Context: Life Insurance Corporation of India (LIC), India’s largest life insurer, has introduced a new WhatsApp-based premium payment service, enabling policyholders to pay premiums and access policy details through a chatbot interface. Key Features of the Service Significance About LIC:

Context: The Reserve Bank of India (RBI) has issued new compliance guidelines under the Reserve Bank of India (Digital Lending) Directions, 2025. These reforms aim to regulate digital lending platforms, enhance borrower protection, and ensure transparent and ethical lending practices. Objective To clean up the digital lending ecosystem by: Key Highlights Recent Context: Significance

Context: Qatar National Bank (QNB), the largest financial institution in the Middle East and Africa (MEA), has inaugurated a new branch in Gujarat International Finance Tec-City (GIFT City), making it the first MEA-based bank to do so. Implications:

Context: Brokers are increasingly guiding clients to liquid exchange-traded funds (ETFs) as a solution for managing idle cash. Liquid ETFs allow brokers to retain funds within their platforms, bypassing regulatory requirements that mandate transferring unutilized funds back to clients’ bank accounts at month-end. As of the latest figures, assets under management (AUM) in liquid ETFs have increased by 31% over the past year, growing from ₹17,200 crore to ₹23,550 crore. What Are Liquid ETFs? Liquid Exchange-Traded Funds (ETFs) are short-term debt instruments designed to invest in low-risk assets like money market instruments and overnight securities. These funds typically have a 1-day maturity and are traded on stock exchanges such as NSE and BSE, providing easy access and high liquidity for investors. Dividends from liquid ETFs are calculated daily and reinvested into additional units, credited to the demat account every 30 days. Who Can Invest in Liquid ETFs?Liquid ETFs are ideal for: Advantages of Liquid ETFs Disadvantages of Liquid ETFs Taxation on Liquid ETFs in India Factors to Consider When Investing in Liquid ETFs Parameter Liquid Funds Liquid ETFs Liquidity T+1 redemption; some offer instant access Intraday trading possible; real-time liquidity on exchanges Suitability Beginners, traditional investors Market-savvy investors with trading/demat accounts Transaction Cost No brokerage; possible exit loads for early exit Brokerage fees apply for buy/sell transactions Expense Ratio Slightly higher than ETFs Lower expense ratio; more cost-efficient Accessibility Available through banks, AMCs, MF platforms Requires a demat and trading account Customisation More fund options tailored to risk profiles Limited ETF choices in market Taxation <1 yr: taxed as per slab; >1 yr: LTCG with indexation <1 yr: STCG; >1 yr: LTCG like equity investments

Context: The Securities and Exchange Board of India (SEBI) has proposed a new framework to ease regulatory requirements for Foreign Portfolio Investors (FPIs) investing exclusively in Indian government bonds. Key Proposals Implications for the Market BS

Context: With deposit growth slowing to 10.3% in FY25 from 13.5% in FY24, state-run banks are launching innovative deposit schemes to attract customers. Most public sector banks (PSBs) are targeting a 9–11% deposit growth for FY25. Union Bank of India: Special Term Deposit with Health Cover Canara Bank: Launch of Canara TruEdge (CASA Product) BS

Context: A consortium of banks led by Union Bank of India has received 17–18 expressions of interest (EoIs) for the sale of ₹728.58 crore in stressed loans of Sahara Hospitality Ltd, which operates the Sahara Star Hotel in Mumbai. What is an Expression of Interest (EOI)? An Expression of Interest (EOI) is a non-binding document that a potential buyer shares with a seller in the early stages of a mergers and acquisitions (M&A) process. It signals a serious intent from the buyer to acquire the seller’s business, subject to due diligence and final agreement. While not legally binding, it lays the foundation for further negotiations and due diligence by outlining the proposed terms and expectations of the buyer. Key Concept of Expression of Interest (EOI)

Context: Prosus-backed fintech firm PayU Payments Pvt. Ltd. has received final authorisation from the Reserve Bank of India (RBI) to function as an online payment aggregator, marking a major regulatory milestone after over a year since securing in-principle approval. Key Highlights What is a Payment Aggregator? A Payment Aggregator (PA) is a third-party service provider that enables merchants to accept digital payments through multiple methods such as UPI, credit/debit cards, e-wallets, bank transfers, and EMIs. They are licensed by the Reserve Bank of India (RBI) and manage the entire payment process on behalf of merchants via a nodal account. How Payment Aggregators Work: A Step-by-Step Process Types of Payment Aggregators in India Key Features & Benefits of Payment Aggregators Payment Aggregator vs Payment Gateway: Key Differences Parameter Payment Aggregator (PA) Payment Gateway (PG) Function Handles funds and settlements Facilitates data encryption and transaction routing License Requirement Must be RBI-authorised (non-bank entities) No RBI license needed MID Requirement PA provides its own Merchant ID (MID) Requires merchant to have its own MID Examples Razorpay, Mobikwik, Airpay Razorpay, CC Avenue, PayU What is a Payment Aggregator License and How to Get One? A Payment Aggregator License is issued by the Reserve Bank of India (RBI) to entities that facilitate online payments on behalf of businesses. These entities enable merchants to accept digital payments through various methods like cards, UPI, and net banking, without the need for a separate payment infrastructure. Eligibility Criteria: To obtain this license, a firm must fulfill the following requirements: Application Requirements: The application submitted to RBI must include: Compliance Obligations: Payment aggregators are required to: This license ensures that only qualified and responsible entities are permitted to handle digital payments in India, fostering secure and efficient payment ecosystems. BS

Context: India has extended its financial support to the Maldives by rolling over a $50 million Treasury Bill, continuing a practice that began in 2019. The move comes amid the island nation’s struggle with high public debt, a widening fiscal deficit, and billion-dollar debt servicing commitments in 2025 and 2026. Currency Swap Support Treasury Bills (T-Bills): A Key Short-Term Government Instrument What are Treasury Bills? Purpose of Issuance: Key Features: How Investors Benefit: Monetary Policy Tool – RBI’s Use of T-Bills: Types of Treasury Bills in India (Based on Tenure): Who Can Invest? Advantages of Treasury Bills (T-Bills) Limitations of Treasury Bills: Taxation of Treasury Bills: