Context: Non-food credit growth of Scheduled Commercial Banks (SCBs) slowed sharply to 11.2% (y-o-y) in the fortnight ending April 18, 2025, compared to 15.3% in the same period last year. The decline was broad-based across sectors including agriculture, services, personal loans, and industry. Sector-wise Credit Trends RBI’s Observations (FY25 Annual Report) Non-Food Credit Non-food credit in the context of bank lending refers to the total amount of credit extended by banks to sectors other than food procurement. It’s essentially the credit that’s not directed towards supporting the Food Corporation of India (FCI) for purchasing food grains.

Context: The Reserve Bank of India (RBI) reported an 8.2% growth in its balance sheet, reaching Rs 76 lakh crore in FY25. A key focus of the central bank is to bolster resilience in its foreign exchange reserves, which now constitute over 74% of its total assets. This comes amid rising concerns over the “weaponisation of reserves,” where countries face financial sanctions freezing foreign-held assets during geopolitical conflicts. RBI’s Foreign Exchange Reserves and Risk Management Digital Infrastructure and Data Security Initiatives Promotion of the Indian Rupee in International Trade

Context: India received a record $118.7 billion in inward remittances in 2023–24, surpassing foreign direct investment (FDI) inflows and financing over half of the merchandise trade deficit. The RBI’s Sixth Round of India’s Remittances Survey (released March 2025) reveals critical trends in the composition, value, and mode of remittances, underlining their rising importance in India’s external sector balance. Key Highlights Structural Shifts in Remittance Sources Impact of Migrant Profile Evolution Digital Transformation of Remittance Channels Corridor Disparities in Digital Adoption: Country Digital Share (%) UAE 76.1 Saudi Arabia 92.7 Canada 40.0 Germany 55.1 Italy 35.0 Regional Disparities in Remittance Receipts: Missing Dimensions: Household-Level Data: BS

Context: The Reserve Bank of India (RBI) Annual Report for FY2023-24 reveals a major shift in the Indian lending landscape, with a growing proportion of loans now linked to external benchmarks. This transition enhances transparency and strengthens monetary policy transmission. Key Data (as of December 2024) Institution-wise Distribution of Floating Rate Loans What is EBLR? The External Benchmark Lending Rate (EBLR) is a type of floating lending rate linked to an external, publicly available benchmark like the RBI Repo Rate, 3-month/6-month Treasury Bill Yield, or any other benchmark published by FBIL (Financial Benchmarks India Ltd). Key Components of EBLR: Comparative Insights: Parameter Public Sector Banks (PSBs) Private Sector Banks Share of EBLR-linked loans 44.6% 85.9% Share of MCLR/legacy rate loans Higher Significantly lower Implications for Indian Banking: BS

Context: The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, in collaboration with SEBI, has launched Niveshak Shivir, a pilot investor facilitation camp. The first camp will be held in Pune on June 1, 2025, aimed at providing a one-stop solution for resolving issues related to unclaimed dividends, shares, and other investor services. Key Objectives Services Offered Significance and Impact About IEPFA The Investor Education and Protection Fund Authority is a statutory body dedicated to investor awareness, protection, and education in India. It works through nationwide campaigns, digital tools, and strategic partnerships to build a

What is Default Loss Guarantee (DLG)? Key Highlights of RBI’s Directive Additional Recent Update (May 2025) Implications BS