Context: In a move aimed at aligning Indian financial markets with global standards and enhancing liquidity management, the Reserve Bank of India (RBI) has announced extended trading hours for key segments of the money market. Key Changes Call Money Market In finance, call money refers to short-term funds lent by banks or financial institutions that are repayable on demand, with a maturity ranging from overnight to 14 days. It is a core component of the Indian inter-bank money market. Key Features Economic Importance RBI Extends Call Money Market Trading Hours: TOI

Context: A recent RBI Bulletin highlights a significant realignment in India’s Certificate of Deposit (CD) market. Between 2022 and December 2024, the share of public sector banks (PSBs) in CD issuances surged from 6% to 69%, while private sector banks (PVBs) saw a decline from 85% to 30%. Key Drivers of CD Issuance Surge What is a Certificate of Deposit? A Certificate of Deposit (CD) is a time deposit offered by banks and credit unions. Unlike regular savings accounts, CDs require the depositor to keep their money in the account for a fixed period in exchange for a higher interest rate. The term of a CD can range from a few months to several years, and the interest rate is usually higher than that of a standard savings account. Who Issues CDs? CDs are issued by: These financial institutions use CDs to attract deposits, which they can then use for lending and other investment activities. Read more>>

Context: A decade after the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 to promote financial inclusion, the Union Finance Ministry is now exploring Phase 2 reforms aimed at deepening banking access and enhancing account activity, especially for the 110 million inoperative accounts. Key Upgrades Under Consideration Cheque Book Facility Enhanced Overdraft Limit Low-Value Credit Cards (Proposed) Problem of Inoperative Accounts Alarming Inactivity Reasons for Dormancy BS

Context: The Union Finance Ministry is set to initiate phased stake sales in public sector general insurers — New India Assurance Company and General Insurance Corporation (GIC Re) — to comply with SEBI’s Minimum Public Shareholding (MPS) requirement of 25% for all listed companies, including public sector units. Regulatory Mandate Disinvestment vs Privatization The Government of India continues to pursue disinvestment and privatization as part of its economic reform agenda. While often used interchangeably, both terms have distinct meanings and implications. 1. Disinvestment Disinvestment refers to the sale or liquidation of government-owned shares in Public Sector Undertakings (PSUs) or other government-owned assets. Purpose: Types: Example: 2. Privatization Privatization is the process of transferring ownership and management of a public sector entity to the private sector. Purpose: Modes: Example:

Context: The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on Edelweiss Life Insurance Company for violations related to outsourcing norms and customer onboarding practices, flagging serious lapses in corporate governance and regulatory compliance. Outsourcing Violations Failure in Capturing Bank Details TH

Context: The National Stock Exchange (NSE) is set to introduce a new financial instrument called “Electricity Futures”, marking a significant step in developing India’s energy derivatives market. This product aims to help market participants hedge against electricity price volatility, offering more predictability in a traditionally unstable short-term electricity market. What Are Electricity Futures? India’s energy derivatives market India’s energy derivatives market involves trading financial contracts (like futures and options) whose value is derived from energy commodities such as electricity, crude oil, or natural gas. These derivatives allow participants to manage price risks associated with energy markets or speculate on price movements. Who Will Benefit? By locking future electricity rates, participants can protect themselves from price spikes caused by demand-supply imbalances, seasonal variation, or fuel cost volatility. Features of the New Product TH

Context: The National Stock Exchange (NSE), India’s largest stock exchange, has proposed to pay ₹13.88 billion (₹1,388 crore or $160 million) to the Securities and Exchange Board of India (SEBI) to settle a long-running legal dispute. This is expected to be the largest-ever settlement with SEBI, aimed at clearing the regulatory overhang delaying NSE’s long-pending Initial Public Offering (IPO). Background of the Case Proposed Settlement Significance Implications BS

Context: In its latest State of the Economy report published in the June 2025 RBI Bulletin, the Reserve Bank of India (RBI) has highlighted continued domestic economic resilience despite global uncertainty, softening credit growth, and evolving financial conditions. The report was authored by RBI staff under the guidance of Deputy Governor Poonam Gupta. Key Highlights Growth and Resilience Monetary Policy Transmission Lending and Deposit Rates Credit Growth Trends Global Headwinds Additional Developments Implications TH & BS

Context: The Goods and Services Tax (GST) Council is expected to convene in July 2025 after a gap of over six months, with major reforms on its agenda, according to official sources. The Council, chaired by the Union Finance Minister and comprising state finance ministers, plays a key role in shaping India’s indirect tax policy. Key Highlights Implications TH