Topic: Corporates/Companies
1. Bajaj Allianz Life Insurance Company (BALIC) has launched the BIMA-ASBA facility.
- BALIC is the first insurer to go online with the BIMA-ASBA facility.
- BIMA - Application Supported by Blocked Amount facility (Bima-ASBA) is a new initiative by the Insurance Regulatory and Development Authority of India (IRDAI).
- The facility allows policyholders to block up to ₹2 lakh in their bank account using UPI's One-Time Mandate (OTM).
- Only after the insurance company accepts the proposal and finishes the underwriting process is the money deducted.
- The blocked payment is immediately returned to the customer if the proposal is rejected or the application is not processed within 14 days.
Topic: Regulatory Bodies/Financial Institutions
2. Sebi has imposed a Rs 10 lakh penalty on Axis Securities for violating stock brokers rules and other regulatory norms.
- The penalty must be paid within 45 days.
- Sebi discovered that Axis Securities had violated regulatory protocols in a number of areas.
- These areas include errors in reporting and inappropriate customer money management.
- In contrast to their real holdings in depository accounts, Axis Securities exhibited irregularities in its increased supervision reporting to stock exchanges and stock statements.
- Along with a shortfall in margin collection from one client, Sebi also discovered inconsistencies in reporting politically exposed individuals and margin trading exposure that exceeded the permitted limit.
- From April 2021 until November 2022, Sebi conducted an inspection of Axis Securities.
Topic: RBI
3. The RBI has increased the limit on small-value loans from UCBs to Rs 3 crore per borrower.
- By March 31, 2026, UCBs must have at least 50% of their total loans and advances made up of small value loans, per RBI regulations.
- Small loans were previously classified by the RBI as loans with a maximum value of ₹1 crore per borrower and a maximum value of ₹25 lakh or 0.2% of UCB's Tier-I capital, whichever was higher.
- The RBI has now updated the definition of small value loans.
- Small value loans now include loans with a maximum value of ₹25 lakh or 0.4% of UCBs' Tier-I capital, whichever is higher, and a maximum of ₹3 crore per borrower.
- The 10% cap on UCBs' total exposure to loans for housing, real estate, and commercial real estate can now be exceeded.
- In order to provide housing loans to persons in accordance with the qualifying requirements for priority sector classification, they are permitted to surpass the cap by an extra 5% of total assets.
- The following are the updated prudential limits on housing loans for UCBs:
- Tier-I: Up to ₹60 lakh per dwelling unit
- Tier-ll: Up to ₹1.40 cr per dwelling unit
- Tier-lll: Up to ₹2 cr per dwelling unit
- Tier-IV: Up to ₹ 3 cr per dwelling unit
- According to the RBI, a UCB's overall exposure to residential mortgages, or loans for homes to persons, excluding those that qualify as priority sectors, cannot above 25% of its total loans and advances.
- A UCB's overall exposure to the real estate market, excluding personal home loans, cannot be more than 5% of its total loans and advances.
Topic: Banking System
4. RBI allowed Rs 25,000 withdrawal for New India Cooperative Bank depositors.
- More than 50 per cent of the total depositors will be able to withdraw their entire balances.
- The remaining depositors can draw up to ₹25,000 from their deposit accounts.
- The depositors may use the branch as well as ATM channel of bank for this withdrawal.
- However, the aggregate amount that can be withdrawn will be ₹25,000 per depositor or the balance available in their account whichever is lower.
- RBI has also reconstituted the Committee of Advisors (CoA) to the Administrator.
- CoA includes Ravindra Sapra, former general manager of State Bank of India, Ravindra Tukaram Chavan, former Deputy CGM, Saraswat Co-operative Bank Ltd and Shri Anand M Golas, Chartered Accountant.
- Shreekant, the former chief general manager of State Bank of India, is still the administrator.
- The RBI issued a comprehensive directive to the lender on February 13th, prohibiting the granting of new loans and stopping the withdrawal of deposits.
Topic: Appointments
5. NITI Aayog CEO Subrahmanyam’s term has been extended for one year.
- The central government has decided to extend the tenure of the NITI Aayog Chief Executive Officer (CEO) B V R Subrahmanyam by one year.
