Teaching Material – Monthly Updations

CONTEMPORARY

CORPORATE TRAINING & INSTITUTE (CTDI)

Registration No. CHD / 0030 / 2009 - 11, RHI NO. CHAENG / 1997 / 4961

VOLUME - 24 No. 12 DECEMBER 2024

(Resolution of the MPC – Dec. 4 to 6, 2024)

The Monetary Policy Committee (MPC), after evaluating the prevailing and
anticipated macroeconomic conditions, resolved to maintain the policy repo
rate under the Liquidity Adjustment Facility (LAF) at 6.50% for the eleventh
straight meeting. The MPC had last changed the benchmark interest rate in
Feb. 2023.
 The recent developments surrounding India's monetary policy highlight
the RBI’s continued emphasis on maintaining inflation within its target
 MONETARY POLICY STATEMENT 1
range, even as growth moderates. The MPC's independence and data-
driven approach highlights that inflation targeting remains the primary goal.
 PAN 2.0 3  The MPC's decision at its previous meeting to keep the repo rate
 PM-VIDYALAXMI SCHEME/ DEEPFAKES 5 unchanged at 6.5% reflects its intent to strike a balance between inflation
 POLICY GUIDELINES 7
control and growth support. The shift to a "neutral" stance indicates
flexibility but does not imply immediate rate cuts.
 TIT BITS 12  These decisions are in consonance with the objective of achieving the
 BANKING & FINANCIAL NEWS 14 medium-term target for consumer price index (CPI) inflation of 4 per cent
 BRAIN STORMING 17
within a band of +/- 2 per cent, while supporting growth.
TARGETS:
 RECOLLECTED QUESTIONS 19
 GDP OUTLOOK: The Real Gross Domestic Product (GDP) registered a
 LATEST CURRENT G.K. 20 lower than expected growth of 5.4 per cent in Q2:2024-25. The Real GDP
growth projection for FY25 reduced to 6.6% from 7.2%.
 INFLATION: Headline CPI inflation surged above the upper tolerance

CTDI
level to 6.2 per cent in October from 5.5 per cent in Sept. 2024. CPI
inflation projection for FY25 is forecasted to be at 4.8%.
TM
REPO RATE: The policy Repo rate under the Liquidity Adjustment
Facility (LAF) unchanged at 6.50 per cent.
STANDING DEPOSIT FACILITY (SDF): The Standing Deposit Facility
GURUKUL FOR BANKERS (SDF) rate also unchanged at 6.25 per cent.
st
SCO 91, (1 & 2
nd
Floor), Sector 47-D, MARGINAL STANDING FACILITY (MSF): The MSF rate (an emergency
funding window) with a spread of 25 basis points (bps) above the Repo
Chandigarh-160047, retained at 6.75%.
Mob: 9041086057, 9317723230 BANK RATE: The MSF rate and the Bank Rate are calibrated to 25 bps
Website: www.corporatetraininginstitute.com above the repo rate. The Bank Rate thus retained at 6.75 per cent.
Email: [email protected] STATUTORY LIQUIDITY RATIO (SLR): The SLR of scheduled
commercial banks retained at 18 per cent of NDTL.
FIXED RATE REVERSE REPO (FRRR): The FRRR rate has been kept as
SCAN THE QR CODE TO JOIN US ON part of the RBI’s toolkit and its operation will be at the discretion of the RBI.
CASH RESERVE RATIO (CRR): RBI has decided to reduce the cash
TELEGRAM
reserve ratio (CRR) of all banks by 50 bps in two equal tranches of 25 bps
each to 4.0% of net demand and time liabilities (NDTL) w.e.f fortnight
beginning Dec. 14, 2024 and Dec.28, 2024, respectively. This will restore
the CRR to 4% of NDTL, which was prevailing before the commencement
of the policy tightening cycle in April 2022. This reduction in the CRR would
release primary liquidity of about Rs.1.16 lakh cr to the banking system.

 POSITIVE ATTITUDE

In a forest, a tiny seed lay buried beneath layers of soil. Despite

the darkness, it pushed through, reaching for the light.
Remember, growth often starts in the darkest of places.
 GLOBAL OUTLOOK:
The global economy demonstrated remarkable resilience in 2024, navigating
multiple challenges. Inflation, while still elevated, is steadily converging toward
target levels, encouraging several central banks to consider policy shifts.
Global trade has held firm, with growing activity concentrated within geopolitical
blocs. Since the previous MPC meeting, financial markets have been turbulent,
marked by a strengthening US dollar and rising bond yields, which have
VOLUME 24 NO. 12 DECEMBER 2024 triggered significant capital outflows from emerging markets and
heightened equity market volatility. Looking ahead, the rising wave of
EDITORIAL BOARD protectionism poses risks to global growth and could drive inflationary
pressures higher.
DIRECTOR: DOMESTIC OUTLOOK:
Dr. G.S. Bhalla  On the domestic front, real gross domestic product (GDP) grew by 5.4% in
Q2:2024-25, falling short of expectations as private consumption and
ASSOCIATES: investment slowed, despite a recovery in government spending from its
Harvinder Singh Bedi contraction in the previous quarter. On the supply side, growth in gross value
Harsimran Singh Bhalla added (GVA) during Q2 was supported by robust performance in services and
an improving agriculture sector. However, weakness in industrial activities,
Ishwar Singh Negi particularly in manufacturing, electricity, and mining, weighed on overall
DESIGNED BY: growth.
 Looking ahead, a strong kharif food grain harvest, favorable rabi prospects,
Ankita Sharma and an anticipated recovery in industrial activity, alongside continued strength
TM in the services sector, are expected to bolster private consumption. Investment

CTDI activity is also projected to gain momentum. Additionally, resilient global trade
prospects should provide a boost to external demand and exports.
st nd
SCO 91, (1 & 2 Floor), Sector Nevertheless, the outlook remains clouded by risks from geopolitical tensions,
47-D, Near PNB, Chandigarh fluctuations in international commodity prices, and geo-economic
Pin - 160047. fragmentation.
 Considering these factors, real GDP growth for 2024-25 is projected at
MOB: 9041086057, 9317723230
6.6%, with Q3 and Q4 growth estimated at 6.8% and 7.2%, respectively. For
RATES FOR HARD COPY Q1:2025-26 and Q2:2025-26, growth is projected at 6.9% and 7.3%,
respectively. Overall, risks to the growth outlook appear evenly balanced.
Magazine Rate Regd. Post Total
Rs. Charges Rs Amount INFLATION:
Per copy 70 30 100  Headline CPI inflation accelerated to 6.2% in October, breaching the upper
One year 750 350 1100 tolerance threshold, compared to 5.5% in September and sub-4% levels in July
FOR ONLINE MAGAZINE and August. The surge was primarily driven by a sharp increase in food
inflation and a rise in core inflation (CPI excluding food and fuel).
Per Copy ………………. Rs 50.00
For One Year …………. Rs 500.00  Looking ahead, food inflation is likely to moderate in Q4, aided by the
For Two Years………… Rs 850.00 seasonal decline in vegetable prices and the arrival of kharif harvests.
For Three Years……… Rs 1200.00 Favorable soil moisture and adequate reservoir levels support a positive
outlook for rabi crop production. However, upside risks remain due to potential
FOR ONLINE PAYMENT:
adverse weather events and increasing international agricultural commodity
a) BENEFICIARY CTDI prices. While energy prices have eased recently, their persistence warrants
b) Current A/c 7718002100000011 monitoring. Businesses expect elevated input cost pressures to continue, with
No. selling price growth projected to rise in Q4.
c) IFSC Code PUNB0771800  Considering these factors, CPI inflation for 2024-25 is forecast at 4.8%, with
d) Bank PNB, Sector 47-D,
Chandigarh (160047)
Q3 at 5.7% and Q4 at 4.5%. Projections for Q1:2025-26 and Q2:2025-26 are at
4.6% and 4.0%, respectively. Overall, risks to the inflation outlook are
Please Note: After depositing the assessed to be evenly balanced.
amount, please send us complete RATIONALE FOR MONETARY POLICY DECISIONS:
mailing address with Pin code and  The Monetary Policy Committee (MPC) observed that near-term inflation
Mobile number through E-mail to our and growth outcomes have deteriorated slightly since the October policy.
E-mail ID: However, economic activity is expected to improve, supported by rising
[email protected]
business and consumer confidence as reflected in RBI surveys. Inflation risks
remain high due to overlapping shocks, geopolitical uncertainties, and financial
SCAN AND PAY market volatility, which could erode consumer purchasing power and dampen
private consumption. The MPC reiterated that durable price stability is crucial
for sustained high growth.
 In this meeting, the MPC decided to maintain the policy repo rate at 6.50%
and retain a neutral monetary policy stance, ensuring flexibility to respond to
inflation and growth dynamics. The MPC reaffirmed its focus on aligning
inflation with the target while fostering economic growth.
(Cont’d on Page no. 4)
UPI ID -: 93160092205m@pnb
DECEMBER 2024 CTDI, GURUKUL FOR BANKERS
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 KNOWLEDGE PLUS
+ COMPLIMENTS
PAN 2.0 OUR SUCCESSFUL PARTICIPANTS
With the objective of improving taxpayer services, reducing operational IDBI (AGM TO DGM)
inefficiencies, and promoting a more sustainable and technologically advanced 2024-2025
framework for tax administration, the Cabinet Committee on Economic Affairs 1. PRAVIN S KADAM 9860874341
(CCEA) has approved the PAN 2.0 Project initiated by the Income Tax Department. 2. TABISH RAZA 9977454851
 PAN 2.0 Project is an e-Governance project of ITD for re-engineering the business 3. SANTOSH KUMAR 9525167666
processes of taxpayer registration services. The objective of the project is to enhance the 4. RAHUL WANKHEDE 9970302807
quality of PAN services through adoption of latest technology. Under this project, ITD is 5. RAJAT YADAV 9899692027
consolidating all processes related to PAN allotment/updation and corrections. The TAN 6. U.MOHAN KUMAR 9866810877
related services are also merged with this project. 7. VISHWESHWAR .S 9769732313
 Besides, PAN authentication/validation through online PAN validation service will be 8. POONAM MEHRA 9174628288
provided to user agencies such as financial institutions, banks, government agencies, 9. SANDEEP M. 9096708431
central and state government departments etc. 10. BINDU 9897066694
 PAN 2.0 Project aims to streamline and modernize the processes related to the 11. VATSALA S. 9031033354
issuance and management of Permanent Account Numbers (PAN) and Tax Deduction 12. NITIN NARESH 9136127077
and Collection Account Numbers (TAN). With a database of 78 crore PANs and 73.28 13. RANJEET 8879770593
lakh TANs, the project focuses on providing efficient, user-friendly services while 14. SUYOG CHAVAN 7710056593
consolidating multiple platforms into a unified system. The project will be implemented 15. JADAV 9820009252
with a financial outlay of Rs.1,435 crore. 16. SHAILESH ROY 8797000109
KEY FEATURES OF PAN 2.0: 17. RASHMI SINGH 9916871445
a) Unified Portal: Presently, PAN-related services are dispersed across three platforms 18. SHUBHAJEET G. 9768008574
namely: a) e-Filing Portal; b) UTIITSL Portal; and c) Protean e-Gov Portal. 19. SWAPNIL V. 9881491241
However, in the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single 20. S MARIA 9524664322
unified portal of ITD. The said Portal would host all end-to-end services related to PAN 21. PRADEEP KUMAR 9010574422
and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your 22. BHADRIK DHAROD 9920975123
AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of 23. UDAY SURESH 9821875981
PAN card etc. 24. UTTAM DAS 9046000151
b) Enhanced User Experience: Simplified processes to eliminate delays and improve 25. MANIKANDAN A.S 9048483818
grievance redressal. 26. K.SUMATHI 9488560336
c) Comprehensive use of technology for paperless processes: Complete online 27. MANOJ TADAY 8328928355
paperless process as against prevailing mode contributing to the Digital India initiative. 28. K SANKARI 9176443204
d) Taxpayer facilitation: Allotment/updation/correction of PAN will be done free of cost 29. YOGESH 9923288039
and e-PAN will be sent to the registered mail id. For physical PAN card, the applicant has MOHADIKAR
to make a request along with the prescribed fee of Rs. 50 (domestic). For delivery of card 30. ARNAB PAUL 9733224610
outside India, Rs. 15 + India post charges at actuals will be charged to the applicant. 31. NEHA SINGH 9015868595
d) QR Code Feature in PAN 2.0: The QR code has been part of PAN cards since 2017- 32. MAYANK KUMAR 8770470765
18. Under PAN 2.0, it will be enhanced with a dynamic QR code displaying the latest 33. RISHIRAJ ANIJA 9685560983
data from the PAN database. 34. RAHUL KUMAR 9822696866
e) Global Standards for Secure and Seamless Services: It ensures compliance with 35. PARTHA MITRA 8927140156
key ISO certifications for quality, security, and service management (e.g., ISO 27001, 36. NILESH THOOL 9561075010
ISO 9001). Advanced encryption prevents unauthorized duplication or counterfeiting of 37. AJAY 9975848325
the PAN card. The secure QR code ensures that the embedded information is protected 38. NITIN KUMAR 7355376708
from tampering. 39. MEHAR SURESH L 9493907056
(f) Penalty for not having PAN or having more than one PAN: As per the provisions 40. RAKESH ROSHAN 7307409176
of Income-tax Act, 1961, no person can hold more than one PAN. In case a person holds 41. ANUPAM 9754342838
more than one PAN, he is obliged to bring it to notice of Jurisdictional Assessing officer JURANGAL
and get additional PAN deleted/de-activated. Sec. 72B of the Income-tax Act imposes a 42. SHABNAM JAHAN 9756929126
penalty of Rs.10,000 for taxpayers who fail to comply with PAN related provisions. 43. PITAM SINGH 9926030341
 In the PAN 2.0, with the improved systems logic for identification of potential duplicate 44. PREM KIRAN 9966201122
requests for PAN and centralized and enhanced mechanism for resolving the duplicates 45. RAKESH KUMAR 9891343304
would minimize the instances of one person holding more than one PAN. 46. RAMKRISHNA M. 9987778202
 Citizens having a PAN card can apply for a new PAN card 2.0 through the unified 47. SUMAN SHASTRI 9757223966
portal, which is yet to be launched by the government. They can upgrade their existing 48. YOGIRAJ S. 9820303244
PAN card to PAN 2.0 with new QR code features at no additional cost. However, 49. VINOD W. 9892839504
the government has yet to announce the launch date for PAN 2.0. Thus, citizens can 50. SACHIN DIWAN 9981485152
apply for PAN card 2.0 once the government launches the new PAN card and the unified 51. SUMITA KUMARI 9560249444
portal for applying for PAN card 2.0 free of cost. The portal will also prioritise addressing 52. ANIL KUMAR 9013435459
PAN card-related grievances. 53. SWAPNIL N. 9822189253
 The PAN 2.0 upgrade aims to enhance functionality without affecting the validity of 54. YOGITA BARSING 8380073589
the current PAN cards. The PAN 2.0 initiative is expected to improve taxpayer services 55. UMA SHANKAR 9482164962
and strengthen the digital infrastructure significantly. 56. DILIP KESHARI 877732516

