Source: ET Context: Key Findings Significance

Context: The Reserve Bank of India (RBI) has issued revised directions on the nomination facility available for deposit accounts, safe deposit lockers, and articles kept in safe custody.These guidelines aim to simplify claim settlements and ensure ease of access for nominees after the account holder’s death, while maintaining customer freedom of choice. Key Highlights: 1. Applicability 2. Nomination – Not Mandatory 3. Customer Declaration 4. Multiple Nominees (As per Banking Laws Amendment Act, 2025) 5. In Case of Nominee’s Death 6. Bank Obligations 7. Claim Settlement Simplification Objective of the Revised Framework

Context: The Union Finance Ministry is preparing a new blueprint for consolidation of public sector banks (PSBs) as part of ongoing banking reforms. The aim is to increase scale, operational efficiency, and capital deployment, not merely size. The timeline is expected to follow FY27, with due diligence and cost-benefit analysis underway. Key Proposed Mergers: Banks Under Consideration Rationale / Notes Union Bank of India + Bank of India Would create the second-largest PSB with assets of ₹25.67 trillion, just behind SBI; focus on scale and efficiency. Indian Overseas Bank + Indian Bank Operational synergies, complementary geographies, similar customer base and product portfolio, rationalization of branches and back-end functions. What is a Bank Merger? A bank merger is the consolidation of two or more banks into a single entity to improve financial stability, efficiency, and competitiveness.In such cases, one bank (the acquiring bank) absorbs the other(s), and all assets, liabilities, and operations of the merged bank(s) are transferred to it. Purpose of Bank Mergers RBI’s Role and Norms in Bank Mergers The Reserve Bank of India (RBI) acts as the regulatory authority overseeing all bank mergers in India to ensure financial stability and depositor protection. 1. Legal Framework 2. RBI Approval Process RBI follows a multi-step approval process for bank mergers: Stage Process a. Proposal Stage The banks submit a merger proposal to RBI with details of valuation, capital structure, and synergy plan. b. Due Diligence RBI evaluates the financial health, governance standards, and compliance history of both banks. c. Valuation and Share Swap Ratio Independent valuation experts decide how shares of merging entities will be exchanged. d. Draft Scheme of Amalgamation A draft scheme is submitted to RBI, outlining terms of merger, treatment of employees, branches, and depositors. e. Public Notification RBI may invite objections/suggestions from stakeholders. f. Final Approval RBI grants final sanction under Section 44A, and the scheme is notified in the Gazette of India. Key RBI Norms and Guidelines Types of Bank Mergers Type Description Example Voluntary Merger Initiated mutually by both banks with RBI approval. HDFC Ltd with HDFC Bank (2023) Forced/Directed Merger Ordered by RBI/Government to protect depositors or stability. Punjab & Maharashtra Cooperative Bank with Unity SFB (2022) Public Sector Bank (PSB) Merger Initiated by the Government of India with RBI oversight. Oriental Bank of Commerce + United Bank of India → PNB (2020) Example (Recent Major Mergers) Year Merged Banks Merged Entity 2017 SBI and its 5 associate banks State Bank of India 2019 Vijaya Bank + Dena Bank + Bank of Baroda Bank of Baroda 2020 PNB + OBC + United Bank of India Punjab National Bank 2020 Canara Bank + Syndicate Bank Canara Bank 2020 Indian Bank + Allahabad Bank Indian Bank

Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing sweeping changes to mutual fund (MF) regulations. The reforms aim to revamp the Total Expense Ratio (TER) structure, enhance transparency in investor charges, and ease business restrictions on Asset Management Companies (AMCs). Key Highlights: TER Structure and Transparency Open-Ended Scheme Adjustments Relaxation of AMC Business Restrictions Differential Expense Ratio and Operational Reforms Review of Mutual Fund Structure Objective and Expected Impact Key Terms Explained Term One-Line Explanation TER (Total Expense Ratio) Annual percentage of fund assets charged to cover management and operational costs. AMC (Asset Management Company) Entity that manages mutual fund schemes and investor money. AUM (Assets Under Management) Total market value of assets a fund manages on behalf of investors. Basis Point (bps) One-hundredth of a percent (0.01%), used for precise fee or rate measurement. Chinese Wall Internal barrier preventing conflict of interest between two business units. Non-Pooled Fund Investment vehicle serving large, specific clients rather than public investors. NFO (New Fund Offer) Initial launch phase of a mutual fund scheme to raise capital from investors.

Context: Crisil Ratings projects that advances of Small Finance Banks (SFBs) will exceed ₹2 trillion in FY26, marking a 16–17% year-on-year growth, up from 13% in FY25. The growth is driven by non-microfinance segments and a gradual recovery in microfinance loans. Small Finance Banks (SFBs) Purpose Regulatory Framework Functions Key Features

Source: BS Context: The Multi Commodity Exchange of India (MCX) faced a four-hour trading disruption on October 28, 2025, prompting the Securities and Exchange Board of India (SEBI) to seek details. This marks the second opening delay in four months at the largest commodities exchange in India. About Multi Commodity Exchange of India (MCX)