Baroda Academy Reference Study Material 2025-26 PDF

Mr JITH Mr J IT H Mr J IT E A R E E A R EE E M R M R...

Mr JITH Mr J IT H Mr J IT E A R E E A R EE E M R M R SR K U G S K U G S K r G H r H r H M J IT M J IT M J IT Reference E R study Amaterial E forEpromotion A R exercise ofRE E R E M R M S S K U officers S2025-26 KU G K G r G H r H Mr J ITH R M E J IT R M E J IT E E A E A R E SR U M S R U M S G K G K G H K H r TH r Mr J I T M E J I R M E J IT E E A R E A E R M S R U M S R S K U G K G K G H r H r H Mr J IT M E J IT R M E J IT E E A R E A E R M S R U M S R S K U G K G K G r H r H Mr J ITH R M E J IT R M E JIT E E A E A R E SR U M S R U M S G K G K G H K r H r H r IT M J IT M Academy Baroda J IT R M E J E E A R E E A E R M R SBaroda KU M S R S K U Bank G G K G r of H r H Mr J ITH R M E J IT R M E J IT E E A E A R E SR UM For internal SR circulation onlyU M S G K G K G H K r H r TH extremely required. Mr Do Not PrintJIunless M SaveE J I T M Paper, Save TreesRand preserve E J IT E E A R E A E R M S R Environment. U M S R S K U G K G K r G H r H r H M J IT M J IT M J IT E is to supplement A Rthe learning efforts E R Eof the promotionAaspirants. TopicsE E E This booklet Min nature and Apex R M R SR are indicative incorporated K U G S Academy K U advises the readers G to S refer K G r H r H Mr to ITH SOPs,RCirculars, Book of Instructions, J M Master Circulars, E J IT Policy guidelines, R M etc. for JIT E E E updated information. A E A R E R is focusingUM ThisSbooklet S R exam within U Mthe Bank (basedSon G K mainly on the promotion G K G H K H themselvesMby r H r Mr are supposedJtoITupdate M and latest JIT previous trends) and should not be considered as an instruction manual. Employees J reading Bank’s ITcirculars, R guidelines E banking E E other general A Rawareness relatedE Enews. A E M SR industry/ SR U M S R U G K G H K rG r H r T M M J IT R M E J I R E E A E A SR UM SR U M G K G H K H r Mr J IT M E J I T E E A R E SR U M S R G H K r G M r IT M EJ A R Mr JITH Mr J IT H Mr J IT E A R E E A R E E E M R M R SR K U G S K U G S K r G H r H r H M AWARENESSJABOUT IT RBI GUIDELINES, M RBI MONETARYJPOLICY, IT REGULATORY M J IT E A R E E A R INITIATIVES E E R E M R M S R S K U Financial Sector S Updates K U G K G r G H r H ITH AccountsR/Unclaimed Mr January 01, Inoperative M Deposits inJIBanks- T Revised Instructions: M IT Date Regulation J E R The E J E EReserve Bank has issued A E A place by the banks E R 2024 SR covering various M U guidelines on the S R measures U Mas inoperative accounts to be put in S G K aspects of classifying G accounts and deposits K G H K and unclaimed deposits, H deposits, grievance their rredressal mechanism, periodic review, THsteps to be taken M measures to prevent fraud r in such Mr I T accounts/ J M J I E of claims or closure R for tracing the E J IT E Eheirs for re-activationAofRaccounts and settlement customers of inoperative accounts/ unclaimed E deposits including A and the process R their nominees/ to E legal R S be followedKbyUthem. M S R U M S G G K G H K H r H r Mr February ITOn a review, Participation J of Indian Banks theR M on India International E J T Bullion ExchangeM Iallow R IFSC Limited E J IT 09, 2024 E E(through branch/subsidiary/joint (IIBX): A Reserve Bank decided to (a) asEtrading member (TM) A/ trading participation of Indian banks R E R S member (TCM) M U of IIBX; and (b)Gbanks venture)R M S authorised by KtheUReserve Bank toGimport S and clearing G K H K r H r Mr February Capital ITHAdequacy Guidelines IT Book: The Reserve M IT gold/silver as special category client (SCC) of IIBX. J M – Review of Trading J J E A R E E A R Bank aligned EE 28, 2024 E the capital adequacy Mon Investment andSintroduced R Mscalers forin line R SR Master Direction S guidelines with the new definition of ‘Trading Book’ with the U KBasel III frameworkr toGsmoothen the transition intermediateU Ktowards adoption ofr ‘Minimum G commercial K r G H H H M banks under J ITRequirements forRMarket M Risk - Basel III’.JIT M J IT Capital E R E EEArrangements with March R06, M ACard Networks forR E issue of Credit Cards: M A The Reserve Bank has S R E 2024S mandated thatU K S into any arrangement K U or agreement with G card K G r G card issuers shall not enter H r card H Mr ITH IT to chooseRfromMmultiple card EJIT networks that restrain them from availing the services of other card networks and J M to their eligible customers J E issuers shall provide an option Enetworks at the time Aof R E E this option may issue. For existing cardholders, A be provided at theRE S R