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Mrunal’s Win23 Series Economy Updates: Pillar1B1 to 1C

Contents

12 Pillar1B1: classification of Banks and NBFCs ................................................................................... 27

12.1 What is already covered in Past: 1B: Bank-NBFC, Bad Loans ............................................... 27
12.1.1 Win20: already covered Following in 1B ........................................................................ 27
12.1.2 Win21: already covered Following in 1B ........................................................................ 27
12.1.3 Win22: already covered Following in 1B ........................................................................ 28
12.2 Classification of banks and NBFCs ........................................................................................... 29
12.3 Classification of cooperative banks ........................................................................................... 29
12.3.1 MULTI-STATE COOPERATIVE SOCIETIES (AMENDMENT) BILL, 2022 .......... 29
12.3.2 RBI’4-tiered regulatory framework for urban cooperative banks (2022-Dec) ........... 30
12.4 NABFID, the 5th AIFI (2022-Mar) ........................................................................................... 30
12.5 DFI Status sought by PFC under Power ministry (2022-Nov) .............................................. 31
12.6 ��: Digital Banking Units in Budget 2022....................................................................... 31
12.6.1 ��: Digital Payments- NeoBanks (�चकने चुपड़े श�) ..................................................... 32
13 Pillar-1B2: Bad Loans ........................................................................................................................... 32
13.1 NPA observations by �ES23 .................................................................................................. 32
13.1.1 Loan Write-off.................................................................................................................... 33
13.1.2 “IBC bahut Mahaan” says �ES23................................................................................ 33
13.1.3 �ES23 suggested 4R’s approach to fix banking sector i.e. ......................................... 34
13.2 ���Digital Lenders ......................................................................................................... 34
13.2.1 Digital lending norms by RBI (2022-Nov) ..................................................................... 34
13.2.2 Digital lending → FIRST LOSS DEFAULT GUARANTEE (FLDG) norm by RBI .. 35
13.2.3 ���Credit Information Companies (CIC) versus Credit Rating Agencies
(CRA) 35
13.3 Credit Rating- various org/initiatives ....................................................................................... 36
13.3.1 National Financial Information Registry (NFIR) in �Budget-2023 ........................ 36
13.3.2 �: �RBI supervision: Utkarsh-2022” roadmap....................................................... 37
13.3.3 �: �RBI supervision: Daksh web system 2022 ........................................................ 37
13.3.4 Financial Stability Report (FSR) ....................................................................................... 37
13.4 Bad Loans: Tools/Instruments in Negative News ................................................................... 38
13.4.1 AT1 Bond controversy ...................................................................................................... 38
13.4.2 �Financial Messaging Systems: SWIFT- Russia gets banned ................................... 38
13.5 � Personnel Selection → Bank Board Bureau (BBB), 2016 ............................................... 39
13.5.1 � Personnel Selection → FSIB replaces BBB (2022) .................................................. 40
13.5.2 �Enhanced Access and Service Excellence (EASE) Agenda 2018 ........................... 40

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13.6 ��MRUNAL’S ECONOMY COURSE FOR UPSC ........................................................ 40

12 PILLAR1B1: CLASSIFICATION OF BANKS AND NBFCS

12.1 WHAT IS ALREADY COVERED IN PAST: 1B: BANK-NBFC, BAD LOANS

�न� चीज़� हम पहले ही पढ़ चुके ह�. आपने नहीं पढ़ा तो उसम� से देख लेना. URL: Mrunal.org/Win23

Red highlight.= I find them less important for the 2023 prelims

12.1.1 Win20: already covered Following in 1B👇👇

⇒ 🤩🤩 Golden Anniversary of nationalization- ES20
⇒ 🦄🦄> 🦁🦁: Private sector banks are better than PSBs
⇒ 🦁🦁 = 🐌🐌 PSBs: reasons for inefficiency & remedies?
⇒ Merger of 10 PSBs into 4 (Announced in 2019-August)
⇒ 🏦🏦 � 🌎🌎🌎🌎🌎🌎🌎🌎 On-Tap Licenses for SFB
⇒ 📮📮 (Yearbook) Dept of Post: POSB vs IPPB
⇒ 🏦🏦 �Cooperative Banks: Kerala Bank (2019)
⇒ 🏦🏦 �AIFI: NHB’s regulatory power shifted to RBI
⇒ 🏦🏦🏦NBFC → Investment and Credit Companies (new category in 2019)
⇒ 🏦🏦🏦 Microfinance → Lending norms changed in 2019-Oct

