RBI Financial Stability Report Quiz 2024

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

Tier 1 (correct)

Tier 4

Tier 2

Tier 3

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?

48.5% Signup and view all the answers

What is the projected contribution of the digital economy to India's GDP by 2026?

20% Signup and view all the answers

How much did India receive in remittances in 2023?

USD 115.3 billion Signup and view all the answers

Which technology is NOT included in the India Stack digital landscape?

Blockchain systems Signup and view all the answers

What significant challenge is highlighted regarding India's digital landscape?

Rising cybersecurity incidents Signup and view all the answers

What was the percentage increase in imports from India's top partners, excluding Singapore, Saudi Arabia, and Switzerland?

12% Signup and view all the answers

Which country became India's second-largest import partner after China?

Russia Signup and view all the answers

What type of banking services do the Union Premier branches provide?

Personalized banking services Signup and view all the answers

What feature does the Sapphiro Forex Card offer for international students?

Transactions in 15 currencies without any cross-currency mark-up charge Signup and view all the answers

What is the purpose of the Monthly Per Capita Consumption Expenditure (MPCE) survey?

To understand economic well-being and consumption patterns Signup and view all the answers

Who is the Managing Director and CEO of Union Bank of India?

A. Manimekhalai Signup and view all the answers

When was ICICI Bank founded?

1994 Signup and view all the answers

What technology is utilized by Union Premier branches to enhance banking services?

Latest digital technologies Signup and view all the answers

What is the primary purpose of the World Bank's $1.5 billion loan to India in June 2024?

To develop the low-carbon energy sector Signup and view all the answers

Which of the following sources is NOT considered low-carbon energy?

Natural Gas Signup and view all the answers

What is the target annual production of green hydrogen under India's National Green Hydrogen Mission by 2030?

5 million metric tonnes Signup and view all the answers

What role do IBRD and IDA play in relation to the World Bank?

They offer loans and grants for development projects Signup and view all the answers

What is the target for renewable energy capacity by 2030 under the National Green Hydrogen Mission?

125 gigawatts Signup and view all the answers

What percentage of IDFC First Bank's transactions occur online?

Over 95% Signup and view all the answers

Who is the current president of the World Bank as mentioned?

Ajay Banga Signup and view all the answers

What benefit does the partnership between LIC and IDFC First Bank provide to customers?

An online platform to purchase LIC policies Signup and view all the answers

What is the primary purpose of the 'Safety Ring' feature introduced by Punjab National Bank?

To enhance security against unauthorized access Signup and view all the answers

Which of the following allows customers to set a limit on their transactions under the 'Safety Ring' feature?

Daily transaction limit Signup and view all the answers

What is the primary goal of LIC's project in partnership with A T Kearney?

To align its agency ecosystem with the needs of Indian families Signup and view all the answers

What has the EEPC India requested regarding the interest subvention scheme?

To restore and increase benefits for all players Signup and view all the answers

When did the Interest Equalisation Scheme for pre- and post-shipment rupee credit lapse for exporters except MSMEs?

Last month Signup and view all the answers

Which of the following outcomes is expected from the World Bank's financing for India's low-carbon transition?

Production of 450,000 metric tons of green hydrogen annually Signup and view all the answers

What is the maximum interest rate offered by SBI's Amrit Vrishti scheme for senior citizens?

7.75% Signup and view all the answers

What amount did the State Bank of India raise through its sixth infrastructure bond issue?

₹10,000 crore Signup and view all the answers

What was the oversubscription rate for SBI's infrastructure bond issue?

In which year was the LIC established?

1956 Signup and view all the answers

What type of deposits are covered by the SBI Amrit Vrishti scheme?

Domestic Retail Term Deposits, including NRI Term Deposits Signup and view all the answers

What is the main purpose of the proceeds from SBI's bond issue?

To support affordable housing and infrastructure Signup and view all the answers

What date did the Interest Equalisation Scheme come into effect?

April 1, 2015 Signup and view all the answers

What is the purpose of the reforms supported by the World Bank’s financing?

To enhance green hydrogen and renewable energy capabilities Signup and view all the answers

Who is the current Chairperson of LIC?

Siddhartha Mohanty Signup and view all the answers

Which of the following statements about the World Bank's financing for India's green projects is true?

It includes financing from IBRD and IDA. Signup and view all the answers

What is the purpose of the $170 million loan signed between the Government of India and ADB?

To enhance health system preparedness for future pandemics. Signup and view all the answers

What are downstream investments in the context of AIFs?

Actual investments made by AIFs in companies using raised funds. Signup and view all the answers

What does the evergreening of loans entail?

Extending new loans to revive those at risk of default. Signup and view all the answers

Who are the signatories of the $170 million loan agreement?

Ms. Juhi Mukherjee and Ms. Mio Oka. Signup and view all the answers

What are the targeted reform areas supported by ADB's loan?

Strengthened disease surveillance and human resources for health. Signup and view all the answers

What is the primary mission of the Asian Development Bank (ADB)?

To promote economic growth and cooperation in the Asia-Pacific region. Signup and view all the answers

Where is the headquarters of the Asian Development Bank located?

Manila, Philippines. Signup and view all the answers

What project did LIC launch to address evolving customer needs?

Jeevan Samarth Signup and view all the answers

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.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

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.