Banking Resilience and Regulatory Evolution: UPSC Current Affairs Analysis & Study Strategy

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GS-3 (Economy)21 sub-themes · 80 news items

In-Depth Analysis

The Big Picture

The Indian financial sector in 2025-26 has successfully transitioned from 'recovery mode' to 'scaling mode.' After a decade of fixing balance sheets (the 4R strategy), the system is now characterized by record-low NPAs (~2.8% and falling) and a Reserve Bank of India (RBI) that acts as a 'Systemic Architect.' The focus has shifted from mere survival to achieving global scale through 'Consolidation 2.0' and enhancing shareholder value, evidenced by the proposed hike in bank dividend caps to 75%. This era is defined by the RBI balancing massive fiscal support (₹2.68 lakh crore surplus transfer) with surgical liquidity management using instruments like the Standing Deposit Facility (SDF).

Cross-Theme Insight

A 'Dual-Track Regulatory Philosophy' is emerging: while the RBI is ruthlessly tightening enforcement on smaller, non-compliant entities like Urban Co-operative Banks (UCBs) through heavy monetary penalties and strict KYC/SAF norms, it is simultaneously liberalizing the operational environment for 'Systemically Important' banks. This is seen in the expansion of capital access for corporate acquisitions and the aggressive push for deposit mobilization to fund a credit-led growth cycle. This suggests that the regulator is prioritizing institutional 'fitness' over sheer number of players.

Textbook vs Reality Gap

Standard textbooks (e.g., Nitin Singhania, p. 230) focus heavily on the 'NPA Crisis' and the 4R strategy (Recognition, Resolution, Recapitalization, Reforms). However, 2025 data shows the narrative has shifted to 'Asset Quality Resilience,' where NPAs are no longer a systemic threat but a managed metric. Furthermore, while Vivek Singh (p. 77) explains the Bimal Jalan Committee’s Contingent Risk Buffer (CRB) of 5.5%-6.5% as a theoretical range, the 2024-25 fiscal reality has seen the RBI consistently maintaining this buffer at the upper bound (6.5%) to justify record surplus transfers to the government without compromising its own balance sheet strength.

How This Theme Is Evolving

The RBI has evolved from a 'Lender of Last Resort' to a 'Proactive Liquidity Orchestrator.' In the early 2020s, liquidity was managed via broad Repo/Reverse Repo shifts; by 2025, the central bank uses high-frequency, surgical tools like Variable Rate Repo (VRR) auctions and the SDF (which replaced the fixed reverse repo as the LAF corridor floor) to manage volatile capital inflows and government spending mismatches.

UPSC Exam Intelligence

Previous Year Question Pattern

Analysis of recent exams (IAS 2024, CDS-I 2024) shows a shift toward technicalities of the 'Liquidity Adjustment Facility (LAF) Corridor.' For instance, CDS-I 2024 (NID: 13181) specifically tested the Standing Deposit Facility (SDF) as the floor of the corridor. There is also a recurring focus on 'Institutional Frameworks,' such as the supervision of Urban Cooperative Banks (IAS 2021, NID: 5976) and the sovereign status of the Digital Rupee (IAS 2024).

Probable Prelims Angles

  • The exact percentage range of the Contingent Risk Buffer (5.5%–6.5%) under the Economic Capital Framework.
  • The functional difference between SDF and Fixed Reverse Repo (SDF does not require collateral/G-Secs).
  • The 75% dividend payout cap for banks proposed for FY26 and its eligibility criteria (e.g., NNPA < 6%).
  • Regulatory bodies for UCBs: The dual control role (RBI for banking, Registrar for administration) versus recent amendments giving RBI more power.

Preparation Strategy

Key Connections

Sub-Themes and News Coverage (21 themes, 80 news items)

RBI Regulatory Enforcement and Penalties

Focus: A collection of reports detailing RBI's imposition of monetary penalties on various banks and NBFCs for non-compliance with regulatory guidelines.

UPSC Value: Useful for tracking the specific compliance areas (KYC, fraud reporting, P2P lending) where the central bank is enforcing strict discipline.

7 news items in this theme:

  • 2025-09-12 [Economy] — RBI Imposes Monetary Penalty on PhonePe
    The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹21 lakh on PhonePe Limited for non-compliance with certain directions related to Prepaid Payment Instruments (PPIs). The penalty was levied due to the company's failure to maintain the required end-of-day balance in its escrow account and for not reporting the shortfall to RBI immediately.
    More details

    UPSC Angle: RBI imposes penalty on PhonePe for non-compliance with PPI directions.

    Key Facts:

    • RBI imposed a monetary penalty of ₹21 lakh on PhonePe Limited.
    • Penalty for non-compliance with directions on Prepaid Payment Instruments (PPIs).
    • Order dated September 10, 2025.
    • Penalty imposed under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.
    • Statutory inspection of the company was conducted from October 2023 to December 2024.
    • The end of the day balance in the escrow account of the company was less than the value of outstanding PPls.
  • 2025-07-11 [Economy] — RBI Imposes Penalty on HDFC Bank and Shriram Finance
    The Reserve Bank of India (RBI) has imposed a penalty of ₹4.88 lakh on HDFC Bank for contravention of norms related to foreign investment. Additionally, a penalty of ₹2.70 lakh was imposed on Shriram Finance Limited for non-compliance with digital lending directions.
    More details

    UPSC Angle: RBI imposes penalty on HDFC Bank and Shriram Finance.

    Key Facts:

    • RBI
    • ₹4.88 lakh penalty
    • HDFC Bank
    • foreign investment norms
    • ₹2.70 lakh penalty
    • Shriram Finance Limited
    • digital lending directions
  • 2025-06-03 [Economy] — RBI Penalties for Regulatory Violations
    The Reserve Bank of India (RBI) imposed ₹54.78 crore in penalties on 353 entities for regulatory violations in FY 2024–25. The penalties targeted non-compliance areas such as cyber security, KYC guidelines, and fraud reporting.
    More details

    UPSC Angle: RBI imposed penalties for regulatory violations in FY 2024–25.

  • 2025-05-16 [Economy] — RBI Imposes Penalty on SBI and Jana Small Finance Bank
    The Reserve Bank of India (RBI) imposed a total monetary penalty of Rs. 2.72 crore on State Bank of India (SBI) and Jana Small Finance Bank (SFB) Limited for non-compliance with regulatory guidelines.
    More details

    UPSC Angle: RBI imposes penalty on SBI and Jana Small Finance Bank.

    Key Facts:

    • Reserve Bank of India (RBI)
    • Penalty on State Bank of India (SBI): Rs. 2 crore
    • Penalty on Jana Small Finance Bank (SFB) Limited: Rs. 0.72 crore
    • Reason: non-compliance with regulatory guidelines
  • 2025-04-18 [Economy] — RBI Undertook 79 Enforcement Actions in FY25
    The Reserve Bank of India (RBI) undertook 79 enforcement actions against banks and NBFCs in FY25, according to a report by FACE. 48 actions were against NBFCs, 30 against banks, and 1 against a credit bureau with monetary penalties totaling ₹33 crore. J&K Bank faced the highest penalty of ₹3.31 crore.
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    UPSC Angle: RBI undertook 79 enforcement actions against banks and NBFCs in FY25.

    Key Facts:

    • Total enforcement actions: 79
    • Against NBFCs: 48
    • Against banks: 30
    • Against credit bureau: 1
    • Total penalties: ₹33 crore
    • Highest penalty: J&K Bank (₹3.31 crore)
  • 2025-03-28 [Economy] — RBI Imposes Fines on HDFC Bank and Punjab & Sind Bank
    The Reserve Bank of India (RBI) has imposed fines on HDFC Bank and Punjab & Sind Bank for failing to meet regulatory compliance standards. HDFC Bank was fined ₹75 lakh for not following RBI's Know Your Customer guidelines. Punjab & Sind Bank was fined ₹68.20 lakh for non-compliance with RBI's guidelines on the 'Central Repository of Large Common Exposures' and 'Basic Savings Bank Deposit Account (BSBDA)' under financial inclusion.
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    UPSC Angle: RBI fines HDFC Bank and Punjab & Sind Bank for regulatory non-compliance.

    Key Facts:

    • HDFC Bank fine: ₹75 lakh
    • Reason for HDFC Bank fine: Failure to follow Know Your Customer guidelines
    • Punjab & Sind Bank fine: ₹68.20 lakh
    • Reason for Punjab & Sind Bank fine: Non-compliance with guidelines on 'Central Repository of Large Common Exposures' and 'Basic Savings Bank Deposit Account (BSBDA)'
    • KLM Axiva Finvest fine: ₹10 lakh for failing to comply with rules regarding dividend declarations
  • 2025-03-10 [Economy] — RBI Imposes Penalties on NBFCs for Non-Compliance
    The Reserve Bank of India (RBI) has imposed penalties totaling ₹76.6 lakh on four non-banking financial companies (NBFCs) for non-compliance with regulatory guidelines on Peer-to-Peer (P2P) lending platforms. The penalties were imposed under the 'Non-Banking Financial Company - Peer-to-Peer Lending Platform (Reserve Bank) Directions, 2017'.
    More details

    UPSC Angle: RBI imposes penalties on NBFCs for non-compliance with P2P lending guidelines.

