Founded in 2017, USFB aims to serve more underserved communities after regulatory flexibility is expanded.
• South Indian Bank (SIB) introduced SIB Business Startup Current Account for small businesses and SIB Corporate Startup Current Account for larger entities.
• Tailored banking solutions from SIB support the expanding entrepreneurial ecosystem in India.
• State Bank of India (SBI) reported an 84% rise in net profit for Q3 FY25, with a 4% increase in net interest income (NII).
• SBI reported strong loan growth, improved asset quality, and increased deposit mobilization, despite decreased employee expenses.
• Indian Overseas Bank (IOB) observed its 89th Foundation Day on February 10, 2025.
• IOB committed to sustainability and responsible banking.
• The Partnership for Carbon Accounting Financials (PCAF) was signed to measure greenhouse gas (GHG) emissions from lending and investment activity.
• IDFC FIRST Bank, in partnership with Ikonz Studios, launched an Al-powered holographic avatar of brand ambassador Amitabh Bachchan.
• Holographic Extended Reality (HXR) technology creates 3D customer engagement, providing information on services like Zero Fee Banking.
• Monthly Interest Credits, Mobile Banking, and the Current Account BRAVO are also featured.
• In January 2025, Canara Bank appointed Dr. Madhavankutty G as Chief Economist to shape economic strategy using expertise in finance and macroeconomics.
• Axis Bank committed ₹104 crore to Ashoka University over four years to advance research centers in Neurosciences, Physics, and Behavioral Studies with fellowships and grants.
• This initiative seeks globally recognized labs, interdisciplinary research, and a global academic network.
• South Indian Bank (SIB) launched 'SIB Quick FD', a digital solution that allows customers to invest in Fixed Deposits (FDs) using funds from any bank account via UPI.
• Standard Chartered Bank appointed Prabdev (P.D.) Singh as its new CEO for India and South Asia, succeeding Zarin Daruwala, beginning April 1, 2025.
• Daruwala expanded Corporate and Investment Banking and Wealth and Retail Banking segments during her leadership.
• Karnataka Bank celebrated its 100th anniversary on February 18, 2024 with new financial products—a children's savings account and a high-interest term deposit product.
• These initiatives further the customer-centric strategy to grow the customer base and strengthen the bank's market presence.
• SBI Cards and Payment Services Ltd appointed Salila Pande as Managing Director and CEO effective April 1, 2025, succeeding Abhijit Chakravorty.
• The company also declared an interim dividend of ₹2.50 per share for the 2024-25 financial year.

Highlights of RBI Monetary Policy Committee 2025

• The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) convened for its 53rd meeting from February 5 to 7, 2025.
• The meeting was led by Governor Shri Sanjay Malhotra and included MPC participants such as Dr. Nagesh Kumar and Shri Saugata Bhattacharya.
• The MPC reduced the repo rate by 25 basis points (bps) and upheld a neutral monetary policy stance given financial conditions.
• The goal of reducing the repo rate to 6.25% is to promote loans for firms and consumers.
• Standing Deposit Facility (SDF) Rate decreased to 6.00% as a result the repo rate cut.
• Marginal Standing Facility (MSF) Rate adjusted to 6.50%.
• Bank Rate adjusted to 6.50%.
• To maintain flexibility with financial uncertainties, the RBI decided to maintain a neutral stance. Its strategy will promote economic growth while hitting inflation targets.
• The MPC reiterated its objective to maintain a Consumer Price Index (CPI) inflation rate of 4% inside a range of +/- 2%, while encouraging consistent GDP growth.
• Despite its resilience in the face of trade growth, the global economy is still expanding below historical norms.
• The main global economic issues are slower disinflation and ongoing geopolitical tensions.
• Uncertainty in global trade rules and financial market volatility resulting from the robust US dollar may have an impact on India’s economy, trade, and inflation.
• First Advance Estimates (FAE) data point to a 6.4% real GDP growth rate in India for 2024–25.
• Growth is mostly attributable to the services sector's strong performance and private consumption recovery.
• Potential downside risks to India's domestic economic performance include geopolitical instability, financial market volatility, and protectionist trade policies.
• Inflation trends showed a decline from a peak of 6.2% in October 2024, with headline inflation softening in November-December 2024.
• Increased rabi crop production and a normal monsoon will likely keep food inflation under control.

Rationale for Monetary Policy Decisions

• The MPC determined that a rate cut was required to promote growth as food inflation decreased and earlier monetary policies continued to have an impact.
• The MPC determined that policy involvement was needed to promote demand given that growth remained below the previous year's levels, even with some recovery.
• While monetary accommodation is required, the MPC remains cautious due to dangers posed by trade rules and unstable global financial markets.

