Context: In a significant step towards deepening the bond market, the Reserve Bank of India (RBI) has permitted the separate trading of principal and interest components of State Government Loans (SGLs). This move aligns with similar facilities already available for select Government of India (GoI) securities. Objective Scope of the Facility What are Fixed-Coupon Bonds? Fixed-coupon bonds are a type of bond where the interest rate, or coupon, remains constant throughout the bond’s life. This means investors know exactly what interest payments they will receive at regular intervals. Unlike floating-rate bonds where the interest rate can change, fixed-coupon bonds offer a predictable income stream. 

Context: To address widespread pendency in periodic KYC updation, especially for Direct Benefit Transfer (DBT) and PMJDY accounts, the Reserve Bank of India (RBI) has issued revised norms for regulated entities (REs), ensuring continued access to banking services while setting a firm timeline for compliance. What is Direct Benefit Transfer (DBT) Direct Benefit Transfer (DBT) is a system where government subsidies and benefits are directly transferred into the bank accounts of eligible beneficiaries. This eliminates intermediaries, ensuring benefits reach the intended recipients efficiently and effectively. DBT aims to reduce fraud, improve transparency, and enhance the accuracy of benefit targeting, ultimately improving the efficiency of government welfare programs.  What is PMJDY? Launched on 28th August 2014, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) by the Ministry of Finance is one of the globe’s most ambitious financial inclusion schemes.  The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Government of India that allows anyone without a bank account to open a Basic Savings Bank Deposit (BSBD) account at a bank branch or from a Business Correspondent (Bank Mitra) facility.

Context: To combat rising cases of fraudulent entities collecting investor funds, SEBI, in collaboration with the National Payments Corporation of India (NPCI), is launching a verified UPI handle system called @valid for SEBI-registered intermediaries. What Is the @valid UPI Handle? Applicability (Who Can Register for @valid) 10 categories of SEBI-registered investor-facing intermediaries, including: Role of NPCI and Banks What Changes for Investors? Fraud Prevention Measures

Context: The Reserve Bank of India (RBI) successfully conducted its second government bond buyback auction of FY26, infusing substantial liquidity while managing public debt maturities. Implications and Market Reaction What Are Government Bonds? Key Features Access to Investors Types of Government Bonds in India Fixed-Rate Bonds Floating Rate Bonds (FRBs) Sovereign Gold Bonds (SGBs) Inflation-Indexed Bonds (IIBs) 7.75% GOI Savings Bond Bonds with Call or Put Options Zero-Coupon Bonds

Context: The Reserve Bank of India (RBI) is planning to amend the Liberalised Remittance Scheme (LRS) to prevent resident Indians from parking funds in overseas time deposits or other interest-bearing foreign currency accounts, two government sources revealed. Objective Behind the Move What Will Change? What is the Liberalised Remittance Scheme (LRS)? The Liberalised Remittance Scheme (LRS) was introduced by the RBI in 2004 to simplify foreign remittances for Indian residents. Under this scheme, individuals can send up to USD 250,000 per financial year (April–March) outside India for permissible transactions without requiring prior approval from the RBI. This means that Indian residents can freely remit funds for purposes like foreign travel, overseas education, investments, gifts, donations, medical treatment, and more—as long as they comply with RBI guidelines.

Context: Groww Mutual Fund has introduced the Groww Nifty India Internet ETF, India’s first exchange-traded fund (ETF) designed to track the Nifty India Internet Index (TRI). The fund aims to offer investors exposure to India’s fast-growing internet-based companies. What Is the Groww Nifty India Internet ETF? Key Features Government Support

Context: In a historic move, Vishweshwar Sahakari Bank, a leading Urban Cooperative Bank (UCB) based in Pune, has been granted Scheduled Bank status by the Reserve Bank of India (RBI). This is the first such approval in over two decades, signalling a renewed regulatory thrust to empower well-performing cooperative banks. What Are Urban Cooperative Banks (UCBs)? Urban Cooperative Banks (UCBs) are financial institutions based on the cooperative model. They emerged from co-operative credit societies where members pooled resources to provide affordable loans within the community. Four-Tier Structure Proposed by RBI (2021) RBI’s Key Recommendations for UCBs What Scheduled Bank Status Enables BS UPSC Civil Services Examination, Previous Year Question (PYQ) Prelims Q. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: Which of the statements given above is/are correct? (a) 1 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3