Banking, Financial Sector & Capital Markets — Intermediating India's Savings into Growth
India's financial system channels household savings into productive investment through a layered structure of banks, NBFCs & capital markets, regulated by RBI & SEBI. Topic 16 traces the arc from 1969/1980 bank nationalisation through the post-2015 NPA crisis, the Insolvency & Bankruptcy Code's resolution framework, financial inclusion (Jan Dhan & Payment Banks), and the capital-market architecture (SEBI, stock exchanges, mutual funds) — alongside the Basel prudential norms & digital-banking/fintech regulation shaping the sector's next phase.
On this page
- Conceptual Clarity
- 1. Structure of Indian Banking System
- 2. Banking Sector Reforms — Nationalisation to Privatisation
- 3. RBI — Functions, Monetary Policy Tools & Regulation
- 4. NPA Crisis, IBC & Asset Quality
- 5. Financial Inclusion — Jan Dhan, Payment Banks
- 6. NBFCs & Shadow Banking
- 7. Capital Markets — Primary & Secondary, SEBI
- 8. Stock Exchanges, Indices & Market Instruments
- 9. Mutual Funds, Pension Funds & Insurance
- 10. Financial Sector Reforms — Basel Norms, Mergers
- 11. Digital Banking & Fintech Regulation
- 12. Current Affairs Anchor (2024-26)
- 13. Prelims PYQs (2014–2026)
- 14. Mains PYQs (2014–2025)
- 15. Revision Box
Conceptual Clarity — Three Lenses
- Social objective vs. commercial viability — bank nationalisation (1969, 1980) prioritised social banking (rural credit, priority sector) over pure profitability; the post-1991 & post-2015 reform waves are a continual re-balancing act between these two goals.
- The twin-balance-sheet problem — a stressed-corporate-balance-sheet crisis (over-leveraged infrastructure/steel firms) transmitted into a stressed-bank-balance-sheet crisis (rising NPAs) — IBC, UDAY-like resolution frameworks & recapitalisation exist to break this vicious cycle.
- Banks vs. markets as capital-allocation channels — bank credit & capital markets (equity/debt) are complementary channels for mobilising savings into investment; India's financial system remains bank-dominated relative to more market-dominated systems (like the US), a recurring comparative theme.
Basel III minimum Capital to Risk-weighted Assets Ratio (CRAR): 8% (Basel) + Capital Conservation Buffer 2.5% (India-specific additions apply)
Gross NPA ratio of Scheduled Commercial Banks check for latest update or data
1. Structure of Indian Banking System
1.1 Broad Classification
| Category | Examples/Notes |
|---|---|
| Scheduled Commercial Banks (SCBs) | Listed in RBI's Second Schedule; includes Public Sector Banks (PSBs), Private Sector Banks, Foreign Banks, Regional Rural Banks (RRBs), Small Finance Banks & Payment Banks |
| Public Sector Banks (PSBs) | Majority government-owned; dominant share of banking assets despite consolidation-driven reduction in numbers |
| Cooperative Banks | Urban Cooperative Banks (UCBs) & Rural Cooperative Credit Institutions; dual regulation historically (RBI + Registrar of Cooperatives) until 2020 amendment brought UCBs more fully under RBI regulatory oversight |
| Regional Rural Banks (RRBs) | Established 1975 onward, jointly owned by Centre, sponsor bank & state government; focus on rural/agricultural credit |
| Development Financial Institutions (DFIs) | Long-term project finance institutions; e.g. NABARD (agriculture), SIDBI (MSME), National Housing Bank, and the newly established NaBFID (infrastructure, 2021) |
1.2 Apex Institutions
Reserve Bank of India (RBI, 1935) is the central bank & primary banking regulator. Sector-specific apex/development institutions include NABARD (agriculture/rural credit, 1982), SIDBI (MSME finance, 1990) & NaBFID (National Bank for Financing Infrastructure & Development, 2021) — the newest DFI, aimed at plugging the long-term infrastructure-financing gap discussed in Topic 14.
2. Banking Sector Reforms — Nationalisation to Privatisation
2.1 Nationalisation Waves
| Wave | Year | Banks Nationalised |
|---|---|---|
| First wave | 1969 | 14 major private banks (each with deposits over ₹50 crore) |
| Second wave | 1980 | 6 more private banks |
Rationale: expand banking's reach beyond urban/corporate clientele into rural/priority sectors, support planned-economy credit allocation & curb concentration of economic power.
