Podcast
Questions and Answers
What is the primary purpose of the RBI's new PCA framework for UCBs?
What is the primary purpose of the RBI's new PCA framework for UCBs?
- To improve weak urban cooperative banks (correct)
- To facilitate the growth of all urban cooperative banks
- To increase deposit limits for UCBs
- To standardize interest rates across UCBs
Which tier of UCBs is excluded from the PCA framework?
Which tier of UCBs is excluded from the PCA framework?
- Tier 1 (correct)
- Tier 4
- Tier 2
- Tier 3
What capital adequacy ratio (CAR) condition is part of the PCA invocation norms?
What capital adequacy ratio (CAR) condition is part of the PCA invocation norms?
- At least 400 bps above the required CAR
- Up to 250 bps below the required CAR (correct)
- Up to 300 bps above the required CAR
- Up to 100 bps below the required CAR
What percentage of the global digital payments volume does India hold?
What percentage of the global digital payments volume does India hold?
What is the projected contribution of the digital economy to India's GDP by 2026?
What is the projected contribution of the digital economy to India's GDP by 2026?
How much did India receive in remittances in 2023?
How much did India receive in remittances in 2023?
Which technology is NOT included in the India Stack digital landscape?
Which technology is NOT included in the India Stack digital landscape?
What significant challenge is highlighted regarding India's digital landscape?
What significant challenge is highlighted regarding India's digital landscape?
What was the percentage increase in imports from India's top partners, excluding Singapore, Saudi Arabia, and Switzerland?
What was the percentage increase in imports from India's top partners, excluding Singapore, Saudi Arabia, and Switzerland?
Which country became India's second-largest import partner after China?
Which country became India's second-largest import partner after China?
What type of banking services do the Union Premier branches provide?
What type of banking services do the Union Premier branches provide?
What feature does the Sapphiro Forex Card offer for international students?
What feature does the Sapphiro Forex Card offer for international students?
What is the purpose of the Monthly Per Capita Consumption Expenditure (MPCE) survey?
What is the purpose of the Monthly Per Capita Consumption Expenditure (MPCE) survey?
Who is the Managing Director and CEO of Union Bank of India?
Who is the Managing Director and CEO of Union Bank of India?
When was ICICI Bank founded?
When was ICICI Bank founded?
What technology is utilized by Union Premier branches to enhance banking services?
What technology is utilized by Union Premier branches to enhance banking services?
What is the primary purpose of the World Bank's $1.5 billion loan to India in June 2024?
What is the primary purpose of the World Bank's $1.5 billion loan to India in June 2024?
Which of the following sources is NOT considered low-carbon energy?
Which of the following sources is NOT considered low-carbon energy?
What is the target annual production of green hydrogen under India's National Green Hydrogen Mission by 2030?
What is the target annual production of green hydrogen under India's National Green Hydrogen Mission by 2030?
What role do IBRD and IDA play in relation to the World Bank?
What role do IBRD and IDA play in relation to the World Bank?
What is the target for renewable energy capacity by 2030 under the National Green Hydrogen Mission?
What is the target for renewable energy capacity by 2030 under the National Green Hydrogen Mission?
What percentage of IDFC First Bank's transactions occur online?
What percentage of IDFC First Bank's transactions occur online?
Who is the current president of the World Bank as mentioned?
Who is the current president of the World Bank as mentioned?
What benefit does the partnership between LIC and IDFC First Bank provide to customers?
What benefit does the partnership between LIC and IDFC First Bank provide to customers?
What is the primary purpose of the 'Safety Ring' feature introduced by Punjab National Bank?
What is the primary purpose of the 'Safety Ring' feature introduced by Punjab National Bank?
Which of the following allows customers to set a limit on their transactions under the 'Safety Ring' feature?
Which of the following allows customers to set a limit on their transactions under the 'Safety Ring' feature?
What is the primary goal of LIC's project in partnership with A T Kearney?
What is the primary goal of LIC's project in partnership with A T Kearney?
What has the EEPC India requested regarding the interest subvention scheme?
What has the EEPC India requested regarding the interest subvention scheme?
When did the Interest Equalisation Scheme for pre- and post-shipment rupee credit lapse for exporters except MSMEs?
When did the Interest Equalisation Scheme for pre- and post-shipment rupee credit lapse for exporters except MSMEs?
Which of the following outcomes is expected from the World Bank's financing for India's low-carbon transition?
Which of the following outcomes is expected from the World Bank's financing for India's low-carbon transition?
What is the maximum interest rate offered by SBI's Amrit Vrishti scheme for senior citizens?
What is the maximum interest rate offered by SBI's Amrit Vrishti scheme for senior citizens?
What amount did the State Bank of India raise through its sixth infrastructure bond issue?
What amount did the State Bank of India raise through its sixth infrastructure bond issue?
What was the oversubscription rate for SBI's infrastructure bond issue?
What was the oversubscription rate for SBI's infrastructure bond issue?
In which year was the LIC established?
In which year was the LIC established?
What type of deposits are covered by the SBI Amrit Vrishti scheme?
