Context: Sebi Proposes Sachetisation of Systematic Investment Plans (SIPs). Systematic Investment Plan (SIP) A Systematic Investment Plan (SIP) is a method of investing where you regularly invest a fixed amount of money at set intervals (like monthly) into a mutual fund scheme, essentially allowing you to average out the cost of your investment by buying units when the market is high and low, benefiting from the power of compounding over time. It’s a disciplined way to build wealth gradually instead of making a single lump-sum investment.  Overview of the Proposal Current Situation vs Proposed Change Potential Benefits Constraints for Asset Management Companies (AMCs) Profitability Concerns Regulatory Considerations

Context: PSBs Lag in Meeting Insurance Targets Under Financial Inclusion Initiative. Key Schemes Overview PMJJBY Performance PMSBY Performance Action Required

Context:  RBI announced open market operation (OMO) purchase auctions aggregating to RS 60,000 crore. What Are OMOs? How OMOs Work? Why Are OMOs Important? Overall, OMOs are crucial for the RBI to manage the economy’s liquidity effectively, ensuring stability in the financial system and helping achieve broader economic goals.

Context: With the interest rate cut cycle around the corner, Bank of India (BoI) is tweaking its lending strategy to enhance the share of the marginal cost of funds-based lending rate (MCLR)-linked loans from about 29 per cent now to 35 per cent in the next two to three years. Marginal Cost of Funds-based Lending Rate (MCLR) The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate that a bank can charge for a loan. It’s based on the cost of borrowing funds, the bank’s operating costs, and other factors. The Reserve Bank of India (RBI) implemented MCLR on April 1, 2016.  How MCLR works? Factors that affect MCLR Benefits of MCLR 

Context: RBI Steps Up Examination of P2P Lending Platforms to Ensure Compliance. Peer-to-peer (P2P) Peer-to-peer (P2P) banking is a way to transfer money between individuals without using banks as intermediaries. P2P banking can be done through digital apps or online.  How does P2P banking work? What can P2P banking be used for? How can you use P2P banking?  RBI Moves at a Glance Key Areas Covered in the Questionnaire Context of the RBI’s Scrutiny

Context: RBI took some steps to Enhance Liquidity in the Banking System. Major Announcements Context: Addressing Liquidity Deficit Expected Impact of RBI Measures

Key Highlights Key Actions Suggested for Banks Acknowledgement of Banks’ Role Context of the Meeting