2.2 Narasimham Committee Reforms (Post-1991)
Two Narasimham Committees (1991 & 1998) recommended reducing SLR/CRR, introducing prudential norms (income recognition, asset classification, capital adequacy), allowing new private banks & reducing directed-lending distortions — forming the blueprint for post-liberalisation banking reform.
2.3 Recent Consolidation & Privatisation Trend
- PSB Mergers (2019-20) — consolidated 27 PSBs (as of 2017) into a smaller set of larger, more competitive banks (e.g. merger of Vijaya Bank & Dena Bank into Bank of Baroda; Punjab National Bank absorbing Oriental Bank of Commerce & United Bank of India).
- IDBI Bank privatisation — government & LIC stake sale process ongoing, illustrating the shift towards a leaner PSB footprint. check for latest update or data
- Banking sector privatisation announcements (Union Budget 2021-22) signalled intent for further PSB privatisation beyond IDBI. check for latest update or data
3. RBI — Functions, Monetary Policy Tools & Regulation
3.1 Core Functions of RBI
- Issuer of currency (sole note-issuing authority, per RBI Act 1934)
- Banker to the government (manages government's banking transactions, public debt)
- Banker's bank & lender of last resort
- Regulator & supervisor of banks, NBFCs & select payment systems
- Manager of foreign exchange (under FEMA, 1999)
- Monetary policy formulation (via the Monetary Policy Committee)
3.2 Monetary Policy Committee (MPC)
Established via the RBI Act Amendment, 2016; a 6-member committee (3 RBI officials incl. Governor as Chair + 3 external members appointed by the government) mandated to set the policy repo rate to achieve the flexible inflation-targeting goal (4% CPI inflation, +/-2% band) discussed in Topic 7.
3.3 Monetary Policy Tools
| Tool | Mechanism |
|---|---|
| Repo Rate | Rate at which RBI lends short-term funds to banks against collateral; primary policy rate |
| Reverse Repo Rate | Rate at which RBI absorbs excess liquidity from banks |
| Cash Reserve Ratio (CRR) | % of Net Demand & Time Liabilities (NDTL) banks must hold as cash reserve with RBI (earns no interest) |
| Statutory Liquidity Ratio (SLR) | % of NDTL banks must hold in approved liquid assets (govt. securities, cash, gold) |
| Marginal Standing Facility (MSF) | Emergency overnight borrowing window for banks, at a rate above repo |
| Open Market Operations (OMO) | RBI buys/sells government securities to inject/absorb liquidity |
4. NPA Crisis, IBC & Asset Quality
4.1 The NPA Crisis
A Non-Performing Asset (NPA) is a loan/advance where interest/principal remains overdue for a specified period (typically 90 days). Post-2011-12, aggressive infrastructure/corporate lending during the earlier boom years, combined with project delays & commodity-price downturns, led to a sharp rise in Gross NPA ratios of PSBs — the "twin balance sheet problem" (stressed corporates + stressed banks).
4.2 Asset Quality Review (AQR) & Resolution Mechanisms
RBI's Asset Quality Review (2015) forced banks to accurately recognise stressed assets, causing reported NPAs to spike sharply as under-reporting was corrected. Pre-IBC resolution mechanisms (Corporate Debt Restructuring, SDR, S4A) largely failed to durably resolve stress, prompting the shift to a unified insolvency law.
4.3 Insolvency & Bankruptcy Code (IBC), 2016
Consolidated fragmented insolvency laws into a single time-bound framework:
- Corporate Insolvency Resolution Process (CIRP) — time-bound (originally 180+90 days, later extensions allowed) resolution process triggered by creditor/debtor application.
- National Company Law Tribunal (NCLT) — adjudicating authority for corporate insolvency cases.
- Insolvency & Bankruptcy Board of India (IBBI) — regulator overseeing insolvency professionals & the resolution process.
- Committee of Creditors (CoC) — financial creditors who vote on resolution plans, holding primary decision-making power (a shift from the earlier debtor-in-possession model to a creditor-in-control model).
4.4 Other Resolution Tools
- National Asset Reconstruction Company Ltd. (NARCL, 2021) — "bad bank" aggregating large stressed PSB assets for resolution.
- Recapitalisation of PSBs — periodic government capital infusion to maintain regulatory capital adequacy amid NPA write-offs.
