Source: TOI Context: The Reserve Bank of India (RBI) has officially recognised the Finance Industry Development Council (FIDC) as the Self-Regulatory Organisation (SRO) for the Non-Banking Financial Companies (NBFC) sector, marking a significant step toward structured self-governance, enhanced compliance, and sector-wide coordination. About the Finance Industry Development Council (FIDC) Significance of RBI Recognition What Is a Self-Regulatory Organisation (SRO)? A Self-Regulatory Organisation (SRO) is an industry body recognised by a regulatory authority (like the RBI or SEBI) to: Examples: Broader Regulatory Context

Source: ET Context: The Reserve Bank of India (RBI) has issued a draft circular expanding the definition and scope of related party transactions for commercial banks and NBFCs. This reform aims to strengthen corporate governance, prevent conflicts of interest, and ensure greater transparency in lending practices. The new norms will come into effect from April 1, 2026. Key Highlights: Broader Definition of Related Parties The updated framework brings under its ambit: Unified Governance Framework Scale-Based Approval Thresholds Board approval is now mandatory for loans beyond specified limits: Bank Asset Size Maximum Loan to Related Party (Before Board Approval) Over ₹10 lakh crore ₹50 crore ₹1–10 lakh crore ₹10 crore Below ₹1 lakh crore ₹5 crore Governance Safeguards Exemptions and Allowances Restrictions on Foreign Bank Branches

Source: BS Context: Fintech firm Kiwi has announced the launch of India’s first-ever interest-backed EMI option on UPI payments, enabling users to convert high-value transactions into instalments while earning cashback equivalent to the interest paid. The move comes amid a broader push to expand credit accessibility via real-time payment systems. Key Highlights Unique Model: Users can split big-ticket UPI payments into EMIs with cashback on interest — a first-of-its-kind feature in India’s fintech ecosystem. Objective: To promote credit-based UPI transactions while reducing the effective cost of borrowing for consumers.

Source: BS Context: Multi-asset allocation funds (MAAFs) have emerged as strong performers among mutual funds (MFs), rivalling medium-term returns from traditional equity categories while maintaining a lower risk profile. What Are Multi-Asset Allocation Funds (MAAFs)? Multi-Asset Allocation Funds are hybrid mutual fund schemes that invest in at least three different asset classes, such as: Regulatory Mandate (SEBI Rule): As per the Securities and Exchange Board of India (SEBI), MAAFs must invest a minimum of 10% in each of at least three asset classes at all times. Key Features of MAAFs Why MAAFs Are Performing Well Comparison: MAAFs vs. Traditional Equity Funds Feature MAAFs Equity Funds Asset Mix Equity + Debt + Commodities Primarily Equity Volatility Moderate High Return Potential (3–5 yrs) 9–12% (approx.) 11–14% (approx.) Downside Protection High (diversified assets) Low Best Suited For Moderate-risk, long-term investors High-risk, growth-focused investors

Source: IE Context: The Reserve Bank of India (RBI) has released a draft framework to reform External Commercial Borrowing (ECB) regulations, aiming to enhance access to foreign capital while ensuring prudent risk management. The proposal seeks to link borrowing limits to company financial strength, remove cost caps, and simplify end-use and maturity rules to align with global standards. Key Proposals:

Source: ET Context: The Reserve Bank of India (RBI) has directed 15 Upper Layer Non-Banking Financial Companies (NBFCs), including Tata Sons (a Core Investment Company – CIC), to list on stock exchanges by 30 September 2025. This mandate stems from the Scale-Based Regulation (SBR) Framework, which classifies NBFCs based on their size, activity, and systemic importance to ensure proportionate regulation and stronger governance in the shadow banking sector. About the Scale-Based Regulation (SBR) Framework Introduced by the RBI in October 2021, the Scale-Based Regulation (SBR) framework is a risk-based regulatory structure for NBFCs.It aims to align regulatory intensity with the size, complexity, and risk profile of NBFCs—similar to the tiered approach used for banks. Objective Four-Layer Structure Under the SBR Framework Layer Category Name Description / Entities Covered Regulatory Intensity 1. Base Layer (NBFC-BL) Smaller NBFCs Non-systemically important NBFCs (e.g., small loan companies, investment firms) Light 2. Middle Layer (NBFC-ML) Larger systemically important NBFCs Includes deposit-taking NBFCs, large housing finance companies, infrastructure debt funds, etc. Moderate 3. Upper Layer (NBFC-UL) Top 10–15 large and systemically critical NBFCs Identified by RBI based on size, leverage, interconnectedness, complexity, and risk profile High 4. Top Layer (NBFC-TL) Possible future category To be used if RBI observes extreme risk concentration in certain NBFCs Very High Key Features of the SBR Framework

Source: BS Context: The Reserve Bank of India (RBI) has issued a draft circular updating guidelines for Basic Savings Bank Deposit (BSBD) accounts, aiming to enhance customer service, promote digitisation, and deepen financial inclusion. BSBD accounts include those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). What Is a BSBD Account? Key Features of BSBD Accounts Feature Description 1. Zero Minimum Balance No minimum balance requirement. All basic facilities are provided free of charge. 2. Unlimited Deposits Deposits allowed through cash, ATMs, cash deposit machines, and electronic channels without any limit. 3. Free Core Services • Minimum four free withdrawals per month (including ATM & fund transfers) • Free debit card and ATM facilities • Cheque book with at least 25 leaves per year • Free passbook or monthly statement • Free internet and mobile banking access 4. Unlimited Digital Transactions No cap or charge on UPI, NEFT, RTGS, IMPS, or PoS transactions. 5. Optional Paid Services Banks may offer additional services with or without charges, but must follow transparent and non-discriminatory practices with prior disclosure to customers. 6. Single Account Restriction • Only one BSBD account allowed per customer across all banks. • Customers must declare they do not hold another BSBD account. • If another savings account exists, it must be closed within 30 days of opening a BSBD account. • BSBD holders may also open term deposit accounts. 7. Conversion and Switching Existing savings account holders can convert their accounts to BSBD within seven days upon request. Significance

Context: The Reserve Bank of India (RBI) has announced that it will soon release a draft framework to simplify and rationalise rules governing External Commercial Borrowings (ECBs). The new framework aims to expand the scope of eligible borrowers and recognised lenders, relax borrowing and maturity limits, remove cost restrictions, and simplify reporting procedures to enhance ease of doing business and promote capital inflows. About External Commercial Borrowings (ECBs) External Commercial Borrowings (ECBs) are commercial loans raised by eligible Indian entities from recognised non-resident entities in foreign currency or Indian Rupees (INR).They are governed under the Foreign Exchange Management Act (FEMA), 1999, and related RBI regulations. Organisations Involved Aim of ECBs Key Features of External Commercial Borrowings Routes of Borrowing Basic Conditions Permitted Uses Prohibited Uses