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 POLICY MEASURES
(Cont’d from Page No 2) 6) Podcast facility- an additional medium of communication:
 The RBI has been deploying traditional as well as new age
communication techniques as a key part of its toolkit to ensure
transparency and greater impact of its decisions, explain the
1) Interest Rates on FCNR (B) Deposits: rationale behind its decisions, and disseminate various awareness
 At present, interest rates on Foreign Currency Non-Resident messages to a wider audience.
Bank [FCNR (B)] deposits are subject to ceilings of Overnight  The Reserve Bank has been expanding the scope of its public
Alternative Reference Rate (ARR) for the respective awareness activities including through social media over the last
currency/swap, plus 250 basis points for deposits of 1 year to less few years. In continuance of this endeavour, the Reserve Bank
than 3 years maturity and overnight ARR plus 350 basis points for proposes to launch Podcasts for wider dissemination of
deposits of 3 years and above and up to 5 years maturity. information that is of interest to the general public.
 In order to attract more capital inflows, RBI has decided to 7) Collateral-free Agriculture Loan –– Enhancement of Limit:
increase the interest rate ceilings on FCNR (B) deposits.  At present, banks are required to extend collateral-free
Accordingly, with effect from Dec. 6, 2024, banks are permitted to agriculture loans up to Rs.1.6 lakh per borrower. This limit was
raise fresh FCNR (B) deposits of 1 year to less than 3 years enhanced from Rs.1 lakh, set in the year 2010 to Rs.1.6 lakh in
maturity at rates not exceeding ARR plus 400 bps and deposits the year 2019.
with maturity between 3 to 5 years at rates not exceeding ARR  Keeping in view the overall inflation and rise in agricultural
plus 500 bps. This relaxation will be available till March 31, 2025. input costs, RBI has decided to raise the limit for collateral-free
2) Expanding reach of FX-Retail Platform through linkages agriculture loans from Rs.1.6 lakh to Rs.2 lakh. This will enhance
with Bharat Connect: coverage of small & marginal farmers in the formal credit system.
 With the objective of bringing greater transparency and 8) Pre-sanctioned Credit Lines through UPI – Extending the
fairness in the pricing of foreign exchange for users, especially for scope to SFBs:
individuals and the Micro, Small and Medium Enterprises, the  In Sept. 2023, the scope of Unified Payments Interface (UPI)
Clearing Corporation of India Limited (CCIL) launched the FX- was expanded by enabling pre-sanctioned credit lines to be linked
Retail platform in 2019. Presently, the FX-Retail platform is through UPI and used as a funding account by Scheduled
accessible through an internet-based application. Commercial Banks excluding Payments Banks, Small Finance
 To expand the reach of FX-Retail platform and enhance user Banks (SFBs) and Regional Rural Banks.
experience, RBI has proposed to facilitate the linking of the FX-  Credit line on UPI has the potential to make available low-
Retail platform with Bharat Connect (earlier known as Bharat Bill ticket, low-tenor products to „new-to-credit‟ customers. SFBs
Payment System) operated by the NPCI Bharat Connect. The leverage a high-tech, low-cost model to reach the last mile
linkage will enable users to register and transact on the FX-Retail customer and can play an enabling role in expanding the reach of
platform through the apps of banks (mobile applications, internet credit on UPI. RBI has therefore, proposed to permit SFBs to
banking etc.) and non-bank payment system providers, which are extend pre-sanctioned credit lines through the UPI.
integrated with Bharat Connect. 8) Framework for Responsible and Ethical Enablement of
 In the first phase, RBI has proposed to implement a pilot Artificial Intelligence (FREE-AI) in the Financial Sector:
facilitating purchase of US Dollar against the Rupee by individuals  The financial sector landscape is witnessing paradigm shifts
and sole proprietors. Going forward, the scope will be expanded to with the advent of frontier technologies. Technologies like Artificial
cover other FX transactions including sale of US Dollar against the Intelligence (AI) / Machine Learning (ML), Tokenisation, Cloud
Rupee and other categories of users. Users will continue to have Computing hold transformative potential for the financial sector as
the option to directly access the FX-Retail platform, as hitherto, they can handle enormous volumes of data, automate complex
and transact under the existing mechanism. processes, enhance decision-making, and bring in unprecedented
4) Introduction of the Secured Overnight Rupee Rate (SORR) efficiencies.
– a benchmark based on the secured Money markets:  As a step in this direction, RBI has proposed to constitute a
 The Reserve Bank had set up the Committee on the MIBOR committee to develop a Framework for Responsible and Ethical
Benchmark (Chairperson: Shri Ramanathan Subramanian) to Enablement of AI (FREE-AI) in the Financial Sector. The
review the Rupee interest rate benchmarks in the country, Committee will comprise of experts from diverse fields and shall
especially the usage of Mumbai Interbank Outright Rate (MIBOR), recommend a robust, comprehensive, and adaptable AI
and to examine the need for transition to new benchmarks. The framework for the financial sector.
TM
Committee recommended several important measures to further 9) MuleHunter.AI :
develop the interest rate derivative market and improve the  RBI has been taking various measures in coordination with
credibility of interest rate benchmarks. banks and other stakeholders to prevent and mitigate digital
 In line with the recommendations and reflective of the current frauds in the financial sector. These include RBI guidelines to
market dynamics, RBI has proposed to develop a benchmark regulated entities for strengthening cyber security, cyber fraud
based on the secured money markets (both basket repo and prevention and transaction monitoring. Use of money mule
TREP) – the Secured Overnight Rupee Rate (SORR). Financial accounts is a common method adopted by fraudsters to channel
Benchmarks India Limited (FBIL) is being asked to take the proceeds of frauds.
proposal forward.  The Reserve Bank is currently running a hackathon on the
5) ‘Connect 2 Regulate’: theme “Zero Financial Frauds” which includes a specific problem
 RBI has been consistently following a multi-pronged statement on mule accounts, to encourage development of
consultative process with stakeholders in framing its regulations. innovative solutions to contain the use of mule accounts. Another
As a further pro-active step towards the same, the RBI proposes initiative in this direction is the AI / ML based model called
to launch a programme named ‘Connect 2 Regulate’ under the TM
MuleHunter.AI , being piloted by Reserve Bank Innovation Hub
ongoing RBI@90 commemorative events. A dedicated section in (RBIH), a subsidiary of RBI. This model enables detection of mule
the RBI‟s website will be made available for the programme. This bank accounts in an efficient manner. Banks are encouraged to
shall provide an opportunity to the stakeholders to share their collaborate with RBIH to further develop the
TM
ideas and inputs in the form of case studies/ concept notes, etc. MuleHunter.AI initiative to deal with the issue of mule bank
on the topics announced by the Reserve Bank from time to time. accounts being used for committing financial frauds.

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 PM-VIDYALAXMI SCHEME

The Union Cabinet, has approved PM Vidyalaxmi, a new Central  The Reserve Bank of India has observed that fake videos of
Sector scheme that seeks to provide financial support to the Governor are being circulated in social media that claim
meritorious students so that financial constraints do not prevent launch of or support to some investment schemes by the RBI.
anyone from pursuing higher studies. The scheme will be These videos attempt to advise people to invest their money in
administered through a simple, transparent and student-friendly such schemes, through use of technological tools.
system that will be inter-operable and entirely digital.  The Reserve Bank has clarified that its officials are not
 PM Vidyalaxmi is another key initiative stemming out of the involved in or support any such activities and these videos are
National Education Policy, 2020, which had recommended that fake. RBI does not give any such financial investment advice. As
financial assistance should be made available to meritorious such, RBI has cautioned members of the public against engaging
students through various measures in both public and private with and falling prey to such deepfake videos circulated over
higher education institutions (HEIs). social media.
 Under the PM Vidyalaxmi scheme, any student who gets CONCEPT OF DEEPFAKES:
admission in quality Higher Education Institution (QHEIs) will be Deepfakes are synthetic media - typically videos, images, or audio
eligible to get collateral free, guarantor free loan from banks - generated using artificial intelligence (AI) techniques. The term
and financial institutions to cover full amount of tuition fees and ‘deepfake’ comes from the use of deep learning, a subset of AI,
other expenses related to the course. to create fake content that closely mimics real people or events.
 A mission mode mechanism will facilitate and drive the Deepfakes can spread false information, damaging reputations or
extension of education loans to meritorious students who get influencing opinions. Criminals can impersonate individuals for
admission in the top 860 quality higher educational institutions of scams or unauthorized access.
the nation, translating to covering more than 22 lakh students Key Features of Deepfakes:
every year.  AI Technology: Deepfakes use generative adversarial
 An outlay of Rs. 3,600 Crore has been made during 2024-25 to networks (GANs) or similar technologies to create realistic but
2030-31, and 7 lakh fresh students are expected to get the benefit false content. These networks learn to improve the quality of fakes
of this interest subvention during the period. by comparing them to real data.
APPLICABLE: The scheme will be applicable to the top quality Applications:
higher educational institutions of the nation, as determined by the  Video Manipulation: Altering or synthesizing someone's face
National Institutional Ranking Framework (NIRF) – including all and voice in a video to make it appear as if they said or did
HEIs, government and private, that are ranked within the top 100 something they never did.
in NIRF in overall, category-specific and domain specific rankings;  Audio Cloning: Imitating a person's voice with high accuracy.
state government HEIs ranked in 101-200 in NIRF and all central  Image Generation: Creating realistic, non-existent faces, or
government governed institutions. altering photos to add/remove people or objects.
 This list will be updated every year using the latest NIRF Deepfakes in Banking: Deepfakes pose a growing risk in the
ranking, and to begin starts with 860 qualifying QHEIs, covering banking industry due to their ability to manipulate audio, video,
more than 22 lakh students to be able to potentially avail benefits and images with advanced artificial intelligence techniques.
of PM-Vidyalaxmi. Risks of Deepfakes in Banking:
LOAN PRODUCT: A special loan product will enable for collateral  Identity Fraud: Fraudsters can use deepfakes to bypass KYC
free, guarantor free education loans; made accessible through a (Know Your Customer) verification. Synthetic videos of individuals
simple, transparent, student-friendly and entirely digital application may trick video-based identification systems.
process  Social Engineering and CEO Fraud: Deepfake audio/video
AMOUNT: Loan amounts up to Rs. 7.5 lakhs will be provided a of senior executives instructing employees to authorize payments.
75% credit guarantee by the Government of India, to support Scammers generate a CEO's voice requesting an urgent transfer
banks to expand coverage of funds.
INTEREST SUBVENTION: For students with up to Rs. 8 lakhs  Loan Application Fraud: Manipulated identity documents
annual family income, the scheme will also provide for 3% interest (e.g., passports, Aadhar, driver's licenses) used to secure loans or
subvention on loans up to Rs 10 lakh. This is in addition to the full open fraudulent accounts.
interest subvention already offered to students with up to Rs. 4.5  Customer Scams: Fraudsters impersonate bank staff in
lakhs annual family income. The interest subvention support will videos or calls to trick customers into sharing credentials.
be given to one lakh students every year. Preference will be given  Cyberattacks: Combined with phishing, deepfakes can
to students who are from government institutions and have opted amplify cyberattacks by creating convincing false communications.
for technical/ professional courses. How Banks Can Combat Deepfakes:
UNIFIED PORTAL “PM-VIDYALAXMI”: The Department of  Advanced Authentication Systems: Implement multi-factor
Higher Education will have a unified portal ‘PM-Vidyalaxmi’ on authentication (MFA) with biometrics, like fingerprint or iris scans.
which students will be able to apply for the education loan as well Use liveness detection technology to differentiate real individuals
as interest subvention, through a simplified application process to from synthetic media.
be used by all banks. Payment of interest subvention will be made  AI-Based Deepfake Detection Tools: Develop and integrate
through E-voucher and Central Bank Digital Currency (CBDC) AI-powered tools that detect anomalies in videos, audio & images.
wallets.  Employee Training and Awareness: Educate staff about the
 PM Vidyalaxmi will supplement the Central Sector Interest risks of deepfake technology in financial fraud. Train employees to
Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education identify suspicious communications.
Loans (CGFSEL), the two component schemes of PM-USP, being  Enhanced KYC Procedures: Include multi-step verification
implemented by the Department of Higher Education. Under the processes with live video interviews, and verify documents using
PM-USP CSIS, students with annual family income up to Rs. 4.5 blockchain technology for transparency and immutability.
lakhs and pursuing technical/ professional courses from approved  Real-Time Fraud Monitoring: Deploy AI-driven fraud
institutions get full interest subvention during moratorium period detection systems to monitor transactions for unusual behaviour
for education loans up to Rs. 10 lakhs. patterns.