    Key Facts:

    • Total penalty: ₹76.6 lakh
    • Reason: Non-compliance with P2P lending platform regulations
    • Regulatory framework: 'Non-Banking Financial Company - Peer-to-Peer Lending Platform (Reserve Bank) Directions, 2017'
    • Fairassets Technologies India penalty: ₹40 lakh
    • Bridge Fintech Solutions penalty: ₹10 lakh
    • Rang De P2P Financial Services penalty: ₹10 lakh
    • Visionary Financepeer penalty: ₹16.6 lakh

RBI Financial Stability and Banking Sector Resilience (FY 2025-26)

Focus: A collection of RBI reports and data releases specifically monitoring banking asset quality, household debt risks, and overall financial system stability.

UPSC Value: Essential for tracking the health of the Indian banking sector, specifically the trends in Non-Performing Assets (NPAs) and emerging risks like rising household debt.

6 news items in this theme:

  • 2026-02-12 [Economy] — India's Banking System Shows Strong Footing in 2026
    India's banking sector has entered 2026 in a robust state, marked by enhanced capital adequacy ratios, rising profitability, and balance sheet improvements. Regulatory reforms by the RBI have played a key role in strengthening the sector.
    More details

    UPSC Angle: India's banking system shows strong footing in 2026.

    Key Facts:

    • Non-performing assets at multi-year lows
    • improvements stem from enhanced capital adequacy ratios, rising profitability, and comprehensive balance sheet cleanups
  • 2026-01-01 [Economy] — RBI Assesses Systemic Risks in December 2025 FSR
    The Reserve Bank of India's December 2025 Financial Stability Report (FSR) assesses systemic risks to India’s financial sector and evaluates the resilience of banks amidst domestic strength and global uncertainties. Real GDP growth registered 7.8% in Q1 and 8.2% in Q2 of FY 2025-26, supported by strong private consumption and public investment.
    More details

    UPSC Angle: RBI's December 2025 FSR assesses systemic risks to India’s financial sector.

    Key Facts:

    • RBI's December 2025 Financial Stability Report (FSR) assesses systemic risks
    • Real GDP growth registered 7.8% in Q1 and 8.2% in Q2 of FY 2025-26
    • Real GDP growth registered 7.8% in Q1 and 8.2% in Q2 of FY 2025-26.
  • 2025-12-31 [Economy] — Trends and Progress of Banking in India, 2024–25 Report
    The Reserve Bank of India's latest 'Trends and Progress of Banking in India, 2024–25' report confirms that the country's banking system has become more resilient and confident than ever before, driven by minimal non-performing assets (NPAs), strengthening capital, and widespread digital and financial inclusion. Balance sheets of scheduled commercial banks (SCBs) have seen significant expansion. Both deposits and loans recorded double-digit growth.
    More details

    UPSC Angle: Banking system more resilient: RBI's 'Trends and Progress' report.

    Key Facts:

    • RBI report confirms the country's banking system has become more resilient.
    • Balance sheets of scheduled commercial banks (SCBs) have seen significant expansion.
    • Growth of approximately 14-16% in bank credit.
    • Deposit growth of 12-13%.
  • 2025-11-03 [Economy] — RBI Data on Household Debt and Asset Growth
    RBI data indicates a rise in annual household financial assets from ₹24.1 lakh crore (2019–20) to ₹35.6 lakh crore (2024–25), a 48% increase, but financial liabilities more than doubled from ₹7.5 lakh crore to ₹15.7 lakh crore, marking a 102% rise. Financial asset formation declined from 12% to 10.8% of GDP, while liabilities rose from 3.9% to 4.7%. Households are diversifying savings, with bank deposits remaining dominant but mutual funds and market-linked instruments gaining traction.
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    UPSC Angle: RBI data shows rise in household financial assets and liabilities.

    Key Facts:

    • Household financial assets rose from ₹24.1 lakh crore (2019–20) to ₹35.6 lakh crore (2024–25)
    • Annual financial liabilities more than doubled from ₹7.5 lakh crore to ₹15.7 lakh crore
    • Financial asset formation declined from 12% to 10.8% of GDP
    • Liabilities rose from 3.9% to 4.7% of GDP
  • 2025-07-06 [Economy] — RBI Reports Improvement in Banks' Asset Quality
    According to the Reserve Bank of India's (RBI) Financial Stability Report (FSR), the asset quality of Scheduled Commercial Banks (SCBs) continues to improve, with Gross NPA (GNPA) and Net NPA ratios at multi-year lows. The Gross NPA ratio of SCBs declined to 2.3% as of March 31, 2025, down from 2.8% a year ago. Loan write-offs, including technical write-offs, were a key driver for the decline in GNPAs over the last five years.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Report: RBI's Financial Stability Report (FSR)
    • Gross NPA ratio of SCBs (March 31, 2025): 2.3%
    • Gross NPA ratio of SCBs (previous year): 2.8%
    • Key driver for NPA decline: Loan write-offs
  • 2025-07-02 [Economy] — RBI's Financial Stability Report highlights rising household debt
    RBI's latest Financial Stability Report indicates a robust banking system but raises concerns about rising household debt, which has surged to 41.9% of GDP by December 2024. The report also points out the rise in microfinance loans past due to 6.2% and flags the retail segment for close monitoring.
    More details

    UPSC Angle: RBI's Financial Stability Report highlights rising household debt.

    Key Facts:

    • Household debt: 41.9% of GDP by December 2024.
    • Gross NPAs: declined to 2.3% in March 2025.
    • Microfinance loans past due: risen to 6.2%.

RBI Regulatory Directions on Credit and Exposure (2025)

Focus: A series of RBI guidelines issued in 2025 regulating loan-to-value ratios, investment limits, and credit risk norms for banks and NBFCs.

UPSC Value: Useful for understanding the specific prudential norms and risk management frameworks introduced by the RBI to stabilize the financial sector.

6 news items in this theme:

  • 2025-10-24 [Economy] — RBI Issues Draft Directions on Capital Market Exposure
    The Reserve Bank of India (RBI) has released draft directions for public comment regarding capital market exposure for commercial banks, small finance banks, and non-banking financial companies. Stakeholders can submit their comments by November 21, 2025. The draft directions follow an announcement made in the Statement on Developmental and Regulatory Policies on October 1, 2025.
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    UPSC Angle: RBI issues draft directions on capital market exposure for banks.

    Key Facts:

    • RBI
    • Draft Reserve Bank of India (Capital Market Exposure) Directions, 2025
    • Draft Reserve Bank of India (Commercial Banks - Capital Market Exposure) Directions, 2025
    • Draft Reserve Bank of India (Small Finance Banks - Capital Market Exposure) Directions, 2025
    • Draft 'Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Amendment Directions, 2025'
    • Comments due: November 21, 2025
  • 2025-10-12 [Economy] — RBI Proposes Revising Credit Risk Rules
    The Reserve Bank of India (RBI) has proposed revisions to credit risk rules.
    More details

    UPSC Angle: RBI proposes revisions to credit risk rules.

  • 2025-10-04 [Economy] — RBI Rolls Out Liquidity Measures
    The Reserve Bank of India (RBI) has introduced new liquidity measures to improve capital accessibility for investors and companies. For the first time, banks can now provide loans to companies for acquisitions. The RBI has dramatically increased individual loan limits against shares from ₹20 lakh to ₹1 crore, and raised IPO financing limits for retail investors from ₹10 lakh to ₹25 lakh per person.
    More details

    UPSC Angle: RBI Rolls Out Liquidity Measures.

    Key Facts:

    • RBI increased individual loan limits against shares from ₹20 lakh to ₹1 crore
    • Banks can now give loans to companies for buying other companies
    • RBI has increased individual loan limits against shares from ₹20 lakh to ₹1 crore
    • IPO financing limits for retail investors raised from ₹10 lakh to ₹25 lakh per person
  • 2025-07-30 [Economy] — RBI Limits Investments in Alternative Investment Funds
    The Reserve Bank of India (RBI) has issued new guidelines capping investments by Regulated Entities (REs) in Alternative Investment Fund (AIF) schemes to 20% of the corpus. AIFs are privately pooled investments that collect money from investors and invest in non-traditional asset classes and are controlled by SEBI. These funds are ideal for High Net-worth Individuals (HNIs) because they need a high amount of investment.
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    UPSC Angle: RBI caps RE investments in AIF schemes to 20% of corpus.

