Context: A group of stock brokers has approached the Reserve Bank of India (RBI), requesting a detailed procedural framework for retail participation in government securities (G-Secs) trading on the NDS-OM (Negotiated Dealing System-Order Matching) platform. Key Issues Raised by Brokers Challenges in Driving Retail Participation RBI’s Efforts So Far Summary Table Issue Concern/Requirement Procedural clarity Implementation details, account structure (Demat or SGL), and UCC usage needed Technology integration Brokers need time and resources to integrate back offices with NDS-OM Retail investor education Awareness about yields, price movement, and secondary markets is lacking Competition with FDs FDs remain simpler and more familiar for retail investors Minimum investment threshold Lowered to ₹10,000 by RBI to attract retail investors For the RBI’s vision of democratizing federal debt ownership to succeed, the regulator needs to: Source: The Economic Times

Context: The Reserve Bank of India (RBI) has issued revised guidelines on priority sector lending (PSL), aimed at facilitating better targeting of bank credit to priority sectors of the economy. Key Revisions in PSL Norms: Enhanced Housing Loan Limits (Based on City Population) To improve access to affordable housing, RBI has revised upward the PSL-eligible loan ceilings: City Population Maximum Housing Loan Eligible under PSL Above 50 lakh ₹50 lakh 10–50 lakh ₹45 lakh Below 10 lakh ₹35 lakh Expanded Renewable Energy Lending Farm Produce Hypothecation Loans These changes are aimed at supporting post-harvest financing and reducing farmers’ reliance on informal credit. Higher Limits for Educational and Social Sector Loans Revised PSL Targets for Urban Co-operative Banks (UCBs) Expanded Definition of ‘Weaker Sections’ The definition now includes: Differential Weight System for Regional Credit Flow To incentivize banks to lend in underserved areas: District Type PSL Weightage Lower per capita credit districts 125% Higher per capita credit districts 90% This weighting mechanism encourages balanced regional development and more equitable credit distribution. Impact of the Revised PSL Norms The revised PSL guidelines by RBI, effective April 2025, mark a significant step towards widening access to credit in priority sectors such as affordable housing, renewable energy, and cooperative banking. The emphasis on enhanced limits and target revisions will strengthen India’s push for inclusive economic growth and sustainable development. Mint

Unprecedented Growth in Derivatives Trading SEBI’s Initial Measures (Effective from November 2024) Visible Impact of Measures Current Derivative-to-Cash Market Ratios SEBI’s New Consultation Paper (February 2025) Intraday Limits and Safeguards Retail Participation and Market Outlook India’s derivatives market has seen unpa

Key Highlights 1. Highest-Ever Dividend Receipts: 2. Top Dividend Contributors in FY25: 3. Revised CPSE Dividend Policy: 4. CPSE Profit Growth: 5. Public Sector Banks (PSBs) Dividend Surge: 6. State Bank of India (SBI) Performance: 7. Historical Dividend Trend:

Key Changes Housing Loan Limits Under Priority Sector Earlier Norms: Renewable Energy (RE) Loan Limit Enhancements Changes for Urban Cooperative Banks (UCBs) Weaker Sections Lending Current Status (as per January 2024): Performance in FY24: The RBI’s revised priority sector lending guidelines are aimed at expanding financial inclusion and promoting renewable energy investments. By enhancing housing loan limits and broadening eligible categories, the central bank is support

Need for Stronger Credit Risk Practices Key Findings from the FSSA Report Financial Inclusion and Infrastructure Growth Insurance Sector and Regulatory Progress Addressing Cybersecurity and Climate Risks The IMF’s FSSA report acknowledges India’s progress in building a resilient and diverse financial system. However, the path forward requires continued focus on aligning with global standards, particularly IFRS 9, strengthening credit risk supervision, broadening financial inclusion, and addressing climate and cybersecurity challenges. These steps are vital to fortify India’s financial system and sustain its growth momentum. Source: BS

Context: The Securities and Exchange Board of India (Sebi), under the new leadership of Tuhin Kanta Pandey, held its first board meeting on Monday. Key Decisions A. High-Level Committee (HLC) Formation B. Regulatory Changes and Simplifications Strategic Objectives Implications for Stakeholders Under Tuhin Kanta Pandey’s leadership, SEBI has taken decisive first steps towards transparent governance, robust conflict-of-interest safeguards, and simplified regulations. These reforms signal a forward-looking, investor-friendly approach that aims to balance market growth with strong institutional integrity. Source: BS