Context: In his first public remarks since taking over in December 2024, RBI Governor Sanjay Malhotra outlined key regulatory priorities, including a review of the bank licensing framework, stricter oversight on insurance product distribution, and measures to enhance consumer protection. Key Highlights Bank Licensing and Governance Mis-selling of Insurance Consumer Protection & KYC Simplification Liquidity and Monetary PolicyRBI to Discuss Liquidity Management with Bankers Fiscal Outlook and Economic Growth TOI

Context: The National Stock Exchange (NSE) has proposed shifting the weekly expiry of its index derivative contracts to Tuesday, moving away from the current Thursday expiry. This move comes in light of SEBI’s proposal to limit expiry days to only two weekdays: Tuesdays and Thursdays, aiming to reduce expiry-day volatility. Key Developments Strategic Implications BS

Context: The RBI has notified the structure and functioning of the Payments Regulatory Board (PRB) under the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB is housed within the RBI and will oversee the payments ecosystem with powers of delegation and standard-setting. Background Board Composition Functioning and Governance

Context: The Reserve Bank of India (RBI) has held consultations with top fintech bodies to review feedback on draft colending guidelines. Key Proposals in Draft Colending Guidelines Co-lending Models Call for NBFCs on UPI Credit Line Compliance Improvements Implication BS

Context: To enhance capital mobilisation options for UCBs, especially Tier-4 UCBs, through innovative instruments like Special Share Certificates (SSCs) and Perpetual Non-Cumulative Preference Shares (PNCPS). Special Share Certificates (SSCs) A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the indicated number of shares. It is also referred to as a stock certificate. Perpetual Non-Cumulative Preference Shares (PNCPS) Perpetual Non-Cumulative Preference Shares (PNCPS) are a type of preference share issued by banks with no fixed maturity date and no accumulation of unpaid dividends. They offer a fixed dividend rate and prioritize dividend payments to equity shareholders. PNCPS are often used by banks to bolster their capital base, particularly to meet Basel III capital requirements Rationale Behind the Proposal

Context: The National Payments Corporation of India (NPCI) has issued a circular to strengthen its supervisory framework over Unified Payments Interface (UPI) operations. This follows a root cause analysis of a recent outage that revealed excessive API calls by banks as the cause of core network stress. Key Measures Introduced Compliance Requirements Rate Limiting and Timing Rules Enforcement and Penalties BS

Context: The Reserve Bank of India (RBI) sold $34.5 billion on a net basis in FY2024–25, the highest level of dollar sales since the global financial crisis of 2008–09. This intervention was aimed at curbing volatility in the foreign exchange market amid sharp depreciation of the Indian Rupee. Forex Market Intervention Volatility in Financial Markets Definition Key Characteristics How to Measure Volatility Statistical Example (Monthly Data): Types of Volatility Volatility in Options Pricing Quick Facts for Exams Reason for Market Volatility