    Key Facts:

    • RBI capped investments by Regulated Entities (REs) in Alternative Investment Fund (AIF) schemes
    • Limit: 20% of corpus
    • AIFs are privately pooled investments
    • AIFs invest in non-traditional asset classes
    • AIFs are controlled by SEBI
    • Funds are ideal for High Net-worth Individuals (HNIs)
    • The Reserve Bank of India (RBI) has issued new guidelines capping investments by Regulated Entities (REs) in Alternative Investment Fund (AIF) schemes.
    • RBI has capped investments by Banks, NBFCs at 20% of Corpus of AIF scheme.
  • 2025-07-02 [Economy] — RBI Pre-Payment Charges on Loans Directions, 2025
    The Reserve Bank of India (RBI) issued directions that Regulated Entities (REs) cannot levy pre-payment charges on floating rate loans to individuals for non-business purposes. This also applies to loans to individuals and Micro and Small Enterprises (MSEs) for business purposes under specific institutional categories, regardless of co-obligants, prepayment fund source or lock-in periods. The directions apply if the loan is on a floating rate at the time of prepayment.
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    UPSC Angle: RBI prohibits pre-payment charges on floating rate loans to individuals.

    Key Facts:

    • RBI issued Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 on July 02, 2025.
    • Directions apply to all commercial banks (excluding payments banks), cooperative banks, NBFCs and All India Financial Institutions.
    • No charges where pre-payment is effected at the instance of the RE.
  • 2025-06-14 [Economy] — RBI's Final Directions on Gold Loans Seen as Growth Driver for NBFCs
    The Reserve Bank of India's final directions on gold loans are seen as a growth driver for NBFCs, especially those focused on small-ticket lending. The loan-to-value (LTV) ratio has been raised to 85% for loans up to ₹2.5 lakh, up from 75%.
    More details

    UPSC Angle: RBI's final directions on gold loans seen as growth driver for NBFCs.

    Key Facts:

    • LTV ratio raised to 85% for gold loans up to ₹2.5 lakh (from 75%)
    • For bullet loans, the LTV must now be calculated including accrued interest, not just principal

RBI Liquidity Management Operations

Focus: A collection of specific RBI interventions (VRR, VRRR, CRR, OMO) aimed at injecting or withdrawing liquidity from the banking system.

UPSC Value: Studying these items together illustrates the diverse toolkit (quantitative instruments) the RBI uses to manage systemic liquidity and stabilize money markets.

5 news items in this theme:

  • 2026-01-07 [Economy] — RBI Announces ₹1 Trillion Variable Rate Repo Auction
    The Reserve Bank of India (RBI) has scheduled a ₹1 trillion variable rate repo auction for January 7, 2026, allowing banks to borrow funds from the central bank through competitive bidding, with market forces determining interest rates. This operation aims to ensure adequate fund availability in the banking system.
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    UPSC Angle: RBI announces ₹1 trillion variable rate repo auction.

    Key Facts:

    • RBI scheduled a ₹1 trillion variable rate repo auction for January 7, 2026.
    • Auction spans two days.
    • Banks can borrow funds through competitive bidding.
    • Market forces determine interest rates.
  • 2025-12-06 [Economy] — Open Market Operations (OMO) by RBI
    The Reserve Bank of India (RBI) will conduct Open Market Operation (OMO) purchases of government securities worth ₹1 trillion and a three-year dollar–rupee buy/sell swap of $5 billion to inject durable liquidity into the financial system.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI to purchase government securities worth ₹1 trillion through OMO
    • RBI to conduct a three-year dollar–rupee buy/sell swap of $5 billion
    • OMO: RBI buys or sells government securities to regulate liquidity
  • 2025-07-05 [Economy] — RBI withdraws ₹1,00,010 crore via VRRR auction
    The Reserve Bank of India (RBI) withdrew ₹1,00,010 crore from the banking system through a seven-day Variable Rate Reverse Repo (VRRR) auction to manage the liquidity surplus of around ₹4.04 lakh crore in the banking system as of July 3, which was caused by month-end government inflows. The VRRR auction is aimed at reducing the excess liquidity and not infusing liquidity into the banking system.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Announced By: Reserve Bank of India (RBI)
    • Objective: To manage surplus liquidity in the financial system
    • Mechanism: RBI announces a VRRR auction specifying the total amount and tenor
    • RBI withdrew ₹1,00,010 crore from the banking system
    • Seven-day Variable Rate Reverse Repo (VRRR) auction
    • Liquidity surplus: around ₹4.04 lakh crore as of July 3
    • Cause of surplus: month-end government inflows
  • 2025-06-16 [Economy] — RBI Reduced Cash Reserve Ratio (CRR)
    The Reserve Bank of India (RBI) recently reduced the Cash Reserve Ratio (CRR) by 100 basis points to 3%, expected to inject around Rs. 2.5 lakh crore of primary liquidity into the banking system by end-November 2025. The Daily VRR Auction, introduced in January 2025, is a short-term liquidity management tool used to address temporary liquidity tightness.
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    UPSC Angle: RBI reduced Cash Reserve Ratio (CRR) by 100 bps to 3%.

    Key Facts:

    • CRR reduced by 100 bps to 3%
    • Rs. 2.5 lakh crore liquidity injection
    • Target date: end-November 2025
    • Daily VRR Auction introduced in January 2025
  • 2025-03-08 [Economy] — RBI to Inject Liquidity
    RBI to inject ₹1.9 lakh crore into the banking system through open market purchases and USD/INR swaps to manage liquidity.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI
    • ₹1.9 lakh crore
    • Open market purchases
    • USD/INR swaps

RBI Regulatory Framework Updates (2025-2026)

Focus: Official directions and draft norms issued by the Reserve Bank of India regulating commercial banks and NBFCs regarding capital adequacy, disclosures, and credit.

UPSC Value: Tracks the evolving prudential and reporting standards in the banking sector, crucial for General Studies III (Economy) and understanding banking governance.

4 news items in this theme:

  • 2026-01-25 [Economy] — RBI amends financial statement presentation and disclosure norms for commercial banks
    The Reserve Bank of India (RBI) issued the Commercial Banks – Financial Statements: Presentation and Disclosures (Second Amendment) Directions, 2026 to enhance transparency regarding related-party exposures in banks' financial statements. Banks must now disclose exposures to related parties in a structured format, including loans, contracts, and arrangements.
    More details

    UPSC Angle: RBI amends financial statement presentation norms for commercial banks.

    Key Facts:

    • RBI issued Commercial Banks – Financial Statements: Presentation and Disclosures (Second Amendment) Directions, 2026 on January 5, 2026
    • Banks must present a structured, tabular disclosure of exposures to related parties
    • Disclosures include aggregate loans sanctioned and outstanding
    • Disclosures include their proportion to total credit exposure
    • Disclosures include classification into Special Mention Accounts and Non-Performing Assets
    • Disclosures include provisions held
    • Banks must disclose the value of contracts and arrangements awarded to, and outstanding with, related parties
    • Amendments take effect from April 1, 2026
  • 2026-01-09 [Economy] — Commercial Banks – Prudential Norms Amendment
    RBI issued the Commercial Banks – Prudential Norms on Capital Adequacy (Amendment) Directions, 2026, effective immediately, amending its 2025 Directions under Section 35A of the Banking Regulation Act, 1949. The amendment revises risk-weighting norms for banks' claims on non-resident corporates and formally recognizes additional international credit rating agencies.
    More details

    UPSC Angle: RBI amends prudential norms on capital adequacy for commercial banks.

    Key Facts:

    • RBI: Reserve Bank of India
    • Date: January 09, 2026
    • RBI/2025-26/189
    • DOR.STR.REC.390/21-01-002/2025-26
    • Section 35A of the Banking Regulation Act, 1949: Amended
    • Risk weight of 150 per cent: Unrated claims having aggregate exposure from banking system of more than ₹200 crore
    • Risk weight of 150 per cent: Claims with aggregate exposure from banking system of more than ₹100 crore which were rated earlier and subsequently have become unrated
    • No claim on an unrated corporate shall be given a risk weight preferential to that assigned to its sovereign of incorporation.
  • 2025-04-15 [Economy] — RBI Gold Loan Norms
    RBI is making regulatory changes regarding gold loans and their impact on NBFCs and credit in rural India.
    More details

    UPSC Angle: RBI is making regulatory changes regarding gold loans.

    Key Facts:

    • RBI
    • Gold Loans
    • Regulatory Changes
    • NBFCs
    • Rural Credit
  • 2025-04-09 [Economy] — RBI Issues Draft Directions on Regulatory Measures
    RBI has released draft Directions on Securitisation of Stressed Assets, Co-Lending Arrangements, Lending Against Gold Collateral and Non-Fund Based Credit Facilities. The framework intends to enable securitisation of stressed assets through a market-based mechanism, in addition to the existing ARC route under SARFAESI Act, 2002. Public and stakeholders can submit comments on the draft Directions until May 12, 2025.
    More details

    UPSC Angle: RBI issues draft directions on securitization of stressed assets.