Current Affairs Related to Regulatory Authorities

• Offline payment options will be tested under the RBI Regulatory Sandbox with Exto India Technologies.
• In rural and isolated regions where internet connectivity is limited, this attempt seeks to facilitate digital transactions.
• The Reserve Bank of India (RBI) has introduced liquidity measures which seek to reduce the constraints in the banking system
• The measures include a $5 billion USD/INR buy/sell swap auction, open market operations (OMOs), and variable rate repo (VRR) auction.
• As of May 19, 2023, when it was announced that 2000 banknotes would be withdrawn, the Reserve Bank of India (RBI) reports that only 6,691 crore of these notes are still in use.
• According to RBI Governor Sanjay Malhotra, banks and financial organizations will now have exclusive internet domain names from 'Bank.in’ and 'Fin.in’, in order to improve cybersecurity and protect financial transactions.
• Reserve Bank of India (RBI)has given TATA Communications the go ahead to sell its full stake of TCPSL, TATA Communications Payment Solutions LTD to TSI
• Deal is valued at ₹330 crore, with an additional ₹75 crore contingent on interchange rate adjustments.
• For cross border transactions, the RBI is introducing additional Factor Authentication, aiming to secure international transactions.
• RBI allowed the voluntary amalgamation of Twin Cities Co-operative Urban Bank Ltd. with Kranti Co-operative Urban Bank Ltd. in Hyderabad, Telangana.
• The Reserve Bank of India (RBI) will set up a Working Group with nine members to examine trading and settlement hours in India's financial markets.
• This initiative seeks to enhance market efficiency and international alignment while taking into account the growth of electronic trading and rising foreign investor participation.
• With updated rules which are scheduled to be set in motion on March 31, 2026, The Reserve Bank of India (RBI) has delayed execution on project financing norms.
• The decision aims to prevent disruptions to lending and to guarantee financial stability by reducing potential liquidity issues.
• The Reserve Bank of India (RBI) imposed penalties on Federal Bank Ltd (27.30 lakh) and Karur VysyaBank Ltd (7.30 lakh) for non-compliance with regulatory guidelines.
• Reserve Bank of India (RBI) introduced 50-banknotes which have the newly appointed RBI governor, Sanjay Malhotra's signature.
• Because the "Lokpal" phrase is legally protected for the anti-corruption organization created by the 2013 Act, modifications are needed.
• By enabling Small Finance Banks (SFBs) to provide pre-sanctioned credit lines via the Unified Payments Interface (UPI), the Reserve Bank of India (RBI)will enhance financial inclusion.
• The restrictions against onboarding new clients and issuing new credit cards have been lifted by the Reserve Bank of India (RBI) on Kotak Mahindra Bank.
• The RBI eased norms after satisfying themselves with corrective measures.
• To address liquidity shortages, the RBI infused 2.5 lakh crore throughout the banking system using a Variable Rate Repo auction.
• The Reserve Bank of India(RBI) has sanctioned Zulia investment, a sub division of Temasek Holdings, in order to raise its interest in AU Small Finance Bank by 7%
• Easebuzz has been granted authorization by RBI to operate as online payment for businesses in India
• The Revised Bank-Integrated Ombudsman Scheme implemented by the Reserve Bank of India was erroneously converted to Hindi
• The Reserve Bank of India (RBI) has granted Bank of Maharashtra (BOM) permission to establish a branch in GIFT City
• Penalties were assessed by The Reserve Bank of India(RBI) for regulations violated by Shriram Finance (₹5.80 lakh), Ujjivan Small Finance Bank (₹6.70 lakh), and Nainital Bank (*61.40), in the banking regulations act, 1949.
• In particular for micro, small, and medium-sized businesses, Punjab & Sind Bank intends to launch an immediate lending program with lending of up to ₹25 lacks
• Bajaj Broking, a subsidiary of Bajaj Finance Ltd., has partnered with Tamilnad Mercantile Bank(Tamba) to provide and streamline investment options
• Exim Bank of india raised $1 billion via a 10-year under denominated bond
• Punjab and national Bank launched its first cybersecurity hackathon against malware which sought collaborate on developing advanced solution for cybersecurity
• Indian Overseas Bank is selling 11.5% non performing asset to asset reconstruction companies
• State Bank of India’s (SBI) chair setty has urged all to create a common mechanism to track all utilization of funds this mechanism allows fund to be used minimize risk and provides comfort to lenders
• The Reserve Bank of India (RBI) has approved Bank of Baroda to set up Al driven customer support for forex services by Al driven customer support •
• It is anticipated that by the end of March 2026, 3% gross bad loan for the gross bad loan industry under baseline scenario and all of its conditions
• the Reserve Bank of India (RBI)'s board imposed penalties of banks to non compliance with guidelines • New RBI notes have the signature of Sanjay malhotra
• The Reserve Bank of India launched a payments Interface that makes access to credit easier and easier through small businesses.
• After critical IT infrastructure the restriction had been uplifted that helped the bank begin with the digital payments
• For the implementation the RBI has interjected to address and provide resolution to a smooth liquidity.
• The aim underscoring this Temasek expanding interest in india financial sector retail and MSMEs.

SEBI

• Payments are secured using UPI is currently implemented by SEBI
• A 25 lakh Fine have been imposed due to financial misstatements.
• Launching mitra mutual fund investment tracking to help investors locate track and reclain with limited access
• New RPT reporting party to transactions