5. Financial Inclusion — Jan Dhan, Payment Banks
5.1 Pradhan Mantri Jan Dhan Yojana (PMJDY, 2014)
National financial-inclusion mission providing universal access to basic banking (zero-balance savings accounts), RuPay debit card, accident/life insurance cover & overdraft facility; foundational to the JAM Trinity (Jan Dhan-Aadhaar-Mobile) enabling DBT (referenced in Topic 13).
5.2 Differentiated Bank Licences
| Bank Type | Mandate |
|---|---|
| Payment Banks (2015 licences) | Accept deposits (capped, currently ₹2 lakh/customer), offer payments/remittance services; cannot lend/issue credit cards; e.g. Airtel Payments Bank, India Post Payments Bank |
| Small Finance Banks (2015 licences) | Full banking services targeted at underserved segments (small businesses, farmers, micro/small industries); can lend, unlike Payment Banks |
5.3 Financial Inclusion Index
RBI publishes an annual composite Financial Inclusion Index (FI-Index) (since 2021) measuring access, usage & quality dimensions of financial inclusion across banking, investments, insurance & pension. check for latest update or data
6. NBFCs & Shadow Banking
6.1 Non-Banking Financial Companies (NBFCs)
Companies registered under the Companies Act, engaged in lending/investment activities, but cannot accept demand deposits (unlike banks) & are not part of the payment/settlement system directly. Regulated by RBI, but historically with a lighter regulatory touch than banks — the "shadow banking" characterisation stems from this regulatory gap despite NBFCs performing bank-like credit intermediation.
6.2 Scale-Based Regulatory Framework (2021)
RBI introduced a four-layered regulatory structure for NBFCs to align supervisory intensity with systemic risk:
| Layer | Coverage |
|---|---|
| Base Layer (NBFC-BL) | Smallest, non-deposit-taking NBFCs; lightest regulation |
| Middle Layer (NBFC-ML) | Deposit-taking NBFCs & larger non-deposit NBFCs |
| Upper Layer (NBFC-UL) | Top 25-30 systemically significant NBFCs (identified by RBI); bank-like regulatory intensity |
| Top Layer (NBFC-TL) | Reserved for NBFCs posing highest systemic risk (currently empty, activated if warranted) |
6.3 The IL&FS & DHFL Episodes
The 2018 IL&FS default crisis (a large infrastructure-financing NBFC defaulting on debt obligations) exposed systemic risk from NBFC asset-liability mismatches (long-term infra lending funded by short-term borrowing) & triggered a liquidity crunch across the NBFC sector, directly motivating the Scale-Based Regulation reform.
7. Capital Markets — Primary & Secondary, SEBI
7.1 Primary vs. Secondary Markets
- Primary Market — where new securities are issued directly by companies to raise fresh capital (IPOs, FPOs, rights issues, private placements).
- Secondary Market — where existing securities are traded among investors (stock exchanges); provides liquidity/exit for primary-market investors but does not raise fresh capital for the company.
7.2 Securities & Exchange Board of India (SEBI)
Statutory regulator (SEBI Act, 1992) for securities markets, with a three-fold mandate: protecting investor interests, promoting market development & regulating the securities market. Key regulatory domains: IPO disclosure norms, insider trading prevention, mutual fund/AIF regulation, credit rating agency oversight, takeover code & (more recently) ESG/BRSR disclosure mandates.
7.3 Key Market Instruments
| Instrument | Description |
|---|---|
| Equity Shares | Ownership stake, variable dividend, residual claim on assets |
| Debentures/Bonds | Debt instruments, fixed/floating interest, priority claim over equity in liquidation |
| Preference Shares | Fixed dividend priority over equity, but typically no voting rights |
| Derivatives (Futures/Options) | Contracts deriving value from an underlying asset; used for hedging or speculation |
| Alternative Investment Funds (AIFs) | Privately pooled investment vehicles (venture capital, private equity, hedge funds) — Category I/II/III under SEBI regulation |
8. Stock Exchanges, Indices & Market Instruments
8.1 Major Indian Stock Exchanges
- Bombay Stock Exchange (BSE) — Asia's oldest stock exchange (established 1875); benchmark index: Sensex (30 companies).
- National Stock Exchange (NSE) — established 1992, introduced electronic/screen-based trading to India; benchmark index: Nifty 50.