    Key Facts:

    • Draft Directions issued on: Securitisation of Stressed Assets, Co-Lending Arrangements, Lending Against Gold Collateral, Non-Fund Based Credit Facilities.
    • Comments/feedback can be submitted until May 12, 2025.
    • P2P transactions on UPI shall continue to be capped at ₹1 lakh.
    • RBI is making the Regulatory Sandbox 'Theme Neutral' and 'On Tap'.

Banking Sector Dividends and Surplus Transfers

Focus: Reports on dividend payouts by major banks and the RBI's surplus transfer in 2025, contextualizing the 2026 proposal to raise dividend caps.

UPSC Value: Highlights the financial health of the banking sector and the fiscal relationship between the central bank, public sector banks, and the government.

4 news items in this theme:

  • 2026-01-09 [Economy] — RBI Proposes Higher Dividend Payout Cap for Banks
    The Reserve Bank of India (RBI) has proposed raising the dividend payout cap for banks to 75% of net profit, up from the earlier 40%, subject to conditions. The RBI has introduced a graded structure for dividend payment based on banks' Common Equity Tier 1 (CET1) capital levels, with stronger banks needing CET1 above 20% to pay 100% of adjusted profits.
    More details

    UPSC Angle: RBI proposes higher dividend payout cap for banks.

    Key Facts:

    • RBI proposes dividend payout cap for banks: 75% of net profit
    • Previous cap: 40%
    • Graded structure based on Common Equity Tier 1 (CET1) capital levels
    • CET1 above 20% required to pay 100% of adjusted profits
    • Systemically important banks require CET1 ratios of 20.8% (SBI), 20.4% (HDFC Bank), and 20.2% (ICICI Bank) to pay 100% of adjusted profits
  • 2025-08-13 [Economy] — REPCO Bank Dividend
    REPCO Bank presented a cheque of Rs 22.90 crore as dividend for 2024-25 to Union Home Minister Amit Shah. The bank posted a net profit of Rs 140 crore during FY 2024-25 and paid a 30% dividend, the highest in the history of the cooperative society.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Dividend cheque: Rs 22.90 crore for 2024-25
    • Net profit: Rs 140 crore during FY 2024-25
    • Dividend paid: 30%
  • 2025-06-11 [Economy] — SBI Pays ₹8,076.84 Crore Dividend to Govt for FY25
    SBI paid a dividend of ₹8,076.84 crore to the government for FY25, with a declared dividend of ₹90 per share. SBI reported a record net profit of ₹70,901 crore in FY25, up from ₹61,077 crore in FY24.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • SBI dividend to the government for FY25: ₹8,076.84 crore
    • Dividend per share: ₹90
    • SBI net profit in FY25: ₹70,901 crore
    • SBI net profit in FY24: ₹61,077 crore
  • 2025-05-24 [Economy] — RBI transfers surplus to Central Government
    The Board of Directors of the Reserve Bank of India (RBI) has approved a record transfer of over 2.68 lakh crore rupees as surplus to the Central government for the financial year 2024-25. The surplus was calculated under the revised Economic Capital Framework, mandating a Contingent Risk Buffer (CRB) between 5.50 per cent and 7.50 per cent of the central bank's balance sheet. For 2024-25, the CRB has been increased to 7.50 per cent.
    More details

    UPSC Angle: RBI's surplus transfer to the Central Government.

    Key Facts:

    • RBI transferred over 2.68 lakh crore rupees to the Central government for FY2024-25.
    • CRB to be maintained between 5.50 per cent and 7.50 per cent of the central bank's balance sheet.
    • For 2024-25, the CRB has been increased to 7.50 per cent.
    • RBI has approved a record transfer of over 2.68 lakh crore rupees as surplus to the Central government for the financial year 2024-25.
    • The surplus was calculated under the revised Economic Capital Framework, which now mandates maintaining the Contingent Risk Buffer (CRB) between 5.50 per cent and 7.50 per cent of the central bank's balance sheet.
    • RBI approved a surplus transfer of over ₹2.68 lakh crore to the Central government for FY2024-25.
    • Surplus calculated under revised Economic Capital Framework.
    • Contingent Risk Buffer (CRB) mandated between 5.50% and 7.50% of RBI's balance sheet.
    • CRB increased to 7.50% for 2024-25.

Public Sector Bank Health and Strategic Reforms

Focus: Updates regarding the improving financial metrics (NPAs), operational efficiency (EASE Index), and future consolidation plans for Indian Public Sector Banks.

UPSC Value: Connects the outcome of past reforms (4Rs, low NPAs) with the roadmap for future structural changes (Consolidation 2.0).

4 news items in this theme:

  • 2025-12-15 [Economy] — Public Sector Bank Reforms Policy Direction Expected
    The Union Budget 2026–27 is expected to unveil a policy direction on the next phase of public sector bank (PSB) reforms based on two parallel tracks: Consolidation 2.0 and calibrated dilution of government ownership. Consolidation 2.0 involves merging the five smallest PSBs with mid-sized banks to create banks with sufficient scale, balance sheet strength, and market presence and to reduce fragmentation in the PSB landscape.
    More details

    UPSC Angle: Policy direction on PSB reforms expected in Union Budget 2026-27.

    Key Facts:

    • Consolidation 2.0: Merging the five smallest PSBs with mid-sized banks
    • Objectives: create banks with sufficient scale and reduce fragmentation in the PSB landscape
    • Union Budget 2026–27
    • Expected to unveil policy direction on next phase of public sector bank (PSB) reforms
    • Two parallel tracks: Consolidation 2.0 and calibrated dilution of government ownership
    • Objectives: To create banks with sufficient scale, balance sheet strength, and market presence and To reduce fragmentation in the PSB landscape
  • 2025-10-23 [Economy] — Gross NPAs of Indian banks fall to 2.15% in September 2025
    Gross Non-Performing Assets (NPAs) of Indian banks fell to a record low of 2.15% in September 2025.
    More details

    UPSC Angle: Gross NPAs of Indian banks fall to 2.15% in September 2025.

    Key Facts:

    • Gross NPAs
    • Indian banks
    • 2.15%
    • September 2025
  • 2025-09-09 [Economy] — Gross NPAs of Scheduled Commercial Banks Reach Historic Low
    Gross Non-Performing Assets (NPAs) of Scheduled Commercial Banks (SCBs) for domestic operations have reached a historic low of 2.15% as of September 2025. This decline is attributed to the RBI's Asset Quality Review (AQR) in 2015 and the government's 4Rs strategy. The gross NPA ratio of SCBs was 2.15%, with PSBs at 2.50%, Private Sector Banks (PVBs) at 1.73%, and Foreign Banks at 0.80%.
    More details

    UPSC Angle: Gross NPAs of SCBs reach a historic low of 2.15%.

    Key Facts:

    • Gross NPAs of Scheduled Commercial Banks (SCBs) at a historic low of 2.15% as of September 2025
    • RBI's Asset Quality Review (AQR) in 2015 and Government's 4Rs Strategy contributed to the decline
    • As of 30.09.2025, gross NPA ratio of SCBs was 2.15%
    • Gross NPA ratio of PSBs was 2.50%
    • Gross NPA ratio of Private Sector Banks (PVBs) was 1.73%
    • Gross NPA ratio of Foreign Banks was 0.80%
  • 2025-03-28 [Economy] — Punjab & Sind Bank Wins Top Improvers Award in EASE 6.0 Reforms Index
    Punjab & Sind Bank has been honored with the Top Improvers award in the EASE 6.0 Reforms Index, recognizing its significant progress in banking services and operational efficiency. The EASE 6.0 Reforms Index, evaluates public sector banks (PSBs) on digital transformation, customer-centric services, and financial inclusion.
    More details

    UPSC Angle: Punjab & Sind Bank wins Top Improvers Award in EASE 6.0 Reforms Index.

    Key Facts:

    • Award: Top Improvers award in the EASE 6.0 Reforms Index
    • Awarded to: Punjab & Sind Bank
    • Index evaluates: public sector banks (PSBs) on digital transformation, customer-centric services, and financial inclusion

RBI Regulatory Enforcement on Urban Co-operative Banks (UCBs)

Focus: Monetary penalties imposed by the RBI on various Urban Co-operative Banks for non-compliance with the Banking Regulation Act and specific operational guidelines like KYC and SAF.

UPSC Value: Understanding the RBI's supervisory role and the application of the Banking Regulation Act, 1949, in maintaining the financial health of the co-operative banking sector.

4 news items in this theme:

  • 2025-11-24 [Economy] — RBI Imposes Monetary Penalty on Tumkur Grain Merchants Co-operative Bank
    The Reserve Bank of India (RBI) imposed a monetary penalty of ₹1 lakh on Tumkur Grain Merchants Co-operative Bank Limited, Karnataka, on November 20, 2025, for non-compliance with specific directions issued by RBI under the 'Supervisory Action Framework (SAF)'. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
    More details

    UPSC Angle: RBI imposes penalty on Tumkur Grain Merchants Bank for non-compliance.