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 CREDIT GUARANTEE SCHEME

PADHO PRADESH DR. AMBEDKAR SCHEME OF INTEREST SUBSIDY

OBJECTIVES To provide interest subsidy to meritorious To provide interest subsidy to meritorious students belonging to the
students belonging to minority communities Other Backward Classes and Economically Backward Classes for
and facilitate opportunities for higher higher education abroad and enhance their employability.
education abroad to enhance employability.
ELIGIBILITY The interest subsidy under the scheme shall Secured admission in the approved courses at Masters, M.Phil or
be available to the eligible students only once, Ph.D. levels abroad for the courses listed. (Overseas Study)
either for Masters or Ph.D levels. (Overseas
Study).
INCOME Total income from all sources of the For OBC and EBC candidates total income from all sources of the
CRITERIA employed candidate or his / her parents/ employed candidate or his/her parents /guardians in case of
guardians in case of unemployed candidate unemployed candidate shall not exceed Rs.8 lakh p.a. for
shall not exceed Rs.6.00 Lakh per annum. education loans sanctioned on or after 01-07-2020 to 31-03-2021.
(The existing beneficiaries as on 31-03-2022 For education loan sanctioned from 01-04-2021, parental income is
will continue to receive the interest subsidy revised to Rs. 5.00 Lakh p.a. for EBC candidates.
during the moratorium period of the loan).
ELIGIBLE LOAN COMPONENT: Admissible for interest subsidy will be maximum Rs. 20 Lakh (For both schemes)
NODAL Canara Bank, Nodal bank for Ministry of Canara Bank, Nodal bank for Ministry of Social Justice and
AGENCY Minority Affairs. Empowerment.
OTHER  At least 35% seats (for subsidy) will be  Minimum of 50% amount will be earmarked for Interest Subsidy to
earmarked for girl students. the girl candidates.
 Member banks to ensure 100% Aadhaar  Aadhar number and Email ID of Student is mandatory for
seeding/authentication for the student lodgment of claims under said scheme.
beneficiaries.
EFFECTIVE  Loan sanctioned and disbursed from 2013-  01-10-2017
FROM 14 onwards will only be eligible for interest
subsidy
 Scheme stands discontinued from 2022-
23. (The existing beneficiaries as on 31-3-
2022 will continue to receive interest subsidy
during the moratorium period of the loan)
CREDIT GUARANTEE FUND CREDIT GUARANTEE FUND CENTRAL SECTOR INTEREST
SCHEME FOR EDUCATION SCHEME FOR SKILL SUBSIDY SCHEME (CSIS), 2009
LOANS (CGFSEL) DEVELOPMENT (CGFSSD)
OBJECTIVES To provide a guarantee for education To provide collateral-free credit to To uplift the students from the grassroot
loans to students from the the micro and small business level and increase the number of
economically weaker sections (EWS) sector. qualified technicians/ professionals in
under the Model Education Loan the nation.
Scheme of IBA.
EFFECTIVE 1st April, 2009 and revised from
FROM 16-09-2015 15-07-2015 01.04.2018. The scheme stands
discontinued from 2022-23 as informed
by IBA. However, the existing
beneficiaries as on 31-03-2022 will
continue to receive the interest subsidy
during the moratorium period.
LOAN Up to Rs.7.50 Lakh Minimum : Rs.5,000/- Subsidy is available on loan up to
AMOUNT Maximum: Rs.1,50,000/- Rs.7.50 Lakh irrespective of loan
sanctioned. (w.e.f. 01.04.2018)
MORATORIUM Course Duration: Course Period plus one year
PERIOD As per general loan Up to 1 Year: 6 Months
Above 1 Year:12 Months
GUARANTEE Annual Guarantee Fee (AGF) of 0.125% per calendar quarter on
FEE 0.50% on outstanding loan amount the quarter end o/s portfolio N.A.
balance ( skill loans).
NODAL National Credit Guarantee Trustee NCGTC Canara Bank, Nodal bank for Ministry of
AGENCY Co Ltd. (NCGTC). HRD.
LOCK IN 12 months from the date of commencement of guarantee cover or end of The Subsidy shall be provided for
PERIOD period of moratorium of interest, whichever is later. moratorium period only i.e., course
duration plus one year or six months
after getting job, whichever is earlier
EXTENT OF 75% of the amount in default through the National Credit Guarantee
GUARANTEE Trustee Company Ltd. (NCGTC).
MISC GF shall be paid upfront within 30 days from the GF shall be paid within 16 With parental income upper limit of Rs.
date of Guarantee Demand Advice Note. days from the end of the 4.50 lakh per year.
calendar quarter

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10 YEAR SOVEREIGN GREEN BONDS - A ‘SPECIFIED
SECURITIES’ FOR INVESTMENT BY NON RESIDENTS:
KNOW YOUR CUSTOMER (KYC) DIRECTION, 2016 -
 Through the „Fully Accessible Route‟ (FAR), the Reserve Bank
AMENDMENTS: enables non-residents to invest in specified Government of India
Know Your Customer (KYC) Direction, 2016 has been amended dated securities. Eligible investors can invest in specified
from time to time, in terms of which Regulated Entities (REs) have Government securities without being subject to any investment
to undertake Customer Due Diligence (CDD) for their customers. ceilings.
On a review, the Master Direction on KYC has been amended  The Reserve Bank of India has broadened the range of
and the following changes carried out in the Master Direction. specified government securities available for non-resident
 Key amendments include revisions to customer acceptance investors under the Fully Accessible Route (FAR) by adding 10-
policies, which now allow for simplified Customer Due Diligence year Sovereign Green Bonds (SGrBs) to the list.
(CDD) for existing customers when opening additional accounts or  The inclusion of green bonds in the FAR category is expected
obtaining new services. to attract greater foreign investor interest. These green bonds are
 Additionally, the periodic KYC updation process has been designed to help the government raise capital to fund sustainable
clarified, and new requirements for updating KYC records with the initiatives for public sector projects.
Central KYC Records Registry (CKYCR) have been established.  Investors eligible to invest through the FAR route include
 The updated procedures also specify how regulated entities Foreign Portfolio Investors (FPIs), Non-Resident Indians (NRIs),
must handle the KYC information retrieval process, including the Overseas Citizens of India (OCIs), and other entities authorized to
use of KYC identifiers from CKYCR. These changes come into invest in Government Securities under the Debt Regulations.
effect immediately, ensuring compliance with enhanced monitoring  The central bank has announced that the 10-year Sovereign
requirements and streamlined customer information management. Green Bonds (SGrBs) to be issued by the Government in the latter
Customer Acceptance Policy: REs shall apply the CDD half of the 2024-25 fiscal year will be classified as „specified
procedure at the Unique Customer Identification Code (UCIC) securities‟ under the Fully Accessible Route (FAR).
level. Thus, if an existing KYC compliant customer of a RE desires  According to the provisional schedule for the issuance of
to open another account or avail any other product or service from government securities, including Sovereign Green Bonds (SGrBs),
the same RE, there shall be no need for a fresh CDD exercise for the second half of the fiscal year 2024-25 (from October 1,
as far as identification of the customer is concerned. 2024, to March 31, 2025), the government plans to raise Rs.6.61
High Risk Accounts: The „Explanation‟ that “High risk accounts lakh crore.
have to be subjected to more intensified monitoring”. The FOREIGN EXCHANGE TRANSACTIONS TO TRADE
explanation has been shifted to these sub-paragraphs to make it REPOSITORY:
clear that intensified monitoring is essential for the accounts  As per extant guidelines, Authorised Dealers to report all over-
mentioned under these specific categories. the-counter (OTC) foreign exchange derivative contracts and
Updation/ Periodic Updation of KYC: To provide better clarity,
foreign currency interest rate derivative contracts, undertaken by
the phrase „updation‟ has been inserted with the phrase „periodic them directly or through their overseas entities (including overseas
updation‟. This change ensures that both one-time updates (when branches, IFSC Banking Units, wholly owned subsidiaries and
needed) and regular updates (at fixed intervals) are covered under joint ventures of Authorised Dealers), to the Trade Repository (TR)
the regulation. of Clearing Corporation of India Ltd. (CCIL).
CDD Procedure and sharing KYC information with CKYCR:
 To ensure completeness of transaction data in TR for all
a) In order to ensure that all KYC records are incrementally foreign exchange instruments, RBI has decided to expand the
uploaded on to CKYCR, REs shall upload/update the KYC data reporting requirement to include foreign exchange spot (including
pertaining to accounts of individual customers and LEs opened Value cash and Value TOM) deals in a phased manner. Accordingly,
prior to the above-mentioned dates. Also, whenever the RE transactions in the following foreign exchange contracts, involving
obtains additional or updated information from any customer the INR or otherwise, shall now be reported to the TR:
RE shall within seven days or within such period as may be a) Foreign exchange Cash;
notified by the Central Government, furnish the updated b) Foreign exchange Tom; and
information to CKYCR, which shall update the KYC records of the c) Foreign exchange Spot.
existing customer in CKYCR. CKYCR shall thereafter inform  Authorised Dealers shall report all inter-bank FX contracts
electronically all the reporting entities who have dealt with the undertaken by them to the TR of CCIL with effect from
concerned customer regarding updation of KYC record of the said February 10, 2025 as per the following timelines:
customer. a) Inter-bank FX contracts involving INR shall be reported in
b) For the purpose of establishing an account-based relationship, hourly batches within 30 minutes from completion of the hour.
updation / periodic updation or for verification of identity of a Such contracts executed 60 minutes prior to closure of CCIL's
customer, the RE shall seek the KYC Identifier from the customer reporting platform for the day and subsequent to closure of CCIL's
or retrieve the KYC Identifier, if available, from the CKYCR and reporting platform for the day shall be reported by 10 a.m. of the
proceed to obtain KYC records online by using such KYC Identifier following business day.
and shall not require a customer to submit the same KYC records b) Inter-bank FX contracts not involving INR executed up to 5 p.m.
or information or any other additional identification documents or on any given day should be reported by 5:30 p.m. of that day.
details, unless – Such contracts executed after 5 p.m. should be reported by 10
i) there is a change in the information of the customer as existing a.m. of the following business day.
in the records of CKYCR; or Authorised Dealer shall report all FX contracts executed with
ii) the KYC record or information retrieved is incomplete or is not clients to the TR of CCIL in a phased manner. The following
as per the current applicable KYC norms; or FX contracts executed with clients shall be mandatorily
iii) the validity period of downloaded documents has lapsed; or reported as per the following timelines:
iv) the RE considers it necessary in order to verify the identity or a) FX contracts with the value equal to or exceeding the threshold
address (including current address) of the customer, or to perform limit of USD 1 million and equivalent thereof in other currencies
enhanced due diligence or to build an appropriate risk profile of with effect from May 12, 2025.
the customer.
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b) FX contracts with the value equal to or exceeding the threshold to ensure compliance with conditions pertaining to sectors
limit of USD 50,000 and equivalent thereof in other currencies with prohibited for FDI, sectoral caps and government approvals,
effect from November 10, 2025. wherever applicable, under the Rules.
c) FX contracts executed with clients should be reported before 12 c) The FPI shall clearly articulate its intent to reclassify existing
noon of the following business day. foreign portfolio investment held in a company into FDI and shall
 There shall be no requirement of matching transactions with provide the copy of the necessary approvals and concurrence to
overseas counterparties and client transactions in the TR as the its Custodian pursuant to which the Custodian shall freeze the
overseas counterparties and clients are not required to purchase transactions by such FPI in equity instruments of such
report/confirm the transaction details. ADs shall be responsible for Indian company, till completion of the reclassification.
ensuring the accuracy in respect of transactions reported. d) For reclassification, the entire investment held by such FPI
 ADs shall ensure that outstanding balances between their shall be reported within the timelines as specified under Foreign
books and the TR are reconciled and subjected to concurrent Exchange Management (Mode of Payment and Reporting of Non-
audit on an ongoing basis. Debt Instruments) Regulations, 2019, in the following manner:
 The reporting formats shall be as indicated by CCIL with the i) By the Indian company in Foreign Currency-Gross
prior approval of the RBI. Provisional Return (FC-GPR) where the investment beyond the
AWARD FOR OUTSTANDING WRITINGS IN THE FIELD prescribed limit is resulting from fresh issuance of equity
OF BANKING HINDI: instruments by an Indian company to such FPI.
ii) By the FPI in form Foreign Currency-Transfer of Shares (FC-
 With a view to encourage original writings and research in
TRS), where the investment beyond the prescribed limit is due to
Banking Hindi, RBI has launched an „Award scheme for
acquisition of equity instruments by such FPI in the secondary
outstanding writings in the field of banking Hindi‟.
market.
 Under this scheme, Professors (including Assistant and
iii) AD bank concerned shall report the amount of reclassified
Associates, etc.) of Indian Universities may be awarded three
foreign portfolio investment as divestment under the LEC (FII)
prizes of Rs.1,25,000.00 (Rupees one lac twenty five thousand
reporting.
only) each for writing books originally in Hindi on
e) Post completion of reporting as above, the FPI shall approach
Economics/Banking/Financial subjects.
its Custodian with a request for transferring the equity instruments
 All Professors willing to participate in the scheme have to
of the Indian company from its demat account maintained for
submit their entries in the prescribed proforma to Deputy General
holding foreign portfolio investments to its demat account
Manager In-charge RBI by Dec. 15, 2017 at 05.00PM.
maintained for holding FDI. After ensuring that the reporting for
RECLASSIFICATION OF FOREIGN PORTFOLIO
reclassification is complete in all aspects, the custodian shall
INVESTMENT TO FOREIGN DIRECT INVESTMENT: unfreeze the equity instruments and process the request. The date
 The RBI keeps a close watch on every foreign investment of investment causing breach in such cases shall be considered
entering the Indian economy to ensure it aligns with the regulatory as the date of reclassification. Thereafter, the entire investment of
framework. This monitoring ensures that investments are legal, the FPI in the Indian company shall be considered as FDI and
transparent, and supportive of India‟s economic policies. shall continue to be treated as FDI even if the investment falls
 Both Authorised Dealer (AD) Banks and Foreign Investors are to a level below ten percent subsequently. The FPI along with its
required to submit comprehensive documentation to the RBI investor group shall be treated as a single person for the purpose
regularly. These documents help track the nature, volume, and of reclassification of foreign portfolio investment.
purpose of the investments. Any investment made in violation of f) In terms of the provisions contained in Schedule II to the Rules,
RBI's regulations results in penalties imposed on the investor. the reclassification or divestment of the holdings, as the case may
Such violations may include exceeding sectoral caps, breaching be, shall be completed within the prescribed time.
ownership limits, or failing to provide requisite documentation. g) Post reclassification of foreign portfolio investment to FDI, the
 As per extant guidelines of Foreign Exchange Management said investment shall be governed by Schedule I to the Rules.
(Non-debt Instruments) Rules, 2019, investment made by the FPI RELAXED NORMS, SUNSET CLAUSE FOR HIGH-VALUE
shall be less than 10 percent of the total paid-up equity capital on
LISTED DEBT FIRMS:
a fully diluted basis. ( „prescribed limit‟).
 Securities and Exchange Board of India (SEBI) has proposed
 FPI investing in breach of the prescribed limit shall have the
an overhaul to the framework governing high-value listed debt
option of divesting their holdings or reclassifying such holdings as
entities (HVLDE) in bid to reduce the compliance burden.
FDI subject to the conditions specified by the RBI and SEBI within
 SEBI has proposed relaxation of threshold for identification of
five trading days from the date of settlement of the trades
HVLDEs, introduction of Sunset Clause and exemption to entities
causing the breach (hereinafter referred as “prescribed time”).
not covered under the Companies Act.
 In case the FPI intends to reclassify its foreign portfolio
 At present, entities having an outstanding value of non-
investment into FDI, the FPI shall follow the operational
convertible listed debt (NCD) securities of more than Rs.500 crore
framework as given below:
are categorised as HVLDEs.
1) The facility of reclassification shall not be permitted in any
 Such entities have to adhere to stricter corporate governance
sector prohibited for FDI.
codes relating to board composition, having specified number of
2) FPI concerned shall obtain following approvals before intending to
acquire equity instruments beyond the prescribed limit: board meetings, submission of compliance certificate,
a) Necessary approvals from the Govt., as applicable, including implementing risk management plan and stricter rules around
approvals required in case of investment from land bordering related-party transactions (RPTs).
countries and ensure that the acquisition beyond prescribed limit WASTAGE, INPUT-OUTPUT NORMS FOR JEWELLERY
is made in accordance with the provisions applicable for FDI, EXPORTS REVISED:
which means that investment should be in adherence to entry  The Government has norms related to the permissible amount
route, sectoral caps, investment limits, pricing guidelines, and of wastage with regard to the export of gold, silver and platinum
other attendant conditions for FDI under Schedule I to the Rules. jewellery. The wastage norms are the permissible amount of gold
b) Concurrence of the Indian investee company concerned for or silver that can be lost during the manufacturing process of
reclassification of the investment to FDI to enable such company jewellery for export.

