Banking Awareness of 22, 23, 24 and 25 March 2026

Topic: RBI

1. The 622nd meeting of the Central Board of the Reserve Bank of India was held in Patna.

• The meeting was presided over by RBI Governor Sanjay Malhotra.
• The Board reviewed current global economic trends. It also took stock of the domestic economic situation.
• The members discussed ongoing geopolitical developments. They analyzed how these developments are impacting financial markets.
• The Board deliberated on the challenges arising from such uncertainties.
• The Board approved the Bank's budget for the financial year 2026-27.
• The Board also approved a medium-term strategy framework titled 'Utkarsh 3.0'.
• This strategy will guide the Bank's plans from 2026 to 2029.

Topic: RBI

2. The Reserve Bank of India injected ₹25,101 crore into the banking system.

• This was accomplished through a three-day variable rate repo auction.
• The cut-off rate stood at 5.26 percent, and the weighted average rate was also 5.26 percent.
• The amount injected was significantly lower than the declared amount of ₹75,000 crore.
• Liquidity had tightened due to advance tax payments. Despite this, banks participated sparingly in the auction.
• This indicates that the distribution of liquidity among banks is uneven.
• Many banks opted to deposit their funds in the Standing Deposit Facility instead.
• On March 19 as well, systemic liquidity remained in surplus by approximately ₹16,875.36 crore.
• Prior to this, on March 17, the RBI had injected ₹48,014 crore through a seven-day VRR.
• Since January 2026, the RBI has injected ₹3.50 lakh crore into the system through Open Market Operations.

Topic: Corporates/Companies

3. Svatantra Microfin completed its merger with Chaitanya India Fin Credit.

• It also merged with Svatantra Holding Private Limited.
• This deal received approval from the Mumbai Bench of the National Company Law Tribunal.
• It also received approval from the Reserve Bank of India.
• Approval was also obtained from the Competition Commission of India. BSE Limited, too, approved this transaction.
• The entity formed following this merger is now India's second largest NBFC-MFI.
• It manages assets worth approximately ₹22,000 crore. This includes its housing finance business as well.
• The company operates through a network of approximately 2,200 branches spread across 20 states.
• With this merger, a phased integration process has been concluded. This process had commenced in November 2023.
• The merged entity holds a CAREEdge AA rating, with a stable outlook.
• Svatantra was founded in 2012 and started operations in March 2013. Ananya Birla is Founder and Chairperson of Svatantra Microfin.

Topic: Appointments

4. Jose Joseph Kattoor appointed as non-executive part-time Chairman of South Indian Bank.

• Jose Joseph Kattoor has been appointed as the Non-Executive Part-Time Chairman of South Indian Bank for a tenure of three years with effect from March 23, 2026.
• It has been stated that his appointment has been made following approval from the Reserve Bank of India.
• He has succeeded V J Kurian, who completed his tenure as Chairman of the bank prior to this appointment.
• Kattoor has been serving as an Independent Director on the Board of the bank since July 18, 2024.
• In his new role, he will work closely with the Board and senior management to strengthen governance standards within the bank.
• He brings over three decades of experience from the Reserve Bank of India, where he served from 1991 until his retirement in 2023.
• During his tenure at RBI, he held the position of Executive Director and handled key departments such as Enforcement and Corporate Strategy.

Topic: Indian Economy/Financial Market

5. The Index of Eight Core Industries grew by 2.3% year-on-year in February.

• This marks a slowdown compared to the 4.7% growth recorded in January.
• Cement production rose by 9.3% compared to the previous year.
• This was the fastest-growing sector among the core industries.
• Steel production increased by 7.2% compared to the previous year.
• Fertilizer production grew by 3.4% on an annual basis.
• Coal production recorded a year-on-year growth of 2.3%.
• Electricity generation saw a marginal increase of 0.5%.
• Crude oil production declined by 5.2% compared to the previous year.
• Natural gas production also fell by approximately 5% on an annual basis.
• A marginal decline was observed in petroleum refinery products.
• Together, these eight core industries account for more than 40% of the Index of Industrial Production.