    Key Facts:

    • RBI imposed a monetary penalty of ₹1 lakh on Tumkur Grain Merchants Co-operative Bank Limited, Karnataka.
    • Penalty imposed on November 20, 2025.
    • The penalty was for non-compliance with specific directions issued by RBI under the Supervisory Action Framework (SAF).
    • Imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
    • Statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2024.
    • RBI imposed a monetary penalty of ₹1 lakh on The District Co-operative Central Bank Limited, Kakinada, Andhra Pradesh.
    • The penalty was for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
    • Imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
    • The bank had sanctioned loan to one of its directors.
  • 2025-09-22 [Economy] — RBI Imposes Monetary Penalty on Makarpura Bank
    On September 22, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹2 lakh on Makarpura Industrial Estate Co-operative Bank Ltd., located in Vadodara, Gujarat, due to non-compliance with directions related to Know Your Customer (KYC) and the Basic Cyber Security Framework.
    More details

    UPSC Angle: RBI imposes penalty on Makarpura Bank for non-compliance.

    Key Facts:

    • RBI imposed a monetary penalty of ₹2 lakh on Makarpura Industrial Estate Co-operative Bank Ltd. on September 22, 2025.
    • The bank is located in Vadodara, Gujarat.
    • The penalty was due to non-compliance with KYC directions and the Basic Cyber Security Framework.
  • 2025-09-11 [Economy] — RBI Imposes Monetary Penalty on Progressive Mercantile Co-operative Bank
    The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on Progressive Mercantile Co-operative Bank Limited, Ahmedabad, Gujarat, for non-compliance with RBI directions on inspection & audit systems, KYC, and customer protection regarding unauthorized electronic banking transactions. The penalty was imposed under sections of the Banking Regulation Act, 1949.
    More details

    UPSC Angle: RBI penalty on Progressive Mercantile Bank for non-compliance with directions.

    Key Facts:

    • RBI imposed a monetary penalty of ₹3 lakh on Progressive Mercantile Co-operative Bank Limited, Dist. Ahmedabad, Gujarat.
    • Penalty for non-compliance with RBI directions on 'Inspection & Audit Systems in Primary (Urban) Co-operative Banks', 'Know Your Customer' and 'Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions'.
    • The penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
  • 2025-08-14 [Economy] — RBI Imposes Monetary Penalty on Shree Bharat Co-operative Bank Ltd
    The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.50 lakh on Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat, for non-compliance with certain directions issued by RBI on 'Inspection & Audit Systems in Primary (Urban) Co-operative Banks', 'Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs', and 'Know Your Customer (KYC)'. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
    More details

    UPSC Angle: RBI imposes penalty on Shree Bharat Co-operative Bank Ltd.

    Key Facts:

    • RBI imposed a monetary penalty of ₹2.50 lakh on Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat
    • Penalty for non-compliance with RBI directions on 'Inspection & Audit Systems in Primary (Urban) Co-operative Banks', 'Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs', and 'Know Your Customer (KYC)'
    • Imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
    • Order dated August 08, 2025
    • Statutory inspection with reference to its financial position as on March 31, 2024
    • Penalty amount: ₹2.50 lakh
    • Bank: Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat

Banking Sector Deposit Mobilization Trends

Focus: Indicators of the banking sector's aggressive push for deposits in 2025, evidenced by rising ad spend, new product schemes, and growth data.

UPSC Value: Highlights the shift in banking strategies towards liability generation and liquidity management through commercial and financial inclusion channels.

4 news items in this theme:

  • 2025-11-15 [Economy] — Banking Data for October 2025
    India's banking data for October 2025 shows a shift as bank credit growth slowed to 11.3%, while deposit growth increased to 9.7%, indicating rising liquidity and cautious lending. With ₹193.9 lakh crore in total credit and ₹241.7 lakh crore in deposits, the widening gap signals pressure on NIMs, higher liquidity surplus, and a possible reset in lending strategies across the banking sector.
    More details

    UPSC Angle: Banking data shows credit growth slowing, deposit growth increasing.

    Key Facts:

    • Bank credit growth slowed to 11.3%
    • Deposit growth increased to 9.7%
    • ₹193.9 lakh crore in total credit
    • ₹241.7 lakh crore in deposits
  • 2025-11-08 [Schemes & Programs] — Pradhan Mantri Jan Dhan Yojana (PMJDY) Accounts Growth
    PMJDY accounts increased from 14.72 crore in March 2015 to 53.13 crore by August 2024, with deposits surging from ₹15,670 crore (March 2015) to over ₹2.31 lakh crore (August 2024). The government aims to open an additional 3 crore PMJDY accounts in Financial Year 2024-25.
    More details

    UPSC Angle: PMJDY accounts grew to 53.13 crore with deposits over ₹2.31 lakh crore.

    Key Facts:

    • PMJDY accounts: 14.72 crore (March 2015) to 53.13 crore (August 2024)
    • Deposits: ₹15,670 crore (March 2015) to over ₹2.31 lakh crore (August 2024)
    • FY 2024-25 target: open additional 3 crore PMJDY accounts
  • 2025-08-13 [Economy] — Indian Banks' Advertising Expenditure Increase
    Indian banks have significantly increased their advertising and publicity expenditure, with 11 large-cap banks reporting a 160% growth in ad spends over the last five years. Top ad spenders in FY25 include ICICI Bank (₹1,952 crore), Kotak Mahindra Bank (₹1,009 crore), and HDFC Bank (₹592 crore).
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • ICICI Bank ad spend: ₹1,952 crore in FY25
    • Kotak Mahindra Bank ad spend: ₹1,009 crore in FY25
    • HDFC Bank ad spend: ₹592 crore in FY25
  • 2025-04-10 [Economy] — Bank of Baroda Introduces bob Square Drive Deposit Scheme
    Bank of Baroda launched the bob Square Drive Deposit Scheme, offering attractive interest rates up to 7.80% p.a. for senior citizens and general customers. Bandhan Bank also launched the Elite Plus Savings Account for High Net-worth Individuals (HNIs), offering benefits like unlimited cash deposits and enhanced insurance coverage.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • bob Square Drive Deposit Scheme offers up to 7.80% p.a. interest for senior citizens and general customers
    • Elite Plus Savings Account launched for High Net-worth Individuals (HNIs) by Bandhan Bank

RBI Institutional and Administrative Developments (Q2 2025)

Focus: Administrative milestones, leadership appointments, and infrastructure changes occurring within the Reserve Bank of India during its 90th anniversary year.

UPSC Value: Understanding the organizational evolution and key personnel of India's central bank is vital for the Indian Economy and Governance sections of the UPSC GS-III syllabus.

4 news items in this theme:

  • 2025-06-17 [Economy] — RBI Relocates Andhra Pradesh Regional Office
    The Reserve Bank of India (RBI) inaugurated its newly relocated Andhra Pradesh regional office in Vijayawada on June 16, 2025. The relocation aims to better serve the state's banking and financial needs.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI relocated Andhra Pradesh regional office to Vijayawada.
    • Date of relocation: June 16, 2025.
  • 2025-06-10 [Polity & Governance] — Appointment to Sixteenth Finance Commission
    T Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), has been appointed as a part-time Member of the Sixteenth Finance Commission (XVIFC). He will serve until the Commission submits its report or till 31 October 2025, whichever is earlier.
    More details

    UPSC Angle: T Rabi Sankar appointed part-time Member of Sixteenth Finance Commission.

    Key Facts:

    • T Rabi Sankar
    • Deputy Governor
    • Reserve Bank of India (RBI)
    • part-time Member
    • Sixteenth Finance Commission (XVIFC)
    • Article 280
  • 2025-04-23 [Economy] — RBI Deputy Governor Re-appointment
    T. Rabi Sankar has been re-appointed as Deputy Governor of the Reserve Bank of India (RBI) for a one-year term starting May 3, 2025. He oversees key RBI functions including foreign exchange, currency management, and government accounts.
    More details

    UPSC Angle: T. Rabi Sankar re-appointed as RBI Deputy Governor.

    Key Facts:

    • T. Rabi Sankar
    • Deputy Governor
    • Reserve Bank of India (RBI)
    • One-year term
    • May 3, 2025
    • Foreign exchange
    • Currency management
    • Government accounts
  • 2025-04-01 [Economy] — RBI at 90: Shaping India's Financial Architecture
    RBI Governor Sanjay Malhotra stated that the next decade is crucial for shaping the financial architecture of the Indian economy, during the 90th-anniversary celebration of the Reserve Bank of India.
    More details

    UPSC Angle: RBI at 90: Shaping India's Financial Architecture.