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 The Directorate General of Foreign Trade (DGFT) has  These guidelines aim to facilitate ease of investment in
revised the wastage and input-output norms for jewellery overseas mutual funds, enhance transparency, and enable Indian
exports in India w.e.f. January 1, 2025 as detailed hereunder: mutual funds to diversify their overseas investments while
a) Handmade jewellery: The permissible wastage is 2.25% for maintaining prudent oversight and risk control.
gold and platinum, and 3% for silver. TAX OFFICIALS TO WAIVE OR REDUCE INTEREST DUE
b) Machine-made jewellery: The permissible wastage is 0.45% FROM TAXPAYERS:
for gold and platinum, and 0.5% for silver.  Under the Income Tax Act Section 220 (2A), if a taxpayer
c) Studded jewellery: The permissible wastage is 4% for fails to pay the tax amount specified in any demand notice, he/she
handmade pieces, and 2.8% for machine-made pieces. is liable to pay interest at 1% per month for the period of delay in
These norms also apply to other items made from these making the payment.
metals, such as idols, coins, and medallions.  The Act also empowers Principal Chief Commissioner
DAUGHTERS' NAMES TO STAY IN FAMILY RECORDS (PrCCIT) or Chief Commissioner (CCIT) or Principal
FOR PENSION AFTER RETIREMENT: Commissioner (PrCIT) or Commissioner rank officers to reduce or
The Department of Pension and Pensioners' Welfare (DoPPW) waive the interest amount due to be paid.
has clarified that a daughter‟s name cannot be deleted from the  Accordingly, PrCCIT rank officer can decide on reducing or
list of family members eligible for a government servant‟s family waiving interest due of more than Rs.1.5 crore. For interest due
pension. above Rs.50 lakh to Rs.1.5 crore, CCIT rank officer will decide on
 The memorandum specifies that a daughter is officially the waiver/reduction, while PrCIT or Income Tax Commissioners
recognised as a family member once her name is submitted by the can decide on interest due up to Rs.50 lakh.
government employee using the designated Form 4.  The power of reduction or waiver of the interest payable under
 A daughter (unless affected by a mental or physical disability) Section 220(2A) would be subject to satisfaction of three specified
qualifies for a family pension until she marries, remarries, or conditions:
becomes employed. a) payment of such amount has caused or would cause genuine
 Unmarried, widowed, or divorced daughters above 25 years of hardship to the assesses;
age may also receive a family pension, provided all other children b) default in interest payment was due to circumstances beyond
in the family are either over 25 or are financially independent. If a the control of the assesses
child has a disability, they have the primary entitlement to the c) the assesses has cooperated in inquiry relating to assessment
family pension. or proceeding of the recovery of any amount due from him.
MFs TO INVEST IN FOREIGN FUNDS WITH INDIAN CENTRE REVISES PLI SCHEME FOR DIRECTORS,
SECURITIES EXPOSURE: SENIOR EXECUTIVES OF PSBS:
The Securities and Exchange Board of India has issued specific The Ministry of Finance has launched a revised Performance-
guidelines permitting Indian mutual fund schemes to invest in Linked Incentive (PLI) scheme with an aim to reward and motivate
overseas mutual funds or unit trusts (MF/UTs) that have exposure employees for significant value creation for various stakeholders.
to Indian securities. The key provisions are as follows: The previous PLI scheme was restricted only to Whole-Time
a) Exposure Limit to Indian Securities: Indian mutual fund Directors (WTDs) - Managing Director (MD) & Chief Executive
schemes may invest in overseas MF/UTs, provided these Officers (CEOs) and Executive Directors.
overseas funds have a maximum of 25% exposure to Indian The revised scheme also applies to senior executives in the rank
securities relative to their net assets. of Chief Manager and above. This revision will reduce the existing
b) Investment Conditions: At the time of both initial and wide compensation disparity between senior executives of Public
subsequent investments, Indian mutual fund schemes must Sector Banks (PSBs) and private sector banks (PvSBs).
ensure that the overseas MF/UTs do not exceed the 25% HIGHLIGHTS:
exposure limit to Indian securities. If, after investment, the a) The PLI ceiling for MD & CEO and Executive Directors of
overseas MF/UT's exposure to Indian securities surpasses 25%, a nationalised banks and Chairman and Managing Directors and
six-month observation period is allowed for the overseas fund Deputy Managing Directors of State Bank of India has been fixed
to rebalance its portfolio. at 100% of their annual basic pay.
 During this period, the Indian mutual fund scheme is prohibited b) On the other hand, the PLI ceiling for senior executives in the
from making new investments in the overseas MF/UT. rank of Chief General Manager (CGM) and General Manager
 Investments can resume only if the exposure falls back below (GM); and Deputy General Manager (DGM) and Assistant General
the 25% threshold within the observation period. Manager (AGM) has been fixed at 90% and 80%, respectively, of
 If the overseas MF/UT fails to rebalance within the observation their annual basic pay
period, the Indian MF scheme must divest its holdings in the non- c) For Chief Manger, this ceiling has been set at 70%.
compliant overseas MF/UT within an additional six months. All permanent employees, including lateral hires and officers on
c)Structural Requirements for Overseas MF/UTs: Investments deputation, in the rank of Chief Manager and above will now be
must be pooled into a single investment vehicle without any side able to avail PLI and it will be paid in cash in a single tranche.
vehicles or segregated portfolios, ensuring a "blind pool" structure. Eligibility:
 All investors in the overseas MF/UT must have pari-passu a) In order to be eligible to operate the PLI Scheme, every bank
and pro-rata rights, meaning they receive returns proportional to has to meet at least three out of four criteria, including positive
their contributions. return on assets (ROA) and net non-performing asset (NPA) at not
 The overseas MF/UT should be managed by an independent more than 1.5%, or in case if Net NPA is more than 1.5%, then
fund manager to prevent conflicts of interest. reduction of 25 basis points or more in opening net NPA of the
 The overseas MF/UT is required to publicly disclose its financial year.
portfolio at least quarterly to maintain transparency. b) The other criteria include: cost to income ratio (CIR) should not
 Advisory agreements between Indian mutual funds and the be more than 50% or in case if it is more then there should be at
overseas MF/UTs they invest in are prohibited to avoid conflicts of least a year-on- year improvement in CIR; and capital to risk-
interest. weighted assets (CRAR) ratio as per the minimum regulatory
requirement plus 200 basis points or more.

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c) Four equally-weighted parameters have been formulated to Mozambique, Namibia, Nigeria, Philippines, Senegal, South
evaluate Banks' performance efficiency, business, asset quality Africa, South Sudan, Syria, Tanzania, Vietnam, Venezuela and
and Financial Inclusion (including Enhanced Access and Service Yemen.
Excellence reforms). As per the October 25, 2024 FATF public statement, Algeria,
d) As per the scheme, approval of PLI payment will be done by the Angola, Côte d‟Ivoire and Lebanon have been added to the list of
government for WTDs; and the board of the bank for senior Jurisdictions under Increased Monitoring while Senegal has been
executives. removed from this list based on review by the FATF.
Committee for implementing PLI: FATF HIGH RISK AND OTHER MONITORED
The committee has been set up to evaluate the governance JURISDICTIONS:
mechanism in public sector banks (PSBs) for the Performance
The Financial Action Task Force (FATF), an intergovernmental
Linked Incentive (PLI) scheme. It will also identify eligible banks
body that establishes international standards for anti-money
and officers who are ineligible for the PLI scheme.
laundering, countering the financing of terrorism, and countering
The committee, led by M. Nagaraju, Secretary of the Department
the financing of proliferation of weapons of mass destruction
of Financial Services (DFS), Ministry of Finance, includes the (AML/CFT/CPF), has come out with a public document „High-Risk
Additional Secretary (DFS), Joint Secretary (Banking), and Chief Jurisdictions subject to a Call for Action‟ – October 2024.
Executive of the Indian Banks' Association (IBA) as members.
FATF, earlier identified the following jurisdictions as having
POLICY CONFERENCE OF CENTRAL BANKS FROM THE strategic deficiencies in their regimes to counter money
GLOBAL SOUTH: BUILDING SYNERGIES laundering, terrorist financing and proliferation financing and had
 The Reserve Bank organised a high-level conference of placed the jurisdictions under Increased Monitoring, which had
Central Banks from Global South during November 21-22, 2024 in developed action plan with the FATF to deal with them. These
Mumbai. The theme of the conference was “Building Synergies” jurisdictions were: Bulgaria, Burkina Faso, Cameroon, Croatia,
across the central banking fraternity of the Global South. This is Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco,
the third international conference as part of several conferences Mozambique, Namibia, Nigeria, Philippines, Senegal, South
and seminars being organised by the RBI during the year. Africa, South Sudan, Syria, Tanzania, Vietnam, Venezuela and
 The Conference was attended by delegates from 18 countries, Yemen.
including Central Bank Governors, Deputy Governors and other As per the October 25, 2024 FATF public statement, Algeria,
central bank officials from the Global South. Angola, Côte d‟Ivoire and Lebanon have been added to the list of
 The conference aimed to share experiences and perspectives Jurisdictions under Increased Monitoring while Senegal has been
on current global challenges to build mutually beneficial removed from this list based on review by the FATF.
partnerships, promoting a prosperous, stable, and sustainable DOMESTIC SYSTEMICALLY IMPORTANT BANKS (D-
future for the Global South.
SIBs):
 In his keynote speech, the RBI Governor emphasized the
The Reserve Bank had issued the Framework for dealing with
significant challenges facing countries in the Global South. These
challenges include: Domestic Systemically Important Banks (D-SIBs) on July 22,
a) Global Spillovers: Adverse effects of external global events on 2014, which was subsequently updated on Dec. 28, 2023.
domestic economies. The D-SIB framework requires the Reserve Bank to disclose the
b) External Sector Imbalances: Disruptions in trade, current names of banks designated as D-SIBs starting from 2015 and
account, and capital flows. place these banks in appropriate buckets depending upon their
c) Limited Fiscal Space: Constraints on government spending Systemic Importance Scores (SISs).
due to high debt levels. Based on the bucket in which a D-SIB is placed, an additional
d) Elevated Debt Levels: Rising public and external debt. common equity requirement has to be applied to it. In case a
e) Financial Market Volatility: Ongoing uncertainty in global foreign bank having branch presence in India is a Global
financial markets. Systemically Important Bank (G-SIB), it has to maintain additional
Governor‟s Recommendations: The Governor urged central CET1 capital surcharge in India as applicable to it as a G-SIB,
banks to adopt robust and flexible policy frameworks integrating proportionate to its Risk Weighted Assets (RWAs) in India, i.e.,
monetary policies (inflation control and liquidity management), additional CET1 buffer prescribed by the home regulator (amount)
prudential policies (financial stability and risk management), fiscal multiplied by India RWA as per consolidated global Group books
policies (public spending and debt sustainability), and structural divided by total consolidated global Group RWA.
policies (long-term economic resilience). A synergistic use of The Reserve Bank had announced SBI and ICICI Bank as D-SIBs
these policies can promote sustained economic growth, price in 2015 and 2016 while HDFC Bank was classified as D-SIB in
stability, and financial stability, leading to better societal outcomes. 2017 along with SBI and ICICI Bank. The current update is based
on the data collected from banks as on March 31, 2024.
FATF HIGH RISK AND OTHER MONITORED
Additional Common Equity Tier 1
JURISDICTIONS:
Bucket Banks requirement as a percentage of
The Financial Action Task Force (FATF), an intergovernmental
Risk Weighted Assets (RWAs)
body that establishes international standards for anti-money
laundering, countering the financing of terrorism, and countering 5 - 1%
the financing of proliferation of weapons of mass destruction 4 State Bank of India* 0.80%
(AML/CFT/CPF), has come out with a public document „High-Risk
Jurisdictions subject to a Call for Action‟ – October 2024. 3 - 0.60%
FATF, earlier identified the following jurisdictions as having 2 HDFC Bank* 0.40%
strategic deficiencies in their regimes to counter money
laundering, terrorist financing and proliferation financing and had 1 ICICI Bank 0.20%
placed the jurisdictions under Increased Monitoring, which had * The higher D-SIB surcharge for SBI and HDFC Bank will be
developed action plan with the FATF to deal with them. These applicable from April 01, 2025. Hence, up to March 31, 2025, the
jurisdictions were: Bulgaria, Burkina Faso, Cameroon, Croatia, D-SIB surcharge applicable to SBI and HDFC Bank will be 0.60%
Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, and 0.20% respectively.