U M S R U M S G time of the next renewal. K G K G H K r H r Mr 2024 ITHDirections, 2022 M IT card ecosystem M IT March 07, Amendment to the Master Direction - Credit Card and Debit Card – Issuance and J Conduct : Keeping abreast ofJ R received from various E stakeholders, certain dynamic Rprovisions of the EE and based on J E Ethe suggestions / requests A E A R SR Master Direction M U S R amendments encompass U M issuance of S G have been amended. K of / in addition tor plastic The G credit cards, display Kof modes by card-issuers G for form H K r factors in place H H r Mfunds using JIT M J IT credit accepting payments towards Mcreditof card ITof cardholders dues, monitoring J of end use of R their card E E business R among others. Edata with outsourcingApartners, cards, requirement explicit E E consent A for sharing E R M R S& Advances: All REs M Uhave now been mandated S R S 15, Key Facts Statement K U (KFS) for Loans G K G K G April H their retail and M r H r H Mr 2024 I T to provide J MSME term-loan borrowers J I T a Key Fact Statement E agreement, including M (KFS) JIT Rall-in cost of the EE E Econtaining A Rto understand the key information regarding a loan E A R M loan, in simple and easy S R format. U M S R S U 27, NotificationKof Domestic Systemically G K G K G Hinsurers namely Life rInsurance Corporation THof India (LIC), General r H Mr 2024 March Important Insurers (D-SIIs): To notify three I T domestic J M J I M Insurance JIT ECorporation of India A R (GIC), and New India E E Assurance Co. Ltd as A D-SIIsR for the 2023-24. EE E M R M SR SR K U S G on Developmental K U G r GAnnouncements H r T H M rPolicies M J IT made by RBI under R Mduring the year JI Statement E and Regulatory R E E A E A Principle-based S R U M the requirement Over the years, the Reserve Bank S M Rof Additional FactorU of Authentication (AFA). has prioritised security of digital payments, Framework G for in particular K G any particular H K the payments ecosystem r Authentication H r of Though RBI has not prescribed IT AFA, M J IT has largely adopted R M SMS-based One E Time J Password (OTP). With innovations E E A E SR U M S R G H K r G M r IT M EJ A R Mr JITH Mr J IT H Mr J IT E A R E E A R E E E M R M R SR K U G S K U G S K r G H r H r H M Digital Payment J IT in technology,Ralternative M authenticationJImechanisms T M J IT E A the use of suchE E mechanisms for digital A have Remerged in recent E E R E Transactions M years. To facilitate R M security, it is proposed S R S U a principle-based to adopt K S“Framework for authentication K U of digital payment G K G r G H r H Mr Introduction ofHThe CBDC Retail (CBDC-R) transactions”. J I T M J pilot currently I Tenables Person to Person M (P2P) and JIT RIt is (P2M) Eto using Digital Rupee R wallets provided by E E EOffline Person Programmability to Merchant A transactions E A R E and R U M pilot banks. S Bank Digitalin programmability now proposed S R enable additional M use cases using U will permit users Slike, Functionality G K and offline functionality. G K Programmability G H K Hdefined benefits. MSimilarly, r H r Mr Currency Central for instance, government agencies to ensure that payments are made for I (CBDC) J T corporates IT J will be able to program M specified JIT expenditures R like business travel forEtheir employees. Additional R features like E Pilot E E A E A R E S R M validity period U for enabling or geographical areas Second, itS R within which CBDC M may be used U an offline functionality can also S G be programmed. K Gtransactions in areas K is proposed to introduce G in H K H r H r Mr CBDC-R with poor or limited internet J IT connectivity. M Multiple J IT will be tested offline solutions (proximity and non-proximity M based) JIT E LCR Banks covered across hilly areas, A Runder Liquidity Coverage rural and urban E E Ratio (LCR) framework locations A R purpose. EE for this Review Eof R M R S R U M S U S are required K Framework G to Kmaintain a stock of high G quality liquid assets H KHowever, the recentr episodes (HQLA) to cover the G expected H r Mr ITHinto some IT net cash outflows in the next 30 calendar days. jurisdictions M have demonstratedIthe J T increased ability of M the depositors J E J R Such Erisksduring A R using digital EE E quickly withdraw A M under LCR framework. E or transfer deposits R Therefore, certain times of stress, Mmodifications R SR to the S banking channels. emerging may require a revisit of certain K U assumptions S U K better management G of LCR K r G H G are beingr proposed H r H IT framework towards