What type of deposits are covered by the SBI Amrit Vrishti scheme?
What is the main purpose of the proceeds from SBI's bond issue?
What is the main purpose of the proceeds from SBI's bond issue?
What date did the Interest Equalisation Scheme come into effect?
What date did the Interest Equalisation Scheme come into effect?
What is the purpose of the reforms supported by the World Bank’s financing?
What is the purpose of the reforms supported by the World Bank’s financing?
Who is the current Chairperson of LIC?
Who is the current Chairperson of LIC?
Which of the following statements about the World Bank's financing for India's green projects is true?
Which of the following statements about the World Bank's financing for India's green projects is true?
What is the purpose of the $170 million loan signed between the Government of India and ADB?
What is the purpose of the $170 million loan signed between the Government of India and ADB?
What are downstream investments in the context of AIFs?
What are downstream investments in the context of AIFs?
What does the evergreening of loans entail?
What does the evergreening of loans entail?
Who are the signatories of the $170 million loan agreement?
Who are the signatories of the $170 million loan agreement?
What are the targeted reform areas supported by ADB's loan?
What are the targeted reform areas supported by ADB's loan?
What is the primary mission of the Asian Development Bank (ADB)?
What is the primary mission of the Asian Development Bank (ADB)?
Where is the headquarters of the Asian Development Bank located?
Where is the headquarters of the Asian Development Bank located?
What project did LIC launch to address evolving customer needs?
What project did LIC launch to address evolving customer needs?
Flashcards
What is the PCA framework for UCBs?
What is the PCA framework for UCBs?
Prompt Corrective Action (PCA) framework for improving weak Urban Cooperative Banks (UCBs) in India, implemented by the Reserve Bank of India (RBI).
How are UCBs categorized under the PCA framework?
How are UCBs categorized under the PCA framework?
The PCA framework is applied to UCBs with deposits exceeding ₹100 crore, which will be categorized into four tiers based on their deposit size: Tier 1 (up to ₹100 crore), Tier 2 (₹100 crore to ₹1,000 crore), Tier 3 (₹1,000 crore to ₹10,000 crore), and Tier 4 (above ₹10,000 crore).
What conditions trigger the PCA Framework?
What conditions trigger the PCA Framework?
The PCA framework triggers if a UCB's capital adequacy ratio (CAR) is 250 basis points below the required CAR, net non-performing assets (NPAs) exceed 6% but remain below 9%, or the UCB experiences losses in two consecutive years.
What is the exception for Tier 1 UCBs?
What is the exception for Tier 1 UCBs?
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What is India's position in global digital payments?
What is India's position in global digital payments?
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What is the significance of India's digital economy?
What is the significance of India's digital economy?
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What is the India Stack?
What is the India Stack?
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What is a key challenge for India's growing digital economy?
What is a key challenge for India's growing digital economy?
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Low-carbon energy
Low-carbon energy
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World Bank
World Bank
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India's National Green Hydrogen Mission
India's National Green Hydrogen Mission
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Green Hydrogen
Green Hydrogen
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Life insurance
Life insurance
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Corporate Agency Arrangement
Corporate Agency Arrangement
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Buying insurance online
Buying insurance online
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Accessibility and convenience
Accessibility and convenience
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Monthly Per Capita Consumption Expenditure (MPCE)
Monthly Per Capita Consumption Expenditure (MPCE)
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NSSO's MPCE Survey
NSSO's MPCE Survey
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Sapphiro Forex Card
Sapphiro Forex Card
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Union Premier Branch
Union Premier Branch
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Import Growth
Import Growth
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Private Banking
Private Banking
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Multi-currency Forex Card
Multi-currency Forex Card
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Relationship Manager
Relationship Manager
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Evergreening of loans
Evergreening of loans
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Downstream investments
Downstream investments
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ADB-India Pandemic Preparedness Loan
ADB-India Pandemic Preparedness Loan
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LIC's 'Jeevan Samarth' Project
LIC's 'Jeevan Samarth' Project
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Asian Development Bank (ADB)
Asian Development Bank (ADB)
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ADB President
ADB President
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Key areas of focus for ADB's India Pandemic Preparedness Loan
Key areas of focus for ADB's India Pandemic Preparedness Loan
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Low-carbon energy policy
Low-carbon energy policy
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What is PNB's 'Safety Ring'?
What is PNB's 'Safety Ring'?
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How does 'Safety Ring' protect TD transactions?
How does 'Safety Ring' protect TD transactions?
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What is the Interest Equalisation Scheme?
What is the Interest Equalisation Scheme?
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Why did EEPC India raise concerns over the Interest Equalization Scheme?
Why did EEPC India raise concerns over the Interest Equalization Scheme?
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How much did SBI raise through its infrastructure bond issue?
How much did SBI raise through its infrastructure bond issue?
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What will SBI use the raised funds for?
What will SBI use the raised funds for?
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How does the Interest Equalisation Scheme work?
How does the Interest Equalisation Scheme work?
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What is the purpose of the 'Interest Equalisation Scheme'?
What is the purpose of the 'Interest Equalisation Scheme'?