12.1.2 Win21: already covered Following in 1B👇👇

⇒ 🏦🏦 � 🔂🔂Consolidation of PSBs [एकत्रीकरण]
⇒ PSB Privatization: Banking Investment Company (BIC-ब�िकंग �नवेश कं पनी)
⇒ 🤵🤵 LVB merged with DBS (�वलीनीकरण)
⇒ 🚫🚫🚫🚫 � 🚗🚗🚗🚗 Allowing NBFC/Large Corporate to setup Banks
⇒ ⚖🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯Banking Regulation (Amendment) Ordinance/Act, 2020
⇒ DFI → NaBFID: National Bank for Financing Infrastructure and Development
⇒ 👹👹(🚫🚫🚫🚫) NBFC: Shadow Banking (आभासी / प्र�तछाया ब�िकंग प्रणाली)
⇒ 👻👻 ATMANIRBHAR → 🐯🐯: 👹👹(🚫🚫🚫🚫) RBI Helping NBFCs
⇒ 👻👻 ATMANI → 🧔🧔🧔🧔🧔🧔🧔🧔 Partial Credit Guarantee Scheme (PCGS) 2.0
⇒ 👻👻 ATMANI → 🧔🧔🧔🧔🧔🧔🧔🧔 Special Liquidity Scheme for NBFC/HFC (खास तरलता योजना)
⇒ 👻👻 ATMANI → 🧔🧔🧔🧔🧔🧔🧔🧔 Credit Guarantee Enhancement Corporation
⇒ 🐯🐯: 👹👹(🚫🚫🚫🚫) FI → NBFC: RBI’s 4 tier regulation structure (Proposed)

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12.1.3 Win22: already covered Following in 1B👇👇

�न� चीज़� हम पहले ही पढ़ चुके ह�. आपने नहीं पढ़ा तो उसम� से देख लेना. URL: Mrunal.org/Win23

⇒ 🏦🏦 RBI Governor gets re-appointment

⇒ 🏦🏦 � Bank Classification: New Developments
⇒ Scheduled Banks Status to Airtel, Paytm
⇒ 🏦🏦 � 🌎🌎🌎🌎🌎🌎🌎🌎 Unity Small Finance Bank (SFB) gets license (2021)
⇒ 🏦🏦 PMC Scam resolution (2021-22)
⇒ 🏦🏦 � NBFC Classification: New Types- BNPL, P2P
⇒ 📙📙📙📙ES22 observations on NPA
⇒ ⚖🔪🔪🔪🔪:🤫🤫 IBC Pre-Packs (पद� के पीछे ज�ी से के स सुलटा लेते है!)
⇒ (⚖🔪🔪🔪🔪)🈶🈶🈶🈶 Cross-border Insolvency (सीमा-पार का िदवा�लयापन)
⇒ (⚖🔪🔪🔪🔪) Voluntary Liquidation of Companies
⇒ ��(🏦🏦 🔪🔪🔪🔪): 🧬🧬 Bad Bank Structure
⇒ 🏦🏦 💸💸💸💸 DICGC (Amendment) Bill 2021
⇒ 🐯🐯🐯🐯🐯🐯🐯🐯🐯🐯� RBI’s Prompt Corrective Action (PCA) for NBFCs
⇒ 🐯🐯: 🦋🦋Regulations Review Authority (RRA 2.0)- for Ease of implementing RBI rules
⇒ �👮👮:🛡🛡Staff Accountability Framework for PSB-NPA
⇒ 📞📞Financial Messaging Systems: SWIFT- Russia gets banned

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12.2 CLASSIFICATION OF BANKS AND NBFCS

12.3 CLASSIFICATION OF COOPERATIVE BANKS

12.3.1 MULTI-STATE COOPERATIVE SOCIETIES (AMENDMENT) BILL, 2022

Ref: Pillar4A: Sectors of Economy → agriculture: (कृ �ष �ेत्र के साथ पढ़�गे.)