    Key Facts:

    • Organization: Reserve Bank of India (RBI)
    • Event: 90th anniversary
    • Person: Sanjay Malhotra
    • Title: RBI Governor
    • Focus: Shaping India's financial architecture

RBI Economic and Financial Publications

Focus: Official periodic reports (Monthly Bulletins and Annual Reports) released by the RBI that analyze the broader economy rather than setting immediate policy rates.

UPSC Value: Useful for understanding the RBI's communication strategy and the statistical data (State Finances, Corporate Sector) that underpins economic analysis.

3 news items in this theme:

  • 2026-01-25 [Economy] — RBI Report on State Finances
    The Reserve Bank of India released its annual report, “State Finances”, for the fiscal year 2025-26 to assess states' fiscal health and budgetary priorities.
    More details

    UPSC Angle: RBI released its annual report, “State Finances”, for fiscal year 2025-26.

    Key Facts:

    • RBI released its annual report, “State Finances”, for the fiscal year 2025-26.
  • 2025-10-22 [Economy] — RBI Bulletin October 2025: Indian Economy, Corporate Sector, and SMEs
    The Reserve Bank of India (RBI) released its October 2025 Bulletin, providing insights into India's economy, corporate sector, SME fundraising, and the steel industry. The report highlights India's resilience amidst global uncertainty, growth in corporate profits, and the rise in SME IPO fundraising. The bulletin includes the bi-monthly monetary policy statement, speeches, research articles, and statistical data.
    More details

    UPSC Angle: RBI Bulletin provides insights into Indian economy, corporate sector, and SMEs.

    Key Facts:

    • RBI released its October 2025 Bulletin
    • Global uncertainty has increased, especially in the US
    • Consumer Price Index (CPI) inflation dropped sharply in September 2025, reaching its lowest level since June 2017
    • Corporate sales grew by 32.5% in 2021–22 and stabilized at 7.2% growth in 2024–25
    • Net profits increased sharply to ₹7.1 trillion in 2024–25, compared to ₹2.5 trillion in 2020–21
    • Profit margins rose to 10.3% in 2024–25 from 7.2% in 2020–21
    • The SME IPO market in India saw a sharp surge in activity during FY 2023-24 and FY 2024-25
    • The average price elasticity of India's steel imports varies in the range of 0.73-1.01
  • 2025-06-25 [Economy] — RBI Releases June 2025 Bulletin
    The Reserve Bank of India (RBI) released its June 2025 monthly bulletin, which includes the bi-monthly monetary policy statement from June 6, 2025, speeches, articles, and current statistics. The bulletin contains five articles covering the state of the economy, financial conditions index for India, balance sheet channel of monetary policy transmission, drivers of CD issuances, and predicting CPI inflation in India.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI released its June 2025 monthly Bulletin on June 25, 2025.
    • The Bulletin includes the bi-monthly monetary policy statement (June 06, 2025).
    • The five articles included are: State of the Economy; Financial Conditions Index for India: A High-Frequency Approach; Balance Sheet Channel of Monetary Policy Transmission: Insights from Indian Manufacturing Firms; Drivers of CD Issuances: An Empirical Assessment; and Predicting CPI inflation in India: Combining Forecasts from a 'Suite' of Statistical and Machine Learning Models.

IDFC FIRST Bank's Strategic Growth and Market Positioning

Focus: Corporate milestones and market performance of IDFC FIRST Bank, including major capital infusions, analyst buy recommendations, and the launch of specialized retail products.

UPSC Value: Analyzing the growth trajectory of private sector banks in India, focusing on capital adequacy, market valuation, and product differentiation strategies.

3 news items in this theme:

  • 2026-01-17 [Economy] — IDFC FIRST Bank launches Zero-Forex Credit Card
    IDFC FIRST Bank has introduced the Zero-Forex Diamond Reserve Credit Card, which offers zero forex markup and premium travel rewards.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • IDFC FIRST Bank launched Zero-Forex Diamond Reserve Credit Card
  • 2025-06-16 [Economy] — Stock Recommendations
    Sumeet Bagadia from Choice Broking recommends buying Jubilant Ingrevia, Shipping Corporation of India, Nazara Tech, 360 ONE WAM, and Sandhar Technologies. Vaishali Parekh recommends Snowman Logistics. Mehul Kothari recommends IDFC First Bank and GMR Airports.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Jubilant Ingrevia Ltd (JUBLINGREA): Buy at ₹793.55; Target Price at ₹850; Stop Loss at ₹765.
    • Shipping Corporation of India Ltd (SCI): Buy at ₹227.06; Target Price at ₹244; Stop Loss at ₹219.
    • Nazara Technologies Ltd (NAZARA): Buy at ₹1,327.8; Target Price at ₹1,420; Stop Loss at ₹1,280.
    • 360 ONE WAM Ltd (360ONE): Buy at ₹1,140.5; Target Price at ₹1,215, Stop Loss at ₹1,100.
    • Sandhar Technologies Ltd (SANDHAR): Buy at ₹534.7; Target Price at ₹570; Stop Loss at ₹515.
    • Snowman Logistics: Buy at ₹62, Target ₹66, Stop Loss ₹60.
    • IDFC First Bank: Buy at ₹70, Target ₹78, Stop Loss ₹66.
    • GMR Airports: Buy at ₹81, Target ₹88, Stop Loss ₹77.
  • 2025-04-18 [Economy] — IDFC FIRST Bank to Get ₹7,500 Crore Investment Boost
    IDFC FIRST Bank will receive a capital infusion of around ₹7,500 crore from Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) to support its growth plans. The board has approved a preferential equity issue of ₹4,876 crore to Warburg Pincus affiliate Currant Sea Investments B.V. and ₹2,624 crore to Platinum Invictus B 2025 RSC Ltd, a wholly owned subsidiary of ADIA.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Investment in IDFC FIRST Bank: ₹7,500 crore
    • Investors: Warburg Pincus and ADIA
    • Warburg Pincus investment: ₹4,876 crore via Currant Sea Investments B.V.
    • ADIA investment: ₹2,624 crore via Platinum Invictus B 2025 RSC Ltd

RBI's Strategic Financial Management Roles

Focus: Items highlighting the Reserve Bank of India's diverse operational roles, from managing state fiscal agency and government debt to restructuring the banking sector.

UPSC Value: Useful for understanding the multifaceted functions of the RBI beyond monetary policy, including its role as a banker to government and regulator of banking structures.

3 news items in this theme:

  • 2026-01-08 [Polity & Governance] — Delhi Government Signs MoU with RBI
    The Delhi Government signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to enhance financial governance and fiscal management for the National Capital Territory of Delhi. The agreement enables the RBI to act as the official banker, debt manager, and financial agent for the Delhi Government.
    More details

    UPSC Angle: Delhi Government signs MoU with RBI to enhance financial governance.

    Key Facts:

    • RBI will manage market borrowings through State Development Loans (SDLs).
    • RBI will manage automatic investment of surplus cash.
    • RBI will provide professional cash management.
  • 2025-11-07 [Economy] — Talks on with RBI, lenders for big, world class banks, says FM
    Talks are ongoing with the Reserve Bank of India (RBI) and lenders to establish large, world-class banks.
    More details

    UPSC Angle: Talks ongoing with RBI for big, world class banks.

    Key Facts:

    • Talks are ongoing with the Reserve Bank of India (RBI) and lenders to establish large, world-class banks.
  • 2025-06-17 [Economy] — RBI Conducts Government Switch Auction
    The Reserve Bank of India (RBI) conducted a government switch auction for ₹25,000 crore, accepting approximately ₹9,000 crore. The switch auction, initiated in 2019 by the RBI on behalf of the Indian government, aims to manage government debt.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI
    • government switch auction
    • ₹25,000 crore notified amount
    • ₹9,000 crore accepted
    • Initiated in 2019

RBI's 'Goldilocks' Monetary Stance and Macroeconomic Stability

Focus: The Reserve Bank of India's consistent strategy of maintaining stable or low interest rates to foster a high-growth, low-inflation environment despite global currency pressures.

UPSC Value: Analyzing the RBI's dual mandate of price stability and economic growth, and the use of the repo rate as a tool for macroeconomic management.

3 news items in this theme:

  • 2025-12-17 [Economy] — RBI to Maintain Low Interest Rates
    RBI Governor Sanjay Malotra expects interest rates to remain low for a long period, citing robust growth potentially boosted by trade deals with the US and Europe. He stated that rate cuts had helped create a Goldilocks economy with brisk growth and muted inflation. The rupee hit a fresh record low of 91.
    More details

    UPSC Angle: RBI to maintain low interest rates due to robust growth.

    Key Facts:

    • RBI Governor Sanjay Malotra expects interest rates to remain low for a long period
    • Rate cuts helped create a Goldilocks economy with brisk growth and muted inflation
    • Rupee hit a fresh record low of 91
  • 2025-09-15 [Economy] — India's Macroeconomic Outlook
    India's macroeconomic outlook seems positive, with expectations of low inflation and high growth. This suggests a stable and supportive framework for economic momentum in the coming months.
    More details

    UPSC Angle: India's macroeconomic outlook seems positive; low inflation and high growth.

