Source: BL Context: TATA AIG General Insurance Company Ltd has entered into a bancassurance partnership with Equitas Small Finance Bank to enhance the distribution of non-life insurance products, particularly in semi-urban and rural India. Key Highlights:

Source: BL Context: India is revamping its key financial benchmark system to replace the Mumbai Interbank Outright Rate (MIBOR) with the Secured Overnight Rupee Rate (SORR), aligning with global trends away from unsecured interbank rates like Libor. Key Highlights: MIBOR vs SORR Feature Mumbai Interbank Outright Rate (MIBOR) Secured Overnight Rupee Rate (SORR) Type of Rate Unsecured interbank rate Secured overnight rate Underlying Market Banks’ lending to each other without collateral Banks’ overnight lending collateralized by government securities Tenor Typically short-term, overnight, or term Overnight only Benchmark Usage Reference for loans, floating-rate bonds, derivatives, and money market instruments Will replace MIBOR as a risk-free benchmark for pricing loans, bonds, derivatives, and other financial contracts Risk Profile Higher credit risk (reflects interbank default risk) Lower credit risk (secured by government securities, virtually risk-free) Global Alignment Similar to LIBOR (London Interbank Offered Rate), which is being phased out Similar to SOFR (US), SONIA (UK), and €STR (Eurozone) – risk-free overnight rates Calculation Method Based on quotes submitted by banks in the interbank market Based on actual transactions in the secured overnight repo market Regulatory Aim Traditional benchmark for Indian rupee money markets Enhance transparency, reliability, and align with global risk-free rate standards

Context: The Reserve Bank of India (RBI) has cautioned NBFCs, Microfinance Institutions (MFIs), and Housing Finance Companies (HFCs) against aggressive expansion without strong risk management frameworks and sustainable business practices. Key Highlights: Significance:

Source: BS Context: India’s market regulator barred Man Industries and three of its top executives, including the chairman, from accessing the securities markets for two years over alleged fund diversion, according to an order issued. Reason for Action: SEBI Guidelines on Misuse of Funds Aspect Key Points Prohibition on Misuse Funds raised via IPO, preferential allotment, or debt must be used as disclosed; diverting to promoters/directors without approval is banned. Disclosure Requirements All material transactions and related-party dealings must be reported to stock exchanges and in annual financial statements; deviations in fund usage must be disclosed promptly. Corporate Governance Independent directors oversee fund use and approve related-party transactions; audit committees review fund allocation and financial statements. SEBI Investigation & Enforcement SEBI can inspect, audit, and requisition data; violations can lead to capital-raising bans, board prohibitions, and monetary penalties. Investor Protection SEBI can direct recovery of misused funds; companies must refund diverted funds to investors.

Source: BS Context: The Reserve Bank of India (RBI) has announced new guidelines for small business loans, giving banks greater flexibility in adjusting the additional interest or spread charged over the loan term. Previously, banks could revise the spread linked to a borrower’s credit risk only once every three years. Key Highlights: Greater Flexibility in Loan Spreads Expanded Lending Using Gold Other Directions for Strengthening Lending Key Definitions Term Definition Significance Spread Additional interest rate charged over the base/reference rate based on borrower credit risk Determines cost of borrowing; now adjustable before 3-year period Fixed-rate loan Loan with interest rate fixed for the tenure Provides interest stability to borrowers Working Capital Loan Short-term loan to meet daily operational expenses Supports liquidity needs of businesses Additional Tier 1 (AT1) Capital Capital instruments that absorb losses while the bank remains a going concern Helps banks meet regulatory capital requirements; can be raised via foreign/overseas-rupee bonds CKYC (Central Know Your Customer) Centralized database of customer identity information Ensures accurate borrower data and faster reporting Urban Co-operative Banks Local banks serving urban areas, often MSMEs Expanded role increases credit access for small businesses

Source: BS Context: The Reserve Bank of India (RBI) has retained the overnight weighted average call rate (WACR) as the operating target of monetary policy, under a revised liquidity management framework, ahead of its upcoming monetary policy decision. Key Announcements: Changes in Operational Tools Policy Corridor Liquidity Alignment & Transparency Cash Reserve Ratio (CRR) Key Definitions Term Definition Significance WACR Weighted Average Call Rate — average overnight interbank lending rate Operating target of RBI’s monetary policy Policy Repo Rate Rate at which RBI lends to banks for short term against government securities Benchmark for market rates; controls inflation & growth SDF Standing Deposit Facility — banks can park excess funds without collateral Floor of policy corridor; absorbs liquidity MSF Marginal Standing Facility — banks borrow overnight from RBI against securities Ceiling of policy corridor; lender of last resort VRR / VRRR Variable Rate Repo / Reverse Repo — liquidity operations with variable interest rate Discontinued as main tools 7-day Liquidity Operations RBI injects or absorbs liquidity for 7 days New primary tool for short-term liquidity management OMOs Open Market Operations — buying/selling government securities Manages durable liquidity Forex Swap Auctions RBI swaps rupees for foreign currency with banks Manages forex liquidity & market stability CRR Cash Reserve Ratio — % of NDTL banks must maintain with RBI Ensures liquidity & financial stability