According to the central bank, D-SIBs are financial institutions that are large enough where they cannot be allowed to fall.
A failure of any of these banks can lead to systemic and significant disruption to essential economic services across the country and can cause an economic panic.
Therefore, y. In events of distress, the government supports such banks.
In order to be listed as a D-SIB, a bank needs to have assets that exceed 2 percent of the national GDP.
ICICI and HDFC are in first slab while SBI is in third. Bucket five represents the most important D-SIBs.

2. HARBINGER 2021 – Innovation for Transformation

Theme: ‘Smarter Digital Payments’
RBI’s first global hackathon that invites participants to develop solutions that have the potential to make digital payments accessible, Enhance security of digital payments, Enhance ease of payments.
In order to be listed as a D-SIB, a bank needs to have assets that exceed 2 percent of the national GDP.
ICICI and HDFC are in first slab while SBI is in third. Bucket five represents the most important D-SIBs.

3. NEO BANKS

A neobank is a digital bank that does not have any branches. It is entirely online.
Neobanks bridge the gap between the services that traditional banks offer and the evolving expectations of new-age customers. they tie up with RBI lesenced banks to provide services like Banking, Loans, Credit card etc.
Neobanks bridge the gap between the services that traditional banks offer and the evolving expectations of new-age customers.

4. Central Bank Digital Currency

CBDC or Central Bank Digital Currency is a legal tender issued by the Reserve Bank of India.
It is an electronic record or digital token of a country’s official currency, which fulfils the basic functions as a medium of exchange, unit of account, store of value, and standard of deferred payment.
It is same as the currency issued by RBI(Physical form) in digital manner.
It can be exchanged by Cash well.
CBDC will eliminate the need for interbank settlement.

5. Co Lending or Co Originating Model

is a set-up where banks and non-banks enter into an arrangement for the joint contribution of credit for priority sector lending.
Benefits: Lower cost and Greater Reach.
NBFCs are required to retain at least a 20 per cent share of individual loans on their books. This means 80 per cent of the risk will be with the banks — who will take the big hit in case of a default.
NBFCs will be the single point of interface for consumers and they enter into loan agreements with the borrowers.

6. Renewable Energy Certificates

Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable resource.
The REC received can then be sold on the open market as an energy commodity.
REC acts as a tracking mechanism for solar, wind, and other green energies as they flow into the power grid.
In India, RECs are traded on two power exchanges — Indian Energy Exchange (IEX) and Power Exchange of India (PXIL).

7. Waterfall Approach, Agile Approach and Barbell Strategy

Waterfall: an upfront analysis of the issue, detailed planning and finally meticulous implementation.
Agile framework is based on feed-back loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers and so on.
Barbell Strategy is a dual approach that combines two extremes, one safe and one speculative, and typically emphasizes the requirement for antifragility.

8. Inverted Duty Structure

An inverted duty structure comes up in a situation where import duties on input goods are higher than on finished goods.
In other words, the GST rate paid on purchases is more than the GST rate payable on sales.
When manufacturers cannot set off the taxes paid on raw materials against the tax on the final product, the excess tax paid on inputs gets built into the price of the product.This makes an Indian-made product more expensive than the imported finished product, affecting the competitiveness of Indian makers.

9. Credit Deposit Ratio

As the name suggests that it is the ratio which shiows how much a Bank lends out of its deposits it has mobilised.
High ratio means more dependency on deposits for lending purpose as well as high utilisation. Low ratio means Banks are not utilising the deposits properly or they are not earning as much as they can.

10. Important Index/ Report

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