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What is LIC?
What is LIC?
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What changes is LIC undertaking?
What changes is LIC undertaking?
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What initiative is the World Bank supporting in India?
What initiative is the World Bank supporting in India?
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What is green hydrogen?
What is green hydrogen?
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What is the SBI's Amrit Vrishti scheme?
What is the SBI's Amrit Vrishti scheme?
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Where is the World Bank located?
Where is the World Bank located?
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Who is the chairperson of LIC?
Who is the chairperson of LIC?
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When was the World Bank founded?
When was the World Bank founded?
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Study Notes
RBI, ASEAN Platform for Payments
- RBI and ASEAN countries are creating a platform for instant cross-border retail payments.
- The platform is expected to be live by 2026.
- RBI joined Project Nexus to connect domestic fast payment systems (FPSs) of four ASEAN countries (Malaysia, the Philippines, Singapore, Thailand) and India.
- An agreement was signed by BIS and central banks of the founding countries in Basel, Switzerland.
RBI Financial Stability Report (June 2024)
- The Reserve Bank released the 29th Financial Stability Report (FSR).
- The report reflects the collective assessment of the Financial Stability and Development Council (FSDC) about the resilience of the Indian financial system and risks to financial stability.
- The global economy faces risks from prolonged geopolitical tensions, elevated public debt, and slow progress in disinflation, but the global financial system remains resilient.
- The Indian economy and financial system are robust and resilient.
- Scheduled commercial banks' (SCBs) capital to risk-weighted assets ratio (CRAR) and common equity tier 1 (CET1) ratio stood at 16.8% and 13.9%, respectively, at the end of March 2024.
- SCBs' gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8% and the net non-performing assets (NNPA) ratio to 0.6% at end-March 2024.
- Macro stress tests show SCBs would comply with minimum capital requirements in March 2025.
- Non-banking financial companies (NBFCs) were healthy with a CRAR of 26.6%, GNPA ratio of 4.0%, and return on assets (RoA) of 3.3% at end-March 2024.
Withdrawal of ₹2000 Banknotes
- RBI announced the withdrawal of ₹2000 denomination banknotes on May 19, 2023.
- Deposit and exchange facility for ₹2000 banknotes was available at all bank branches until October 7, 2023.
- Exchange of ₹2000 banknotes is available at 19 RBI Issue Offices since May 19, 2023; deposits accepted since October 9, 2023.
- ₹2000 banknotes remain legal tender.
RBI Revises Fraud Risk Management
- RBI issued three revised master directions on fraud risk management for regulated entities (REs).
- These entities include commercial banks, regional rural banks, urban, state, and central cooperative banks, non-banking finance firms, and housing finance companies.
- The directions are principle-based and enhance the Board's role in governance and oversight of fraud risk management.
- Compliance with principles of natural justice is required before classifying entities as fraud, per a March 2023 Supreme Court judgment.
- RBI withdrew 36 existing circulars about fraud risk management to reduce compliance burden.
RBI Fines Visa
- RBI imposed a penalty of ₹24.1 million on Visa for an unauthorized payment transfer method.
- Visa implemented a payment authentication solution without regulatory clearance.
- Visa reaffirmed its commitment to complying with RBI guidelines and regulations.
PCA Framework for UCBs
- RBI issued a Prompt Corrective Action (PCA) framework to improve weak UCBs (urban cooperative banks), effective from April 1, 2025.
- The framework replaces the Supervisory Action Framework (SAF).
- It applies to UCBs with deposits above ₹100 crore.
- Invocation norms include a capital adequacy ratio (CAR) below certain levels, net NPAs above 6% but below 9%, and losses during two consecutive years.
- UCBs are categorized into four tiers, for varying supervisory action plans.
India's Digital Payments
- India holds a 48.5% share in global real-time payments volume (2023), a leadership position.
- India leads global remittances, receiving USD 115.3 billion in 2023.
- Digital economy contributes 10% of India's GDP (2023).
- Projections for 2026 predict the digital economy accounting for 20% of India's GDP.
World Bank Loan for Low Carbon Energy
- World Bank approved a $1.5 billion loan to India in June 2024 for low-carbon energy sector development.
- This is the second loan for this purpose.
- Low-carbon energy sources, including hydrogen, ammonia, and biofuels.
- The loan supports India's National Green Hydrogen Mission.
LIC and IDFC First Bank Tie-Up
- Life Insurance Corporation of India (LIC) entered a corporate agency arrangement with IDFC First Bank.
- Customers of IDFC First Bank can now purchase LIC policies online.
- This partnership aims to enhance accessibility and convenience of life insurance solutions.
Forex Reserves Jump
- India's forex reserves reached an all-time high of $666.854 billion in the week ending July 12, 2024.
- This represents an increase of $9.699 billion compared to the previous week.
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Description
Test your knowledge on the key insights from the Reserve Bank of India's 29th Financial Stability Report released in June 2024. This quiz covers the assessments of the Indian financial system, risks to financial stability, and the global economic climate. Dive into the details of the RBI's role in ensuring financial resilience.