facilitating M Enabling UPIJITfor liquidity risk by theM banks. J IT R M E J E EDeposit convenienceAR Cash Deposit Machines (CDMs) E E load on bankAbranches. The facility E deployed by banks enhance customer Cash SR U M R while reducing cash-handling S U Mof debit cards. GivenStheR Facility G K of cash deposit is presently available G K only through use of UPI, as also theH benefits seen from theravailability G H K r Mr ITHofcashUPIdeposit M to facilitate JIT popularity and acceptance Mcash withdrawal atJIATMs, T it is now proposed J E for At present,AUPI for card-less R E A R E E E facility through use of UPI. R E M R SR Payment account UMthrough the UPI SUPI UPI access payments from bank accounts can be made by linking a bank K S K Uusing any third-party G K Prepaid G G (PPIs) application. However,r the same facility is H App of the bank or not available for PPIs.r PPIs can H Mr through THcurrently be usedMto make UPI transactions M application JIT Instruments J I third-party J IT only by using the applicationsE E provided by the A R PPI issuer. To provide E E more flexibility to APPIRholders, it is now EE M RUPI payments M account R SR S proposed to permit linking of PPIs through third-party UPI applications. This will U S K have discretionr toGoffer differential rate enable the PPI holders to make K like Ubank G holders. K r G of limit ofHBanks H r H IT ManagementR(ALM)Mprojections. EJIT Review of interest on the bulk deposits M Bulk Deposits IT M and Asset-Liability J Scheduled E J for as per their requirements R limit was enhanced E in the year A2019 for Scheduled E E A The bulk deposits MBanks (SFBs) as ‘Single R E Mof ₹2Banks) R SR RRBs), Finance U S Commercial Banks Commercial K U Banks (SCBs) S (excluding Regional Rural K of bulk depositsrasG‘Single and Small K (excluding G r G Rupee term deposits H crore and above’. H Mr Banks THRupee term deposits IT for SCBs (excluding MRRBs) and JIT Small Finance On a review, it is proposed to revise the definition J and LocalI M of ₹3 crore and Jabove’ Area BanksE A Rit is also proposedEtoEdefine the bulk deposit A Rlimit for Local Area EE E SFBs. Further, M R M as applicable R SR S U S Banks as ‘Single Rupee term deposits of ₹1 crore and above’ in caseU K K G K of RRBs. G r G H Mr recurring payments Inclusion I T Hissued by RBI on M of (i) The Framework r for processing of J THenables recurring payments e-Mandate I for recurring M transactions, J IT for Fastag, E J January 10, 2020 currently Rsuch as daily, weekly, R Emonthly, etc. It is nowAproposed to include E with E R E National fixed periodicity A Min nature but without R E M NCMC, etc. whichSareR Common Mobility payments, CardS(NCMC), etc. recurring U such as replenishment S of balances in Fastag, K U K G r G and, any fixed periodicity, into the e-mandate r G with auto-H framework. These r categories of payments T H are made as and M when needed M replenishmentJIT therefore, their replenishment M is not time E J Ispecific or amountRspecific. Under the E facility underE the e- e-mandate A R framework, it is E proposed to introduce an automatic A replenishment SR mandate framework facility U M in Fastag or NCMC for such payments. S The Rautomatic replenishment U M will be triggered when falls below aK G H K the balance rG H threshold amount set by the M r I T customer. M I T E J R E J E M A R E SR K U G S r G H r M IT M EJ A R Mr JITH Mr J IT H Mr J IT E A R E E A R E E E M R M R SR K U G S K U G S K r G H r H r H M J IT (ii) The currentRe-mandate M framework requires J IT a pre-debit notification M J IT E A the actual debitE E R A It is proposed R at least to E a E R E M 24-hours before R from customer’s account. M Sfor S exempt K U thisreplenishment requirement for S payments made Kfrom U customer’s account G K G r G H r H ITHmandate Mr Introducing Jauto- automatic of balances in Fastag, NCMC, etc. under the e- framework. M J IT M J IT E of The UPI Lite R facility currently allows E a customer to load his UPI A R Lite wallet upto EE E A make payments uptoE M R R wallet - customers replenishment UPI SLite U M ₹2000/- and S R ₹500/- from the wallet. U In order to enable the S G K to use the UPI G Lite seamlessly, and K based on the G feedback received H K Hthe e-mandate framework r by introducing TH r Mr e-mandate Inclusion under the from various stakeholders, it is proposed to bring UPI Lite within the ambit of J I T M J I an auto-replenishment M facility for JIT R set by him/her.ESince E the funds remain R goes below a E framework E E loading the UPI A Lite wallet by the