Source: TOI Context: Foreign Portfolio Investors (FPIs) withdrew ₹34,993 crore (~$4 billion) from Indian equities in August 2025, the sharpest sell-off in six months. The move was triggered by steep US tariffs on Indian exports, high domestic valuations, and disappointing Q1 corporate earnings in some sectors. Foreign Portfolio Investors (FPIs) in India Who are they? FPI vs FDI (Key Difference) Why do FPIs Pull Out Money? Impact of FPI Outflows on Indian Market

Context: The government has recently revised the tax treatment of Unit Linked Insurance Plans (ULIPs), removing earlier ambiguities and bringing them in line with other market-linked investment products like mutual funds. What are ULIPs? Recent Update Section 10(10D) Exemption Conditions To qualify for tax exemption under this section: Significance of the Amendment

Source: ET Context: The Securities and Exchange Board of India (SEBI) has issued clarifications on its Cybersecurity and Cyber Resilience Framework (CSCRF), introducing graded compliance norms to reduce the burden on smaller market intermediaries. Key Highlight: Objectives: Cybersecurity and Cyber Resilience Framework (CSCRF) – SEBI The CSCRF is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) to safeguard the securities market from cybersecurity risks and ensure that intermediaries can withstand, respond to, and recover from cyberattacks. Objectives:

Source: ET Context: The Reserve Bank of India (RBI) imposed a penalty of ₹44.70 lakh on Bandhan Bank following a supervisory inspection related to its financial position as of March 31, 2024. This highlights the regulator’s continued vigilance over banks’ adherence to compliance norms. Key Highlights: Important Sections For Exams

Context: The Reserve Bank of India (RBI) is likely to approve Fino Payments Bank’s request for conversion into a Small Finance Bank (SFB) by March 2026, sources confirmed. This development comes after RBI recently approved AU Small Finance Bank’s (AU SFB) application to become a Universal Bank on August 7, 2025. Fino Payments Bank is a type of Scheduled Commercial Bank.  Scheduled Commercial Bank (SCB) vs Small Finance Bank (SFB) Feature Scheduled Commercial Banks (SCBs) Small Finance Banks (SFBs) Definition Banks listed in the Second Schedule of RBI Act, 1934; includes Public, Private, Foreign, and RRBs. A type of Scheduled Bank focused on financial inclusion for underserved sections. Scope of Operations Universal banking – can serve all segments (corporates, retail, MSMEs, rural, urban, international). Primarily serve small borrowers, MSMEs, farmers, low-income groups. Priority Sector Lending (PSL) Must lend at least 40% of ANBC to PSL. Must lend at least 75% of ANBC to PSL. Branch Requirement No specific rural mandate (but regulated by RBI norms). At least 25% of branches must be in unbanked rural areas. Examples SBI, HDFC Bank, ICICI Bank, RRBs, etc. AU SFB, Equitas SFB, Ujjivan SFB, Jana SFB, etc. Capital Requirement Higher; varies depending on bank type (Private, Public, RRBs). Minimum ₹200 crore paid-up capital (at licensing). Nature Broad-based, covers the entire economy. Specialized, focused on financial inclusion. Eligibility to Become a Small Finance Bank (SFB)

Source: BL Context: RBI’s latest data highlights that Scheduled Commercial Banks (SCBs) have struggled to mobilise deposits and expand lending in rural India (“Bharat”) compared to semi-urban, urban, and metropolitan areas over the last 25 years. Key Highlights: Credit Growth (2000–2025) Deposit Growth (2000–2025) Credit-Deposit Ratio (CDR) Urbanisation Trends Important Concept You Should Know for RBI Exam About Scheduled Commercial Banks (SCBs) Aspect Details Meaning Banks listed in the Second Schedule of the RBI Act, 1934. Facilities Available Eligible to borrow from RBI, use clearinghouse facilities, and access liquidity support. Types Included 1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks in India 4. Regional Rural Banks (RRBs) Eligibility (Section 42(6), RBI Act, 1934) – Capital Requirement: Minimum paid-up capital & reserves of ₹5 lakh (practically higher required). – Depositor Safety: Should not conduct business harmful to depositors. – Affairs Management: Must be in the interest of depositors and the public. – Compliance: Must satisfy RBI that it can follow RBI Act & Banking Regulation Act.