Source: TH Why in News? Debris bearing the ISRO logo and Indiaâs National Emblem has been found on an uninhabited island in the Maldives. The object is believed to be part of a launch vehicle payload fairing. Key Details Possible Mission Link About Payload Fairing About LVM3 (Launch Vehicle Mark-3) Uses
Commercial Papers (CPs) vs Certificates of Deposit (CDs)
Source: BS Why in News? Investors are increasingly shifting from Commercial Papers (CPs) to Certificates of Deposit (CDs) due to higher CD issuances, better yields, and lower perceived credit risk. Key Trend Commercial Papers (CPs) vs Certificates of Deposit (CDs) Basis Commercial Paper (CP) Certificate of Deposit (CD) Definition Short-term unsecured promissory note issued for working capital needs Short-term negotiable time deposit issued to raise funds Issuer Corporates, financial institutions, NBFCs Banks and select financial institutions Nature of Instrument Unsecured debt Bank deposit instrument Purpose Corporate short-term financing Bank short-term liquidity management Credit Risk Higher (depends on corporate creditworthiness) Lower (issued by regulated banks) Return / Yield Generally higher to compensate for higher risk Usually slightly lower but currently rising due to demand Liquidity Tradable but relatively less liquid More liquid and widely traded Investor Base Mutual funds, banks, institutions, corporates Mutual funds, banks, institutions, corporates Regulation Regulated by RBI guidelines for money market instruments Regulated by RBI banking and money market norms Typical Maturity 7 days to 1 year 7 days to 1 year (banks) Collateral Requirement No collateral (unsecured) Backed by bankâs financial strength Risk Perception Sensitive to corporate financial health Considered safer due to bank backing Market Trend (Recent) Issuances declining Issuances rising Main Reason for Current Shift Higher perceived risk, competitive bank lending Higher yields, better liquidity, strong bank demand Economic Indicator Reflects corporate borrowing conditions Reflects banking system liquidity needs Why Investors Are Shifting from CPs to CDs Factor Explanation Impact on Market Higher Yields Rising interest rates on CDs have made them more attractive than CPs. Investors shift funds toward CDs for better returns. Lower Credit Risk CDs are issued by banks, which are perceived safer than corporate issuers of CPs. Preference for risk-adjusted returns increases demand for CDs. Greater Liquidity CDs are more easily tradable in secondary markets. Investors prefer CDs for flexibility and easier exit. Higher Bank Issuances Banks are issuing more CDs to meet funding needs. Increased supply boosts CD market share. Why Banks Are Issuing More Certificates of Deposit (CDs) Driver Explanation Effect CreditâDeposit Gap Loan demand growing faster than deposit growth. Banks raise short-term funds via CDs. Credit Growth Around 13.1% year-on-year growth. Higher funding requirement for lending. Deposit Growth Around 10.6% year-on-year growth. Insufficient deposit mobilisation. Deposit Tightness Weak retail deposit growth and intense competition for deposits. Banks rely more on market borrowing (CDs). Liquidity & Monetary Conditions RBI liquidity measures influence short-term interest rates. CDs become flexible and responsive funding tool.
RBI Restores Default Loss Guarantees (DLGs) for NBFCs
Source: ET Why in News? The Reserve Bank of India (RBI) has restored the use of Default Loss Guarantees (DLGs) for Non-Banking Financial Companies (NBFCs), reversing earlier restrictions that increased provisioning requirements for loans sourced through fintech partnerships. What Is the Decision? Background â Earlier RBI Rule (2025) Impact: What Are Default Loss Guarantees (DLGs)? A DLG is a risk-sharing arrangement in digital lending: Purpose â Reduce lender risk and enable credit expansion.