    Key Facts:

    • Outlook: Low inflation, high growth
  • 2025-07-05 [Economy] — RBI Expected to Maintain Repo Rate at 6.5%
    Analysts anticipate that the Reserve Bank of India (RBI) will likely hold the repo rate steady at 6.5% in its upcoming policy meeting. This decision is expected amid moderating inflation and uncertain global economic conditions.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • RBI likely to hold repo rate at 6.5%

Expansion of India Post into a Multi-Service Financial Hub

Focus: The utilization of the Department of Posts and India Post Payments Bank infrastructure to deliver specialized financial and administrative services like mutual funds, KYC verification, and pension certification.

UPSC Value: Demonstrates the strategic use of existing public infrastructure for financial inclusion and the last-mile delivery of government and financial services.

3 news items in this theme:

  • 2025-12-13 [Economy] — MoU Between Department of Posts and BSE
    A MoU has been signed between the Department of Posts and BSE on 12 December 2025 in New Delhi, to expand access to mutual fund investments across India. The initiative aligns with the Budget 2025–26 announcement, using India Post's network to drive economic activity in rural and semi-urban areas.
    More details

    UPSC Angle: Department of Posts and BSE MoU to expand mutual fund access.

    Key Facts:

    • MoU between Department of Posts and BSE signed.
    • Aims to expand access to mutual fund investments.
    • Aligns with Budget 2025–26 announcement.
    • India Post to act as a distributor of mutual fund products.
  • 2025-11-05 [Schemes & Programs] — MoU Between IPPB and EPFO
    India Post Payments Bank (IPPB) and Employees' Provident Fund Organisation (EPFO) signed an MoU to provide doorstep issuance of Jeevan Pramaan Patra (JPC) for EPS'95 pensioners free of cost (borne by EPFO). This aligns with Digital India and Ease of Living initiatives.
    More details

    UPSC Angle: IPPB and EPFO MoU for doorstep Jeevan Pramaan Patra.

    Key Facts:

    • IPPB: Partner in MoU
    • EPFO: Partner in MoU
    • Doorstep issuance of JPC for EPS'95 pensioners: Purpose of MoU
    • Free of cost: Cost of JPC issuance
  • 2025-07-19 [Economy] — DoP Signs MoU with AMFI to Streamline KYC Verification
    The Department of Posts (DoP) signed a MoU with the Association of Mutual Funds in India (AMFI) to streamline KYC verification for approximately 24.13 crore MF folios. The DoP will offer KYC verification and document collection services through its network of over 1.64 lakh post offices. The AMFI will support the initiative to help investors achieve “KYC Validated” status with KYC Registration Agencies (KRAs).
    More details

    UPSC Angle: DoP signs MoU with AMFI to streamline KYC verification.

    Key Facts:

    • DoP signed MoU with AMFI to streamline KYC verification
    • Targets KYC verification for approx. 24.13 crore mutual fund folios
    • DoP to offer KYC verification and document collection services through its 1.64 lakh+ post offices
    • AMFI will coordinate with Asset Management Companies (AMCs) to ensure investors are granted “KYC Validated” status in KYC Registration Agencies (KRAs)
    • MoU is valid for one year from July 2025 and is renewable

Corporate Financial Reporting and Dividend Distribution Cycles

Focus: Formal board approvals of quarterly financial results and the declaration of dividends with associated record dates for Indian listed entities.

UPSC Value: Understanding corporate governance, the regulatory framework of SEBI regarding financial disclosures, and the mechanisms of capital markets in India.

3 news items in this theme:

  • 2025-11-15 [Economy] — Banco Products Board Meeting Approvals
    The Board of Directors of Banco Products (India) Ltd. approved unaudited financial results for the quarter ended September 30, 2025, and authorized Mr. Chetan Karbhari Dhatrak to sign the statement of unaudited financial results. An interim dividend of Rs. 7/- (350%) per equity share of Rs. 2/- each for the Financial Year 2025-26 was declared. The record date for determining entitlement of members for the purpose of payment of interim dividend is Wednesday, 19th November, 2025.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Approved unaudited financial results for the quarter ended September 30, 2025.
    • Declared an Interim Dividend of Rs. 7/- (350%) per equity share of Rs. 2/- each for the Financial Year 2025-26.
    • Fixed Wednesday, 19th November, 2025 as record date.
  • 2025-10-30 [Economy] — Share India board meeting to assess Q2 results and interim dividend
    Share India has scheduled a board meeting on October 30, 2025, to assess the Q2 financial performance, discuss fundraising via foreign currency convertible bonds (FCCBs), and possibly announce a second interim dividend. The record date for eligibility to receive the dividend is established for November 6, 2025.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Board meeting date: October 30, 2025
    • Purpose: assess Q2 financial performance, discuss FCCB fundraising, and possibly announce a second interim dividend
    • Record date for dividend: November 6, 2025
  • 2025-06-16 [Economy] — Corporate Actions: Bonus Issues, Stock Splits, and Dividends
    A number of major listed companies, including Bajaj Finance and Tata Technologies, are approaching record dates for corporate actions such as bonus issues, stock splits, and dividends in the week beginning June 16, 2025.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Panasonic Carbon India: Final dividend of Rs 12 per share (120%).
    • Reliance Industrial Infrastructure: Final dividend of Rs 3.5 per share (35%).
    • Tata Communications: Final dividend of Rs 25 per share (250%).
    • Tejas Networks: Final dividend of Rs 2.5 per share (25%).

Financial Performance and Institutional Milestones of State Bank of India (SBI)

Focus: Items tracking the record-breaking profits, global rankings, and historical milestones of SBI as the dominant entity in India's public sector banking.

UPSC Value: Crucial for understanding the systemic importance of SBI, the health of the public sector banking (PSB) landscape, and the global competitiveness of Indian financial institutions.

3 news items in this theme:

  • 2025-11-06 [Economy] — Public Sector Banks Report Profits
    Public Sector Banks (PSBs) posted ₹49,456 crore profit in Q2 FY26, a 9% year-on-year increase, with State Bank of India (SBI) contributing 40% of total earnings. The H1 FY26 cumulative profit reached ₹93,674 crore, marking the first time PSBs crossed ₹90,000 crore in half-year earnings.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Public Sector Banks (PSBs)
    • Q2 FY26 Profit: ₹49,456 crore
    • H1 FY26 Profit: ₹93,674 crore
    • State Bank of India (SBI) contributed 40%
  • 2025-07-01 [History & Heritage] — State Bank of India Celebrates 70 Years
    On July 1, 2025, the State Bank of India (SBI) completed 70 years since its establishment in its current form. SBI's roots trace back to the Bank of Calcutta, set up in June 1806. In FY25, SBI's consolidated net profit was ₹77,561 crore.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Established under the State Bank of India Act, 1955
    • Consolidated net profit of ₹77,561 crore in FY25
  • 2025-05-15 [Economy] — SBI Joins Global Top 100 in Net Profit
    State Bank of India (SBI) has joined the global top 100 in net profit, becoming the third Indian firm to achieve this milestone. With a net profit of USD 9.2 billion (Rs. 77,561 crore) in Financial Year 2024-25(FY25), SBI now ranks 98th globally in terms of annual earnings, according to data from Bloomberg.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • State Bank of India (SBI)
    • Net profit: USD 9.2 billion (Rs. 77,561 crore) in FY25
    • Global rank: 98th in terms of annual earnings
    • Third Indian firm to achieve this milestone

RBI Regulatory Reforms and Frameworks (2025)

Focus: A series of regulatory interventions by the Reserve Bank of India in 2025, ranging from cooperative bank oversight to loan regulations and transparency frameworks.

UPSC Value: Useful for studying the central bank's proactive measures in financial stability and consumer protection during the fiscal year.

3 news items in this theme:

  • 2025-09-29 [Economy] — RBI Announces Regulatory Reforms
    The Reserve Bank of India (RBI) announced seven regulatory changes, with three effective from October 1, 2025, and four draft proposals open for public feedback until October 20, 2025. Key changes include allowing banks to lower spreads on floating-rate loans before the 3-year reset, repealing the requirement for lenders to offer an option to switch floating-rate loans to fixed rates, and expanding gold loan scope to Tier-3 and Tier-4 Urban Co-operative Banks. The RBI also revised Basel III requirements to ease banks' capital raising through overseas Perpetual Debt Instruments (PDIs).
    More details

    UPSC Angle: RBI announces regulatory reforms effective from October 1, 2025.