8.2 Market Infrastructure Institutions
- Depositories — NSDL & CDSL hold securities in dematerialised (electronic) form, eliminating physical share-certificate risk.
- Clearing Corporations — guarantee settlement of trades, mitigating counterparty risk.
- Credit Rating Agencies — CRISIL, ICRA, CARE, India Ratings assess creditworthiness of debt instruments; SEBI-regulated.
8.3 Key Market Concepts
- Market Capitalisation = Share Price × Total Outstanding Shares.
- Circuit Breakers — automatic trading halts triggered by extreme index/stock price movements, to curb panic-driven volatility.
- T+1 Settlement — India moved to same-day-plus-one trade settlement cycle, among the fastest globally, enhancing market efficiency. check for latest update or data
9. Mutual Funds, Pension Funds & Insurance
9.1 Mutual Funds
Pool money from multiple investors to invest in a diversified portfolio of securities, managed by professional Asset Management Companies (AMCs); regulated by SEBI. Net Asset Value (NAV) = (Total Assets − Liabilities) ÷ Number of Units Outstanding. Association of Mutual Funds in India (AMFI) is the industry body.
9.2 Pension Sector
| Scheme/Institution | Detail |
|---|---|
| National Pension System (NPS) | Defined-contribution pension scheme, mandatory for central govt. employees (post-2004) & voluntary for others; regulated by PFRDA (Pension Fund Regulatory & Development Authority) |
| Employees' Provident Fund (EPF) | Mandatory retirement savings for organised-sector employees, managed by EPFO |
| Atal Pension Yojana | Targeted at unorganised-sector workers, guaranteed minimum pension |
| Unified Pension Scheme (UPS) | Announced as an option alongside NPS for central govt. employees, offering assured-payout features closer to the old pension system check for latest update or data |
9.3 Insurance Sector
Insurance Regulatory & Development Authority of India (IRDAI) regulates both life & general (non-life) insurance. Public sector dominance (LIC in life insurance) persists alongside growing private/foreign participation, with FDI limit in insurance raised progressively (currently up to 74%, with further liberalisation proposals under discussion). check for latest update or data
10. Financial Sector Reforms — Basel Norms, Mergers
10.1 Basel Norms
International banking-regulation standards set by the Basel Committee on Banking Supervision (BCBS), headquartered at the Bank for International Settlements (BIS), Basel, Switzerland:
| Accord | Key Focus |
|---|---|
| Basel I (1988) | Introduced minimum capital adequacy ratio linked to credit risk-weighted assets |
| Basel II (2004) | Added market & operational risk to capital calculation; introduced 3 pillars (capital, supervisory review, market discipline) |
| Basel III (post-2008 crisis) | Raised capital quality/quantity requirements, introduced Capital Conservation Buffer, Countercyclical Buffer & Liquidity Coverage Ratio (LCR)/Net Stable Funding Ratio (NSFR) |
India's PSBs/private banks are required to maintain a Capital to Risk-weighted Assets Ratio (CRAR) above the Basel III minimum, with RBI often prescribing a stricter India-specific floor.
10.2 PSB Mergers & Recapitalisation
Beyond the 2019-20 merger wave (Section 2), periodic capital infusion via recapitalisation bonds has been used to shore up PSB capital adequacy without immediate cash outflow pressure on the fiscal deficit (bonds are issued to banks, who then subscribe back into government securities — a balance-sheet-neutral recapitalisation technique).
11. Digital Banking & Fintech Regulation
11.1 Digital Payment Infrastructure
Building on the India Stack/DPI foundation (Topic 14), India's digital-payment ecosystem includes UPI (real-time, NPCI-operated), IMPS (Immediate Payment Service), NEFT/RTGS (traditional electronic fund transfer rails, now available 24x7) & Bharat Bill Payment System (BBPS).
11.2 Fintech Regulatory Innovations
- Regulatory Sandbox — RBI's controlled testing environment allowing fintech firms to trial innovative products under regulatory supervision before full-scale rollout.
- Account Aggregator Framework — RBI-licensed consent-based data-sharing system enabling secure financial data flow between institutions (e.g. for faster loan underwriting) with explicit user consent.
- Digital Lending Guidelines (2022) — RBI norms curbing predatory digital-lending app practices (mandating direct disbursal to borrower accounts, transparent fee disclosure, data-privacy safeguards).
