Context: The RBI has introduced its most comprehensive reforms in bank lending, targeting both corporate and individual borrowers. The aim is to reverse disintermediation (where companies bypass banks for funding), strengthen capital markets, and support economic growth. Key Reforms and Implications Corporate Lending and Acquisitions Lending to Large Companies Individual Investor Lending Risk Management and Prudential Measures External Commercial Borrowing (ECB) and Export Credit

Source: BL Context: The Reserve Bank of India (RBI) has announced plans to issue a discussion paper on licensing new banks in the Urban Cooperative Banking (UCB) sector, indicating a shift in policy after nearly two decades. Background What are UCBs? RBI Governance of UCBs Aspect Legal Framework / Authority Scope of Regulation Banking Regulation Act, 1949 Applied to UCBs since 1966; regulated by RBI Banking activities such as deposit mobilization, lending, capital adequacy, prudential norms, and supervision. State Cooperative Societies Act Registration under respective State Act Governance, management elections, audit, and administrative control at the state level. Multi-State Cooperative Societies Act, 2002 Registration if UCBs operate in more than one state Governance, management elections, audit, and administration under Central Registrar of Cooperative Societies.

Source: BS Context: The Reserve Bank of India (RBI) has proposed reducing risk weights for loans by Non-Banking Financial Companies (NBFCs) to operational, high-quality infrastructure projects. Key Highlights Scope of Proposal Expected Impact Risks & Cautions

Source: BS Context: The Reserve Bank of India (RBI) has withdrawn its 2016 circular that restricted banks from lending beyond a specified threshold to a single large corporate or group at the systemic level, while maintaining the large exposure framework at individual bank level. Key Highlights: Market and Banking Impact

Context: Policy Rates Instrument Rate Remarks Repo Rate 5.50% Unchanged (second consecutive pause) Reverse Repo (SDF) 5.25% By convention, 25 bps below repo Bank Rate & MSF 5.75% No change Macro Outlook GDP Growth (FY26) CPI Inflation (FY26) External Sector Key Regulatory & Structural Announcements Implications For the Economy: For Banks & Financial Institutions: For Borrowers & Investors: Key Terms for RBI Grade B / Exams

Context: The Reserve Bank of India (RBI), in its October 2025 Monetary Policy Committee (MPC) meeting, kept the repo rate unchanged at 5.5% with a neutral stance. The decision comes amid tariff-related uncertainties, the need to evaluate the impact of previous rate cuts, and an improving domestic macroeconomic outlook. Policy Decisions Macro Outlook Rationale Key Regulatory & Structural Announcements Implications For Economy For Banks & Financial Institutions For Borrowers & Investors Key Terms Term Definition Impact / Purpose Repo Rate Rate at which RBI lends short-term funds to commercial banks against government securities as collateral. ↑ Repo → Loans costly → Inflation control. ↓ Repo → Loans cheaper → Boosts growth. Reverse Repo Rate Rate at which RBI borrows money from commercial banks. ↑ Reverse Repo → Absorbs liquidity → Controls inflation. ↓ Reverse Repo → Banks lend more → Boosts growth. ECL (Expected Credit Loss) Framework Forward-looking provisioning system where banks estimate expected loan losses instead of waiting for defaults. Strengthens banking sector resilience by reducing risk of sudden shocks. Basel III Norms International banking reforms focusing on capital adequacy, leverage, and liquidity standards. Ensures financial stability, prevents systemic risks, enhances risk management.

Source: BS Context: The Reserve Bank of India (RBI) has revised rules on perpetual debt inclusion in banks’ capital structure, allowing a higher share of such debt raised overseas to count towards Additional Tier-1 (AT1) capital. What is Perpetual Debt? RBI’s New Guidelines Why It Matters Related Concepts

Source: ET Context: From October 1, 2025, several important regulatory and policy changes across banking, pensions, ticketing, and postal services will take effect. These changes aim to improve efficiency, enhance transparency, and provide greater flexibility to consumers. Banking – Cheque Clearing IRCTC Ticket Reservation NPS (National Pension System) Banking Service Charges Postal Services