DECEMBER 2024 CTDI, GURUKUL FOR BANKERS

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 BANKER'S BRIEFCASE: Book designed
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11
 TIT BITSK
INDIA-RUSSIA TRADE IN LOCAL CURRENCY NOW:
Approx. 90% of trade between India and Russia is now being
GLOBAL SUSTAINABILITY RANKINGS FOR 5TH conducted using local or alternate currencies while the
YEAR: According to the 2024 S&P Global Corporate remaining still happens in other freely convertible ones, Russian
Sustainability Assessment (CSA) rankings, Hindalco Industries Deputy Prime Minister stated at the 25th Session of the India-
Ltd. has secured the top position as the world‟s most Russia Intergovernmental Commission on Trade, Economic,
sustainable aluminium company for the fifth consecutive year. Scientific, Technical and cultural cooperation.
The company earned a total score of 87 points, improving by 9 NFRA FOR REVISING AUDIT STANDARDS: The
points from 2023, and surpassed its closest competitor by 22 National Financial Reporting Authority (NFRA) has
points. recommended the revision of Standards on Auditing 600 to hold
EASE 7.0 REFORMS INDEX: Union Bank of India has the group auditor ultimately responsible for the audit. The
been declared as 2nd Best Bank in EASE 7.0 Reforms Index for authority has also approved the other 33 Auditing Standards in
Q1, FY 2024-25. The performance of PSBs is measured on five line with corresponding Global Standards.
themes under EASE 7.0, in which, Union Bank of India emerged NATIONAL MISSION ON NATURAL FARMING: The
on top under the theme „Banking towards Viksit Bharat‟ and 1st government has launched a national mission to promote natural
runner up in three themes i.e., “Excellence in customer service”, farming among one crore farmers across the country with a
“Effective risk/fraud management, collections, and recovery”, budget outlay of Rs. 2,481 crore till the 15th Finance
“Developing employees for emerging banking priorities”. Commission (2025-26).
RBI AND MALDIVES MONETARY AUTHORITY– LENDERS KEEP AN EAGLE 'AI' ON MULE A/Cs:
MOU: RBI and the Maldives Monetary Authority (MMA) signed Artificial intelligence is being used by banks to fight the growing
a Memorandum of Understanding for establishing a framework menace of mule accounts. Financial technology companies
to promote the use of local currencies viz., the Indian Rupee such as Bureau, Clari5 and Data Sutram are helping banks to
(INR) and the Maldivian Rufiyaa (MVR) for cross-border deploy AI-based fraud detection systems that can detect issues
transactions. The MoU encourages the use of INR and MVR in like mule accounts – bank accounts criminals use to launder
current account transactions, permissible capital account money, often without the original account holder‟s knowledge .
transactions and any other economic and financial transactions OVER 75 LAKH INCOME TAX RETURNS FILED:
as agreed upon by both countries. Over 75 lakh updated income tax returns have been filed by
FED CUTS RATES FOR SECOND-STRAIGHT July 31, 2024 helping tax authorities mobilise as much as Rs.
MEETING TO SUPPORT ECONOMY: US Federal Reserve 8,000 crore in additional revenue. According to official sources,
has cut its benchmark lending rate by a quarter percentage taxpayers have used the facility of updated returns to both
point, extending efforts to keep the US economic expansion on update returns based on additional information and pay taxes,
solid footing. Officials voted to lower the federal funds rate to a as well as to file returns in cases where no returns had been
range of 4.5% to 4.75%. filed previously.
GOVT. LAUNCHES E-DAAKHIL: E-Daakhil is an CONTINUATION OF ATAL INNOVATION MISSION
innovative online platform designed to streamline the consumer TILL MARCH 2028: The Union Cabinet has approved the
grievance redressal process, providing an efficient and continuation of Niti Aayog's flagship initiative Atal Innovation
convenient way for consumers to approach the relevant Mission (AIM), with an enhanced scope of work and allocated
consumer forum, dispensing the need to travel and be budget of Rs. 2,750 crore, till March 31, 2028. According to an
physically present to file their grievances. The Department of official statement, AIM 2.0 is a step towards Viksit Bharat that
Consumer Affairs has stated about the successful nationwide aims to expand and strengthen India's vibrant innovation and
implementation of the E-Daakhil portal, now operational in every entrepreneurship ecosystem.
state and union territory of India. This milestone is marked by PSBs GET GREEN FLAG TO RAISE RS 25,200 CR:
the recent launch of the E-Daakhil portal in Ladakh on 22nd Public sector banks (PSBs) have secured approval from the
November 2024, making E-Daakhil a truly pan-India initiative. finance ministry to raise Rs. 25,200 crore in the current financial
SHe-Box PORTAL LAUNCHED BY GOVT.: According year (2024-25) from the equity market. The move will help PSBs
to the provisions of the Sexual Harassment of Women at fund their growth and meet the regulatory requirement of 25 per
Workplace (Prevention, Prohibition and Redressal) Act, 2013, cent minimum public shareholding (MPS). So far, the PSBs
the concerned department has been mandated to maintain the have raised Rs. 8,500 crore through Qualified Institutional
data of number of complaints received and disposed of. The Placement (QIP) in FY25, according to data from Prime
Ministry of Women and Child Development (MWCD) has Database.
launched „SHe-Box‟ app. The complaint registration feature in OUTWARD FDI RISES TO $3.7 BILLION: India‟s
the She-Box is live since October 19, 2024, after a majority of outward foreign direct investment (FDI) commitments rose to
Central Ministries and Departments on boarded the portal. $3.24 billion in October 2024, up from $2.55 billion in October
DIGITAL TRANSACTIONS REACH RECORD HIGH: 2023. However, this declined from $3.77 billion in September
India witnessed a record high in digital transactions with Rs.23.5 2024, according to data from the Reserve Bank of India.
trillion in value, in October 2024, propelled by the Unified Outbound FDI, expressed as a financial commitment, comprises
Payments Interface (UPI), Immediate Payment Service (IMPS), three components: equity, loans, and guarantees.
FASTag, and the Aadhaar Enabled Payment System (AePS). GOVT. LAUNCHES PAIR PROGRAMME: The Govt. has
SECOND LARGEST SMARTPHONE MARKET: launched the Partnerships for Accelerated Innovation and
According to Counterpoint Research, India‟s smart phone Research (PAIR) programme, to elevate research capabilities in
market has become the second largest globally by unit volume higher education institutions (HEIs) across India. This follows
and third by value in Q3 2024. India accounted for 15.5% of the operationalisation of the programme discussed at the
global smartphone shipments, trailing China‟s 22% but inaugural governing board meeting of the Anusandhan National
surpassing the US, which held a 12% share. Research Foundation (ANRF).

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 TIT BITSK
FEDEX TIES UP WITH INVEST INDIA FOR SMEs: PSBs EXPLORE NEW ROUTE TO HOME LOAN:
Express transportation firm FedEx has collaborated with Invest Some large state-owned banks have had preliminary
India to boost the growth of domestic small businesses by discussions to explore the possibility of offering home loans to
providing them with access to global markets, capacity building, persons without customary income proof, employer certificate or
and branding opportunities to support the central government's tax returns. Different from the regular disbursement under
'One District-One Product' (ODOP) initiative. FedEx will „affordable housing‟ programmes, this proposal would aim at
leverage its global network and logistics expertise to empower assessing borrowers‟ earnings in alternative ways - like
SMEs to access international markets and streamline shipping considering transaction levels of a street vendor from his QR
processes. code credits.
ONE NATION ONE SUBSCRIPTION' SCHEME: The WOMEN BUSINESS CORRESPONDENTS (BCs)
Union Cabinet has approved 'One Nation One Subscription', a BETTER IN CUSTOMER ENGAGEMENT: Women BCs
new scheme for providing country-wide access to scholarly proved better in engaging female customers, with their
research articles and journal publication. A total of about Rs. transaction values 66% higher than those handled by male
6,000 crore has been allocated for three calendar years, 2025, agents, according to a report. Women BCs also earn 24.4%
2026 and 2027 as a new Central Sector Scheme. more than their male counterparts while engaging with female
CD ROUTE TO MEET FUNDING NEEDS: Banks in India customers. The report by PayNearby and Grameen Foundation
are increasingly using certificates of deposit (CDs) to meet their for Social Impact has stated that 60% of female BCs struggle to
near-term funding requirements like managing the gap between balance their professional and personal responsibilities.
credit off take and deposit growth. Fund mobilisation through DIGI PLATFORM TO EMPOWER ARTISANS: Govt.
issuances of CDs so far this fiscal jumped 69% year on year to has launched a digital platform dedicated to enhancing market
Rs.5.58 lakh crore, as per data from the RBI. access for artisans from the marginalised communities,
UPI 123 PAY AND UPI LITE: The RBI has increased the including SCs, STs, OBCs, safai karmacharis, Persons with
transaction limit for UPI 123Pay from Rs. 5,000 to Rs 10,000. Disabilities and minority communities. Launched under the
National Payments Corporation of India has instructed banks guidance of the National Backward Classes Finance and
and service providers to ensure compliance with the updated Development Corporation and the Ministry of Social Justice and
limits and set January 1, 2025, as the final deadline for them to Empowerment, the platform called Tulip aims to connect India's
implement the necessary changes. RBI also increased limits for skilled artisans with both domestic and global markets.
UPI Lite wallet balance limit from Rs 2,000 to Rs 5,000 and the GOVT. PLANS STAKE SALE IN 4 PSU BANKS: The
per transaction limit from Rs 500 to Rs 1,000. Central government is going to sell minority stakes in four banks
SEBI ABOLISHES 1% MANDATORY SECURITY to comply with public shareholding norms mandated by the
DEPOSIT REQUIREMENTS: SEBI has abolished the country's markets regulator. The finance ministry is likely to
requirement of a mandatory security deposit with the exchanges seek approval of the cabinet in the coming months to sell the
before a public issue in a bid to facilitate ease of doing business stake in Central Bank of India, Indian Overseas Bank, UCO
for issuer companies. Earlier, any company looking to launch a Bank, and Punjab and Sind Bank.
public issue of equity shares has to deposit with the stock EASE 7.0: Union Bank of India has been declared as 2nd Best
exchanges an amount equal to 1% of the issue size. Bank in EASE 7.0 Reforms Index for Q1, FY 2024-25. The
NARI SHAKTI BRANCHES OF UBI TO EMPOWER performance of PSBs is measured on five themes under EASE
WOMEN: FM Sitharaman has inaugurated specialized “Nari 7.0, in which, Union Bank of India emerged on top under the
theme „Banking towards Viksit Bharat‟ and 1st runner up in
Shakti” branches of Union Bank of India in Bengaluru, Chennai,
three themes i.e., “Excellence in customer service”, “Effective
Visakhapatnam and Jaipur. This aims to boost financial
risk/fraud management, collections, and recovery”, “Developing
inclusion and support for women entrepreneurs, especially in
employees for emerging banking priorities”.
the manufacturing and service sectors.
IRDAI URGES BANKERS TO FOCUS ON CORE JOB,
1.4 MILLION AYUSHMAN CARDS ISSUED TO
NOT SELL INSURANCE ALONE: In line with the FM‟s
CITIZENS AGED 70+: A significant progress has been seen
suggestions, Insurance Regulatory and Development Authority
in ensuring the health and welfare of senior citizens through the
(IRDA) Chairman has urged bankers to focus on their core job
Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-
and not on insurance alone. Panda has further said that the
PMJAY). As of November 25, 2024, approximately 14 lakh
banc assurance channel is very useful in deepening the reach
Ayushmann Vay Vandana cards have been issued to senior
of insurance in the country.
citizens aged 70 and above under the scheme.
YES BANK PARTNERS WITH VEGAPAY TO
RS.500 CRORE SCHEME LAUNCHED BY THE
PROVIDE CREDIT LINE ON UPI: Yes Bank has partnered
GOVT.: Union Minister of Chemicals and Fertilisers has
with Vegapay, a technology innovator in the banking software
launched a Rs. 500 crore scheme to strengthen India‟s medical
industry, to launch a hyper-configurable platform called „Credit
devices industry. The overall scheme consists of five
Line on UPI‟.
components, including common facilities for medical device
clusters, capacity building and skill development, a marginal FORMER BANK OF CHINA CHAIRMAN SENTENCED
investment scheme for reducing import dependence, clinical TO DEATH FOR CORRUPTION: Liu Liange, the former
studies support, and a medical device promotion scheme. chairman of the Bank of China, has been sentenced to death
SISA - BEST CYBERSECURITY COMPANY AWARD: with a two-year reprieve for corruption and illegal loan
SISA, a forensics-driven cybersecurity company, was awarded practices. A court in Jinan, in eastern Shandong Province,
with the “Best Cybersecurity Company” title at the Financial found that Liu accepted bribes totaling over 121 million yuan.
Express FUTech Award ceremony. SISA‟s problem-first, human- The Bank of China is a state-owned Chinese multinational
centric approach helps businesses strengthen their cybersecurity banking and financial services corporation headquartered in
posture. Beijing, China. It is one of the “big four” banks in China.
 