customer, if the A balance R E S R M threshold amount U move from his/her S R M account to wallet), theUrequirement of additional with the customer S G (funds K G K to be dispensed rwith. G H K H r H Mr Public authentication or pre-debit notification is proposed JIT Guidelines Repository M on Digital Lending addressingIT J protection of customersM interest, data J IT of Digital ELending privacy, concerns A R on interest rates E Eand recovery practices, AR have mis-selling, etc. E E Apps R E M were issued on September 02,R 2022. However, mediaM reports S R highlighted S K Uassociation continued presence of unscrupulous S players in digital K U lending who falsely G claim K G G withr RBI H r H Mr ITHcustomers IT their regulated entities (REs). Accordingly, to aid the M in verifying the claim of Digital ILending J T App’s (DLAs) association M with J E J REs, ReserveR E repository A R by the REs EE E A Bank is creating a public Mby the REs (withoutSany E R intervention by RBI) of DLAs deployed Mdirectlybetobased R SR S which will be available on RBI’s website. The repository will on data U K will get updated rasGand when the REsHreport submitted U K the details, i.e., raddition G of the repository K r G H H IT and M Frequency JITof new DLAs or deletion M of any existing DLA. J IT R M E J E At present A ReportingEof Credit of their borrowers R to credit information credit institutions (CIs) E E companies (CICs)A at monthly or such E are required to report the credit information M R M R SR Information K U to shorter intervals as mutuallySagreed between the U G K CI and CIC. With a view G S to K G r H r H Mr Companies JITHdecided Mto CICs from JIT Credit Information provide a more up-to-date picture of a borrower’s indebtedness, it has been to increase Mthe frequency of reporting J IT of credit information R as mutually EE E E A monthly intervals R the to fortnightly basis E Eor at such shorterAintervals M R M R SR S agreed between CI and CIC. The fortnightly reporting frequency would U S reports provided byU K G K ensure that credit information This willr be G H K CICs reflect a more recent r G (CIs). H Mr ITHBorrowers M especially JIT information. beneficial to both borrowers and lenders J will haveM the benefit of faster J ITupdation of information, Rmake better risk EE E R repaid the loans. E E when they have A R E Lenders will be able to A M over-leveragingSbyR SR assessment U M of borrowers and S also reduce the U risk of K G K has become thermost-preferred borrowers. G mode H K of payments, due to itsr seamless G H r Enhancing M Transaction I H UPI T features. Currently,Mthe transaction limitJforITUPI is capped at ₹1 lakh. M Based on JIT E J Limits the various R E Bank has periodically A R reviewed and E E for Tax Payments R E M A use-cases, the Reserve R E M R through UPI S enhanced loan U K the limits for a few categories collections, insurance, S K Uservices etc. G S like capital markets, IPO subscriptions, K G r G medical and educational H r H Mr J ITHAs direct and indirect been decidedR M tax payments areJcommon, IT regular andRhighMvalue, it has EJIT Etax payments through E E A to enhance the limit for E A UPI from ₹1 lakh R E S R to ₹5 lakh of The U M per transaction. R S (UPI) has a veryKlarge M U user base of 424Gmillion S Introduction G K Unified Payments Interface G H K H r TH r Mr Payments M IT Delegated individuals. There is, however, potential for further expansion of the user base. J I T through M J I E J E It is proposedR A E EPayments" in UPI. “Delegated R A limit for Payments” E UPI E to introduce "Delegated M(secondary user) on R M SRis SR S U would allow an individual (primary user) to set a UPI transaction another U the primary user’sKbank K G and usage of digital r Gcountry. individual account. This product r G H expected to add to ther reach T H payments across the M M Continuous JIT Cheque TruncationMSystem (CTS) currently JI processes cheques R with a clearing Clearing E of cycle of up toR two working days. ToE A E A R E improve the efficiency M of cheque clearing UM it is proposedGtoStransition SR Truncation experience, Ucurrent approach of batch Cheques under and reduce settlement risk for participants, and to enhance customer CTS fromK Cheque G K the Mr System (CTS) I T Hprocessing to continuous M r and THhours and on a continuous clearing with 'on-realisation-settlement'. passed inJaIfew Cheques will E J be scanned, presented, R E basis R E M A R E S K U S G H r G Mr I T M EJ AR Mr JITH Mr J IT H Mr J IT E A R E E A R E E E M R M R SR K U G S K U G S K r G