Context: Jana Small Finance Bank (Jana SFB) has officially applied to the Reserve Bank of India (RBI) for approval to transition into a universal bank, marking a major step in its growth strategy. Key Highlights: What Is Universal Banking? Universal banking is a system in which banks provide a wide variety of comprehensive financial services, including those tailored to retail, commercial, and investment services. RBI’s Licensing Guidelines Universal Banking Licences in India (2016) The Reserve Bank of India introduced the ‘On Tap’ Licensing Policy in August 2016 for private sector universal banks. This policy allows eligible applicants to seek a banking licence at any time, enhancing dynamism and competition in the Indian banking sector. Eligibility Criteria

Context: RBI Deputy Governor M. Rajeshwar Rao, speaking at a Mumbai event on 5 June 2025, raised serious concerns over the deteriorating conditions in India’s microfinance sector. His speech was uploaded to the RBI website on 10 June 2025. Key Highlights: Persistent Sectoral Issues Rising Financial Stress in FY26 Interest Rates and Margins RBI’s Recommendations BS

Context: The Digital Rupee (e₹) is a central bank digital currency (CBDC) issued by the Reserve Bank of India (RBI), functioning as a digital version of cash. Unlike cryptocurrencies, it is a legal tender backed by the RBI. Key Features of e₹: How It Differs from UPI & Cryptocurrencies Current Status (2025) Anonymity & Usage The Digital Rupee aims to modernize payments, reduce cash dependency, and enhance financial inclusion in India’s digital economy.

Context: The Supreme Court of India is examining a major financial scandal involving banks, real estate developers, and subvention housing schemes, after hundreds of aggrieved homebuyers alleged harassment and fraud due to misuse of sanctioned home loans. Key Highlights: Current Status:

Why in News? The Union Finance Minister recently chaired the 6th Governing Council meeting of NIIF, reviewing its performance, partnerships, and future strategies. Here’s a detailed overview of NIIF and its role in India’s infrastructure growth. What is NIIF? Key Features of NIIF 1. Public-Private Fund Structure 2. SEBI-Registered AIF 3. Professional Management 4. Strong Financial Growth 5. Global & Domestic Partnerships Governing Council of NIIF Functions of NIIF 1. Capital Mobilization 2. Investment Management 3. Strategic Partnerships 4. Policy Alignment Why NIIF Matters?

Context: The Reserve Bank of India (RBI) has announced it will discontinue daily Variable Rate Repo (VRR) auctions from Wednesday, June 11, 2025, following a review of the improving liquidity conditions in the banking system. Key Highlights: Daily VRR Auctions Discontinued Reason for the Move Shift in RBI’s Monetary Stance Impact on Liquidity TET

Context: In a recent address at an HSBC event on financial inclusion, RBI Deputy Governor M. Rajeshwar Rao expressed concerns over widespread misselling by financial institutions and persistent issues in the microfinance sector. His speech was later published on the RBI website. Key Issues Highlighted Misselling of Financial Products High Interest Rates in Microfinance Over indebtedness and Recovery Practices RBI’s Prescription for Responsible Lending Call for Business Model Introspection Regulatory Signal BS

Context: HDFC Bank, India’s largest private lender, has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 10 basis points (bps) across select tenures, effective June 7, 2025. What is MCLR? MCLR (Marginal Cost of Funds-Based Lending Rate) is the minimum interest rate below which a bank cannot lend (except in special cases approved by the Reserve Bank of India). Introduced by the RBI in 2016, it replaced the older Base Rate system to make loan pricing more transparent and responsive to market changes. Key Features of MCLR What This Means for Borrowers Why the Rate Cut? Who Benefits? Why Did RBI Introduce MCLR? (Source: The Economic Times)