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 BANKING & FINANCIAL NEWS
d) Construction: Maintained robust growth at 7.7%, though
down from 13.6% in the corresponding period of the previous
FINANCE MINISTRY SUGGESTS PSU BANKS TO year. Full-year growth in construction sector ohas been a high
UPDATE TRANSFER POLICY: single digit. The major reason is a slowdown in manufacturing
The Finance Ministry has advised Public Sector Banks (PSBs) and the impact of dumping in India,
a series of measures to incorporate in their respective e) Services: The tertiary sector, encompassing trade, hotels,
'Transfer Policy' and seek approval of their boards for transport, and communication, expanded by 7.1%, up from
implementation starting FY26. 6.0% in the same period last year.
 The Department of financial services in a letter to all PSBs f) Private Consumption: Private Final Consumption
said that the transfer policy has been reviewed with an aim to Expenditure (PFCE) grew by 6.0% in Q2, an improvement
promote greater transparency and ensure formulation of a from 2.6% in the same period last year, indicating a moderate
uniform and non-discretionary policy, improve workforce rise in consumer spending.
management, and ensure employee satisfaction. g) Government Spending: Government Final Consumption
 A balanced approach in transfer policies can reduce Expenditure (GFCE) rebounded with a growth of 4.4% after
grievances and improve work-life balance. Further deploying experiencing low or negative growth in the previous three
skilled staff to suitable branches will ensures better service quarters, suggesting increased public sector expenditure.
delivery.  Inflation and Monetary Policy: Despite the slowdown, the
KEY HIGHLIGHTS: Reserve Bank of India (RBI) maintained the repo rate at 6.5%
Tenure Limits: Restricting how long employees can stay in a during its December meeting, emphasizing its focus on
single branch to minimize the risk of favoritism or malpractice. controlling inflation, which stood at 6.2% in October, exceeding
Transparency: Introducing automated systems for transfer the central bank's target range.
decisions to reduce human intervention and ensure fairness.  Outlook: In light of the Q2 performance, the RBI revised its
Skill-Based Transfers: Matching employee skills with branch GDP growth forecast for FY25 downward from 7.2% to 6.6%,
requirements, particularly in specialized areas like foreign acknowledging the recent slowdown while expressing
exchange, treasury, or credit management. optimism about a recovery in the latter half of the fiscal year.
Regional Stability: Ensuring employees are not frequently The government has indicated plans to enhance infrastructure
moved far from their home regions to maintain morale and spending and implement supply-side measures to stimulate
reduce attrition. growth and manage inflationary pressures.
Special Provisions for Women and Special Categories:  Earnest & Young (EY) India’s Chief Policy Advisor, DK
Considering provisions for women, differently-abled staff, and Srivastava, highlighted the contraction in the government’s
those with exceptional circumstances. capital expenditure, which fell by 15.4% during April-
INDIA Q2 GDP DATA HIGHLIGHTS: September, as a key factor behind the growth slowdown. He
As per the National Statistical Office (NSO) data, India's Gross stressed that accelerated government investment expenditure
Domestic Product (GDP) growth decelerated to 5.4% in the should be given the highest priority, while monetary policy
second quarter (July-September) of the fiscal year 2024-25, action may be delayed beyond December 2024. He also
marking the slowest expansion in seven quarters. This pointed out that India may follow the US Fed’s lead in cutting
downturn is a significant decline from the 8.1% growth policy rates as it continues to ease its stance.
observed in the same period the previous year and a drop from INDIA AMONG 5 NATIONS WITH LARGEST NUMBER
6.7% in the first quarter of FY25. OF PEOPLE LIVING IN POVERTY: UN
 India remained the fastest-growing major economy as  The latest update of the global Multidimensional Poverty
China's GDP growth in the July-Sept. quarter this year was Index (MPI) was released by the United Nations Development
4.6%. The previous low level of GDP growth at 4.3% was Programme (UNDP) and the Oxford Poverty and Human
recorded in the 3rd quarter (Oct.-Dec. 22) of FY 2022-23. Development Initiative (OPHI) based at the University of
 As per the National Statistical Office (NSO) data, the Oxford.
Gross Value Added (GVA) of the agriculture sector accelerated  The report highlights that 1.1 billion people live in acute
to 3.5% in the July-September quarter of 2023-24 from 1.7% a poverty worldwide, with 40% living in countries experiencing
year ago. The GVA growth of the manufacturing sector war, fragility and/or low peacefulness, according to at least one
decelerated to 2.2% in the second quarter of the current fiscal of the three widely used datasets of conflict settings.
against 14.3% growth registered a year ago.  India has 234 million people living in poverty, which is
 The growth in the country's Gross Domestic Product (GDP) medium Human Development Index, placing the country
during the April-September period in 2024-25 stood at 6% among five globally with the largest number of people living in
compared to 8.2% in the first half of the previous financial year. poverty. The other four countries are Pakistan (93 million),
The GDP growth in the first quarter of the current fiscal Ethiopia (86 million), Nigeria (74 million) and the Democratic
remained unchanged at 6.7%. Republic of the Congo (66 million), all low HDI. Together,
SECTORAL PERFORMANCE: these five countries account for nearly half (48.1 per cent) of
a) Manufacturing: Growth slowed to 2.2%, indicating the 1.1 billion poor people.
challenges in industrial production.  The report added that a staggering 455 million of the
b) Mining and Quarrying: Experienced a slight contraction of world's poor live in countries exposed to violent conflict,
0.1%, reflecting difficulties in the sector hindering and even reversing hard-won progress to reduce
c) Agriculture: Showed resilience with a growth rate of 3.5%, poverty. Further, the report notes that over half of the 1.1
rebounding from 1.7% in the same quarter last year. billion poor people are children under the age of 18 (584
Agriculture expanded at a strong pace, as reflected in the million). Globally, 27.9% of children live in poverty, compared
advanced estimates for Kharif output. with 13.5% of adults.