RBI Initiates Talks to Ease Overseas Investment (OI) Norms
Source: ET Why in News? The Reserve Bank of India (RBI) has begun consultations with banks to review and simplify overseas investment rules, following industry concerns over procedural hurdles and regulatory ambiguities. What Is the Development? This has raised expectations of policy changes to facilitate outbound investment by Indian entities and individuals. Current Overseas Investment Framework Overseas Direct Investment (ODI) Limits An Indian company can invest abroad up to: What is Overseas Investment (OI) Framework The Overseas Investment (OI) framework is Indiaâs regulatory system that governs how Indian residents, companies, and financial institutions invest abroad. It lays down: The framework ensures orderly capital outflows while safeguarding financial stability. Legal and Regulatory Basis The OI framework operates under: Main Types of Overseas Investment 1. Overseas Direct Investment (ODI) Long-term investment where the investor has control or significant influence in a foreign entity. Examples: Typical corporate ODI limit: 2. Overseas Portfolio Investment (OPI) Passive investment without control. Examples:
RBIâs New Rules on M&A Financing and Broker Funding
Source: BL Why in News? The Reserve Bank of India (RBI) has issued new guidelines on merger & acquisition (M&A) financing and broker funding, introducing stricter conditions while also increasing lending limits. Part I: M&A (Acquisition) Financing Rules Key Provisions 1. Funding for Increased Stake Acquisition 2. Eligibility Criteria For Listed Companies: For Unlisted Companies: 3. Exposure Limits 4. Funding Structure Part II: Stricter Rules for Broker Financing New Collateral Requirements 1. Bank Guarantees 2. Proprietary Trading Exposure
40 Years of Agricultural and Processed Food Products Export Development Authority (APEDA)
Why in News? The Union Minister congratulated the Agricultural and Processed Food Products Export Development Authority (APEDA) on completing 40 years of establishment, highlighting its role in promoting Indiaâs agricultural exports. About APEDA Objective To promote, develop, and regulate exports of agricultural and processed food products from India and enhance global competitiveness. Key Functions 1. Export Promotion and Market Development 2. Registration of Exporters (RCMC) 3. Quality Standards and Certification 4. Packaging and Value Addition 5. Organic Export Regulation 6. Trade Data and Policy Support 7. Monitoring of Sugar Imports Product Coverage APEDA covers a wide range of agricultural and processed products, including:
Daily Current Affairs (DCA) 14 February, 2026
Daily Current Affairs Quiz14 February, 2026 National Affairs 1. Henley Passport Index (HPI) February 2026 Source: TH Why in News? Henley & Partners released the Henley Passport Index (HPI) â February 2026, ranking passports worldwide based on travel freedom. About Henley Passport Index (HPI) Purpose â Measures global mobility and travel freedom of citizens. Indiaâs Position Top Countries â HPI 2026 Rank Country / Countries Visa-Free Access 1 Singapore 192 destinations 2 Japan, South Korea 187 4 Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Switzerland 185 5 Austria, Greece, Malta, Portugal 184 Lowest Ranked Country 2. Cabinet Approves âč10,000 Crore Startup India Fund 2.0 Source: TH Why in News? The Union Cabinet has approved the second tranche of the Startup India Fund of Funds Scheme (FFS 2.0) with a corpus of âč10,000 crore to support startups, especially in manufacturing and high-technology sectors. Key Highlights: About Fund of Funds Scheme (FFS) 3. Privilege Notice Against Leader of Opposition Source: News on Air Why in News? The Union Government has announced that it will move a Privilege Notice against the Leader of Opposition for allegedly making baseless and misleading statements during the Budget discussion in the Lok Sabha. What is a Privilege Notice? Constitutional Basis When Can It Be Moved? The Speaker (Lok Sabha) or Chairman (Rajya Sabha) decides whether to admit the notice. 4. Dal Lake Conservation Plan Revised in Jammu & Kashmir Source: TH Why in News? The Jammu & Kashmir government has shelved the âč416.72-crore Dal Lake restoration plan and proposed an in-situ conservation strategy, allowing residents to remain within the lake ecosystem. About Dal Lake Location Origin & Formation 5. India to Procure Dornier 228 Aircraft for Indian Coast Guard Source: IE Why in News? The Ministry of Defence has signed a âč2,312 crore contract with Hindustan Aeronautics Limited (HAL) to procure eight Dornier 228 aircraft for the Indian Coast Guard. What is the Dornier 228? Manufacturing Major Variants Banking/Finance 1. RBI to Revamp Lead Bank Scheme (LBS) Source: ET Why in News? The Reserve Bank of India (RBI) has issued draft revised guidelines to overhaul the Lead Bank Scheme (LBS) to improve district-level credit delivery, coordination, and financial inclusion across the country. Objective of the Revamp Key Proposed Reforms About the Lead Bank Scheme (LBS) 2. RBI Allows Bank Loans for Takeovers of Listed and Unlisted Companies Source: BS Why in News?The Reserve Bank of India (RBI) has issued final norms permitting banks to finance acquisitions (takeovers) of both listed and unlisted non-financial companies, with safeguards to ensure prudent lending and long-term value creation. Key Provisions Eligibility Criteria for Acquiring Companies Control and Ownership Rules Financial Safeguards Bridge Financing Change from Draft Proposal 3. 