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12.3.2 RBI’4-tiered regulatory framework for urban cooperative banks (2022-Dec)

Tier Deposit Range

1 Up to ₹100 crore
2 ₹100 crore - ₹1000 crore
3 ₹1000 crore - ₹10,000 crore
4 Above ₹10,000 crore
Higher the tier e.g. 3-> 4 = stricter RBI norms under BASEL-III. What/HOW exactly? NOT IMP.
(शहरी सहकारी ब�कों के �लए 4-�रीय �नयामक ढांचा)

12.4 NABFID, THE 5TH AIFI (2022-MAR)

2021: NaBFID: National Bank for Financing Infrastructure and Development was setup by an
law/act of Parliament, with an initial capital of ₹20,000cr capital.
⇒ NaBFID will get funding from RBI, Govt, Financial institutions, World Bank etc. It’ll also issuing
bonds in market etc
⇒ NaBFID will give loans worth ₹5 lakh crore in 3 years. It’ll help in National Infrastructure
�Ref: HDT-Pillar#5:Infrastructure)
Pipeline (NIP) project.(�
⇒ Chairman: K.V. Kamath.
⇒ HQ: Mumbai (Presently it is working from the office of SIDBI in Mumbai)
⇒ Regulator? RBI.
⇒ 2022: RBI ordered that NaBFID will be treated as All India Financial Institution (AIFI).
⇒ Thus, NABFID is the fifth AIFI after EXIM Bank, NABARD, NHB and SIDBI.

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सरकार ने क़ानून द्वारा बु�नयादी ढांचे और �वकास के �व�पोषण के �लए रा��ीय ब�क बनाया था. और उसे �रज़वर् ब�क द्वारा अ�खल भारतीय
�व�ीय सं �ान (एआईएफआई) का दजार् िदया गया है।

12.5 DFI STATUS SOUGHT BY PFC UNDER POWER MINISTRY (2022-NOV)

National Bank for Financing Infrastructure and Development Act, 2021

⇒ NBFID Act, 2021, allows setting up multiple Development Financial Institutions (DFIs) in
sectors of economy, where the risks are too high for normal commercial banks and NBFCs.
⇒ (e.g. electricity distribution sector. Why the risk is very high here? Explained in the Pillar#5A:
Energy infrastructure.)
⇒ 2022: Power ministry has requested finance ministry to grant the DFI status to PFC and REC
under the provisions of NBFID Act, 2021.
org Description
PFC Power Finance Corporation (PFC) is an NBFC owned by Power Ministry
REC Rural Electrification Corporation (REC) is an NBFC owned by Power Finance Corporation
under Power Ministry
Benefit? This DFI-status will make it easier for PFC to issue bonds in national and international
market, arrange funds from multilateral development banks (e.g. World Bank, Asian development
Bank et cetera)

12.6 💸💸💸💸: 🏦🏦 DIGITAL BANKING UNITS IN BUDGET 2022

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⇒ Budget-2022 announced to setup 75 DBUs. Then RBI announced rules.

⇒ Basically commercial banks open fancy type of offices wherein every service provided digitally /
paper-less application forms with help of digital kiosks e.g. opening bank account, getting credit
cards etc.
⇒ How is this similar or different than NITI Aayog's Digital Banks? NOT IMP.

12.6.1 💸💸📡📡: 🏦🏦 Digital Payments- NeoBanks (�चकने चुपड़े श�)

- This is a fancy term for Financial technology (FinTech) related startups & Non-Banking
Financial Companies (NBFC) that are helping banking connectivity using digital channels.

🚩🚩🚩FAQ: How NeoBanks are similar or different than “DIGITAL BANKS”? Ans. ✋Not
important. When Startup-wallas want to attract inventors, they plant a lot of paid/PR/embellished
news items & columns with fancy terms like “NEOBANK” → it doesn’t automatically become
“exam worthy current affairs”…First of all let RBI/NITI/Finance Ministry/HC-SC etc make repeated
big headlines around this, then we’ll see. Observe previous years question papers. (�नवेशकों को आक�षत
करने के �लए �ाटर्अप क�नीओ द्वारा �चकने चुपड़े श�ों वाले समाचार �ांट िकए जाते ह�. तो वो अपने आप परी�ा के �लए काम का नहीं
बन जाता. पहले बड़े सरकारी सं �ानों द्वारा कु छ बड़ी बड़ी सु�खयां बटोरने दो िफर देख�ग.े )

13 🔪🔪PILLAR-1B2: BAD LOANS

13.1 🔪🔪NPA OBSERVATIONS BY 📙📙ES23

If loan principal or interest is not paid for more than 90 days from its due date, then such loan
account is classified as Non-Performing Asset (NPA).