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 Large proportions of the 1.1 billion poor people lack Implications of an 8-10% Depreciation:
adequate sanitation (828 million), housing (886 million) or a) Export Competitiveness: A weaker Rupee may benefit
cooking fuel (998 million). Well over half of the 1.1 billion poor exporters, making Indian goods cheaper in global markets.
people live with a person who is undernourished in their However, global demand uncertainties may limit gains.
household (637 million). b) Impact on Imports and Inflation: Higher costs of imported
 In South Asia, 272 million poor people live in households goods (oil, electronics, machinery) could lead to a rise in
with at least one undernourished person, and in Sub- Saharan inflation. Further, it will increase the burden on businesses
Africa 256 million do. relying on imported raw materials. The research report states
 About 83.7% of poor people live in rural areas. Across all that Rupee depreciation would be having a slight impact on
world regions people in rural areas are poorer than people in inflation. As per their estimate, a 5 per cent decline in rupee
urban areas. Overall, 28.0% of the global rural populations are will increase inflation by 25-30 bps. So, the impact will be
poor, compared with 6.6% of the urban population. very less on inflation.
 While national rates vary, overall, in countries affected by c) Foreign Debt and Reserves: External debt repayments,
war, the incidence of poverty is 34.8 per cent, much higher denominated in dollars, would become costlier, impacting
than the 10.9 per cent in countries not affected by war or minor corporate balance sheets. The RBI may need to intervene in
conflicts. Multidimensional poverty is also more than twice as forex markets, depleting foreign exchange reserves.
high in fragile and conflict-affected and low-peacefulness d) Investment Sentiment: Continued Rupee depreciation
countries, it said. could deter foreign direct investment (FDI) and portfolio
DIGITAL PAYMENT'S RISE LEADS TO SHUTTING OF investments.
ATMs: e) Fiscal Deficit: Domestic fiscal challenges could exacerbate
Despite the cash in circulation being at an all-time high, banks the Rupee’s decline.
are shutting down more automatic teller machines and cash GOVT. FREEZED 4.5 LAKH MULE ACCOUNTS IN
recycler machines than they are opening, amid the increasing BANKS:
focus on digital transactions and consumer preference towards The Centre has frozen around 4.5 lakh “mule” bank accounts
UPI for carrying out routine payments in the past year, typically used for laundering money from
 At the end of September 2024, India had 215,000 ATMs cybercrimes. While these accounts are spread across several
versus 219,000 a year earlier, as per data from the RBI. The banks, the majority have been identified in the State Bank of
bulk of this fall has been in ATMs that are not located on the India, Punjab National Bank, Canara Bank, Kotak Mahindra
premises of bank branches - their number fell to 87,638 as of Bank, and Airtel Payments Bank.
September 2024 from a peak of 97,072 in September 2022.  Mule accounts are bank accounts used by criminals to
 The fall in ATM numbers comes at a time when cash in funnel or launder illegally obtained money. These accounts are
circulation in India is Rs.34.70 lakh crore, a 100% increase often opened by individuals who may be unaware of their
since the demonetisation. Cash transactions accounted for involvement in illegal activities. In many instances, the account
89% of all deals in FY22. Cash in circulation accounted for holders are tricked, coerced, or manipulated by criminals into
12% of India's gross domestic product in FY22. But ATM opening these accounts, or the accounts are created using
penetration in India remains low with only 15 such machines fraudulent or stolen Know Your Customer (KYC) documents.
available for 100,000 people, as per a 2022 RBI report. Referred to as “mules,” these account holders act as
 RBI rules putting caps on free ATM transactions, ATM intermediaries to move illicit funds, often without fully
interoperability and slow growth in interchange fee have made understanding the criminal activity they are facilitating.
this a non-lucrative business. Data from the Citizen Financial Cyber Frauds Reporting
RUPEE MAY DEPRECIATE 8-10% DURING 2ND and Management System highlights the following:
TRUMP PRESIDENCY, SAYS SBI REPORT  SBI: 40,000 mule accounts.
 The State Bank of India, in its latest report, has revealed  Punjab National Bank: 10,000 mule accounts.
that the Indian Rupee (INR) may depreciate by 8-10% during  Canara Bank: 7,000 mule accounts
a potential second presidency of Donald Trump reflects a  Kotak Mahindra Bank: 6,000 mule accounts
complex interplay of global and domestic economic factors.  Airtel Payments Bank: 5,000 mule accounts
Key Factors Influencing the Rupee's Potential Fraudsters withdraw money from these accounts using
Depreciation: cheques, digital transfers, and ATMs. Since Jan. 2023, around
a) Stronger Dollar Policy: A Trump administration might 1 lakh cybercrime complaints have been registered with the
continue with policies that strengthen the U.S. dollar, making National Cybercrime Reporting Portal, with an estimated
emerging market currencies like INR weaker. The U.S. Federal Rs.17,000 crore in fraudulent transactions over the past year.
Reserve might adopt an aggressive monetary stance under CHANGE IN RELEASE TIME FOR CPI AND INDEX OF
Trump, leading to higher interest rates and attracting global INDUSTRIAL PRODUCTION (IIP):
capital away from India. The Consumer Price Index (CPI) & Index of Industrial Producti
b)Trade Protectionism: Renewed focus on "America First" on plays a critical role in economic policy and financial markets
policies could impact global trade dynamics, adversely reflecting inflationary trends across rural, urban, and combined
affecting India’s exports and foreign exchange inflows. sectors and industrial growth in the country.
c)Volatility in Capital Flows: A Trump presidency could  The government has decided to change the release time
heighten uncertainties in global markets, prompting foreign for the Consumer Price Index (CPI) and the Index of
investors to shift to safer assets like the U.S. dollar. Industrial Production (IIP) data - a move toward enhanced
d) Oil Prices: Potentially higher oil prices due to geopolitical transparency and alignment with global best practices.
tensions could widen India's trade deficit, pressuring the  Previous Release Time: The CPI and IIP data were
Rupee. typically released in the late evening (around 5:30 PM IST).
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 New Release Time: The data sets will now be released Rs.500 COUNTERFEIT NOTES SURGE 292% IN 5
during market hours, possibly between 10:00 AM and 2:00 PM YEARS:
IST.  The trend of rise in counterfeit currency notes in the system
Reasons for the Change: continued with fresh data shared in Lok Sabha revealing a
 Market Relevance: Timely data availability during trading near 292 per cent increase in Rs 500 counterfeit note
hours allows for better incorporation of economic indicators circulation over six years.
into market pricing. Aligns with practices in advanced  Minister of State for Finance in an answer to Lok Sabha
economies where critical data is released during market said as per the RBI, counterfeit notes of Rs 500 (Mahatma
activity. Gandhi New Series) denomination detected in the system has
 Transparency and Accessibility: Enables immediate risen from 21865 million pieces in 2018-2019 to 85711 million
analysis by market participants, analysts, and media, pieces in 2023-24. This marks a rise of about 300 per cent,
improving information dissemination. 292 percent to be precise in a period of five years.
 Policy Implications: Allows policy makers and financial  Likewise, while RBI detected 21,847 million pieces of
institutions to respond more swiftly to economic signals. counterfeit Rs 2,000 notes in 2018-19, it found 26,035 million
Facilitates quicker responses from institutions like the RBI pieces in 2023-24.
when calibrating monetary policy. INDIA BECOMES BIGGEST FUEL SUPPLIER TO EU
DoPPW CONDUCTS NATIONWIDE DIGITAL LIFE
COUNTRIES:
CERTIFICATE CAMPAIGN 3.0:  India’s exports of fuels like diesel to the European Union (EU)
 The Department of Pension & Pensioners’ Welfare has jumped 58% in the first three quarters of 2024, with a bulk of them
launched the 3rd Nation-wide Digital Life Certificate campaign likely coming from refining discounted Russian oil, according to a
which was held in 800 cities / districts across India from Nov. monthly tracker report.
1-30, 2024. The Campaign was held in collaboration with  The EU/G7 countries in December 2022 introduced a price cap
Pension Disbursing Banks, India Post Payments Bank, and an embargo on the imports of Russian crude oil in a bid to
Pensioners’ Welfare Associations, CGDA, DoT, Railways, cripple Kremlin's revenue and create a vacuum in its funding for
UIDAI & Ministry of Electronics and Information Technology the Ukraine war. However, a lack of a policy on refined oil
with the aim of reaching all the pensioners in the remotest produced from Russian crude meant that countries not imposing
corners of the country. sanctions could import large volumes of Russian crude, refine
 The focus is majorly on promoting Face Authentication them into oil products and legally export them to the price-cap
Technology. Ministry of Electronics and Information coalition countries.
Technology and UIDAI will provide technical support during  India has become the second biggest buyer of Russian crude
this Campaign. Face Authentication has been made more oil since the invasion, with purchases rising from less than 1% of
seamless and convenient for the elderly Pensioners and can the total oil imported in the pre-Ukraine war period to almost 40%
of the country's total oil purchases. The rise was primarily because
be used on Android as well as iOS.
Russian crude oil was available at a discount to other
 The preparatory phase for the forthcoming campaign has internationally traded oil due to the price cap and the European
been commenced by holding extensive outreach meetings with nations shunning purchases from Moscow. Fuel exports were,
all stakeholders. Dedicated DLC portal has been created however, at full price.
with mapping of 800 Districts, 1900 camp locations and 1000  Capitalising on the refining loop- hole, India has now become
nodal officers. Trainings have been scheduled in a phased the biggest exporter of oil products to the EU. In the first three
manner for all nodal officers. quarters of 2024, exports to the EU from the Jamnagar, Vadinar
COLLATERAL-FREE LOAN FOR MSMEs: FM (in Gujarat) and new Mangalore refinery-which are increasingly
 The Government plans to introduce a collateral-free term reliant on Russian crude-saw a 58% year-on-year rise further.
loan scheme for Micro, Small, and Medium Enterprises FISCAL DEFICIT LIKELY TO BE LOWER BY 19 BPS
(MSMEs) to enhance manufacturing capabilities. Finance THAN BUDGET ESTIMATES:
Minister Nirmala Sitharaman announced that the scheme,  India's fiscal deficit for FY25 is expected to be 19 basis points
offering term loans of up to Rs.100 crore without collateral or lower than the Budget Estimate of 4.9% of GDP, as per India
third-party guarantees, will soon be presented to the cabinet. Ratings & Research (Ind-Ra). This follows Finance Minister
This initiative follows the success of the Emergency Credit Line Nirmala Sitharaman's commitment to a fiscal consolidation path,
Guarantee Scheme (ECLGS), which supported over 11.9 targeting a deficit below 4.5% by FY26 and aiming for declining
million MSMEs during the pandemic by providing Rs.3.68 lakh central government debt as a percentage of GDP from FY27
crore in liquidity. onward.
 The proposed scheme will address challenges MSMEs  Ind-Ra highlights that despite a slowdown in government
face in securing term loans for modern plants and machinery spending in H1FY25 and some slippage in subsidies, the fiscal
and is part of a broader MSME-focused budget package. The outlook remains positive. Capex for FY25 is projected to grow by
budget also includes financing, regulatory reforms, and 10.6%, lower than the initially budgeted 17.6%. Tax collections are
technology support to help MSMEs grow and compete robust, with gross and net tax revenues expected to reach 12%
and 8% of GDP, respectively—the highest in 17 years. Income tax
globally.
and corporate tax will contribute 81% and 10.5% to the additional
 Going further, the Union Finance Minister said that e- gross tax revenue, with year-on-year growth of 22.6% and 11.2%
commerce trade hubs are also being set up with private till November 2024.
partnerships which will facilitate international trade and export-  Overall, the government is on track to achieve its FY26 fiscal
related services. She said that 20 industrial clusters will be deficit target while maintaining growth in public finances.
covered with the opening of these six new branches of Small SOURCES: RBI’S / GOVT’S NOTIFICATIONS, RBI
Industries Development Bank of India (SIDBI) and it will help in CIRCULARS, BUSINESS STANDARD, THE ECONOMIC
strengthening the MSMEs in Karnataka. TIMES, FINANCIAL EXPRESS, ETC.
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Government securities without being subject to any
th
investment ceilings.
1) The RBI in its Monetary Policy Statement on 6 Dec. 2024 a) ‘Fully Acceptable Route’ (FAR)
has decided to reduce the cash reserve ratio (CRR) of all b) ‘Fully Accessible Route’ (FAR)
banks by 50 bps in two equal tranches of 25 bps each to 4.0 c) ‘Fully Available Route’ (FAR)
per cent of net demand and time liabilities (NDTL) with effect d) ‘Fully Automatic Route’ (FAR)
from the fortnight beginning ______ and _____, respectively. 10) The Reserve Bank of India has broadened the range of
This will restore the CRR to 4 per cent of NDTL, which was specified government securities available for non-resident
prevailing before the commencement of the policy tightening investors under the Fully Accessible Route (FAR) by adding
cycle in April 2022. _____ year Sovereign Green Bonds (SGrBs) to the list.
a) December 14, 2024; December 28, 2024 a) 3 b) 5 c) 7 d) 10
th
b) December 14, 2024; January 14 2025 11) Investors eligible to invest through the FAR route year in
th
c) December 22, 2024; January 10 2025 Sovereign Green Bonds (SGrBs) does not include:
th
d) December 28, 2024; January 18 2025 a) Foreign Portfolio Investors (FPIs)
2) The reduction in the CRR announced in the MPC statement b) Non-Resident Indians (NRIs)
by 50 bps would release primary liquidity of about Rs._____ c) Residents of Indian Origin
lakh crore to the banking system. d) Overseas Citizens of India (OCIs)
a) 1.10 b) 1.16 c) 1.20 d) 1.25 12) According to the provisional schedule for the issuance of
th
3) The RBI in its Monetary Policy Statement on 6 Dec. 2024 government securities, including Sovereign Green Bonds
has decided to increase the interest rate ceilings on FCNR(B) (SGrBs), for the second half of the fiscal year 2024-25 (from
deposits. Accordingly, with effect from Dec. 6, 2024, banks October 1, 2024, to March 31, 2025), the government plans to
are permitted to raise fresh FCNR(B) deposits of 1 year to raise Rs.____ lakh crore.
less than 3 years maturity at rates not exceeding ARR plus a) 6.5 b) 6.61 c) 6.65 d) 6.95
____ bps and deposits with maturity between 3 to 5 years at 13) To ensure completeness of transaction data in Trade
rates not exceeding ARR plus _____ bps. This relaxation will Repository (TR) for all foreign exchange instruments, RBI has
be available till March 31, 2025. decided to expand the reporting requirement to include
a) 300; 400 b) 350; 450 c) 400 ; 500 d) 450 ; 550 foreign exchange spot (including Value cash and value TOM)
4) The Reserve Bank has proposed to launch a programme deals in a phased manner. Accordingly, transactions in the
named _______ under the ongoing RBI@90 commemorative following foreign exchange contracts, involving INR or
events which shall provide an opportunity to the stakeholders otherwise, (hereinafter referred to as “FX contracts”) shall not
to share their ideas and inputs in the form of case studies/ be reported to the TR:
concept notes, etc. on the topics announced by the Reserve a) Foreign exchange cash
Bank from time to time. b) Foreign exchange tom
a) Daksh b) Chakshu c) Foreign exchange spot
c) Pravaah d) Connect 2 Regulate d) Foreign exchange forward
th
5) The RBI in its Monetary Policy Statement on 6 Dec. 2024 14) With a view to encourage original writings and research in
has decided to raise the limit for collateral-free agriculture Banking Hindi, RBI has launched an „Award scheme for
loans from Rs.1.6 lakh to Rs. _____ lakh. This will enhance outstanding writings in the field of banking Hindi‟. Under this
coverage of small and marginal farmers in the formal credit scheme, Professors (including Assistant and Associates,
system. etc.) of Indian Universities may be awarded three prizes of Rs.
a) 2 b) 2.50 c) 3 d) 3.50 ____ lac each for writing books originally in Hindi on
6) To encourage development of innovative solutions to Economics/Banking/Financial subjects.
contain the use of Mule accounts, a Artificial Intelligence / a) 1.25 b) 1.50 c) 1.75 d) 2.0
Machine learning based model called ________, is being 15) As per the amended Master Direction of KYC, the RE
piloted by Reserve Bank Innovation Hub (RBIH), a subsidiary shall seek the KYC Identifier from the customer or retrieve the
of Reserve Bank. This model enables detection of mule bank KYC Identifier, if available, from the CKYCR and proceed to
accounts in an efficient manner. obtain KYC records online by using such KYC Identifier and
a) Connect 2 Regulate b) Chakshu AI/ML shall not require a customer to submit the same KYC records
TM
c) Daksh Identifier d) MuleHunter.AI or information or any other additional identification
7) Know Your Customer (KYC) Direction, 2016 has amended documents or details, unless:
from time to time, in terms of which Regulated Entities (REs) a) There is a change in the information of the customer as existing
have to undertake Customer Due Diligence (CDD) for their
in the records of CKYCR; or
customers. On a review, the Master Direction on KYC has
b) KYC record or information retrieved is incomplete or is not as
been amended as per which REs shall apply the CDD
per the current applicable KYC norms; or
procedure at the _________ level.
c) Validity period of downloaded documents has lapsed; or
a) Unique Customer Identification Code (UCIC)
d) RE considers it necessary in order to verify the identity or
b) Unique Client Identification Code (UCIC)
address (including current address) of the customer, or to perform
c) Unique Customer Identified Code (UCIC)
enhanced due diligence or to build an appropriate risk profile of
d) Unique Customer Identification Coding (UCIC)
the customer.
8) Govt. and Meta join forces for ______Campaign to tackle
e) All the above
rising online scams.
16) As per RBI 2024 list of Domestic Systemically Important
a) Scam se Bacho
Banks (D-SIBs), ________ which of the following is correct
b) Jankar Baniye Satark Rahiye
with regard to the buckets of D-SIBs placed by RBI.
c) Scam se Jago d) Bharosa
a) ICICI and HDFC in bucket 2 and SBI in bucket 3
9) Through the ________, the Reserve Bank enables non-
b) ICICI in bucket 1, HDFC in bucket 2 and SBI in bucket 3
residents to invest in specified Government of India dated
c) ICICI and HDFC in bucket 2 and SBI in bucket 1
securities. Eligible investors can invest in specified
d) ICICI in bucket 1, HDFC in bucket 2 and SBI in bucket 4
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17) Securities and Exchange Board of India (SEBI) has the applicable weight for the incremental exposure to the
proposed an overhaul to the framework governing high-value large borrower.
listed debt entities (HVLDE) in bid to reduce the compliance a) 2 ; 50 b) 3 ; 50 c) 3 ; 75 d) 3.5 ; 75
burden. SEBI has proposed relaxation of threshold for 23) As per extant guidelines of Foreign Exchange
identification of HVLDEs, introduction of Sunset Clause and Management (Non-debt Instruments) Rules, 2019, investment
exemption to entities not covered under the Companies Act. made by the FPI shall be less than ___ percent of the total
At present, entities having an outstanding value of non- paid-up equity capital on a fully diluted basis. FPI investing in
convertible listed debt (NCD) securities of more than Rs. ____ breach of the prescribed limit shall have the option of
crore are categorised as HVLDEs. divesting their holdings or reclassifying such holdings as FDI
a) 300 b) 500 c) 800 d) 1000 subject to the conditions specified by the RBI and SEBI
18) Authorised Dealers shall report all inter-bank FX contracts within _____ trading days from the date of settlement of the
undertaken by them to the Trade Repository (TR) of CCIL with trades causing the breach.
effect from February 10, 2025 as per the following timelines: a) 5;3 b) 10;5 c) 15;7 d) 20;10
a) Inter-bank FX contracts involving INR shall be reported in 24) As per revised guidelines of the Department of
hourly batches within 30 minutes from completion of the hour. Pension and Pensioners' Welfare (DoPPW), a daughter
Such contracts executed 60 minutes prior to closure of CCIL's (unless affected by a mental or physical disability)
reporting platform for the day and subsequent to closure of CCIL's qualifies for a family pension until she marries, remarries,
reporting platform for the day shall be reported by 10 a.m. of the or becomes employed. Unmarried, widowed, or divorced
following business day. daughters above __ years of age may also receive a family
b) Inter-bank FX contracts not involving INR executed up to 5 p.m. pension, provided all other children in the family are either
on any given day should be reported by 5:30 p.m. of that day. over __ or are financially independent. If a child has a
Such contracts executed after 5 p.m. should be reported by 10
disability, they have the primary entitlement to the family
a.m. of the following business day.
pension.
c) Inter-bank FX contracts not involving INR executed up to 5 p.m.
on any given day should be reported by 6:30 p.m. of that day. a) 18;18 b) 21;21 c) 25;25 d) 30;30
Such contracts executed after 5 p.m. should be reported by 10.30 25) Government has introduced a revised performance-linked
a.m. of the following business day. d) a & b incentive (PLI) scheme for senior executives of public sector
banks, including return on assets and NPA levels among the
19) Authorised Dealer shall report all FX contracts
performance parameters. The PLI ceiling for MD & CEOs and
executed with clients to the Trade Repository (TR) of CCIL
EDs of nationalised banks and Chairman, MDs and Deputy
in a phased manner. Which of the following FX contracts MDs of SBI has been pegged at 100 per cent of their annual
executed with clients shall be mandatorily reported as per basic pay. The PLI ceiling for senior executives in the rank of
the time lines : CGM and GM; and DGM and AGM is pegged at _____ per cent
a) FX contracts with the value equal to or exceeding the and ____ per cent, respectively, of their annual basic pay. For
threshold limit of USD 1 million and equivalent thereof in other Chief Manager, this ceiling is set at ____ per cent.
currencies with effect from May 12, 2025. a) 95; 85; 75 b) 90; 80; 70
b) FX contracts with the value equal to or exceeding the c) 85; 75; 65 d) 80; 70; 60
threshold limit of USD 50,000 and equivalent thereof in other 26) Mutual Funds and Unit Trusts have been allowed by SEBI
currencies with effect from November 10, 2025. to invest in overseas funds up to _____ exposure to Indian
c) FX contracts with the value equal to or exceeding the equities.
threshold limit of USD 25,000 and equivalent thereof in other a) 20% b) 25% c) 40% d) No ceiling
currencies with effect from December 10, 2025 27) As per the PLI scheme proposed by Finance ministry for
d) FX contracts executed with clients should be reported senior executives of PSBs, all permanent employees, in scale
before 12 noon of the following business day. _____and above shall be part of the incentive scheme.
20) As per the Framework on Enhancing Credit Supply for a) Scale IV b) Scale V c) Scale VI d) Scale VII
Large Borrowers through Market Mechanism, the Banks 28) The RBI has advised the banks to take necessary
has to keep future incremental exposure to large steps to bring down the number of inoperative/ frozen
„Specified borrowers‟ within a „Normally Permitted accounts and make the process of activation of such
Lending Limit‟. (NPLL). The norms, define a large borrower accounts smoother and hassle free, including by enabling
as Specified Borrower who are having Aggregate seamless updation of KYC through mobile/internet
Sanctioned Credit Limit (ASCL) fund-based credit limits banking, non-home branches, Video. The progress in
sanctioned or outstanding, whichever is higher by the reduction of inoperative/ frozen accounts and the special
banking system) of more than Rs._____ Crore at any time efforts made by the banks in this regard may be monitored
from April 1, 2019 onwards. by the Customer Service Committee (CSC) of the Board. In
a) 2000 b) 5000 c) 7500 d)10,000 addition, the banks are also advised to report the same on
21) Normally Permitted Lending Limit. (NPLL) means ____% a quarterly basis to the respective Senior Supervisory
as the case may be of the incremental funds raised by the Manager (SSM) through _____ portal, starting from the
specified borrower over and above its ASCL as on the quarter ending December 31, 2024.
reference date in the Financial Years (FYs) succeeding the FY a) DAKSH b) PRAVAAH c) VISVAS d) TULIP
in which the reference date falls. ANSWER KEY
a) 40 b) 50 c) 60 d) 70 1 A 2 B 3 C 4 D 5 A
22) If the banking system crosses the lending limit prescribed 6 D 7 A 8 A 9 B 10 D
for a specified borrower, the provisioning requirement on the
11 C 12 B 13 D 14 A 15 E
excess amount would be ____ percentage points higher than
16 D 17 B 18 D 19 C 20 D
normal. Additionally, the banking system would have to
21 B 22 C 23 B 24 C 25 B
assign a risk weight of ____percent points over and above
26 B 27 A 28 A
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 RECOLLECTED QUESTIONS
Current Ratio is 2:1 and Liabilities of a firm is Rs.60,000/-
What is the Net Working Capital? Rs. 60,000/-
PUNJAB & SIND BANK Authorised dealers can permit advance payment for imports of
(SCALE I TO II AND II TO III ON 07-01-2024) Services without BG support upto: 5,00,000 US dollars.
Credit Compliance Officer (CCO) shall not have responsibility FMR full form: FMR stands for Fraud Monitoring Return,
which brings conflict of interest is called: Dual Hatting which is a report that banks are required to submit to the
The rate at which the Reserve Bank of India buys or Reserve Bank of India to report cases of fraud.
rediscounts commercial bills and other commercial papers from Exchange note policy of RBI includes: a) Issue of fresh
commercial banks is the _______, also known as the Discount notes of all denominations b) Issue of fresh coins of all
Rate: Bank Rate denominations c) Exchange of soiled notes d) All of the
The ______comprises three broad parameters: access (35%), above.
usage (45%), and quality (20%) with each of these consisting of Garnishee order not applicable to: Cash / Cheque deposited
various dimensions, which are computed based on a number of after receiving the Garnishee Order.
indicators: FI-Index Tax at source is deducted on interest on fixed deposit if
Govt. of India deals with some Arab country recently, it was in interest paid/ payable on a fixed deposit in a financial year is
which currency? SAR - Saudi Arabian Riyal. above Rs. 40,000. This is as per: Section 194-A of Income
In India, the Sexual Harassment of Women at Workplace Tax Act.
(Prevention, Prohibition and Redressal) Act, 2013 states that a CLERICAL TO SCALE I ON 07-01-2024
complaint of sexual harassment at the workplace must be filed What is the maximum loan amount that can be granted under
within ____ of the incident. If there were a series of incidents, DRI scheme: Rs.15000/- and to SC/STs for housing purpose
the complaint must be filed within _____of the last incident: 3 - Rs.20,000
months; 3 months NULM SC/ST % age: On pro rata basis
_______ are securities which are interchangeable with others NRLM old name: SGSY
of the same series or class. Fungible goods refer to securities, PPF maximum amount: Rs.1.5 lakh
or other items, that are equivalent or consist of many identical SSA minimum contribution: Rs.250/-
parts such that, for practical purposes, they are PMJBY Age: 18-50 years
interchangeable: Fungibility securities SCSS maximum limit: Rs.30 lac
The interest rate on unclaimed interest-bearing deposits Soiled note definition: 2 pieces
transferred to the Depositor Education and Awareness (DEA) PM Vishwakarma toolkit incentive: Rs.15000
Fund by banks is ____ simple interest per year which is Nature of charge on moveable security: Hypothecation
effective from May 11, 2021: 3% Nature of charge on Immoveable security: Mortgage
Total finance in PM Vishawkarma scheme: Rs.13,000 crore Mahila Sammaan Saving Certificate ROI: 7.5%
have been provided for the PM Vishwakarma Scheme from Bank customer relationship in Safe Custody Deposit: Bailee
FY 2023-2024 to FY 2027-28. Bailor
After successful KYC of customer, which of the following is Who is appellate authority in Integrated Ombudsman
generated? 1) KYC number 2) KYC identifier 3) KYC verifier scheme? The Executive Director in charge of the Consumer
4) KYC Pin. Education and Protection Department of the Reserve Bank
What is the loan amount of PM Vishwakarma scheme? of India (RBI)
Collateral free 'Enterprise Development Loans' of upto Rs. 3 Which form used for nomination variation? Form DA 3
lakh in two tranches of Rs. 1 lakh and Rs. 2 lakh with Red flagged account limit: Rs.500 million or more
tenures of 18 months and 30 months, respectively, at a Legal audit mandatory for what amount: Over Rs 5 crore
concessional rate of interest fixed at 5%, with Govt. DICGC amount cover: Rs.5,00,000 per depositor
subvention to the extent of 8%. PMJDY OD amount without condition: Rs.2000/- (However,
Bank commission for Sovereign Gold Bond Scheme: for higher overdraft amounts, up to Rs.10,000, certain
Commission for distribution of the bond shall be paid at the conditions must be met: a) The account should have been
rate of one per cent of the total subscription received by active for at least 6 months; b) The account holder must be
the receiving offices and receiving offices shall share at a regular user of the account; c) The overdraft facility is
least 50 per cent of the commission so received with the available only to one account per household, preferably to
agents or sub agents for the business procured through the earning female of the household; d) The account holder
them. must be within the age limit of 18 to 65 years.
In a bank, its all branches meet the 95% compliance, in which RBI ‘DAKSH’ portal: DAKSH is a web-based end-to-end
zone, it lies? 1) Red 2) Green 3) Yellow 4) Orange workflow application through which RBI shall monitor
 ‘2023 talent pool’ job families refer to, which of the following? compliance requirements in a more focused manner with
1) Faculty 2) Data Research & Analysis 3) Experienced the objective of further improving the compliance culture in
employees 4) Potential employees Supervised Entities (SEs) like Banks, NBFCs, etc.
PSB Apna Ghar take home salary for employee salaried CGTMSE maximum guarantee cover: Rs.500 lakh
above Rs.20 lakh: 20% Unsecured exposure in which security value is less than 10%
VCIP: VCIP stands for Video Based Customer ab initio: "Unsecured exposure" is defined as an exposure
Identification where the realisable value of the security, as assessed by
Process. It is a digitized way of verifying a customer's the bank/ approved valuers/ Reserve Bank's inspecting
identity through a live video call. officers, is not more than 10 per cent, ab-initio, of the
PSB Credit Protect Scheme interest: 6% simple outstanding exposure.
Staff accountability in NPA after: 6 months PSB classic ATM card limit: Rs.25000/-
Banker’s lien: A banker's lien is a legal right that a bank Soiled notes exchange value of 2000, how many pieces?
has to hold onto any property or assets that a customer Notes which have numbers on two ends, i.e. notes in the
has deposited with the bank until the customer has paid off denomination of Rs.10 and above which are in two pieces,
their outstanding debts. are also treated as soiled note.
If there is delay in pension arrears of Govt. employees, what PMJDY RuPay card withdrawal: Permitted. The withdrawal
rate of interest on arrear will be paid to the pensioners: 8% p.a. limit for a Pradhan Mantri Jan Dhan Yojana (PMJDY) RuPay
PSB GST ease –maximum loan amount: Rs.500 lac debit card varies by bank.
Bulk deposit is _____& above: Rs. 3 crore