    Key Facts:

    • RBI Regulatory Changes: 7
    • Effective Date of 3 changes: October 1, 2025
    • Public Feedback Deadline for 4 draft proposals: October 20, 2025
    • Banks can lower spread of floating-rate loans before 3-year reset
    • Fixed Rates Option: Law forcing lenders to provide an option to switch an floating rate loan into a fixed-rate loan has been repealed.
    • Expanded Gold Loan Scope: Tier-3 and Tier-4 Urban Co-operative Banks may now lend on collateral of gold and silver.
    • RBI revised Basel III requirements to raise the maximum allowed quota of overseas Perpetual Debt Instruments (PDIs) in the Additional Tier-1 capital of a bank.
    • Extended Duration of Gold Metal Loans (GML): Offers a proposal to increase the maximum repayment period of GMLs to 270 days as opposed to the current 180 days.
    • Manufacturing jewellers (those who do not outsource production) will be permitted in availing of GMLs.
    • For loans up to ₹2.5 lakh, LTV is proposed to increase from 75% to 85% (including interest).
  • 2025-05-01 [Economy] — RBI's Regulatory Performance in 2025
    According to Chapter 3 of the Economic Survey 2025-26, India's financial sector was well-anchored in 2025 due to the regulatory performance of the RBI and SEBI. In May 2025, the RBI released a 'Framework for Formulation of Regulations' emphasizing transparency, stakeholder consultation, impact assessments, and periodic reviews. The central bank consolidated over 9,000 existing circulars into 238 master directions to ease compliance.
    More details

    UPSC Angle: RBI and SEBI regulatory performance anchored India's financial sector in 2025.

    Key Facts:

    • RBI released 'Framework for Formulation of Regulations' in May 2025.
    • RBI consolidated 9,000 circulars into 238 master directions.
  • 2025-04-04 [Economy] — RBI to Transition Urban Cooperative Banks to PCA Framework
    The Reserve Bank of India (RBI) will transition approximately 500 financially weak Urban Co-operative Banks (UCBs) from the Supervisory Action Framework (SAF) to the Prompt Corrective Action (PCA) framework starting April 1, 2025. This move aims to strengthen regulatory oversight and ensure timely remedial action to restore the financial health of these institutions.
    More details

    UPSC Angle: RBI to transition Urban Cooperative Banks to PCA framework.

    Key Facts:

    • RBI will transition approximately 500 financially weak Urban Co-operative Banks (UCBs) from SAF to PCA framework starting April 1, 2025.

Growth and Recognition of India Post Payments Bank (IPPB)

Focus: Updates tracking the customer growth, service reach, and awards received by IPPB specifically.

UPSC Value: Useful for tracking the expansion of financial inclusion mechanisms through the postal network.

3 news items in this theme:

  • 2025-09-02 [Schemes & Programs] — IPPB Celebrates 8th Foundation Day
    India Post Payments Bank (IPPB) marked its 8th Foundation Day on September 1, 2025, celebrating its reach to over 12 crore customers. Launched in 2018, IPPB operates across 5.57 lakh villages and towns, integrating over 1.64 lakh post offices and powered by 1.90 lakh+ postal agents.
    More details

    UPSC Angle: IPPB reached 12 crore customers since 2018 launch.

    Key Facts:

    • IPPB Foundation Day: September 1, 2025 (8th)
    • Customers: Over 12 crore
    • Villages and towns: 5.57 lakh
    • Post offices: Over 1.64 lakh
    • Postal agents: 1.90 lakh+
  • 2025-06-21 [Economy] — India Post Payments Bank (IPPB) Wins Digital Payments Award 2024-25
    India Post Payments Bank (IPPB) received the Digital Payments Award 2024-25 from the Ministry of Finance for promoting digital payments and financial inclusion across India. IPPB ranked first among payments banks in FY 2024–25, utilizing over 2 lakh Postmen and Gramin Dak Sevaks to extend digital financial services to remote areas. The award was presented in New Delhi by Union Finance Minister Nirmala Sitharaman and Minister of State for Finance Pankaj Chaudhary.
    More details

    UPSC Angle: IPPB wins Digital Payments Award 2024-25 for financial inclusion.

    Key Facts:

    • IPPB received the Digital Payments Award 2024-25.
    • Award presented by the Department of Financial Services, Ministry of Finance.
    • IPPB ranked first among all payments banks in the Performance Index for FY 2024–25.
    • IPPB utilizes a network of over 2 lakh Postmen and Gramin Dak Sevaks.
    • IPPB was launched on January 30, 2017.
    • India Post Payments Bank (IPPB) received the Digital Payments Award 2024-25
    • Award from the Ministry of Finance
    • Award instituted by the Department of Financial Services (DFS)
  • 2025-05-23 [Economy] — India Post Payments Bank Services
    India Post Payments Bank (IPPB) delivers affordable and simple banking solutions via interfaces in 13 languages, catering to 11 Crore customers across 5.57 lakh villages and towns in India. It aims to promote a less cash economy and contribute to Digital India
    More details

    UPSC Angle: IPPB's reach and services for financial inclusion.

    Key Facts:

    • IPPB
    • 13 languages
    • 11 Crore customers
    • 5.57 lakh villages & towns
    • Digital India

Structural Health of the Financial Sector

Focus: Reports focusing on the fundamental metrics (NPA, Profitability, Inclusion) of the banking and financial system, distinct from daily stock price movements.

UPSC Value: Useful for tracking the long-term improvement in asset quality and reach of the Indian financial system in FY25.

3 news items in this theme:

  • 2025-07-24 [Economy] — PSBs GNPA Decline
    Gross Non-Performing Assets (GNPA) of Public Sector Banks (PSBs) has decreased from 9.11% in FY21 to 2.58% in FY25.
    More details

    UPSC Angle: PSBs GNPA decline; improvement in asset quality of public sector banks.

    Key Facts:

    • PSBs GNPA declined from 9.11% in FY21 (Rs. 6.16 lakh crore) to 2.58% in FY25 (Rs. 2.83 lakh crore)
  • 2025-07-24 [Economy] — Financial Inclusion Index Improves
    The Reserve Bank of India (RBI) reported that the Financial Inclusion Index (FI Index) for Financial Year 2025 has improved to 67 percent, compared to 64.2 percent for FY 2024. The FI-Index captures information on banking, investments, insurance, postal services, and the pension sector, ranging from 0 (complete exclusion) to 100 (full inclusion).
    More details

    UPSC Angle: Financial Inclusion Index improves; reflects progress in financial accessibility.

    Key Facts:

    • FI Index for FY25 stands at 67 percent
    • FI Index for FY24 was 64.2 percent
    • Index ranges from 0 to 100
    • Includes banking, investments, insurance, postal services, and the pension sector
  • 2025-06-30 [Economy] — Finance Minister Reviews Public Sector Banks' Performance
    Union Finance Minister Nirmala Sitharaman chaired a review meeting on Public Sector Banks (PSBs) performance. From FY 2022–23 to FY 2024–25, PSBs' total business rose from ₹203 lakh crore to ₹251 lakh crore; net Non-Performing Assets (NPAs) declined from 1.24% to 0.52%; net profit increased from ₹1.04 lakh crore to ₹1.78 lakh crore; and dividend payouts grew from ₹20,964 crore to ₹34,990 crore. PSBs are adequately capitalized with a Capital to Risk (Weighted) Assets Ratio (CRAR) at 16.15% as of March 2025.
    More details

    UPSC Angle: Finance Minister reviewed Public Sector Banks' performance.

    Key Facts:

    • Total business of PSBs rose from ₹203 lakh crore to ₹251 lakh crore (FY 2022–23 to FY 2024–25).
    • Net Non-Performing Assets (NPAs) declined from 1.24% to 0.52% (FY 2022–23 to FY 2024–25).
    • Net Profit increased from ₹1.04 lakh crore to ₹1.78 lakh crore (FY 2022–23 to FY 2024–25).
    • Dividend payouts grew from ₹20,964 crore to ₹34,990 crore (FY 2022–23 to FY 2024–25).
    • Capital to Risk (Weighted) Assets Ratio (CRAR) at 16.15% (as of March 2025).

RBI Approvals for Private Bank Leadership

Focus: Official regulatory approvals by the RBI for top executive appointments (MD, CEO, Chairman) specifically in private sector banks.

UPSC Value: Highlights the RBI's active role in corporate governance and leadership stability within the private banking sector.

2 news items in this theme:

  • 2025-09-07 [Economy] — RBI Reappoints Chairman of Yes Bank
    The Reserve Bank of India has approved the reappointment of R Gandhi as part-time Chairman of Yes Bank.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • R Gandhi reappointed as part-time Chairman of Yes Bank.
  • 2025-06-13 [Economy] — RBI approves Rakesh Jha's reappointment
    The Reserve Bank of India (RBI) has approved the reappointment of Rakesh Jha as Executive Director of ICICI Bank for a term of two years, effective September 2, 2025.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Rakesh Jha reappointed as Executive Director of ICICI Bank
    • Approval from Reserve Bank of India
    • Term: 2 years, effective September 2, 2025

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