Year 2020-Mar 2021-Mar 2022-Mar

Total NPA in Banks 8.8 lakh cr 8.3 lakh cr 7.4 lakh cr
**SCBs = scheduled commercial banks. (अनुसू�चत वा�ण��क ब�क)

Indicator Description +ve/-ve

NPA as a % of total loans 5% � this is lowest in the last seven years. Earlier it
given by SCBs** was very high e.g. 11% (2017), 7% (2021)
Capital-to-Risk Weighted 16% � this is much higher than the minimum
Assets Ratio (CRAR) requirements given in BASEL-III norms (i.e. 9%)
**SCBs = scheduled commercial banks. (अनुसू�चत वा�ण��क ब�क)
⇒ the NPA in Loan giving NBFC companies is also reduced. (e.g. DHFL, Bajaj Finserv etc.)

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13.1.1 🔪🔪Loan Write-off

- Loan write off= banker removes a loan amount from the ‘asset-side’ of the bank balance sheet, to
save corporation tax (How? = we-are-not-here-for-CA-exam).
- Loan write-off doesn’t waive bank’s right to recover that bad loan
- It is merely an accounting exercise for tax-benefits. (कराधान म� कु छ �रयायतों के �लए िहसाबी प्रिक्रया क� जाती
है। हालांिक ऐसा करने के बावजूद भी ब�कर कजर्दार से पैसा वापस तो मांग ही सकता है)
- Loan write-off⏬ reduces the NPA% of the Bank (Because amount is written-off/cancelled from
balance sheet)
2022-Dec: Govt told Parliament that Banks write off loans worth Rs 11.17 lakh crore in last six years

13.1.2 🔪🔪 “IBC bahut Mahaan” says 📙📙ES23

⇒ Insolvency and Bankruptcy Code (IBC) has greatly helped fixing the NPA problems. (शोधन अ�मता
और िदवा�लयापन सं िहता ने अनजर्क-प�रसं प��यों को ठीक करने म� काफ़� मदद क� है)
⇒ IBC has solved nearly 6000 cases since its start in 2016.
⇒ IBC has improved the 1) behaviour of debtors in repaying loans, due to fear of loosing control of
company. (HOW? Explained in video) (कज़ार् देने वाले उद्योगप�तयों क� अहंकार म� भी कमी �ई है और वतर्न म� सुधार
आया है)
⇒ 2) IBC improved Ease of Doing Business. (�ापार करने म� सुगमता)

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13.1.3 📙📙ES23 suggested 4R’s approach to fix banking sector i.e.

1. Recognition of bad loans (खराब ऋणों/अनजर्क-प�रसं प��यों का सं �ान लेना)
2. Resolution of bad loans (खराब ऋणों का समाधान/�नपटान करना।)
3. Recapitalisation of Banks for BASEL-III and (बेसल-III मानदंडों के �लए ब�कों का पुनपू�जीकरण)
4. (Governance) Reforms in banks. (ब�कों म� प्रशास�नक सुधार।)

13.2 🔪🔪📡📡👿👿DIGITAL LENDERS

RBI classified them into 3 groups

Sr Organization Examples
1 Giving loans online and regulated by RBI Banks, P2P lenders
2 Giving loans online but regulated by Non-RBI bodies Venture Capital Funds (VCF)
regulated by SEBI
3 Giving loans online but not regulated by anyone / Some goonda/mafia opening
unauthorized digital lenders = their App will be shut online mobile app for giving
down. Legal action will be taken. online loans.
Note: RBI keeps releasing guidelines for digital lending. But daily-commentary not important.
Sufficient to know that such guidelines mostly deal with customer protection.

13.2.1 Digital lending norms by RBI (2022-Nov)

⇒ A lending/Loan Service Provider (LSP) is financial technology (Fintech) company that connects
borrowers with lender (Banks & NBFCs). e.g. Lazypay, Bank Bazaar, Paisa Bazaar
⇒ LSP helps the customer get the loan digitally.
⇒ RBI has issued guidelines to regulate this ‘digital lending’ market.
Exact guidelines are not important. Sufficient to know that RBI requires
⇒ 1) exorbitant interest cannot be charged.
⇒ 2) Such organisations have to appoint grievance redressal officers & clear the complaint within
stipulated time limit.

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कु छ �व�ीय प्रौद्यो�गक� (�फन-टेक) कं प�नयां एक तरफ़ कज़र् लेने वालों को, और दू सरी तरफ़ ब�क- एनबीएफसी के साथ �ड�जटल मा�म
से जोड़ती है। इस �ड�जटल कज़र् प्रणाली पर �रज़वर् ब�क कु छ स��या कर रही है।

13.2.2 Digital lending → FIRST LOSS DEFAULT GUARANTEE (FLDG) norm by RBI

What does above chart mean? Ans. Explained in the video lecture.

