Why in news? The Reserve Bank of India (RBI) has issued master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024. What are Asset Reconstruction Companies? What are the RBI Guidelines for Asset Reconstruction Companies (ARCs)? Function: SARFAESI Act 2002: The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, or SARFAESI Act, is a law that allows banks and other financial institutions to recover loans from borrowers who default on their payments. The SARFAESI Act was created to help banks and other financial institutions recover loans and reduce their non-performing assets (NPAs). The SARFAESI Act also allows banks to enforce security interests, such as liens or legal claims, on collateral. It also allows banks to securitize financial assets by transferring claims on assets to manage cash flow. Business Model: Challenges: Recent Changes in ARC Regulations by RBI:
Non-Banking Financial Companies (NBFC)
Non-Banking Financial Companies (NBFC) provides loans, acquires financial securities and offers leasing and insurance services. However it excludes companies primarily engaged in agriculture, industrial activities, trading, or real state. It is engaged in the business of loans and advances, acquisition of shares/ stocks/ bonds/ debentures/ securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company). About: Features: Role and Significance of NBFCs: Classification: Regulation and Supervision: Type of Institution Regulatory Authority NBFCs registered with RBI RBI Housing Finance Institutions National Housing Bank Merchant Banking Companies, Venture Capital Fund Companies, Stock Broking, Collective Investment Schemes (CIS) SEBI Nidhi Companies, Mutual Benefit Companies Ministry of Corporate Affairs (MCA) Chit Fund Companies State Government Insurance Companies IRDAI Non-Banking Non-Financial Companies Statute: Companies Act 1956Regulator: Ministry of Corporate AffairsEnforcement Agency: State Governments Challenges Faced by NBFCs: Benefits of NBFCs: Conclusion: Non-Banking Financial Companies play a vital role in the Indian financial system by providing credit and financial services to sectors and populations that are often underserved by traditional banks. While they face several challenges, effective regulation and prudent management can help NBFCs continue to contribute to financial inclusion and economic growth in India.
Unified Payments Interface (UPI)
Why in news ? NPCI extends market cap deadline for UPI apps by two years to end of 2026. The National Payments Corporation of India (NPCL) extended further the deadline for implementing the transaction volume cap on Unified Payments Interface apps by two years- until December 31, 2026. About: Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. Countries which are currently using UPI: Countries which are currently using RuPaY’s: Achievements: Challenges: National Payments Corporation of India NPCI, an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007. It is a “Not for Profit” Company under the provisions of Section 25 of Companies Act (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. Way Forward:
Commercial Banks in India
About Structure of Commercial Banks in India Scheduled Commercial Banks (SCBs) Non-Scheduled Commercial Banks (NSCBs) Types of Scheduled Commercial Banks (SCBs) Majority Shareholder(s) Example(s) Public Sector Banks (PSBs) Government of India SBI, PNB, Canara Bank, Bank of Baroda, Bank of India, etc. Private Sector Banks Private Individuals ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank etc. Foreign Banks Foreign Entities Standard Chartered Bank, Citi Bank, HSBC, Deutsche Bank, BNP Paribas, etc. Regional Rural Banks (RRBs) Central Government, Concerned State Government, and Sponsor Bank in the ratio of 50:15:35 Andhra Pradesh Grameena Vikas Bank, Uttranchal Gramin Bank, Prathama Bank, etc. Public Sector Banks (PSBs) List of Public Sector Banks (PSBs) or Nationalized Banks in India: Private Sector Banks Foreign Banks Regional Rural Banks Importance of Commercial Banks in India
National Institute of Disaster Management
World Health Organisation (WHO)
WHO and its Objectives World Health Organization (WHO) was established in the year 1948, which is a specialised agency of the United Nations that connects different nations, partners and peoples for promoting health, keep the world safe and serve to the vulnerable so everyone, everywhere can attain the highest level of health. Objectives of WHO Governance Structure and Functioning of WHO Governance structure of the WHO is designed to support the implementation of its mandate and the achievement of its objectives. It includes: Role of WHO in Global Health Governance Key roles of the World Health Organization in global health governance: WHO contribution towards improving Global Health The WHO has significantly contributed to improving global health over the past several decades. Some of its notable achievements includes: Areas of work under India-WHO Partnership Challenges Faced by WHO Â Steps to make WHO more effective Â
ESI and FM Syllabus for RBI Grade A 2025
ESI ( Economic and Social Issues ) and FM is two of the 3 papers of the phase 2 exam of RBI Grade B examination. Understanding the ESI and FM syllabus for RBI Grade A is very important to know the topics which are asked in the examination and it will also help you in categorizing as per their importance for the exam. Below, we have mentioned the ESI syllabus for RBI Grade A exam along with the important topics: ESI Syllabus for RBI Grade A Here is the detailed syllabus of RBI Grade A : Syllabus: FM Syllabus for RBI Grade A Here is the detailed syllabus of RBI Grade A : You can also download the RBI Grade A Syllabus from the link provided below: Click the link to download the detailed syllabus from the link provided : https://c4scourses.in/rbi-grade-b/rbi-grade-a-2025-syllabus/
