Source: TH Context: The Reserve Bank of India (RBI) has issued its final instructions for banks on digital banking channels, emphasizing customer consent, risk management, and operational compliance. The guidelines clarify that digital banking cannot be made mandatory for accessing other services, such as debit cards. Key Provisions Explicit Customer Consent Mobile Number Collection Risk Mitigation Measures Risk-Based Monitoring Network-Independent Mobile Banking Restrictions on Third-Party Products Policy and Oversight Launch of Transaction Banking Facilities

Source: IE Context: Kolkata-headquartered Bandhan Bank has announced plans to sell unsecured retail non-performing assets (NPAs), including written-off accounts, worth ₹6,931.31 crore to Asset Reconstruction Companies (ARCs) and other permitted entities. This marks one of the largest retail NPA sales by a private sector bank in India, primarily from its microfinance portfolio. What is an NPA (Non-Performing Asset)? A Non-Performing Asset (NPA) is a loan or advance where the borrower has stopped making scheduled payments (principal or interest) for a certain period.As per RBI norms: When does a loan become NPA? A loan is classified as NPA after 90 days of overdue in the case of: Categories of NPAs In simple words:If a borrower does not pay for 90 days, the bank stops recognising income from that loan and marks it as NPA. Norms to Sell NPAs (As per RBI Guidelines) Banks can sell NPAs to: Eligibility for Sale

Source: BS Context: The International Monetary Fund (IMF), in its recent staff report on the Indian economy, highlighted structural inefficiencies in India’s business environment, low business dynamism, and issues in the insolvency resolution framework under the Insolvency and Bankruptcy Code (IBC) Amendment Bill. The report emphasised the prevalence of zombie firms and gaps in operational creditor rights. Low Business Dynamism Persistence of Zombie Firms Zombie Firms are businesses that continue to operate but are financially weak and unable to generate enough profits to cover their interest payments for a prolonged period. IBC Amendment Bill Gaps Recovery Rates and Pre-admission Delays Recommendations by IMF

Source: ET Context: The Ministry of Finance, in collaboration with the Reserve Bank of India (RBI), is developing a single unified digital portal to help individuals locate and claim unclaimed financial assets across multiple asset classes. The announcement was made by M. Nagaraju, Secretary, Department of Financial Services, during a PNB-led investor awareness event under Aapki Poonji Aapka Adhikar. Unclaimed Financial Assets Unclaimed Assets refer to money or financial instruments that legally belong to an individual but remain untouched, unwithdrawn, or unclaimed for a long period.These assets typically become “unclaimed” because the owner: Banks must transfer unclaimed bank deposits (10+ years) to the Depositors Education and Awareness Fund (DEAF) maintained by RBI. Unified Portal for All Unclaimed Assets What Is an Inoperative Account? An Inoperative Account is a bank account that has seen no customer-initiated transaction for a fixed period.

Source: IE Context: The International Monetary Fund (IMF), in its Annual Article IV Review, has assigned a ‘C’ grade to India’s national accounts statistics, including GDP and GVA. This grade is significant as India is set to release the Q2 FY25 national accounts data on Friday. Meaning of ‘C’ Grade Weaknesses Cited by IMF 1. Outdated Base Year (2011–12) 2. Use of Wholesale Price Index (WPI) for Deflators 3. ‘Sizeable Discrepancies’ in GDP Estimates Approaches to GDP Measurement in India 1. Income Approach (Primary method used by India) Measures GDP by adding up incomes earned by: 2. Expenditure Approach (Supplementary estimate) Measures GDP by calculating spending by: Differences frequently arise due to:

Source: ET Context: The Reserve Bank of India (RBI) has issued 244 Consolidated Master Directions (MDs) to streamline and rationalise decades of regulatory instructions for Regulated Entities (REs). This step follows a review of around 3,500 prior directions, circulars, and guidelines and aims to reduce compliance burden. Key Highlights: Customer Consent and Choice Risk Mitigation Requirements Accessibility and Network Independence Monitoring and Surveillance Restrictions on Third-Party Offerings Communication Guidelines Regulated Entities Covered The consolidation covers the following 11 types of entities: Objective