60% Credit-Deposit Ratio for Rural & Semi-Urban Branches Source: BS Why in News? The Reserve Bank of India (RBI), in its draft revised guidelines for the Lead Bank Scheme (LBS), has proposed that banks maintain a 60% credit-deposit (C/D) ratio for rural and semi-urban branches to improve credit flow and financial inclusion. Key Proposal Monitoring Based on C/D Ratio Expansion of Banking Infrastructure CreditâDeposit Ratio (C/D Ratio) CreditâDeposit Ratio (CDR) measures how much of the deposits collected by banks are used for lending. It is the percentage of total bank deposits that are given out as loans (credit). Formula CreditâDeposit Ratio = {Total Loans (Credit)âĂ100} / Total Deposits 4. RBI Proposes to Allow Bank Loans to REITs from July 1 Source: TOI Why in News? The Reserve Bank of India (RBI) has issued draft regulations proposing to allow banks to lend to Real Estate Investment Trusts (REITs), with safeguards to manage risk and ensure proper use of funds. Key Provisions Real Estate Investment Trusts (REITs) Real Estate Investment Trusts (REITs) are companies or trusts that own, operate, or finance income-generating real estate and allow investors to earn returns from real estate without directly buying property. A REIT pools money from many investors and invests it in commercial real estate, such as: 5. SEBI Proposes Easing Reporting Norms for Stockbrokers Source: Mint Why in News? The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing to ease reporting requirements for stockbrokers, especially those that also function as primary dealers, to improve ease of doing business. Key Proposal Background What Will Change? Facts To Remember 1. BNP secures landslide victory in Bangladesh The Bangladesh Nationalist Party, led by chairman Tarique Rahman, is set to return to power in Dhaka after two decades, following a landslide victory in the February 12 parliamentary election, winning an absolute majority of seats, according to the Election Commission of Bangladesh. 2. Tissa Vitarana, Sri Lankaâs LSSP leader, dies at 91 Tissa Vitarana, leader of Sri Lankaâs leftist Lanka Sama Samaja Party (LSSP) and a key figure in the All Party Representative Committee (APRC) formed in 2006 to develop a political solution to the islandâs civil war, died in Colombo early Friday. He was 91. 3. India ends Asian championship on a high, tops table India topped the standings in commanding fashion in the Asian rifle/pistol championship, securing a total of 94 medals, including 51 gold, 23 silver and 20 bronze, as the event concluded at the Dr. Karni Singh Shooting Range. 4. MoES Signs MoU with Puducherry for Marine Cooperation The Ministry of Earth Sciences (MoES) signed an MoU with the Department of Science, Technology and Environment, Government of Puducherry, on 12 February 2026 to strengthen marine research, coastal development, and Blue Economy activities in Puducherry. 5. PM Inaugurates Seva Teerth Complex in New Delhi Prime Minister Narendra Modi inaugurated the âSeva Teerth Complexâ in New Delhi on 13 February 2026. The integrated complex will house the Prime Ministerâs Office, National Security Council Secretariat, and Cabinet Secretariat, which were earlier located separately, and reflects administrative integration and citizen-centric governance with the motto âNagrik Devo Bhavaâ. 6. NITI Aayog Releases 10-Year Roadmap on Technology Services NITI Aayogâs Frontier Tech Hub released a 10-year roadmap titled âTechnology Services â Reimagination Aheadâ to scale Indiaâs USD 265
60% Credit-Deposit Ratio for Rural & Semi-Urban Branches
Source: BS Why in News? The Reserve Bank of India (RBI), in its draft revised guidelines for the Lead Bank Scheme (LBS), has proposed that banks maintain a 60% credit-deposit (C/D) ratio for rural and semi-urban branches to improve credit flow and financial inclusion. Key Proposal Monitoring Based on C/D Ratio Expansion of Banking Infrastructure CreditâDeposit Ratio (C/D Ratio) CreditâDeposit Ratio (CDR) measures how much of the deposits collected by banks are used for lending. It is the percentage of total bank deposits that are given out as loans (credit). Formula CreditâDeposit Ratio = {Total Loans
RBI Allows Bank Loans for Takeovers of Listed and Unlisted Companies
Source: BS Why in News?The Reserve Bank of India (RBI) has issued final norms permitting banks to finance acquisitions (takeovers) of both listed and unlisted non-financial companies, with safeguards to ensure prudent lending and long-term value creation. Key Provisions Eligibility Criteria for Acquiring Companies Control and Ownership Rules Financial Safeguards Bridge Financing Change from Draft Proposal
RBI to Revamp Lead Bank Scheme (LBS)
Source: ET Why in News? The Reserve Bank of India (RBI) has issued draft revised guidelines to overhaul the Lead Bank Scheme (LBS) to improve district-level credit delivery, coordination, and financial inclusion across the country. Objective of the Revamp Key Proposed Reforms About the Lead Bank Scheme (LBS)