- Central Bank Digital Currency (CBDC) — e₹ (Digital Rupee) — RBI's pilot CBDC, in both wholesale (interbank settlement) & retail (general public) segments, distinct from private cryptocurrencies (which RBI has cautioned against). check for latest update or data
12. Current Affairs Anchor (2024-26)
- Latest RBI Monetary Policy Committee decisions & repo rate stance check for latest update or data
- Gross & Net NPA ratio trends of Scheduled Commercial Banks (RBI Financial Stability Report) check for latest update or data
- IDBI Bank & other PSB privatisation progress check for latest update or data
- e₹ (CBDC) pilot expansion — retail/wholesale transaction volumes check for latest update or data
- Unified Pension Scheme rollout status & state-level Old Pension Scheme developments check for latest update or data
- NARCL asset-resolution progress & new IBC amendments check for latest update or data
- SEBI regulatory updates — F&O market curbs, IPO/AIF norms check for latest update or data
13. Prelims PYQs (2014–2026)
With reference to the Insolvency & Bankruptcy Code, consider the statements about the Committee of Creditors.
Answer: Comprises financial creditors, holds primary decision-making power over resolution plans during CIRP — reflects the shift to a "creditor-in-control" model.
Consider the statements regarding the Reserve Bank of India's Scale-Based Regulation for NBFCs.
Answer: Four-layered structure (Base, Middle, Upper, Top) aligning supervisory intensity with each NBFC's systemic risk profile.
With reference to the Monetary Policy Committee, consider the statements about its composition.
Answer: 6 members — 3 from RBI (incl. Governor as Chair) + 3 external members appointed by the government; mandated to target 4% CPI inflation, +/-2% band.
What is/are the difference/differences between "CRR" and "SLR"?
Answer: CRR held as cash with RBI (no interest); SLR held in approved liquid assets incl. government securities (can earn interest).
Consider the statements about Payment Banks in India.
Answer: Can accept deposits (capped) & offer payment/remittance services, but cannot extend loans or issue credit cards.
With reference to Basel III norms, which of the following is/are correct?
Answer: Introduced Capital Conservation Buffer, Countercyclical Buffer & Liquidity Coverage Ratio, developed post the 2008 global financial crisis.
Consider the statements about the National Pension System (NPS).
Answer: Defined-contribution scheme, regulated by PFRDA, mandatory for central government employees recruited after 2004.
What is meant by the term "Non-Performing Asset"?
Answer: A loan/advance where interest or principal repayment remains overdue for a specified period, typically 90 days.
Consider the statements regarding the Insolvency and Bankruptcy Code, 2016.
Answer: Consolidates fragmented insolvency laws; NCLT is the adjudicating authority; IBBI is the regulator.
With reference to Regional Rural Banks (RRBs), consider the statements about their ownership.
Answer: Jointly owned by Centre, sponsor bank & state government (commonly in 50:35:15 proportion).
What is the difference between the Bombay Stock Exchange and the National Stock Exchange?
Answer: BSE (1875) is Asia's oldest exchange; NSE (1992) introduced electronic trading & commands larger trading volume/market share today.
Consider the statements about the bank nationalisation waves in India.
Answer: 1969: 14 banks nationalised; 1980: 6 more banks nationalised — aimed at expanding rural/priority-sector credit reach.
With reference to the Securities and Exchange Board of India (SEBI), consider the statements about its regulatory mandate.
Answer: Statutory regulator (1992) for protecting investor interests, promoting & regulating the securities market — oversees stock exchanges, intermediaries & listed companies.
14. Mains PYQs (2014–2025)
Examine the role of the Insolvency and Bankruptcy Code in addressing India's twin-balance-sheet problem. What further reforms are needed?
Answer: Discuss CIRP resolution timelines, recovery rate improvements vs. pre-IBC mechanisms, NARCL's role; suggest faster NCLT disposal & cross-border insolvency framework completion.
What are the main reasons for the high Non-Performing Assets (NPAs) in Indian Public Sector Banks? Suggest measures.
Answer: Discuss aggressive infra/corporate lending in the boom years, project delays, wilful default, weak due diligence; measures: AQR-style transparency, IBC resolution, PSB governance reform (Banks Board Bureau).
Do you agree with the view that steady GDP growth & low inflation are necessary but not sufficient conditions for the development of a nation? Give reasons in the context of financial-sector deepening.