Topic: Banking/Financial/Govt Schemes

6. The government has introduced amendments to the Mutual Credit Guarantee Scheme for MSMEs.

• The objective of these changes is to strengthen the financial assistance available to small businesses.
• These amendments are aligned with the Union Budget 2025–26.
• This scheme focuses on improving access to credit. It targets manufacturing and export-oriented units.
• The National Credit Guarantee Trustee Company Limited provides credit guarantees under this scheme.
• It offers a guarantee coverage of 60% to lending institutions. This applies to loans of up to ₹100 crore.
• These loans are intended for the purchase of machinery and equipment.
• The aim of these reforms is to expand the coverage of the scheme. They also seek to reduce compliance requirements.
• The rule regarding the initial contribution of 5% has been modified. This contribution is now refundable.
• Refunds will commence from the fourth year onwards. One percent will be refunded annually, subject to the satisfactory performance of the loan.
• The eligibility criteria have been expanded. MSMEs in the service sector have now been included in the scheme.
• The condition regarding the minimum project cost allocated for machinery and equipment has been reduced from 75% to 60%.
• The government anticipates an increase in the flow of credit, with the aim of boosting manufacturing and exports.

Topic: Banking/Financial/Govt Schemes

7. The government has launched the RELIEF scheme under the Export Promotion Mission.

• RELIEF stands for Resilience and Logistics Intervention for Export Facilitation.
• This scheme provides assistance to exporters affected by disruptions in West Asia. It addresses the escalating risks in maritime trade routes.
• Shipping routes have been diverted due to security concerns. Consequently, transit times have increased significantly.
• Congestion has intensified at major transshipment hubs. Freight charges have witnessed a massive surge, and insurance premiums have also risen.
• RELIEF is a time-bound assistance measure aimed at alleviating the financial burden on exporters.
• Its primary focus lies on addressing increased logistics costs and providing risk coverage.
• The RELIEF scheme covers both past and upcoming export consignments. ECGC Ltd. serves as the nodal implementing agency.
• It will manage the verification and claim processing procedures, as well as the disbursement and monitoring of funds.
• Exporters holding existing insurance policies can avail up to 100% additional risk coverage on shipments dispatched during the disruption period.
• Future shipments are eligible for up to 95% additional coverage. This assistance will remain available for the next three months.
• Assistance is also being extended to uninsured MSME exporters. They can receive reimbursement of up to 50% of their additional costs.
• This includes freight charges and insurance surcharges. The maximum benefit limit per exporter is ₹50 lakh.
• The scheme covers exports destined for Gulf and West Asian countries.
• A budget of ₹497 crore has been allocated for this initiative. A dedicated dashboard system will monitor the implementation process in real-time.

Topic: Reports and Indices

8. NITI Aayog Report released to unlock export potential of sports equipment sector.

• A comprehensive report on “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector” has been released by NITI Aayog to assess opportunities and policy needs.
• The report has been designed to provide an evidence-based framework to strengthen India’s position in the global sports equipment market.
• It highlights the importance of export-led growth and employment generation through MSME-driven manufacturing clusters.
• The global sports goods market has been valued at around $700 billion in 2024 and is projected to exceed $1 trillion by 2036.
• India’s sports equipment exports currently stand at around $275 million, representing nearly 0.5% of global exports.
• Manufacturing activity is concentrated in clusters such as Jalandhar and Meerut, supported by small and micro enterprises.
• The sector faces challenges such as high raw material costs, certification expenses, logistics inefficiencies, and limited access to advanced technologies.
• The report recommends measures like duty rationalisation, technology upgradation, and development of new manufacturing clusters.
• A coordinated investment of about ₹7,500 crore has been proposed to strengthen the ecosystem between 2027 and 2031.
• If implemented effectively, exports are expected to grow to $8.1 billion by 2036, generating around 54 lakh additional jobs.