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 According to the World Intellectual Property Organization
(WIPO)‟s 2024 report, _____ has been ranked within the top 10
 Government has appointed ______ as the next Comptroller and countries, in intellectual property (IP) rights, for patents,
Auditor General (CAG) of India: K Sanjay Murthy trademarks, and industrial designs: India
Financial Services Institutions Bureau (FSIB) has recommended British author _______ has won the prestigious Booker Prize for
the name of ______ for the post of MD & CEO of Indian Bank: Fiction for her novel „Orbital‟: Samantha Harvey
Binod Kumar ________has introduced two student-focused financial products,
Financial Services Institutions Bureau (FSIB), has „KBL Peak‟ and „KBL Genius‟, aiming to support students for their
recommended the name of _______ as MD & CEO of IFCI Ltd: academic goals and finances: Karnataka Bank Ltd.
Rahul Bhave  24 coastal villages from six districts of Odisha have been
__________has assumed charge of MD & CEO of Bandhan recognised as ______ by the Intergovernmental Oceanographic
Bank: Partha Pratim Sengupta Commission (IOC) of UNESCO: „Tsunami Ready‟
Visa has appointed ______ as country manager for India: Rishi  _____, a small village of Distt. Bastar (Chhattisgarh), has been
Chhabra selected by the United Nations World Tourism Organization for its
_____ has taken over as President of Federation of Indian Best Tourism Village Upgrade programme: Dhudmaras
Chambers of Commerce & Industry (FICCI): Harsha Vardhan _______ has been inaugurated by Lok Sabha Speaker at O.P.
Agarwal Jindal Global University (JGU) in Sonipat: India‟s first
India has launched its first ______, to foster innovation and Constitution Museum
enhance national security: Artificial Intelligence (AI) Data Bank The Indira Gandhi Prize for Peace, Disarmament, and
____ has maintained its position as one of the top 10 performers Development for 2023 was awarded to ______, a world-famous
in the Climate Change Performance Index (CCPI) 2025: India pianist and conductor, and ______, a Palestinian peace activist:
During Deepotsav 2024, _____set two Guinness World Records Daniel Barenboim; Ali Abu Awwad
with lighting over 2.5 million diyas along the Saryu River, and for _________, a 22-year-old final-year law student, has won the
the most people performing diya rotation simultaneously: prestigious Miss Charm India 2024 title: Shivangi Desai
Ayodhya _______ has received the prestigious Green World Environment
_______, as the first Indian bank, has introduced a real-time Award 2024 in the Corporate Social Responsibility (CSR)
tracking service for international money transfers in partnership category. CIL was also honoured with the title of Green World
with Swift: IDFC FIRST Bank Ambassador, reflecting its commitment to sustainability and social
_______ scheme has been approved by the Govt. for providing welfare: Coal India Limited (CIL)
financial support to meritorious students seeking higher education: ___________, the Chief of Army Staff has been conferred with
PM-Vidyalaxmi the title of Honorary General of the Nepal Army by the President of
______has enacted a world-first legislation to ban children Nepal: General Upendra Dwivedi
under 16 from social media platforms, such as TikTok, Facebook, PM Modi inaugurated India‟s first modern, self-sufficient
and Instagram, as part of its effort to protect minors from online gaushala named as _________ in Laltipara, Gwalior, Madhya
harm: Australia Pradesh: Adarsh Gaushala
_______has launched fintech platform to offer wedding loans: During the launch of the Association of Indian American
Matrimony.com Minorities (AIAM), USA, ______ was honored in absentia with the
Canara HSBC Life Insurance has launched ______, a „Dr. Martin Luther King Jr. Global Peace Award for Minority
generative AI solution aimed at optimizing risk evaluation in Upliftment‟: PM Modi
underwriting: OmniGen AI ______ and UNICEF have launched a strategic initiative under
________ has been awarded with the Rohini Nayyar Prize for the bank‟s flagship CSR program, focusing on Disaster Resilient
2024, recognizing his impactful contributions to rural development: Communities and Climate Risk-Informed Efficient Administrative
Anil Pradhan System: IndusInd Bank
According to Counterpoint Research, _____ has become the The Union Minister of „Rural Development and Agriculture &
second largest globally by unit volume and third by value in Q3 Farmers‟ Welfare‟ has launched the third edition of the national
2024: India‟s smart phone market campaign ___in New Delhi: “Nayi Chetna – Pahal Badlaav Ki”
Govt. has launched the _____ aimed at boosting the sector and The Ministry of Health and Family Welfare‟s ______ Pavilion at
making India self-reliant in medical devices: Scheme for the 43rd India International Trade Fair (IITF) has been awarded a
Strengthening the Medical Device Industry Special Appreciation Medal for its innovative design and impactful
______ has been inaugurated at the Institute for Social and presentation of India‟s healthcare initiatives: „One Health‟
Economic Change (ISEC), Bengaluru which will display real-time The Union Minister for Women and Child Development has
population estimates for the entire country: First digital launched the national campaign _______ in New Delhi with the
population clock. vision of „Viksit Bharat‟ by 2047: “Bal Vivah Mukt Bharat”
_________, M.D. of JBCN Education has been honored as the ___ was awarded the prestigious „2024 OPCW-The Hague
Education Leader of the Year at the Education World India School Award‟ at the 29th Session of the Conference of the States Parties
Ranking Awards 2024-2025: Kunal Dalal (CSP) of the Organisation for the Prohibition of Chemical
 According to Brand Finance‟s Global City Index, ______ has Weapons held in The Hague: Indian Chemical Council (ICC).
topped the list of the world‟s top 100 “city brands” for the second KEY INDICATORS
consecutive year: London REPO RATE 6.50% FOREX RESERVES- Rs. (in Cr) 5114732
_______, the celebrated actor, humanitarian, and philanthropist, CRR (As on FOREX RESERVES US ($
has been selected as the Brand Ambassador and Honorary 4.50% 616097
30-11-2024) Million)
Tourism Advisor for Thailand: Sonu Sood SCB‟s AGGREGATE
The Department of Justice has launched the _______ campaign SLR 18.00% 20080931
DEPOSITS - (Crore)
to celebrate 75 years of India as a Republic and the adoption of its BANK RATE &
Constitution: „Hamara Samvidhan, Hamara Samman‟ 6.75% SCB‟s BANK CREDIT - (Crore) 15598722
MSF
 The ______ App launched by Indian Railways aims to enhance SDF 6.25% FIXED RATE REVERSE REPO 3.35%
the safety and security of passengers: „Sanraksha‟
DECEMBER 2024 CTDI, GURUKUL FOR BANKERS 20
SCO 91, (1ST& 2ND FL) SEC. 47-D,
CHANDIGARH-160047, 9317723230