Answer: Link financial inclusion (Jan Dhan) & capital-market depth to translating growth into broad-based development, not just aggregate indicators.
How the recent phenomena of the raising of Non-Performing Assets in Public Sector Banks is related to poor corporate governance? Explain.
Answer: Discuss politically-influenced lending decisions, weak board oversight in PSBs, evergreening of loans; link to post-2015 governance reforms (Banks Board Bureau, later replaced).
"There is a new wave of amalgamation of Public Sector Banks (PSBs) in India, in this context critically discuss the effect of the recent mergers on the Indian banking system."
Answer: Weigh scale/efficiency gains vs. integration costs, HR/cultural friction, near-term credit-growth slowdown during merger transition.
Explain how Private Placement of Corporate Bonds ensures Ease of Doing Business? Also discuss the exposure of Public Sector Banks with this form of raising capital in the context of Increasing Nonperforming Assets (NPAs).
Answer: Discuss the speed/flexibility advantage of private placement vs. public bond issuance; note risk of NPA build-up if banks over-subscribe to weak private-placement corporate bonds.
Craft an argument for/against giving greater autonomy to the Reserve Bank of India in framing monetary policy.
Answer: Discuss MPC's inflation-targeting mandate as institutionalised autonomy; balance against government's growth/fiscal-financing pressures — central-bank independence literature.
Justify the need for FDI for the development of the Indian economy. Why there is gap between MOUs signed and actual FDI inflows? (contextual: insurance/banking FDI limits)
Answer: Link FDI caps in insurance (74%)/banking sectors to investor-appetite constraints; discuss regulatory clarity as a determinant of actual inflow realisation.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor sections of Indian society? Give arguments.
Answer: Discuss zero-balance accounts, RuPay/insurance coverage, dormancy-rate challenges; link to JAM Trinity & DBT delivery efficiency.
Justify the need for FDI in banking sector, and what implications does it have for regulatory oversight?
Answer: Discuss capital infusion & global best-practice benefits vs. financial-stability/regulatory-capacity concerns for a still-developing supervisory framework.
Discuss the objectives of setting up of the Small Finance Banks and Payment Banks. Distinguish their scope from that of Universal Banks.
Answer: Discuss differentiated-licence rationale for deeper financial inclusion; Payment Banks limited to payments/remittance, Small Finance Banks add lending, Universal Banks offer full-spectrum services.
How would the recent phenomena of protectionism and increased tariff barriers affect India's Balance of Payments? (contextual: capital flows/capital markets)
Answer: Link capital-account implications for FPI/FDI flows into Indian equity/debt markets under global protectionist pressure.
15. Revision Box — 15-Point Crisp Recap
- Nationalisation waves: 1969 (14 banks), 1980 (6 banks); Narasimham Committees (1991, 1998) drove post-liberalisation reform.
- RRBs jointly owned: Centre + sponsor bank + state govt. (typically 50:35:15).
- MPC (2016 amendment): 6 members, targets 4% CPI ±2% via repo rate.
- CRR = cash with RBI (no interest); SLR = liquid assets incl. govt. securities.
- NPA = overdue 90+ days; AQR (2015) forced transparent recognition, spiking reported NPAs.
- IBC (2016): CIRP + NCLT (adjudicator) + IBBI (regulator) + CoC (creditor-in-control decision-making).
- NARCL (2021) = "bad bank" aggregating stressed PSB assets.
- PMJDY (2014) → JAM Trinity; Payment Banks (no lending) vs. Small Finance Banks (full lending), both 2015 licences.
- NBFC Scale-Based Regulation (2021): Base → Middle → Upper → Top layer, post-IL&FS (2018) reform.
- Primary market = new issuance; Secondary market = trading existing securities; SEBI (1992) regulates both.
- BSE (1875, oldest) vs. NSE (1992, largest by volume); Sensex (BSE, 30 stocks) vs. Nifty 50 (NSE).
- NPS = defined-contribution (PFRDA-regulated); old pension = defined-benefit; UPS bridges the two.
- Basel I (1988, capital) → Basel II (2004, +market/operational risk) → Basel III (post-2008, +LCR/NSFR/buffers).
- PSB mergers (2019-20) consolidated 27→fewer PSBs; recapitalisation bonds are balance-sheet-neutral capital infusion.
- e₹ (CBDC) = sovereign RBI-issued legal tender, distinct from unregulated private cryptocurrencies.