13.2.3 🚫🚫🚫🚫🚫Credit Information Companies (CIC) versus Credit Rating Agencies (CRA)

Credit Information Companies (CIC) Credit Rating Agencies (CRA)

Regulator RBI SEBI
E.g. CIBIL TransUnion, CRIF High Mark, ⇒ Standards and Poor's, Moody’s,
Equifax and Experian. CRISIL, CARE, ICRA, FITCH
Ratings India Pvt. Ltd, SMERA.
⇒ Brickwork Ratings India = SEBI
ordered it to shut office due to
malpractices.
check the “Individual Persons” (एकल ��� के कजर् companies, NBFCs, governments, local
credit वापस चुकाने क� औकात है िक नहीं उसका मू�ांकन bodies, non-profit organizations.
worthiness/ करते ह�) They do not check it for individual
loan persons. ( सं �ानों क� कजार् वापस चुकाने क�

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Credit Information Companies (CIC) Credit Rating Agencies (CRA)

repayment औकात का मू�ांकन करते ह�. एक एक इं सान के �लए
capacity of नहीं करते)
Rating numerical scores. e.g. CIBIL Score alphabetical symbols e.g. AAA, AA-, D-
between 300-900. etc.
Utility? Better the score → similar to the left cell.
🤩🤩1) your loan application will be
passed more easily by the Bank/loan-
giving NBFC.
🤩🤩2) You'll have to pay lower interest
rate.
🔠🔠❓MCQ. Find Correct about credit rating agencies (CRA) in India? (Prelims-2022)
1. They are regulated by the Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.
Which of the statements given above are correct ?
(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

13.3 CREDIT RATING- VARIOUS ORG/INITIATIVES

Following portals are meant to collect the information related to borrowers

Portal Description
CIC and CRA Learned in the previous section the previous session.
Information Utility (IU). Created by Insolvency and bankruptcy board of India (IBBI) with
help of National e-governance services Ltd (NeSL)
CRILC RBI has setup “Central Repository of Information on Large Credits
(CRILC)” for Loans above Rs 5 cr.
Banks & NBFCs have to submit weekly updates in this portal.
Public Credit Registry Proposed by RBI’s Yeshwant M. Deosthalee Committee. RBI yet to
(PCR) set it up.
NFIR Proposed in the Budget 2023. <Next section>

13.3.1 National Financial Information Registry (NFIR) in 👛👛Budget-2023

⇒ NFIR will be designed with help of RBI.
⇒ NFIR will contain info on both individual borrower and company borrowers.
⇒ NFIR will contain info on all the loans taken by them through banks,NBFCs,bonds, etc.
⇒ Thus, NFIR Will provide 360 degree information about a loan applicant’s creditworthiness.
⇒ will help the lenders process the loan application in a more faster and accurate manner

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रा�ी� य �व�ीय सूचना र�ज��ी बनाएं गे �जसम� ���यों और कं प�नयों द्वारा �व�भ� सं �ानों से �लए गए कज� क� सं पूणर् जानकारी होगी। तािक
भ�व� म� जब वह वापस लोन के �लए अज� डाले, तो �व�ीय सं �ान आसानी से और �ादा सटीकता से उनक� अ�जयों का �नपटान कर सक�
- ऐसा बजट 2023 ने कहा

13.3.2 🐯🐯: 🦋🦋RBI supervision: Utkarsh-2022” roadmap

⇒ 2019 July: Dy. Gov Viral Acharya Committee → RBI board approved 3 year medium term
framework to improve RBI regulation & supervision, based on global best practices = “Utkarsh-
2022” roadmap. (वै��क मानदंडों का अनुसरण करते �ए �रजवर् ब�क क� �नयं त्रण और �नगरानी करने क� प्रणा�लयों म� अगले 3
सालों म� सुधार करने के �लए उ�षर् कायर्क्रम )

13.3.3 🐯🐯: 🦋🦋RBI supervision: Daksh web system 2022

- Web system wherein Banks, NBFC send their compliance reports to RBI
- Then RBI can moniter them more effectively. E.g. how many credit card frauds this month, new
guidelines to prevent it etc.

13.3.4 🔪🔪Financial Stability Report (FSR)

⇒ It is a report released by RBI that provides data related to bad loans etc. We will not waste time
learning it. Because, important data already studied from Economic Survey 2023.

