Context: Axis Bank has launched a ‘Lock FD’ feature for safeguarding customers’ Fixed Deposits (FDs) from rising digital frauds by allowing them to restrict FD closures through digital means. Objective To enhance the security of fixed deposits (FDs) by restricting premature closure through digital platforms, thereby protecting customers from online fraud. What are Fixed Deposits (FDs)? A Fixed Deposit (FD) is a savings and investment instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. It’s one of the most popular low-risk investment options in India. Key Features of ‘Lock FD’ BL

Context: In a major push towards inclusive financial growth, Reserve Bank of India Governor Sanjay Malhotra announced three key consumer-centric initiatives following the August 2025 MPC meeting. These schemes target ease of access, simplified procedures, and broader retail participation, especially benefiting those at the bottom of the financial pyramid. 1. Doorstep Re-KYC for Jan Dhan Account Holders Objective: To simplify KYC compliance for financially underserved sections. 2. Simplified Claims Process for Deceased Customers Objective: To relieve families of procedural burdens after the death of a bank account holder. 3. Systematic Investment Plans (SIPs) in Government Securities via Retail Direct Objective: To promote retail investor participation in sovereign debt markets. Why It Matters? These reforms underline the RBI’s commitment to: BS & Mint

Context: The Reserve Bank of India (RBI) issued revised guidelines to strengthen the co-lending framework between banks and non-bank financial companies (NBFCs). The new rules mandate that all regulated entities (REs) involved in co-lending arrangements (CLAs) must retain at least 10% of each individual loan on their own books. Objectives Key Features of the Revised Co-Lending Norms: 1. Minimum Loan Retention Requirement: 2. Default Loss Guarantee (DLG) Provision: 3. Uniform Asset Classification: 4. Credit Policy Alignment: 5. Mandatory Disclosures in Loan Agreement: 6. Blended Interest Rate Mechanism: 7. Annual Percentage Rate (APR) Transparency: 8. Escrow-Based Transaction Handling: 9. Timely Loan Recognition: 10. Expanded Applicability: ET

Context: The Reserve Bank of India (RBI) has launched a Systematic Investment Plan (SIP) facility for Treasury Bills (T-bills) under its Retail Direct scheme, marking a major expansion in direct access to government securities for retail investors. Key Highlights: What Is a SIP in T-bills? A Systematic Investment Plan (SIP) allows retail investors to invest fixed amounts at regular intervals (e.g., weekly, monthly) into Treasury Bills, just like SIPs in mutual funds. What Are Treasury Bills (T-bills)? Key Features of SIP in T-bills: Impact on Financial Markets: Mint

Context: Amid global uncertainties and market volatility, the Reserve Bank of India’s internal working group has reaffirmed the Weighted Average Call Rate (WACR) as the most suitable operational target for monetary policy, citing its alignment with policy stance and regulatory control. Key Recommendations of the RBI Working Group: 1. Retain WACR as the Operating Target 2. Discontinue 14-Day VRR/VRRR as Main Liquidity Operation 3. Use 7-Day or Shorter-Tenor Operations for Fine-Tuning 4. No New Tools Required 5. Current Instruments Are Adequate: BS

Context: Despite speculation of a 25 bps rate cut, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) opted for a status quo, unanimously holding the policy repo rate at 5.5%. The decision was guided by inflation risks, global uncertainty, and the need for forward-looking monetary policy. Why RBI Held the Repo Rate? Impact on the Indian Economy What is Repo Rate and Reverse Repo Rate? Repo Rate Current Repo Rate (as of August 2025): 5.5% Reverse Repo Rate Current Reverse Repo Rate: 3.35% What Happens When RBI Changes Repo/Reverse Repo Rates? When RBI Cuts Repo Rate: When RBI Raises Repo Rate: BS & ET