Context: The Union government is considering increasing the bank deposit insurance limit from the current ₹5 lakh to potentially ₹10 lakh. Deposit insurance is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), covering deposits in commercial and cooperative banks. DICGC and the Deposit Insurance Amendment Background The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the RBI, has initiated verification and certification of claims from 55 insured Urban Co-operative Banks (UCBs) placed under All Inclusive Directions (AID). This is to ensure that depositors receive insured amounts (up to ₹5 lakh) within 90 days, as mandated by the DICGC (Amendment) Act, 2021. Key Objectives About DICGC Feature Details Established 15 July 1978 Governing Act DICGC Act, 1961 Ownership Wholly owned by RBI Jurisdiction Ministry of Finance, Government of India Insurance Limit ₹5,00,000 per depositor (principal + interest) Coverage Savings, fixed, current, recurring deposits in insured banks Banks Covered by DICGC What DICGC Insures Claim Settlement Procedure Key Features of DICGC (Amendment) Act, 2021 1. Section 18A – Interim Payments 2. Applicability 3. Extended Liability Window Premium and Repayment Provisions Aspect Provision Premium Paid by insured banks annually Cap 0.15% of total deposits (can be raised with RBI approval) Repayment by Bank Must repay DICGC on terms set by Board Penal Interest Up to 2% above RBI repo rate for delays

Context: The Reserve Bank of India (RBI) released new digital lending norms earlier this month impacting credit guarantee schemes for MSME loans. Most MSME loans are currently covered under credit guarantee schemes which offer zero risk weight and encourage lending at competitive interest rates. RBI Directions on Digital Lending The Reserve Bank of India (RBI) issued comprehensive directions to regulate the digital lending ecosystem with the aim of enhancing borrower protection, promoting transparency, and ensuring responsible digital lending practices. Key Objectives Definition of Digital Lending Entities Covered The directions apply to: Key Features and Provisions Mandatory Reporting of Digital Lending Apps (DLAs) Due Diligence on Lending Service Providers (LSPs) Role of LSPs Mandatory Disclosures to Borrowers Grievance Redressal Mechanism Significance Key Regulatory Change Implications for NBFCs and MSME Lending

Context: Finance Minister Nirmala Sitharaman visited Pine Labs’ Noida office. Acknowledged fintech‘s role in enabling secure, inclusive financial services, especially for merchants and MSMEs. Push for Digitisation Across States Supportive Policy Plans for Fintech and Digital Exports BS

Context: The Ministry of Statistics and Programme Implementation (MoSPI) aims to track the utilization and impact of credit access programmes such as the Pradhan Mantri Mudra Yojana (PMMY). This initiative is part of efforts to support enterprise formalisation and financial inclusion. Surveys Involved Objectives Collaboration and Data User Engagement Significance