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13.4 BAD LOANS: TOOLS/INSTRUMENTS IN NEGATIVE NEWS

13.4.1 🔪🔪AT1 Bond controversy

⇒ What does above chart mean? Ans. Explained in the Lecture Video OR this Youtube
⇒ Then HC and SC mein ball-by-ball commentary is going on regarding the repayment / justice to
AT1 bond holders in Yes Bank Scam.

13.4.2 💸💸📞📞Financial Messaging Systems: SWIFT- Russia gets banned

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Globally (वै��क �र पे पैसा भेजना हो) Within India (भारत के भीतर ही पैसा भेजना हो!)
Society for Worldwide Interbank Structured Financial Messaging System (SFMS)
financial telecommunication (SWIFT)
By a Cooperative organization in designed by Tata Consultancy Services (TCS) for
Belgium’s La Hulpe city (1973). IDRBT (=Research arm of RBI)
To serve the messaging function for to serve the messaging function in NEFT, RTGS, and
Banks, NBFCs & brokers who may / may other inter-bank, intra-bank e-transactions
not have direct bank relations / platforms within India.
settlement systems with each other due to
international borders.
😥😥 Nations banned from SWIFT: 1) Iran (Capital Tehran) 2) 2022: Russia got ban, after invading
Ukraine. This will make it difficult for the Russian banks/ NBFCs /businessmen to send and receive
money internationally (यूक्रेन-आक्रमण के �ख़लाफ़ �स को ��फ़्ट-�व�ीय सं देश प्रणाली से प्र�तबं �धत िकया गया है �जसके चलते
�सी ब�क �व�ीय सं �ान और उद्योगप�तयों को अंतररा�ी� य �र पर पैसों के लेन म� िद�त� आएं गी।)

FAQ: What is Vostro-Notro Account / Rupee Rouble Agreement? Ans. Wait

for Pillar3A: Intl. Trade.

13.5 � PERSONNEL SELECTION → BANK BOARD BUREAU (BBB), 2016

Figure 1: यूपीएससी क� तरह हम ल�गे नोकरी का इं टर�ू

- It is non-constitutional, non-statutory body (यह सं �ान न तो सं वध
ै ा�नक है न तो वैधा�नक)
- It interviews & selects top officials (MD, CEO, Chairman and full-time Directors) for PSBs,
public sector insurance companies, and other public sector financial institutions (e.g. NABARD,
SIDBI etc.).
- Actual appointment done by FinMin’s Department of Financial Services. (Just like UPSC selects
candidates suitable for IAS but DoPT notifies appointment.)
- BBB also helps the banks in governance reforms, raising capital for BASEL-III etc.
- BBB has 1 Chairman (usually a retired IAS) and some members.

🔠🔠❓MCQ. Chairman of public sector banks are selected by the _ _? (Prelims-2019)

(a) Banks Board Bureau (b) RBI (c) Ministry of Finance (d) Management of concerned bank

🔠🔠❓MCQ. Find Correct about ‘Banks Board Bureau (BBB)’ (Prelims-2022)

1. The Governor of RBI is the Chairman of BBB.

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2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Codes: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

13.5.1 � Personnel Selection → FSIB replaces BBB (2022)

⇒ 2022: Delhi High Court ruled, “BBB cannot select public sector (govt owned) insurance
companies because of conflict with the other laws related to public sector insurance companies.
⇒ 2022: Then Govt replaced BBB with new body named “Financial Services Institutions Bureau
(FSIB)” to comply with court order.
⇒ Every thing else (function, feature etc) about FSIB is same as BBB.

🚩🚩🚩FAQ: is this not unethical / big-joke to subvert court order by changing name of org?

Ans. Court has not banned FSIB yet. Govt did not bother to justify loudly in news headlines.
Columnist did not bother to loudly criticise. So, I did not bother to PHD.#🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो

13.5.2 �Enhanced Access and Service Excellence (EASE) Agenda 2018

- 2018: FinMin’s Dept of Financial Services released EASE framework (बढ़ी प�ंच और सेवा उ�ृ �ता) with
6 pillars to make PSBs more Responsive and Responsible viz.
Year Framework Theme/focus area
2020-21 Ease 3.0 Tech-Enabled Banking
2021-22 Ease 4.0 clean and smart banking.
2022-23 Ease 5.0 Common reforms agenda e.g. digital customer experience, supporting
small businesses and agriculture etc.

13.6 �📡📡MRUNAL’S ECONOMY COURSE FOR UPSC

Link to join my Unacademy Classes https://unacademy.com/@mrunal.org

(Discount Code: Mrunal.org)

Next Handout: Pillar1C Share market

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