- The Appointments Committee of the Cabinet has approved an extension in Subrahmanyam's tenure as NITI Aayog CEO.
- He was appointed as the CEO of the NITI Aayog in February 2023 for two years.
- NITI Aayog:
- National Institution for Transforming India acts as the apex public policy think tank for the government of India.
- NITI Aayog was established in 2015.
- Its council comprises all the state Chief Ministers, Lieutenant Governors of all UTs, and a vice-chairman nominated by the Prime Minister.
- Suman Bery is currently the Vice Chairperson of the NITI Aayog.
Topic: Reserve Bank of India
6. 'RBIDATA' app launched by the RBI to offer access to economic and financial data.
- The mobile application 'RBIDATA' has been launched by the Reserve Bank, which will provide access to more than 11,000 different series of economic data related to the Indian economy.
- This mobile app presents macroeconomic and financial data related to the Indian economy in a user-friendly and attractive format.
- Users will be able to view time series data in graphs/charts and download the data for analysis.
- The app will also have details such as data source, unit of measurement, frequency, and recent updates.
- Besides, the 'Banking Outlets' section of the app will help users find banking facilities within 20 km from their location.
- They can also get data about SAARC countries through 'SAARC Finance'.
Topic: Appointments
7. Government has appointed Shaktikanta Das as Principal Secretary-2 to Prime Minister Modi on February 22.
- His apppointment has been approved by the Appointments Committee of the Cabinet.
- His appointment will become effective from the date of assuming charge.
- His tenure will be co-terminus with the tenure of the Prime Minister or until further orders, whichever is earlier.
- Das is a retired IAS officer of Tamil Nadu cadre. He has served as the 25th Governor of RBI.
- He has also served as India's G-20 Sherpa and member of the 15th Finance Commission.
- PK Mishra is currently serving as Principal Secretary to the Prime Minister. He is a retired IAS officer of Gujarat cadre.
Topic: Banking System
8. Bank lending to non-banking financial companies in India reduced to 6.7% in 2024.
- Bank lending to NBFCs reached Rs 16.22 lakh crore as of December.
- Bank lending to NBFCs grew at 15% in 2023.
- The reduction was due to higher funding costs after the RBI raised risk weights on such loans.
- Banks' lending to NBFCs fell to Rs 1 lakh crore in 2024, compared to nearly Rs 2 lakh crore in 2023.
- The RBI increased the risk weight for bank credit to NBFCs by 25 basis points to 125% in November 2023.
- As a result, lending to NBFCs became more expensive for banks.
- This led to NBFCs exploring alternative funding avenues.
- These include domestic capital markets, overseas markets, and the external commercial borrowings route.
Topic: Miscellaneous
9. Barytes, Felspar, Mica and Quartz have been classified as Major Minerals.
- Barytes, Felspar, Mica and Quartz have been shifted from the list of minor minerals to the category of major minerals.
- Quartz, Felspar and Mica are found in pegmatite rocks, which are important sources of many critical minerals.
- These minerals are vital for new technologies mainly in energy transition, spacecraft industries, healthcare sector, etc.
- Baryte has various industrial applications which is used for oil and gas drilling, electronics, TV screens, rubber, glass, etc.
- Baryte is used to make high density concrete to block x-ray emissions in hospitals, power plants, and laboratories.
- The reclassification of Barytes, Felspar, Mica and Quartz will not adversely affect the lease period of the existing leases.
- These mines will gradually register with the Indian Bureau of Mines and will be regulated as major minerals.
Topic: Reserve Bank of India
10. Reserve Bank of India has launched the Financial Literacy Week 2025.
- Financial Literacy Week 2025 campaign will run from February 24 to 28.
- “Financial Literacy – Women’s Prosperity” is the theme of the Financial Literacy Week.
- The theme of this year emphasizes empowering women financially and socially.
- This campaign will create awareness about the risks and precautions while using these platforms.
- The campaign was launched by Abhishek Mazumdar, General Manager, RBI Regional Office Itanagar.
- Under this campaign, banks have been instructed to spread awareness by displaying RBI-developed posters on their websites, ATMs, mobile applications, and display boards at their branches.
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