H r H r H M J IT during business M The clearing cycle J IT M J IT E A R hours. E E will reduce from A theR present T+1 days E E R E M to a few hours. R M R S Conduct – Inforeclosure Responsible K U of charges/ terms extant guidelines, S banks and NBFCs K Uare not permittedGto Slevy K G Hsanctioned to individual r G H any floating raterterm H Mr Levy Lending pre-payment penalties on loan I of ForeclosureT M borrowers with or J I Twithout co-obligant(s),Mfor purposes JIT Charges/ J E Pre- other than A Rand customer business. E by lenders, With a view to safeguard A customers’ interest R through better EE payment EPenalties transparency R M R E centricity Mit has been decided R to S U (MSEs) extended S U S K by the Regulated K G on Loans broaden the scope of such regulations to cover loans to Micro and Small G K HClimate change isMemerging r G H r H Mr Creation Enterprises Entities of the Reserve Bank. I of Reserve J T as one ofIT J the significant risks toM the financial J IT Bank Climate Risk system. It is R of their balance ESystem for ensuringAstability crucial for regulated E entities to undertake climate R Esheets and that ofAthe financial system. E risk assessments E E M R M SR SR Information SuchU S among other things,U K (RB-CRIS) G K an assessment requires, G H K r G high quality data relating to H H r Mr M and varied JIT local climate scenarios, climate forecasts, and emissions. The available climate IT related M data is characterised by various Igaps J T such as fragmented E J Rproposes Edataand A R these gaps, the EE R E sources, differing M A formats, frequencies R E units. To bridge M R parts. TheS Reserve Bank to create a repository namely, the Reserve Bank S – K U Climate Risk Information S System (RB-CRIS) U Kdata sources, (meteorological, comprising of two G first K G r G H r H Mr ITHgeospatial, IT part will be a web-based directory, listing various M etc.) which J T will be publicly Iaccessible in the RBIM website. The J E J second part R datasets R Eto this dataof portal A (processed data in E E R E M A R E will be a data portal comprising M R S standardised only U formats). The access to the regulated entitiesS in a phased manner. U K will be made available S K G - Enhancement InK order to encourager wider G H r G H r UPI H M of limits JIT the limits for the following adoption of UPI, M products of UPI: IT it has been decided to M enhance J IT E RUPI123 was launched J E in March 2022, with R E E A R E M A a view to enableRE S R U M i) UPI123Pay: users to use S UPI. This facility is nowUavailable in 12 languages. S K G K feature-phone G H K r G H r Mr ITHtodecided Mit has been JIT Currently, the per-transaction limit in UPI123Pay is capped at ₹5000. In order J widen the use-cases, M in consultation J ITwith the stakeholders, R instructions EE E E A Rto NPCItheshortly. to enhance E per-transaction E limit to ₹10,000. NecessaryA M R M R SR S will be issued U S K U Gper UPI K G ii)K r G H r H Mr ITHLite IT UPI Lite: A limit of ₹500 per transaction and an overall limit of ₹2000 M applicable, withJIthe T facility of auto-replenishment.M J E J wallet, is presently Rwallet E it has now beenAdecided R to increase EE To E widen the scope A M for facilitating small E of usage of this product, Rvalue payments inUoffline M digitaltomode, R SR S the UPI Lite limit to ₹5,000 and per-transaction limit ₹1,000. The U S K K byK has been enabled, will rbeG Framework issued r G H the Reserve Bank,runder G which UPI Lite H H IT suitably M Introduction JITof amended. M J IT R M E J E Eaccount Payment A R like UPI and IMPS Systems E Eprovide a facility toAthe remitter to verify E SR look-up There beneficiary the name U M of the receiver have been requests S R (beneficiary) before initiating to introduce such aKfacility U Ma forpayment transaction. SR K name G K r G H r G(NEFT) Real Time Gross H Mr ITHsystems. R M IT facility Settlement System (RTGS) and National Electronic Funds Transfer J J IT R M E J E E A E E A E M account holder before R initiating funds transfer, M it is now proposedS to R SR Accordingly, to enable remitters in RTGS and NEFT to verify the name of the K U S K U G K G beneficiary G r H Mr I THaccount number and introduce a ‘beneficiary M rthe branch IFSC code account name J I THof the beneficiary, following look-up facility’. Remitters M which JIT can input the E J Rbeneficiary will beEdisplayed. E This facility will A Rincrease customer E E R E the name of the M A R M R S confidence U as it would reduce S the possibility of wrong K U credits and frauds. S r G H K r G