Indian Economy Current Affairs Archives | Page 3 of 3

RBI Strengthens Priority Sector Lending (PSL) Norms – Key Highlights, Targets & Exam Notes

Why in News?

The Reserve Bank of India (RBI) has introduced amendments to the Priority Sector Lending (PSL) guidelines to improve credit flow monitoring and strengthen financial inclusion

Priority Sector Lending (PSL)

Priority Sector Lending (PSL) is a regulatory framework mandated by the Reserve Bank of India (RBI) requiring banks to direct a specific portion of their credit to sectors that are essential for the country’s development but often lack adequate access to formal finance.

It ensures that crucial sectors which often face credit shortages receive adequate financing.
It is a key tool for achieving financial inclusion and balanced development.

PSL Sectors:

Agriculture
Micro, Small and Medium Enterprises (MSMEs)
Export Credit
Education
Housing
Social Infrastructure
Renewable Energy
Weaker Sections (included under “Others”)

PSL Targets:

Domestic Commercial Banks:

Must allocate 40% of Adjusted Net Bank Credit (ANBC) to priority sectors.

Regional Rural Banks (RRBs) & Urban Cooperative Banks:

Higher target of 75% of ANBC due to their role in rural and inclusive banking.

https://www.newindianexpress.com/business/2026/Jan/19/rbi-tightens-psl-norms-asks-banks-to-get-external-auditor-certification

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Union Cabinet Approves ₹5,000 Crore Equity Infusion into SIDBI to Boost MSME Credit Growth

Why in News?

Union Cabinet has approved a ₹5,000 crore equity infusion into SIDBI to enhance credit availability for MSMEs and ensure the institution maintains a strong financial position amid expanding lending operations.

The infusion will strengthen SIDBI’s lending capacity.
Helps maintain a healthy Capital to Risk-Weighted Assets Ratio (CRAR).

SIDBI (Small Industries Development Bank of India):

Established in 1990 under an Act of Parliament.
Acts as the principal financial institution for MSME promotion, financing, and development. Coordinates with other institutions involved in MSME financing.
Plays a vital role in industrial growth, employment generation, and exports.

Capital to Risk-Weighted Assets Ratio (CRAR):

Also known as Capital Adequacy Ratio (CAR).
Measures a bank’s capital in relation to its risk-weighted assets (RWA). Indicates the financial strength and stability of a bank.
A higher CRAR means better ability to absorb losses.
Governed by Basel Accords issued by the Basel Committee on Banking Supervision (BCBS).

https://pscchronicles.com/small-industries-development-bank-of-india-sidbi-topic-explained/

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Payments Regulatory Board (PRB) Holds First Meeting in Mumbai – Key Exam Notes

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

The first meeting of the Payments Regulatory Board (PRB) was held in Mumbai under the chairmanship of the RBI Governor.

Payments Regulatory Board:

Payments Regulatory Board (PRB) is a six-member statutory body within the Reserve Bank of India (RBI) established to regulate and oversee the country’s payment and settlement systems. It became operational by replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

Composition: Chaired by the RBI Governor (currently Sanjay Malhotra), it includes two other RBI representatives and three nominees from the Central Government.
Focuses on regulation and supervision of digital and non-cash payment systems.
Decisions are made by a majority vote; the Chairperson holds a casting vote in case of a tie. The board must meet at least twice a year

https://www.newsonair.gov.in/rbi-governor-sanjay-malhotra-chairs-first-meeting-of-payments-regulatory-board-meeting/

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Centre Proposes PM-RKVY Restructuring with ₹1.75 Lakh Crore Outlay (2026–31) – Key facts

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

Union Ministry of Agriculture has proposed a major restructuring of agricultural schemes by merging three schemes into Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY).

pradhan mantri rashtriya krishi vikas yojana (pm rkvy).

Three schemes to be merged under PM-RKVY:

Krishonnati Yojana (KY) – Focus on food security & farmers’ income
National Mission on Natural Farming (NMNF) – Promotes chemical-free farming
National Bee and Honey Mission (NBHM) – Supports apiculture & pollination

Key Features of the Restructured Scheme:

Performance-Linked Funding Framework: For the first time, the allocation of central funds will be tied to a “Reform Score,” shifting from an expenditure-driven approach to an outcome-oriented one.

30% of funds will depend on a “Reform Score”.
States will be incentivized for: Land leasing reforms, Agricultural market liberalization and Structural policy improvements.

Funding Pattern:

General States: 60:40 (Centre:State).
Northeastern and Himalayan States: 90:10.
Union Territories: 100% central funding

https://indianexpress.com/article/political-pulse/govt-to-merge-agricultural-schemes-link-funds-to-state-reforms-10468148/

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BHARATI Initiative by APEDA: Boosting India’s Agri-Exports | Key Facts for Exams

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

The Agricultural and Processed Food Products Export Development Authority has launched the BHARATI Initiative to strengthen India’s agri-food export ecosystem. The initiative aims to enhance global competitiveness and export growth

Key Highlights:

Full Form: Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement (BHARATI).
Export Target: Achieve $50 billion agri-food exports by 2030
Startup Focus: Support and incubate 100 agri-food startups

About APEDA

Established in 1986 Statutory body under the Ministry of Commerce and Industry
Promotes export of agricultural and processed food products

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163196&reg=3&lang=2

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National Youth Day 2026 (January 12): Swami Vivekananda Birth Anniversary | Key Facts for Exams

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs, National Current Affairs / PSC Chronicles Team

Why in News?

National Youth Day is observed annually on January 12 to mark the birth anniversary of Swami Vivekananda.

Key facts related to Swami Vivekananda:

Swami Vivekananda was born as Narendranath Datta in Kolkata in 1863.
He was a disciple of Ramakrishna Paramahamsa and played a key role in spreading Indian philosophy globally.
Delivered a historic speech in Chicago in 1983 and introduced Vedanta and Yoga to the Western world.
Advocated universal brotherhood and Vasudhaiva Kutumbakam.
Described by Subhas Chandra Bose as the “maker of modern India”

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2213415&reg=3&lang=1 https://pscchronicles.com/parakram-diwas-2026-netaji-bose/

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