World Bank Group
World Bank Group (WBG) is one of the most remarkable financial institutions globally. Since the day it is established, it has been playing a crucial role in poverty alleviation and sustainable development across the world. This article aiming to give you the detailed information about the World Bank Group (WBG), its objectives, functions, governance structure, and reforms needed in the same. About World Bank What are Bretton Woods Institutions? What is World Bank Group (WBG)? Each of the institutions has been dealt in details in the sections below. Goals of World Bank Group (WBG) Basically WBG has set of two goals for the world to be achieved by the year 2030 which are as follows: India and World Bank Read our detailed article on the International Monetary Fund (IMF) Important Reports Published by World Bank Some important reports published by the World Bank Group (WBG) institutions are discussed below: World Development Report Ease of Doing Business (EoDB) Need for Reforms in World Bank Suggested World Bank Reforms World Bank Vs IMF Attributes World Bank International Monetary Fund Ownership and Governance By appointees of member nations. By appointees of member countries. Main Objective Broadening and Strengthening the economies of member nations. Broadening and Strengthening the economies of member nations. Headquarter Washington D.C. Washington D.C. Functions Promote economic and social progress in developing and poorer countries by helping to raise productivity and providing loans at a very concessional rate. Exchange rate stability, provide financial resources to solve the problem of balance of payment, and promote international Monetary cooperation. Assistance Both to the government and private sector of the member nation. Only to the government of the member nations. Association and Size The World Bank Group (WBG) consists of five institutes associated with it and therefore has a larger size comparatively than the IMF IMF has no associated institutes and hence has a smaller staff. Source of Funding A kind of Investment fund where it borrows from one and lends to the other. It also borrows money by selling notes and bonds directly to their member nation’s government, their agencies, and central banks which they lend to other poorer and developing countries. It is more like a credit union wherein members have access to a common pool of resources and these resources come from quota subscriptions and contributions from each member according to the size of its economy. Recipient of Funding Only to the developing and poorer nations and at a very minimal interest rate. It lends to even the private sector where it feels that assisting them would help improve the living condition of the people. Both the wealthy as well as poor nations who experiences a shortage of foreign exchanges or are facing Balance of Payments Crisis. Conclusion: World Bank Group (WBG) has a crucial role in global economic development and poverty reduction. As the world faces complex economic challenges, the Bank’s role in promoting growth and stability remains ever more important. Necessary reforms should be made in the institution in order to make the World Bank Group (WBG) more efficient and relevant to the current world economic order.
Basic Concepts of Inflation
BASICS Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year. “It may be one of the most familiar words in economics. Inflation has plunged countries into long periods of instability. Central bankers often aspire to be known as “inflation hawks.” Politicians have won elections with promises to combat inflation, only to lose power after failing to do so. Inflation was even declared Public Enemy No. 1 in the United States.” by President Gerald Ford in 1974 What, then, is inflation, and why is it so important?  MEASURING INFLATION What creates inflation ? How inflation is dealt with ? The more credibility central banks have, the greater the influence of their pronouncements on inflation expectations.
International Monetary Fund (IMF)
The International Monetary Fund (IMF) is a key institution in the global financial system. It play a very important role in stabilizing the international monetary affairs and also facilitates the global economic growth. This article by C4S is aiming to the in detailed information’s about the IMF, its objective, functions, governance structure and other related concepts of IMF Quota, SDRs and more. What is International Monetary Fund (IMF)? Bretton Woods Institutions Objectives of IMF Functions of IMF Governance Structure of IMF Board of Governors Ministerial Commitees Executive Board Managing Director IMF Quota Special Drawing Rights (SDRs) Major Reports Published by IMF World Economic Outlook Global Financial Stability Report Fiscal Monitor India and IMF Conclusion International Monetary Fund (IMF) has a crucial role in maintaining global financial stability and promoting economic growth. As the world faces complex economic challenges, the IMF’s role in promoting stability, growth, and international cooperation remains ever more important. Necessary reforms should be made in the institution in order to make it more efficient and relevant to the current world economic order.
